In recent years, specialized HR Centers of Excellence (CoEs) have been transforming traditional HR roles into strategic, value-driven functions. They provide the essential tools, data, and frameworks that empower HR Business Partners (HRBPs) to blend people strategies with broader business objectives. In other words, creating synergy between HRBPs and CoEs is key to modern HR management.

Contents
What is the HR Center of Excellence (HR CoE)?
HR Center of Excellence model
Benefits of implementing an HR CoE
HR CoE examples
Best practices for implementing HR CoEs
How HR Business Partners and CoEs can work together

What is the HR Center of Excellence (HR CoE)?

An HR Center of Excellence (HR CoE) is a specialized team within an organization’s HR department focused on developing and implementing best practices, strategies, and tools in specific areas of HR expertise, such as compensation and benefits or learning and development. It ensures that HR activities are efficient, effective, and aligned with the organization’s goals.

For example, an HR CoE might conduct market research to design competitive compensation packages, develop leadership training programs, implement performance appraisal systems, and utilize data analytics to monitor HR metrics. By doing so, it helps drive organizational success through improved HR practices and strategic initiatives.

Key features of an HR CoE include deep expertise, innovation, collaboration, scalability, and a focus on continuous improvement. It aims to optimize HR processes, promote diversity and inclusion, enhance employee engagement, and leverage HR technologies like HR Information Systems (HRIS) and talent management software.

HR Center of Excellence model

The HR Center of Excellence (HR CoE) is a critical component of the HR Business Partner model, together with HR Business Partners, HR Shared Services, and HR leadership.

Reporting structure

Typically, CoEs report directly to the Chief Human Resources Officer (CHRO) or the Talent Management function within HR. This direct reporting ensures that CoEs align with the organization’s strategic goals and effectively implement HR initiatives.

Total Rewards and Talent Management are the most prominent COEs, with 89% and 80% reporting directly to the CHRO, respectively. Other COEs, such as Talent Acquisition, Learning and Development, and DE&I, also frequently report to the CHRO, further emphasizing the importance of centralized oversight for these critical areas.

HRBPs work closely with CoEs, acting as intermediaries between business units and HR to ensure that HR strategies are well-executed and meet business needs.

Setup

Organizations can structure their HR Centers of Excellence (HR CoEs) in various ways depending on their size, complexity, and strategic goals. There are two common approaches:

For example, a large multinational corporation may have multiple specialized HR CoEs to address its diverse and complex needs. In contrast, a smaller organization might opt for a single HR CoE that integrates multiple functions under one umbrella to maintain efficiency and cohesion.

The changing role of HR CoEs

The role of HR CoEs is evolving to meet modern business challenges. Traditionally, CoEs worked somewhat separately from daily business operations. Now, there is a shift towards making CoEs more agile and integrated with business units.

The original Ulrich HR Business Partner model, introduced by Dave Ulrich in 1996, consisted of three key elements:

• HRBPs, who worked closely with business leaders to align HR strategies with organizational goals
• CoEs, responsible for specialized HR functions such as talent acquisition, learning and development, and compensation
• Shared Service Centers, which handled transactional HR tasks like payroll and benefits administration.

As the HR landscape and business needs evolve, the role of Centers of Excellence (CoEs) in HR is also changing.

HR CoEs are becoming smaller, expert teams that support HR Business Partners in a more flexible and dynamic way.

Modern HR CoEs focus on practical solutions that directly impact business performance. They emphasize data and analytics, strategic workforce planning, and diversity and inclusion, aiming to enable rapid organizational transformation and effective, personalized HR services. This shift reflects a broader trend towards agile, data-driven, and employee-focused HR models.

This change helps CoEs respond better to complex and uncertain business environments. They can continue to add value and drive organizational success​ in an effective and efficient way.

Benefits of implementing an HR CoE

If implemented well, HR CoEs bring notable benefits to organizations.

