The True Value of HR
Last updated: 2021-05-28 (originally published on 2017-01-10) — by Alex
The rapid advent of technology over the past few decades has completely revolutionised traditional HR roles today. Excel spreadsheets, manual payroll calculations, attendance tracking – these HR paperwork have been made obsolete. Instead, fancy terms such as HRIS, HRMS, and cloud computing have replaced traditional HR processes. Additionally, the number of shared services or third-party organisations, handling classic HR roles such as recruitment and payroll, have been stealthily increasing over the years.
With the automation of HR jobs on the rise, are HR professionals fast becoming archaic? What is the true value of HR in our business place today?
Take this for example:
John was recently promoted to a Human Resources management position at AZ company, an eCommerce and technology startup. John did not have much experience in a HR role and figured tasks and processes out as he went along. When AZ company started seeing rapid growth, he hired twenty people within a one-month time frame in order to meet the company’s talent demand.
Pleased with his feat, he spent long hours brainstorming recruitment and retention strategies, sieving through hundreds of resumes and interviewing candidates as well as planning excellent employee compensation packages. Now, AZ company has sufficient employees to carry out its project demands.
Fast forward a year later, John was told that AZ company is unable to sustain the rapid growth and was making losses. The current projects were almost done and new projects were not coming in. In order to cut losses, some people had to be let go. John felt extremely frustrated that he had gone through so much effort to hire people and now, they were going to be laid off. He also felt bad for those who had given up other jobs only to have worked for less than a year with AZ company.
Learn more: Dismissing Employees
On hindsight, John reflected that if he had spoken with the top management earlier – find out the duration of the projects, determine the estimated capital and resources that the company is willing to fork out – he would have been able to plan his manpower resources differently. For instance, hire people on a contractual rather than permanent basis. Additionally, the company could have hired the help of an external agency to recruit workers for him. John learnt that he had to work closely with the company’s top management to be aligned with the business strategy and develop an appropriate human resource management strategy to ensure that AZ company has the right number of workers, with the right skills at the right time.
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This is but one of many anecdotes to illustrate how strategic HR is imperative towards the success of your business to succeed. The key to supporting business functions lies in making use of basic HR tools such as organisational redesign, job redesign and business process redesign to contribute to the organisation’s overall business strategy. However, this does not necessarily mean that traditional HR functions such as payroll, benefits administrations etc. can be ignored. Forward-thinking organisations must adapt to new technological advancements and automate (or partially-automate) such functions so they can focus on supporting and executing the strategic aspect of building up their organisation’s capability.
Such a role is one that cannot be automated or outsourced. This is where the true value of HR lies.
This a guest contribution submitted by Gpayroll. The views expressed here are of the author’s, and Zegal may not necessarily subscribe to them. You, too, are invited to share your point of view. Learn more about guest blogging for Zegal here.
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