The purpose of HR

As an internal function, HR is frequently questioned on its value and purpose. Every so often, people see the function as existing purely to defend the business, and back-up management decisions. In this article, we explore this view, and provide an alternative picture of the purpose of HR.

The landscape of the HR profession is far reaching, but overall, we are a people profession. But internally, sometimes data, analytics, experience and knowledge are lacking and HR ends up functioning in a reactive, supportive role assisting with disciplinaries, grievances, and all sorts of employee relations issues.

In recognition of a wide reaching role, the Chartered Institute of Personnel & Development (CIPD) tell us, HR practitioners are required to understand how to strategically manage human resources in line with the organisation’s intended future direction.

At Emphasis we encourage all HR departments to have a strategic plan in place, no matter the size of the business. A strategic plan allows HR to operate at a higher level and positively contribute to the growth and development of the business. A fully worked through plan communicates the changes to be implemented to raise the performance and contribution of everyone.  This vision and plan helps minimise the somewhat traditional and slightly negative view of the role of HR.

What is an HR strategy?

• A plan which details how you will deliver business results through people
• A road map of how you will utilise the various HR levers to drive the business forwards
• A clear link between the business plan and the people in the business
• The catalyst for creating learning and development opportunities
• The investment plan defining when and who you should be investing in

What data should HR report on?

• The take up of benefits
• Salary benchmarking
• Training and development – ie completion rates and evaluation of training courses
• Recruitment – such as the length of time it takes to fill a vacancy
• Culture, engagement and retention – ie turnover rates (per department) and absenteeism figures

Having a plan which focuses on future direction aligned with the business plan, provides accountability within the HR to achieve specific objectives. Reporting on HR data allows the business to identify any issues and plan for future success. It can support increased engagement and can help the business save money. It helps employees to be heard and their value to be seen.

There will always be a need to manage employee relation issues but through the clear communication of the HR plan, it avoids the somewhat negative view that HR is solely being there to back-up management.

Join us to find out more information about the value and purpose of HR at our Business Owners and HR Forum on Thursday 5 May 2022 during which we will be discussing HR strategy.  Or contact the team to find out how we can support you, or your existing HR team.