• Efficiency and effectiveness in HR processes: HR Centers of Excellence enhance efficiency by centralizing expertise, standardizing processes, and leveraging advanced technology to streamline operations and reduce costs.
• Innovation and best practices: CoEs are often at the forefront of implementing HR innovations and best practices, driving continuous improvement and ensuring the organization stays competitive.
• Improved decision-making: With access to specialized knowledge and data analytics, HR CoEs can provide more informed and strategic decision-making support to business leaders.
• Enhanced talent management: CoEs focus on strategic talent acquisition, development, and retention initiatives, ensuring the organization attracts and retains top talent.
• Scalability: CoEs develop scalable solutions that can be adapted across various parts of the organization, ensuring consistency and flexibility in HR operations.
• Employee experience: By implementing best practices in employee engagement, learning and development, and performance management, CoEs help create a positive and productive work environment.
• Strategic alignment: CoEs ensure that HR strategies are closely aligned with the overall business objectives, contributing to the achievement of organizational goals.
• Cost savings: By streamlining HR processes and utilizing advanced technologies, CoEs can reduce administrative costs and improve the overall cost-effectiveness of HR operations.
• Risk management: CoEs help mitigate risks by ensuring compliance with legal and regulatory requirements and by implementing standardized policies and procedures.
• Agility and responsiveness: CoEs enhance the HR function’s ability to quickly adapt to changes in the business environment, ensuring the organization remains agile and responsive to market dynamics.

HR CoE examples

Let’s take a closer look at what HR CoEs do within specific HR domains. As mentioned above, these can either be multiple functions under a single CoE or multiple specialized CoEs.

Employee Experience (EX) CoE

This CoE focuses on understanding and improving the employee journey by collecting and analyzing employee feedback and integrating these insights into business operations. It centralizes employee listening efforts, develops an EX vision and roadmap, manages core EX programs like engagement pulses and exit interviews, and ensures data privacy.

The EX CoE also collaborates with different departments to create an employee-centric culture to improve overall employee satisfaction and productivity.

Recruiting CoE

The recruiting Center of Excellence specializes in creating and maintaining effective hiring processes to attract top talent. This includes establishing clear recruitment goals, developing and implementing best practices for hiring, and ensuring consistency in recruitment processes.

Other important activities are eliminating bias, introducing inclusive practices in hiring, and continuously improving the recruitment process through regular feedback and performance metrics. It also standardizes hiring practices and integrates new recruiting technologies to enhance efficiency and effectiveness.

Learning and Development (L&D) CoE

The L&D CoE concentrates on employee training and professional development. It designs and implements training programs, develops leadership development initiatives, and manages learning management systems (LMS).

The CoE works to align training programs with organizational goals, ensuring that employees have the necessary skills and knowledge to perform their roles effectively. The CoE also evaluates the effectiveness of training programs through regular assessments and feedback and continuously updates and improves learning strategies.

Compensation and Benefits CoE

The role of the compensation and benefits CoE is to manage the development and implementation of competitive compensation packages and benefits programs. This CoE conducts research to benchmark salaries, designs incentive programs, and ensures that compensation practices comply with legal requirements and industry standards. 

It also focuses on creating benefits programs that boost employee wellbeing and satisfaction, such as health insurance, retirement plans, and wellness initiatives. The CoE regularly reviews and adjusts compensation strategies to attract and retain top talent.

Talent Management CoE

The talent management CoE oversees the development and implementation of strategies to manage and develop talent within the organization. This includes succession planning, performance management, and career development initiatives.

This CoE identifies key talent within the organization, creates development plans to nurture this talent, and ensures that performance management systems are effective and aligned with organizational goals. It also focuses on creating a culture of continuous feedback and improvement to drive employee performance and engagement.

Best practices for implementing HR CoEs

If you’re considering implementing an HR CoE or improving the operation of your existing one, it’s essential to follow best practices to drive HR effectiveness and, ultimately, organizational success. Here are some key best practices to guide you:

