How can hr add value to an organization

Next, I have them hold up their right hand with a fist. Hold up either the right or left hand. We have found in our work that having the right organisation right hand in a fist—the systems within an organisation which create capabilities has four times the impact on business results than that of talent left hand open with five fingers. HR professionals deliver business impact through talent competencies of people , organisation capabilities of the organisation , and leadership the bridge between the two.

Capabilities represent what the organisation is known for and good at doing eg innovation, collaboration, customer anticipation, change, information sensing. These capabilities are created and sustained by the systems around people and performance.

In each and any business dialogue, HR professionals can ask how and offer to improve talent, leadership, and organisation to deliver value to all stakeholders. I have been around HR for many years ahem, decades. We are a field as are others enamoured with shiny new objects, which might include work on high-performing teams, analytics, demographics eg millennials , service centres, etc.

Now digital HR is the topic du jour. To deliver value, HR professionals have to understand that managing in a digital age will require both efficiency and innovation through technology, but it will also require the ability to choose the right digital solutions and to source information and build connection—the emerging steps of the digital age.

For HR to deliver business value, the HR department needs to be organised for both efficiency and effectiveness. To be so, HR departments should match the structure of the business where they work. We have also learned that to operate in a multi-divisions firm, HR has to focus less on roles who does what and more on relationships how we work together.

Over the past 30 years, we have empirically studied the competencies that HR professionals must demonstrate. We have found that HR professionals overall have made enormous progress in their competencies. But we have also discovered that it is not just about having competencies that matters but the impact of those competencies on key outcomes, including personal effectiveness, stakeholder value, and business results. Different outcomes require different competencies eg delivering business results requires the competency of navigating paradoxes.

Finally, if HR is not about HR but the business, then line managers are ultimately accountable and responsible for HR work around talent, leadership, and organisation. These are eight of my ideas for how HR can focus on the business and thus add more value.

Rate yourself on a scale of 1—10 how well you feel you are doing in delivering value to your business. Can my suggestions help you? We all want to feel valued; it is a need embedded in our nature, and plays a huge part in that which keeps us motivated on a daily basis. Often, the role of HR is to make employees feel valued within a company. But what if the value of the Human Resources department is itself called into question? Most of us have dealt with HR at some stage, but the full potential of the HR department often gets confused, or goes unrecognised.

The common perception of HR seems to be limited to making sure staff are hired, paid on time, and made to feel comfortable in their jobs. Budding new technologies are enabling many routine processes to be automated, whilst specialised, external shared-service organisations can provide many traditional HR functions. They aslo handle contracts, and sometimes payroll requiremnets. However these rudimentary HR duties already involve more than first meets the eye. For example, HR are often required to take the appropriate action when a disgruntled former employee files a wrongful termination lawsuit; it is therefore necessary that they keep up to speed with current employee laws to protect their organisations.

This involves developing appropriate interview stages and non-discriminatory screening processes, alongside further employee evaluation tools. However, whilst they may seem like an extra weight to carry, HR departments can prove their overall worth in a number of strategic ways. A valuable HR department is a proactive one; instead of taking a reactive stance where employment conditions are concerned, modern HR strategies are seeing professionals participate more strongly in planning.

But whether orchestrating a radical shift, or a more gradual evolution, HR leadership should function with a strategic eye towards their employees. Within this scope are several functions, such as organisational concerns, common processes, and evaluation of job roles and competencies.

Whilst the department itself may not be one to generate revenue, it can be used as a force for change within an organisation. Because they are experts in performance policies and in labor laws, human resources managers can help you develop performance policies and disciplinary processes that can improve performance and allow you to terminate nonperforming employees without breaking the law. Randi Hicks Rowe is a former journalist, public relations professional and executive in a Fortune company, and currently a formation minister in the Episcopal Church.

She has a bachelor's in communications, a master of arts in Christian education and a master of business administration. Labor Union Vs. Human Resource Management Functions. Share on Facebook. Recruiting and Hiring the Best Talent Choosing employees is key to your business.

Retention and Engagement Human resources managers also know and can help you implement the best practices for keeping employees happy and engaged. FLSA A good human resources manager can add value because she understands labor law and can help you avoid pitfalls. Other Labor Laws HR managers also can help you deal with problem employees to lessen their impact on the organization.