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Q. How does HR add value to an organization and how can this value be optimized?
A. As a strategic partner to the leadership within an organization, HR can truly optimize the human potential of an organization. The two major ways that HR does add value and alignment for a company is first in optimizing the human efforts and skills within an organization. And second, by offering the proper information and guidelines to keep these efforts and the total organization in line with success that is on the right side of the law.
A1. First, as the true people manager, HR not only recruits top talent to the organization but they also help onboard, check in with, push for professional development, and maintain people engagement throughout employees time with the company (Sondhi, 2018.) According to an older Forbes article, after the collection of data from a 20 year study, HR’s focus on optimizing human capital does effect the organization’s overall success; “The link between human capital and performance is 71% stronger for organization-specific skills than for general industry-wide skills” (Bailey, 2012) To become more valuable in this aspect, as an HRM it is important to understand their own capabilities in the human capital focus. More specifically, it is important for HRM to understand when they can rely on their own expertise for recruitment or when it is necessary to rely on specialized recruiting agencies to bring in high-levels of talents for roles such as technology, engineering, or scientific roles that they may not fully understand the market on. HRM does not need to rely solely on recruiting to optimize the human capital, but by understanding their capabilities they can have more success with the support of agencies for more specialized roles.
A2. Secondly, as a partner to a global or national organization, HR does have to ensure that the company has the proper tools to make decisions and execute plans, on the right side of the law that can affect the overall success. As a partner, HR not only understands the organizations goals, mission, and strategy but they’re communicating that to every level to ensure the entire organization is on the same page (Sondhi, 2018.) At the same time, they’re also checking and ensuring that every decision and every execution is up to standard and the legalities of the areas that they are operating within (Sondhi, 2018.) One way to optimize their knowledge and their ability to consult on these matters is to keep an Employee Law Attorney on retainer to assist in situational decision making (MaxPeopleHR, 2019.) This method not only maintains the HRM’s knowledge on the proper legalities but it can expand it as well as bring in added reassurance that all activities are following the proper protocols. A successful HRM can rely on their own knowledge and training to help optimize their organization, but they should also create a stronger team around themselves to ensure even greater success.
Bailey, S., & Forbes. (2012, October 22). Does HR Add Any Value? Retrieved October 4, 2019, from https://www.forbes.com/sites/sebastianbailey/2012/09/20/does-hr-add-any-value/#7ab85d1c2895 (Links to an external site.).
MaxPeopleHR. (2018, August 08). Why HR Professionals Need to Know Employment Law. Retrieved August 22, 2019, from https://maxpeoplehr.com/human-resources-professionals-need-know-employment-law/
Sondhi, P., & Entreupreneur. (2018, April 30). 5 Important Guidelines to Increase HR Values In Your Organization. Retrieved October 4, 2019, from https://www.entrepreneur.com/article/312696 (Links to an external site.).