1. Rethink your HR operating model: Assess the current state of your HR operating model and determine how HR CoEs will fit into its future version. Consider the alignment of CoEs with overall business objectives and the integration with existing HR functions.
2. Engage leaders to get their support: Clearly communicate the vision and purpose of the HR CoE to all stakeholders to gain buy-in and support. Involve key stakeholders early in the process to build commitment and address any concerns. Leadership support is crucial for the successful implementation and sustainability of the CoE.
3. Secure adequate resources: Ensure sufficient funding and resources to support the CoE’s activities and initiatives. Invest in the right HR technologies and tools to enable efficient and effective operations. Proper resourcing includes financial investment, skilled personnel, and technological infrastructure.
4. Create a structured implementation plan: Develop a detailed implementation plan that includes role changes, upskilling of CoE HR employees, clear milestones, timelines, and transitions. A structured plan helps in managing the change effectively and allows for smooth execution of CoE initiatives.
5. Measure the success: Establish key performance indicators (KPIs) that align with organizational goals to measure the CoE’s impact. This can be, for example, cost savings or revenue growth attributed to CoE activities, such as reduced turnover costs or increased sales from better-trained employees. Regularly track and report on these metrics to assess the effectiveness of the CoE and make data-driven improvements.
6. Focus on continuous improvement: Commit to continuously improving CoE processes and practices. Regularly review and refine CoE activities based on feedback and performance data. Encourage innovation and adaptability to stay ahead of industry trends and organizational needs.
7. Promote collaboration and integration: Ensure that the CoE collaborates effectively with other HR functions and business units. Foster a culture of teamwork and integration to leverage the full potential of specialized expertise. Clear communication and collaborative efforts are essential for achieving integrated HR solutions.
8. Develop expertise and specialization: Hire or develop employees with specialized skills and knowledge relevant to the CoE’s focus area. Continuous learning and professional development are key to maintaining high levels of expertise within the CoE.
9. Standardize processes and practices: Establish standardized processes and best practices for all key activities within the CoE, such as talent acquisition, employee onboarding, performance management, and training program development. Document these standards to ensure consistency and scalability across the organization. Standardization helps in upholding quality and efficiency in CoE operations.
10. Communicate value and impact: Regularly communicate the CoE’s value and impact on the organization. Highlight success stories, improvements, and contributions to business objectives. Effective communication reinforces the CoE’s importance and helps maintain organizational support.

How HR Business Partners and CoEs can work together

The success of HR CoEs heavily relies on their collaboration with HRBPs. This ensures that HR initiatives are aligned with business needs and can be implemented smoothly. In the HR Operating Model Report by Talent Strategy Group, 56% of companies reported that HRBPs and CoEs work well together, leveraging CoE expertise in talent management, total rewards, and people analytics. 

In successful partnerships, HRBPs focus on strategic advising, while CoEs handle specialized tasks; this reduces conflicts and clarifies roles. Collaboration ensures that HR initiatives are effectively implemented, supporting overall organizational goals and improving employee satisfaction.

However, 44% of companies still struggle with the HRBP-CoE relationships. To strengthen this collaboration, several strategies can be employed:

• Strategic collaboration: HRBPs and CoEs should align on business objectives. HRBPs ensure that initiatives developed by CoEs meet the specific needs of their business units. This alignment helps in driving organizational goals more effectively.
• Expert resource utilization: CoEs provide specialized knowledge and resources, supporting HRBPs in implementing best practices and advanced HR solutions within their units. This enables HRBPs to leverage the expertise of CoEs for better talent management and development.
• Feedback loops: HRBPs relay frontline feedback to CoEs, enabling continuous improvement of HR policies and programs based on real-world applications and employee response. This feedback loop ensures that HR strategies are practical and effective.
• Joint problem-solving: Together, HRBPs and CoEs address complex HR issues by combining strategic insights from HRBPs with technical expertise from CoEs to find effective solutions. This collaboration fosters innovation and problem-solving within HR functions.
• Role clarity and responsibility: Clearly defining the roles and responsibilities of HRBPs and CoEs can reduce conflicts and enhance collaboration. Ensuring that each party understands their duties helps in the smooth execution of HR strategies​.
• Shared goals and metrics: Establishing shared goals and performance metrics for HRBPs and CoEs can foster a sense of teamwork. When both entities are accountable for the same outcomes, collaboration becomes a natural part of their workflow.
• Regular communication and meetings: Facilitating regular meetings and communication between HRBPs and CoEs can ensure that both teams are on the same page. This practice helps in aligning strategies, discussing challenges, and planning joint initiatives.

Key takeaway

Centers of Excellence play a crucial role in the HR operating model by providing specialized expertise and driving strategic HR initiatives. By leveraging in-depth knowledge of specific HR functions, best practices, and advanced technologies, CoEs ensure consistent and high-quality HR operations across the organization. 

Collaboration between COEs and HR Business Partners (HRBPs) is essential for the success of the HR function. Effective collaboration ensures that HRBPs can focus on strategic initiatives, with high-performing teams 9.5 times more likely to be seen as strategic partners by business leaders. 

The post HR Centers of Excellence: A Guide for HR Leaders appeared first on AIHR.

Contents
What is an HR value proposition?
7 reasons why it’s important to have an HR value proposition
The HR value proposition model
How to develop your HR value proposition
HR value proposition examples

What is an HR value proposition?

