Why Human Resources Makes Up Your Organization? Perhaps we use the wrong moniker to describe what human resource departments are being asked to do in today’s world. While people management remains their core business, much is also drifting towards analytics
Some HR departments operate and are treated as a negative cost centre, an enabler function within their company; put another way, a necessary evil. In some instances, more in smaller companies, when finances get tight, they rely on their management team to perform the hiring. Never mind that they don’t have the skill set. After all, how hard can it be.
In larger corporations the senior executive teams are asking human resources to be strategic business partners. This transformation requires new means of thinking; in some cases, a change in leadership in order to become that partner that will advise on the types of employees needed to fulfill their business plans.
The term Return On Investment (ROI) has traditionally been used at the business line level, but more and more it is being used at the administrative level. So, it is no surprise that questions are being asked in the HR Departments. This can put a chill on some departments that do not perform measurements and only look at their regular duties, failing to measure any performance. In that case, they may not be ready to answer needed questions.
A change in philosophy is driving the rise of analytics. HR Departments cannot be strategic business partners without good data and analytics to enable better and faster decision making. The only way to measure the ROI of an HR Department is through analytics. Just as in baseball, when analytics were first introduced, they provided General Managers and owners with better decision-making tools. In Human Resource Departments, that applies to
( Why Human Resources Makes Up Your Organization? ):
Several years ago, I worked for a very large company (over 50,000 employees) and there came a time when a large group of engineers were moving into retirement age. A decision was made to hire several replacements directly out of school for continuity purposes. After they had been trained and obtained the necessary experience needed, they left for other organizations. So, was that the wrong management decision, or were there other factors that had not been considered? The pay was pretty well equal, but it was the culture that may have been at issue. That’s why it becomes important to do exit interviews and look at the various reasons
When drilling down the data of any of these areas, they can provide meaningful insight. The real benefit of metric analysis is corralled when you can overlap, data from several areas and connect the dots. When done correctly, they may answer questions such as:
Ensuring that the right data is captured and analyzed should be on the top of Human Resources mind set so they can demonstrate that they are not just an overhead expense but a strategic business partner.
So, to answer the title question, Human Resources is more relevant then ever. The questions that still need to be answered is whether that should be outsourced or not. That answer lies in your analytics. We are certainly happy to assist should you decide to outsource a portion or all your HR needs. Come see us and let us become your business partner in HR.
Why Human Resources Makes Up Your Organization?
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