In the past, Human Resources might have been seen as just responsible for office parties and organizing paychecks, but as leaderships realize that people are their most important assets, HR has gained a more strategic seat at the table.
As companies grow their teams, recruitment processes and talent management become priorities, and investing in HR becomes essential in order to develop the best professionals and drive the organization forward.
Strategic HR
Strategic HR is basically taking actions that are aligned with the company’s long term goals. It involves planning ahead, so that HR acts proactively instead of reactively when faced with challenges.
A strategic HR differs from the “traditional” Human Resources department because it optimizes talent management by relying on data analysis and proactively suggests improvements to the organization, workplace environment and employee development.
This is possible if the company invests in technologies that allow Human Resources to achieve this level of forethought and planning.
HR during crisis
During crisis, it is common to reduce staff, and that can also directly affect investments in HR. However, as Human Resources acts as a bridge between employees and the employer, it is in these moments when HR can step in and effectively act to resolve conflicts and find ways to keep motivation and drive up despite challenges..
Important functions of HR
Recruiting the right people
Hiring the right people for the job is not easy. Companies can receive thousands of CVs for each role they need to fill, and need to assess candidates correctly to ensure the best talent is hired in an effective and faster manner – all while keeping hiring processes fair and transparent. In order to do so, it is important to invest in technology that can help make the hiring process more assertive.
Talent Management
Human Resources is also responsible for managing and retaining talent after they are hired and brought up to speed via onboarding. It’s not just about salaries: people spend a considerable part of their lives working, and thus need to have an overall positive experience, by being given challenges and further developing their skills. Companies that are quick to spot when workers are ready for a promotion, or if something is causing them to disengage, are more likely to prevent turnover and ensure the organization’s growth.
Employer Branding
Nowadays, people have high expectations and standards for where they want to work. Having a good reputation of valuing, respecting and developing talent is a must for companies that want to attract the best candidates. And HR is responsible for creating and enforcing policies that ensure good working conditions, as well as working with marketing to show what it is like to work in the company.
Organizational Climate
When investing in HR, companies also seek to improve organizational climate. When employees feel valued and safe within the workplace, they are more likely to express their true thoughts, and this is a great environment for creativity. When leaders and teams are able to build trust, it is easier to identify issues, and come up with solutions for them.
HR KPIs
With technologies to support the process, it is easier for HR to keep track of important KPIs for the company and ensure initiatives are on track to success.
Benefits of investing in HR
Here are some benefits of investing in HR:
- More efficient and effective hiring processes;
- Greater alignment of HR processes with company goals;
- Turnover reduction;
- More collaboration with other areas;
- Cost reduction;
- Talent development;
- Support in decision-making.