3 Ways Strategic HR Can Bring Business Value

3 Ways Strategic HR Can Bring Business Value


(Editor’s Note: Today’s post is brought to you
by our friends at Paycom, a leading
provider of cloud-based human capital management software. They were recently
recognized by Glassdoor with an Employees’ Choice Award as one of the best
large-sized companies in the U.S. Congrats
to them! Enjoy the article.)

According to the
Bureau of National Affairs, employee
turnover is costing U.S. businesses an estimated $11B in lost revenue. It’s probably not a surprise that
turnover is expensive. What might be surprising is how expensive turnover can
be. And while HR departments are traditionally responsible for calculating
turnover rate, they are not typically responsible for that result.

Statistics like turnover
are both a strategic imperative for the business and an opportunity for HR. We
have an obligation not only to share the numbers but lead the discussion about
employee recruitment, engagement, and retention. We’re considered to be the
resident experts in these areas, and we
can use our expertise to bring value to the bottom-line. Here are five activities to consider
using when we want our ideas to be heard.

5 Activities to
Demonstrate Strategic HR

1. Understand the business. We often use a PESTLE analysis to gain insights about the business. PESTLE being an acronym for political, economic, social, technology, legal, and environmental. Why not use the information we discover during PESTLE to build a business case for your ideas.

Let’s take the
turnover example that I mentioned above. What if part of the challenge is that
organizations have too many technology solutions that aren’t speaking to each
other? Employees are doing double (or triple!) the work? Paycom has a “Cost
of Multiple HRIS Systems” calculator that can help put those numbers together. We
know employees today want a technology experience that mirrors the one they
have in their personal lives. Businesses need to ask themselves whether they
are delivering an excellent employee experience.

2. Speak your company’s “love language”.  Author Gary Chapman’s 5 Love Languages concept says to effectively express yourself, you must understand how others receive and process information. The business application of Chapman’s book is know your audience. This ties into first activity about understanding the business. Once we know what’s going on, then we can refer to problems and solutions in the same context as other managers and executives.

The time to make sure
every employee is speaking the same language is during orientation and onboarding.
When I worked at the airline, we gave new employees a glossary. The industry
was full of jargon! I left a company where AP meant accounts payable and went
to a company where AP represented airframe and powerplant mechanic. Big
difference!! Think about the
cost of your onboarding program and how speaking the same language adds value.  

3. Think “how”. I believe the way to create high performance is by having a BHAG (big hairy audacious goal). Everyone agrees on the goal and works together toward achieving that goal. But frankly, organizations aren’t going to achieve their goals if they spend more time talking about what they can’t do (versus what they can do). It reminds me of an employment attorney who, whenever I called with a question would ask, “What do you want to do?”. Ninety-nine percent (99%) of the time, we could do what we wanted to do.

In thinking about
employee recruiting and retention, this might also be a good time to discuss whether
the organization would have a better chance of success if a technology solution
was able to reduce
the amount of manual processes currently in place? How can we create an employee
experience that makes people want to stay?

4. Support customer-friendly policies. In number three (above), we talked about solutions. It’s important to note that the answer to every problem isn’t to create a new policy. In fact, I think the more time I spend in HR, the more I think the first question organizations need to ask is “Do we need a policy or procedure about that?” because I wonder how many organizations might answer “not really”.

But if after thinking
really hard about it, the answer is “yes”, then by all means…write a policy. Sometimes
there’s a cost to noncompliance. However, it is possible to be compliant and
customer-friendly at the same time. It takes understanding the business (see
number one). HR pros are in a perfect position to guide the organization on
this point.

5. Solve the people problems that impact the business. Readers of this blog know that I love metrics. Over time, I’ve come to realize that there are stages when we need to use people analytics to gather the right data and create actionable results. Like when we’re trying to help the business find and retain the best talent.

This is ultimately our
goal. HR’s strategic role is to help the organization solve their people
challenges. Because when we do, that benefits the bottom-line. The first rule
of solving business problems is to get buy-in. Not only from senior management
but from employees. For example, we’ve been talking about using
technology to improve the employee experience (and reduce turnover). Well, if
employees don’t buy-into the solution…then the problem didn’t really get
solved.

Bring Your Strategic HR Value!

I didn’t want today’s
article to be one of those typical “human resources professionals need to bring
value to the business” articles. Everyone who works for the company – including
HR – needs to bring value. I did want to share some ways that everyone –
including HR – can bring strategic value. They’re good reminders no matter
where you are in your career.

And I wanted to share
with you the Paycom calculators. I know many HR pros are looking for
opportunities to quantify what they already know anecdotally. I find that this could
be a great resource.

If you’d like to learn more about how human resources can bring more strategic value to the business, check out this Paycom webinar recording “Discover What Strategic HR Can Do for Your Organization”. It is pre-approved for one professional development credit (PDC) from the Society for Human Resource Management (SHRM).

Image captured by Sharlyn Lauby while exploring Paycom in Oklahoma City, OK  
The post 3 Ways Strategic HR Can Bring Business Value appeared first on hr bartender.
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Author: hrbartender
Date/time: 25th February 2020, 18:01

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About Christian

Talent Scout, Human Resource Management, Talent Management , Learning & Development, Organisational Development, Change Management, Psychology, Neuropsychology.

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