Businesses need every possible advantage in today’s fast-changing and technology-driven economy. This has led many C-Suite leaders to review their operations. They are identifying what creates value and removing processes that no longer support business goals. Google’s recent Simplicity Sprint initiative is one example of how companies are rethinking the way they operate.
One area often overlooked during business transformation is Human Resources. HR plays a critical role in employee satisfaction, engagement, and training. However, it is often excluded from improvement efforts focused on operations, sales, logistics, and management. Organizations should recognize the importance of modernizing HR processes. This can improve efficiency and create greater business value.
The Many Benefits of Re-Inventing HR
An agile HR team can improve both business performance and employee satisfaction. Modern HR is moving beyond traditional hierarchies. It is becoming a strategic partner that helps teams access the talent and resources they need to achieve their goals.
Strategic HR innovation focuses on creating and implementing systems that support long-term business objectives. It also helps address everyday workplace challenges.
Previously, HR was mainly responsible for administrative tasks such as recruitment, hiring, and employee benefits. However, the disruptions caused by COVID-19 changed the role of HR significantly. Today, HR plays a much larger part in helping businesses adapt and grow.
When HR is aligned with a company’s overall business strategy, organizations can better predict challenges and respond effectively. This allows HR to have a greater impact on the company’s future instead of operating as a separate department.
Key benefits of making HR a stronger part of business strategy include:
- Improving employee well-being to support long-term growth for both employees and the company
- Giving leaders the resources needed to carry out strategic initiatives
- Reducing disruptions that waste time and resources or slow down business goals
- Keeping employees engaged and aligned with the company’s long-term objectives
- Creating a clear sense of direction and purpose that improves how work gets done
How to Increase Your HR’s Strategic Impact
The benefits of HR influencing business strategy may sound great in theory. However, putting them into practice may cause concern among C-Suite leaders. Employees at all levels of a company can resist change.
This can be especially difficult in a traditionally defined department like HR. However, the process should not be avoided simply because it may be challenging. HR transformation can and should be done when it supports business goals.
HR as a partner
One way to begin this process is to have HR function as a partner. HR can help companies adopt new organizational models.
By improving key parts of the staffing process, HR can support long-term company goals. These areas may include:
- Re-imagined performance reviews
- Employee wellness
- Skill building
HR can help lead broader cultural or financial changes within the company.
HR can also lead by example. It can move its employees to a more agile working model. In this model, people are assigned work based on priorities instead of job descriptions alone.
Keeping HR tech current
Empowering HR with growth-focused decision-making
Learning from Example: Wistia’s Agility-driven HR Revamp
At the beginning of 2020, Wistia, a video marketing company, updated its HR processes for its 115 employees. The goal was to better align HR with the company’s overall business strategy.
The changes included:
- Moving to a semi-annual performance review cycle
- Creating a single annual compensation review process
- Improving HR systems to better support business goals
Wistia also redesigned its performance review process by:
- Giving employees the option to choose their preferred review format or skip the review entirely
- Removing peer reviews to reduce the workload for employees
- Simplifying manager review questions and providing more time to complete evaluations
By rethinking its review process, Wistia built an HR system that better supported business objectives. It also continued to encourage employee growth and development during a challenging time.
Conclusion
Re-inventing Human Resources is a valuable opportunity for executives to realign company goals and priorities. A company’s workforce is often its greatest asset. For this reason, keeping employees engaged and productive is critical.
Strong HR processes can also reduce the disruptions caused by high employee turnover and poor productivity. By making HR a stronger part of the business strategy, companies can create a better foundation for long-term growth.
About the Company:
Peterson Technology Partners (PTP) has partnered with some of the biggest Fortune brands to offer excellence of service and best-in-class team building for the last 25 years.
PTP’s diverse and global team of recruiting, consulting, and project development experts specialize in a variety of IT competencies which include:
- Cybersecurity
- DevOps
- Cloud Computing
- Data Science
- AI/ML
- Salesforce Optimization
- VR/AR
Peterson Technology Partners is an equal opportunities employer. As an industry leader in IT consulting and recruitment, specializing in diversity hiring, we aim to help our clients build equitable workplaces.
