There are two kinds of human resource people, those who actively try to improve our industry and those who take no interest in moving the function forward, relying on how they have always done things. The very fact you’re reading this means you’re one of the first types. As one of those types myself, I often find myself frustrated with HR at various organizations. I wonder why with all their resources, and abilities are they unable to perform how I see their future. Part of this is simple maturity in our function.
- Accounting began 7,000 years ago. Finance evolved from this over that period into the robust models they use today.
- Sales was a long standard in business, and based on data gathered from there marketing evolved (gaining maturity sometime in the 1950’s)
- Human Resources is still evolving from basic business requirements to what it can be. Similar to these functions HR is going to move forward by seeing financial benefit from the function which sets them apart from their competitors.
So, as you move your organization forward, make sure you reach each of these foundational steps before moving forward. Too often organizations try to jump these steps in order to reach that future state. We need to be willing to go through the full process to being that key business function. Foundational steps to developing human resources.
Basic Business Requirements: Recruiting, termination, basic compensation, employee files, organizational structure.- Risk Management: Developing policies and training to limit the organizations exposure to lawsuits, health and wellness, coach managers on performance management.
- Effectiveness & Measurement: Workforce planning, total rewards, hr metrics and reporting, organizational design, program frameworks.
- Strategic Initiatives: HR analytics, strategic recruiting, organizational design, employee productivity programs.
It’s rough, but I hope this helps with you and your organization, but if you’re getting frustrated with difficulty improving your organization just remember it has taken finance 7,000 to move from bookmarketing to discounted cash flows and net present value.
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