An HR value proposition defines the unique benefits and contributions the HR function delivers to an organization and its employees. It highlights how HR supports the organization’s strategic objectives, drives goal achievement, and promotes a positive and unified organizational culture.

By aligning HR initiatives with the overall business strategy, the HR value proposition improves workforce capabilities, boosts employee engagement, and ensures a competitive edge through effective talent management, targeted training programs, and a supportive work environment.

An HR value proposition differs from employee value proposition (EVP). HR value proposition outlines the unique value HR brings to both employees and the organization by aligning HR initiatives with strategic goals and enhancing the employee experience, while an employee value proposition specifically focuses on the benefits and opportunities employees receive in exchange for their skills and contributions.

7 reasons why it’s important to have an HR value proposition

1. Build HR credibility and trust

You can position HR as a strategic business partner within your business by showcasing HR’s expertise and consistent contributions to organizational success.

When HR clearly communicates its value proposition, it highlights its role in driving key business outcomes, such as productivity and customer satisfaction. This transparency and reliability build trust among employees and leadership, making HR a reliable and integral part of the organization.

2. Set clear expectations

Communicating a well-defined HR value proposition sets clear expectations by outlining HR’s roles and responsibilities, reducing misunderstandings, and ensuring smooth operations through defined boundaries.

This clarity helps employees and management understand what support and services they can expect from Human Resources, which in turn reduces friction and enhances efficiency.

3. Align with organizational goals

When HR’s activities are in sync with the broader organizational strategy, it ensures that all efforts contribute to achieving the company’s vision and mission. This alignment not only optimizes the use of resources but also highlights the strategic importance of HR in achieving business success.

By demonstrating measurable impact, HR can validate its role in the organization, justifying investments in HR programs and initiatives.

4. Set direction and focus efforts

A clear HR value proposition serves as a roadmap, guiding HR professionals in aligning their activities with the organization’s strategic priorities. Directed by a robust value proposition, HR can avoid distractions and concentrate on high-impact areas that drive organizational performance.

5. Promote accountability

Outlining commitments and expected outcomes allows HR to set transparent benchmarks and performance indicators that can be tracked and measured. This accountability framework ensures that HR activities are consistently evaluated and improved, fostering a culture of excellence and continuous improvement.

Promoting accountability is crucial for maintaining high standards of service delivery, building trust in HR processes, and contributing meaningfully to the organization’s success through HR initiatives.

6. Enhance employee engagement and retention

Clearly articulating the benefits and support employees can expect from the HR function builds a positive employee experience.

When employees feel valued and supported through well-defined HR policies and initiatives, they are more likely to be engaged and remain with the company for longer periods. High levels of engagement and retention are also important for maintaining a stable and motivated workforce.

7. Facilitate change management

A solid HR value proposition highlights HR’s involvement in guiding an organization through transitions, such as mergers, acquisitions, or internal restructuring, ensuring that employees receive the necessary support and communication during times of change.

Effective change management minimizes disruptions and helps maintain employee morale and productivity.

The HR value proposition model

Osterwalder et al’s Value Proposition Canvas is a strategic tool designed to help businesses create compelling value propositions that resonate with their customers. The canvas consists of two main sections, the Customer Profile and the Value Map, which you can customize for HR and your two key customers: the organization (and its management) and employees.

To complete the canvas, start with the customer profile and outline their:

• Jobs (tasks or problems they need to address)
• Pains (challenges or difficulties they face)
• Gains (benefits they are looking for).

Remember, HR has two customer groups, management, and employees, so you will need to complete this step for each distinct group.

The HR value map details:

• The products and services the business offers
• Pain relievers (how the offerings address customer challenges)
• Gain creators (how the offerings provide benefits).

These two sections are then aligned to create a cohesive HR value proposition that addresses employee and management pain points and provides clear benefits.

Below is an HR value proposition example with sample elements:

How to develop your HR value proposition

Here is a simple 8-step process to create your own HR value proposition:

1. Understand the business context

Start by understanding the business context. This involves thorough research and analysis of the company’s strategic objectives, mission, and vision. Understanding where the company is headed will help ensure that the HR value proposition aligns with these goals while analyzing industry trends and challenges can provide insights into external factors that might impact HR strategies.

