Are you aware of the big debate which says that the Human Resource (HR) department should shed its bureaucratic reputation and become more strategic? This bring us to the question – what role does HR department play? Recruitment, retention, training, compensation are the few functions that come to mind. Does this mean that HR is purely an administrative unit? And why’s there a need to become more strategic now? 

 

There’s no doubt that HR does have a central administrative role to play. The problem lies in the fact that HR is pretty much stuck into the administrative rut and most often cannot look beyond. The growing global digitization, shifting demographics and pressures on organizational culture require HR to deliver administrative functions more strategically keeping business goals in mind.

 

According to a McKinsey Research Report, the HR department can boost their effectiveness and make a greater contribution to their organization by getting more strategic and operating with an edge. What this essentially means is that HR should take on greater responsibilities. Instead of performing HR functions as mere administrative tasks, it should strive to make a greater impact on the organization. 

 

How can HR achieve this? By helping managers to lead. 

 

HR should provide high quality and timely information about the talent gaps between the current employee base and future needs. They should provide a flow of qualified candidates thereby enabling managers to make effective hires. Instead of always reinforcing compliances and policies, HR should provide consultation in areas of compensation, reward systems and change management. 

 

Consider the case where HR traditionally positioned itself as a mediator between managers and employees in case of a conflict. Instead of resolving the problem for them, HR should empower them with skills, best practices and information so that they can resolve the problem between themselves. 

 

MYB believes that an HR department can best serve the organization’s interest by analyzing and sharing data, building skills, developing leaders and providing in-house timely consultation. The idea is to assert expertise and strategic thinking in a low-profile and non-intrusive way.