Niki is director, service operations with Insperity. She specializes in employee onboarding, human capital management and HR infrastructure.
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The human resources (HR) function is one of the most unique areas in the workplace that continually reinvents itself and evolves to meet the ever-changing needs of businesses and their workforces. In fact, the evolution of HR from a personnel department handling payroll and employee records to an HR department managing talent and corporate culture is one of the most significant transformations we've witnessed in the business world.
With HR hitting its stride in the past 10 years and being propelled into the global spotlight as a result of the pandemic, the function has reached higher levels and gained more credibility and respect, leading to strategic HR roles that help guide companies with great people and programs.
In order to maintain these strategic levels and further advance the discipline, it is critical for HR to take a purpose-driven approach that intersects with corporate strategy to help boost business success. Below are four areas HR leaders should consider for purpose-driven HR practices.
Understand The Big Picture
Many organizations operate in silos to accomplish departmental goals that support company objectives without providing managers and employees with an understanding of the big picture. Although this approach might work for many groups, it is counterproductive for HR, especially given that HR touches every aspect of business operations. For HR leaders to be effective and pursue purpose-driven HR practices, it is imperative for them to know and understand short- and long-term goals.
For example, HR cannot operate in a vacuum to recruit and hire the best candidates to support the current and future needs of the business and/or to address a skills gap within the existing workforce. When HR is in the loop, all recruiting/hiring/retention efforts should align with the corporate mission, values and goals to identify ideal candidates and retain top performers. HR leaders who hone their business acumen skills and understand the big picture are better able to translate the company’s goals into HR tactics that promote organizational strategy.
Embrace Strategic Thinking
Once HR leaders know the company’s long-term goals, one of the biggest steps they can take to chart a course toward purpose-driven HR practices is to change their mindsets and embrace strategic thinking skills. HR leaders who demonstrate an ability to think outside the box to develop HR processes, programs and procedures that have an impact on the entire organization—lifting it to higher levels—raise the bar to establish HR as a critical component to business success.
For example, HR leaders who think strategically understand that employee turnover not only affects performance, but also has a costly impact on the bottom line, which leads them to identify ways to improve employee engagement and help reduce turnover. While the days of managing employees with repetitive paper-pushing and record-keeping responsibilities are long gone, the transformation has created exciting opportunities for HR leaders to take action that makes a measured difference in organizational success.
Ensure Alignment
When HR leaders pursue purpose-driven HR practices, they take deliberate actions to ensure alignment across all HR initiatives for a unified approach that creates synergy and elevates HR to strategic levels. Everything from talent acquisition and performance management to training/development programs and succession planning should be viewed through a strategic lens. With a focus on impacting company goals through HR methods, HR leaders should evaluate existing programs and develop new ones that take into consideration tangible ways that HR contributes to the greater good of the company.
For example, strategic HR leaders use HR technology to ensure alignment related to recruiting efforts, hiring practices, onboarding programs and training initiatives that result in consistent HR practices and clear messaging throughout the company. Highly efficient and effective HR processes can have a positive impact on the employee experience, company culture, employee performance and brand awareness that affects top- and bottom-line growth. When HR is firing on all cylinders, it boosts the efforts and performance of the entire company.
Establish Measurement Criteria
One of the advantages of purpose-driven HR practices is the ability to establish measurement criteria to obtain results and tweak programs accordingly for optimal success. Historically, it has been difficult to determine the ROI of HR because it was more of an administrative function rather than strategically tied to company goals. Purpose-driven HR practices can be structured with a measurement component to track key performance indicators that have a direct impact on the company’s bottom line.
For example, employee turnover rates can be used to measure direct supervisory skills/training and hiring decisions. Employee performance can hinge upon onboarding processes and feedback/review methods. Internal promotion rates may be used as indicators of hiring decisions and training programs. Absenteeism rates reflect the effectiveness of health/wellness programs and work-life balance initiatives. Employee satisfaction/engagement indexes can be early predictors of performance/productivity issues, low morale and increased turnover. HR leaders who encourage HR processes/programs that can be measured/tweaked are not only enhancing employee experiences and company success, but they are also displaying business acumen and an ability to think at higher levels.
When HR leaders take deliberate steps to develop and implement purpose-driven HR practices that strategically align with company goals, they are not only raising the bar for their organizations, but are also advancing HR as a trusted partner for sustained business success.
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