Let’s take a manufacturing business as an example. The company’s goals could include increasing production efficiency, adopting sustainable manufacturing practices, and expanding into international markets.

The industry trends they would need to consider could be advancements in automation technology, the growing emphasis on sustainability, and global supply chain challenges.

2. Identify key stakeholders

Gather insights from employees at all levels through surveys, interviews, and focus groups to help you understand their needs, expectations, and pain points.

It is equally important to discuss HR expectations and managers’ perspectives on talent acquisition, development, retention, and overall workforce management with leadership and managers.

3. Conduct a needs assessment

For employees, determine what they value most in their workplace, their career aspirations, and any pain points they experience. For management, understanding their priorities in terms of talent management and overall workforce efficiency is crucial.

You can also identify any existing gaps or issues in current HR practices that need to be addressed. This comprehensive needs assessment will be your foundation for developing targeted HR initiatives.

4. Define the customer segments

For employees, consider segmenting based on roles, levels, and departments to tailor the value proposition to different groups within the organization. For management, segment by leadership levels, such as senior executives and middle managers. This segmentation ensures that the HR value proposition is relevant and impactful for all parts of the organization, addressing their unique needs and expectations.

5. Develop the value proposition based on the Value Proposition Canvas

Use the Value Proposition Canvas concept mentioned above to develop your proposition. Start by listing the jobs, or tasks and needs, of employees and management. Then, identify the pains, challenges, and obstacles they face, and the gains, benefits, and positive outcomes they seek.

Define the HR products and services that will help employees and management achieve their jobs and alleviate their pains. Specify how these offerings address the challenges identified (pain relievers) and how they create the desired benefits (gain creators). This detailed mapping ensures that the HR value proposition is comprehensive and aligned with stakeholder needs.

6. Align with organizational goals

Link HR initiatives directly to the organization’s broader strategic goals. This alignment ensures that HR efforts contribute to the company’s overall success and helps optimize resource allocation.

If we look at our manufacturing business example from the first step, HR initiatives like implementing training programs for new automation technologies, developing sustainability-focused employee engagement programs, and enhancing global talent acquisition strategies would be closely aligned with the organization’s strategic direction and industry demands.

7. Implement and execute

Develop a detailed action plan that outlines the steps needed to roll out these initiatives. Assign specific roles and responsibilities to HR team members to ensure accountability and effective execution. This structured approach will help in systematically implementing the HR value proposition across the organization.

8. Monitor and evaluate

Define key performance indicators (KPIs) to track the success of HR initiatives and establish regular feedback mechanisms with employees and management. This will help you assess the effectiveness of the HR value proposition and identify areas for improvement.

HR value proposition examples

Let’s take a look at what an HR Value Proposition looks like in action using hypothetical technology sector and financial sector examples.

Technology sector: MBot Tech

MBot Tech is a leading innovator in the technology sector, dedicated to developing cutting-edge solutions that enhance business efficiency and user experience. The company is currently navigating significant operational challenges, including rapid technological advancements, cybersecurity threats, and a competitive talent market.

To overcome these obstacles, MBot Tech is focused on promoting a culture of continuous learning and innovation. By investing in employee development, implementing robust cybersecurity measures, and supporting a collaborative work environment, MBot Tech aims to attract and retain top talent. This strategic approach ensures that MBot Tech remains at the forefront of the industry, delivering high-quality, secure technological solutions to its clients.

Here’s what their HR value proposition draft could look like:

Financial sector: FinSmart

FinSmart is a financial services company specializing in investment management, wealth advisory, and banking services.

Despite its success, FinSmart faces significant challenges like high stress and burnout among employees, managing complex regulatory compliance, and retaining top financial talent. The company also deals with skill gaps in specialized fields, market volatility, and data security concerns.

To address these issues, FinSmart implements robust HR initiatives, comprehensive training, flexible work schedules, and wellness programs. These strategic initiatives aim to achieve both high performance and compliance with industry standards while fostering a supportive work environment.

Below is the starting point of their HR value proposition:

Key takeaway

Crafting a strong HR value proposition is about aligning HR initiatives with the organization’s strategic objectives, optimizing resource use and driving overall business success. Clearly articulating the HR value proposition builds credibility and trust and positions HR as a dependable partner of the organization. This, in turn, contributes to long-term sustainability and growth.

The post HR Value Proposition: Examples & 8 Steps To Develop It appeared first on AIHR.

