Wednesday, January 26, 2011

HR as a Business Partner

Human Resource professionals have long been requesting a “seat at the table” when it comes to strategic and business planning. However, HR has a history of being viewed as an "overhead" department. Just an expense, like the electric bill, necessary to keep the business running. Oftentimes the HR department is understaffed or staffed by employees with little expertise in the field. “Top management frequently thinks that anyone, regardless of background and experience, can do HR management, as long as he or she has an IQ in at least the double digits. Consequently, whenever top management has an executive manager that is no longer useful, they will throw him over to the HR department-after all, what harm can he do there?”

Do I need to point out that HR reaches and impacts every department every day? Whether it be in sales, administration, customer service, or finance, HR is responsible for the entire “human resources” of the organization. HR recruits the employees, hires them and trains them. HR ensures that the best performers are retained to ensure profitability is maintained. HR provides the organization with the human “resources” necessary to successfully run the organization, thereby having a direct impact on the bottom line of the organization.

Break the Cycle.
Human Resources needs to be respected by upper management in order to be viewed as a true business partner and not an inefficient staff function. This respect has to be earned by being a high-performing department, demanding respect for its performance and expertise.

To be a business partner, Human Resources needs to be an active participant in running the organization. This can only be done by understanding the business goals of the organization and aligning with those goals. Human Resource departments are only taken seriously when their activities are related to bottom line results. The function of Human Resources is not only to help and take care of employees, but also to align the people with the strategic plans of the organization. The HR department and its functions must continue to evolve to meet the challenges of today’s business, technology, and workforce.

When this is done, Human Resources is truly a business partner.

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