Making the Case for a HR business partnership
As
HR departments start to shrink, here’s how HR professionals like
yourself can become a better business partner in the workplace. By Lisa
Cheong
In a time when improving work productivity is everything,
it comes as no surprise that HR departments are shrinking in size. While
the old HR departments were staffed with personnel administrators
tasked to perform administrative tasks, companies are now outsourcing
these tasks to cheaper locations, cheaper vendors or simply making them
more efficient through the use of information technology systems.
So what are some ways to become more effective and strategic in your job?1) Get an outsider’s takeTake the time to understand how the company and how the senior managers
perceive HR and its business value. To obtain a 360-degree view of how
the HR function is perceived, request for time with decision-makers,
such as the CEO, CFO and other heads of departments to understand their
job priorities, work and manpower-related challenges. These
conversations will enable you to get a deeper understanding of how the
HR function can improve to provide better business value to the company.
2) Save your (company's) time and money Reduce
your amount of administrative HR clutter. You can do this either by
buying an information technology system, building upon an existing one
or outsourcing the process out to a vendor. Some of the usual
time-consuming functions companies often manage include payroll,
attendance and pay leave.
Automating certain HR processes can
empower line managers as well. Instead of paper leave systems where
employees fill out paper forms stating their reasons for leave, an
online e-leave application system that gives approval control to
managers will increase managers’ say and control over their departments.
It also speeds up the leave approval process too.
Due to the
economies of scale, bigger companies obviously stand to gain greater
benefits from outsourcing. But that is not to say that small companies
will not benefit at all. An American survey conducted by the Society of
Human Resource Management found 89 percent of HR practitioners customers
reporting that outsourcing helped significantly reduced the time it
took to for HR practitioners to perform HR transactions. Companies with
less than nine employees said they saved seven hours on HR transactions
per week saved, while organisations with more than 100 employees saw the
greatest benefits with savings of more than 48 hours each week.
3) Generate higher retention levelsIn
the current war for talent, one of HR’s most valuable service to the
business is helping raise employees' retention rates. Replacing an
exiting employee can be expensive, costing anywhere from 30 to 250
percent of an employee’s annual compensation after one takes factors in
figures such as a loss in business performance, customer satisfaction
and the cost of recruitment and staff on-boarding.
When
developing retention plans, one trap HR practitioners and business
partners fall into a trap thinking that employees are solely driven by
money. Although it is true that money ranks as a high priority, many are
also driven by other factors such as a fulfilling job, work-life
flexibility, job autonomy and having a good supervisor.
In order
to develop a retention programme that works, one must first get to the
bottom of what really appeals to the employees. If you have a company
full of young Gen Y workers, introducing flexi-work hour scheme may not
appeal to their needs and goals. Similarly, subsidizing gym or club
benefits may not sit well with the more mature workers in your company.
4) Talent development is in your handsAs
companies struggle to fill their leadership gaps, HR practitioners
should take active steps in engaging high-potentials, while carving out a
long-term succession pipeline for the company.
A good talent
management programme first needs a benchmark on which companies can
choose future leaders and high-potentials. By examining the common
traits and values of the company's best-performing employees, HR
practitioners can help use this to create a blueprint for the
high-potential selection process. By seeking out potential leaders and
managers, and investing more time, effort and training dollars in this
group of people, it helps highly-driven employees define a career path
for them within the company while engaging them at the same time.
HR
practitioners can also use information system tools to help in their
talent management role, making it easier for them to automate and
streamline talent management processes such as applicant tracking and
goals management. The use of performance management tools can also help
line managers execute performance reviews, career and succession plans,
while aligning employees' career goals.
Coaching and mentoring
leaders and middle-managers is also an effective way of raising the
organisations' leadership capabilities. As the business landscape
becomes more complex, helping leaders improve on their soft skills and
navigate through tricky work decisions will become an valuable HR
service to the business.
5) Improve your HR skillsBecoming
a successful business partner may entail strategic thinking on issues
such as change management and organisational development. For some HR
practitioners, the ability to perform at a management level would
require an upgrade in their business skills and proficiencies.
One
good way is to attend short business classes or undertake Executive MBA
courses where you can learn more about the business undertakings that
go beyond the HR cubicle. Another way would be to improve on your soft
skills such as negotiation tactics and presentation skills.
ConclusionWhen
trying to win top management buy-in, always keep in mind that any value
HR brings to the table should always have a tangible benefit to the
business. Keep in mind the perennial question lodged in the back of your
senior management’s minds: “What’s in it for us?”.
Whether it is
a lower attrition rate, a higher employee engagement rate or a higher
level of customer service, always sell your proposals and ideas as
something which would help your company achieve its organisational
goals.
But becoming a strategic HR business partner is not
something that can be achieved overnight. Rather, it is a long and
hard-won journey in winning the support and validation of your company’s
senior management and employees alike.