Why Human Resources matters more than ever now?

Every company has reached a point where it feels a need to add Human Resources (HR) to its structure because of today’s dynamic world. Irrespective of the industry, size or the location, companies face multiple business challenges. 

And collectively, this requires the companies to build capabilities. 

The most important question here is that who will fill in this gap of enabling the companies to face these challenges? Of course, HR. 

A joint survey by the Society for Human Resource Management (SHRM) and fellow HR and Labor organisations titled Human Resources Management Policies and Practices in the United States surveyed close to 700 executives in organisations with more than 200 employees and found that 70% of respondents said that “HR has a place on the board of directors,” compared to just 41% in 2004. 

Traditionally, HR Manager  would seek applicants and hire strategically, train managers and employees, resolve issues, streamline the processes and attend to and solve legal concerns.  

But the contemporary role includes being a partner in strategy execution, being an administrative expert and an employee champion, change agent and more.

Anushree Singh, director HR, Label and Graphic Materials, South Asia, Avery Dennison, says, “Till recent times, HR has been partnering with business for building organisational capability. However, due to the changing corporate ecosystem and talent landscape, the entire focus of organisations today has shifted on how to enhance employee experience and make it frictionless. This has transformed the role of HR and made its deliverables extremely critical. HR function has to find creative ways to ensure that organisations stay agile, current and relevant. Needless to say, HR’s role has only become more challenging and rewarding.”

The chart above is surveying 887 executives from 48 countries. It revealed that three out of four organisations that undertook HR transformation have successfully executed complex initiatives. 

Many companies have started investing heavily on HR as there is now a deep understanding that it is an important and mandatory aspect to their business and there are no ‘one-size-fits’ as every organisation has unique requirements.

“It’s a reality that employees are an organisation’s most valuable asset. Their importance has never changed. Transformational workplaces, advent of technology, importance to data-based decision making, continuous change and cut-throat competition have led to HR teams transitioning to a role which is more strategic in nature, requiring them to find the perfect person for the organisation, customer fit and be responsible in contributing to the bottom line. In today’s context, HR has an economic value and investing in a good multi-talented HR professional who is forward thinking and passionate, is the key to organisational success,” says Dedeepya Ajith John, associate director – knowledge and advisory, SHRM APAC.

Dynamic positions, performance capitalisation, gamification, HR chatbots, assessment guided interviews, inside-out practices and many other verticals is what future holds in HR framework.  

Over the last few decades, the HR’s role has evolved in every decade per say, growing not only its own dimension but also the entire organisation and at the same time justifying the return on investments (ROI) in them with equal or additional results. 

Leading organisations today are in fact making targeted investments to develop the capabilities of their employees in order to compete and continue succeeding in the industry where HR is acting as a huge support system in it. Hence, HR matters more than ever and shall continue to.

The writer is manager- HR, SILA