A PESTLE analysis can provide valuable insights into external market dynamics, enabling you to proactively align your HR strategies with broader factors and internal business goals to address emerging challenges.

Contents
What is a PESTLE analysis?
The 6 factors of a PESTLE analysis
Why use a PESTLE analysis?
SWOT vs. PESTLE analysis
How to conduct a PESTLE analysis
PESTLE analysis templates
A PESTLE analysis in action

What is a PESTLE analysis?

A PESTLE analysis (sometimes called PESTEL analysis) is a strategic tool that organizations (and Human Resources) can use to identify and analyze the external factors that impact their operations and decision-making processes. 

The acronym PESTLE stands for: 

1. Political
2. Economic
3. Social
4. Technological
5. Legal, and; 
6. Environmental factors. 

This comprehensive analysis helps you to understand the broader environment in which you operate, allowing you to anticipate changes and adapt your strategies accordingly. 

As an HR professional, you can use a PESTLE analysis to better understand your market, labor changes, and regulatory requirements.

The 6 factors of a PESTLE analysis

The PESTLE analysis factors explained

Let’s take a look at each of the six factors in a PESTLE analysis.

1. Political factors

Political factors include government policies, political stability, and organizational regulatory changes. In the HR environment, political factors might include changes in labor laws, such as new regulations on minimum wage, working hours, or employee benefits. 

For example, a government mandate increasing the minimum wage would require HR to adjust compensation structures and possibly re-evaluate staffing budgets.

2. Economic factors

Economic factors relate to the broader economic environment and its influence on your business. These factors typically include changes in the job market, inflation rates, and economic downturns. 

While an economic recession could lead to budget cuts and require layoffs or hiring freezes, the cost of living also directly impacts employees and candidates. In this case, HR would need to develop strategies for maintaining morale and productivity during tough economic times.

3. Social factors 

Social factors examine societal trends, cultural norms, and demographic changes that impact organizations. These factors could include shifting workforce demographics, such as an aging population or increasing diversity. 

An aging workforce, for example, might prompt you to focus on succession planning and knowledge transfer. Increasing diversity could lead to the development of inclusive hiring practices and diversity training programs.

4. Technological factors

Technological factors focus on technological advancements and innovations. For example, the rise of artificial intelligence (AI) and automation in HR will require further digital transformation.

Adapting to new technologies is important for remaining competitive and attracting top talent. 

As an HR professional, you may not be the decision maker when it comes to investing in new tech, but you can make a business case for HR to stay ahead of the technology game. For example, you can ensure employees are adequately and continuously trained in the use of generative AI.

5. Legal factors

Legal factors encompass the laws and regulations that govern organizational operations. In HR, legal factors include compliance with employment laws, health and safety regulations, and labor standards. 

For example, new data protection regulations, such as the General Data Protection Regulation (GDPR), require HR to ensure that employee data is securely managed and that privacy policies are strictly followed to avoid legal repercussions.

6. Environmental factors

Environmental factors involve ecological and environmental considerations that can affect organizations. HR typically includes corporate social responsibility (CSR) initiatives and sustainability practices. 

As an HR professional, you might develop programs to promote remote working to reduce the company’s carbon footprint or implement policies encouraging recycling and waste reduction.

Why use a PESTLE analysis?

Anticipate changes in the external environment

One of the primary benefits of PESTLE analysis is its ability to help HR professionals anticipate changes in the external environment. For example, new labor laws or economic downturns can significantly impact staffing and training programs. 

By conducting a PESTLE analysis, HR can identify potential legislative changes and economic trends early, allowing them to prepare and adapt their strategies accordingly. This foresight helps mitigate risks and ensures the organization is not caught off guard by external shifts.

Align HR strategy with business goals

PESTLE analysis also aids in aligning HR strategies with overall business goals. If you have a macro view of the factors affecting your organization, you can develop initiatives that support and enhance the company’s strategic objectives. 

An example of this in action is understanding technological advancements and their potential impact on your industry and business, which can guide training programs, recruiting skilled talent, and adopting new HR-related tech.

Enhance decision-making

You can use a PESTLE analysis to enhance your decision-making processes. The data gathered from analyzing the six key factors offers valuable insights that can inform HR decisions. Whether planning for workforce expansion, developing employee retention strategies, or implementing new technologies, understanding the external factors at play ensures that HR decisions are well-informed and strategic, leading to more effective and sustainable HR practices.

Here are a few other key reasons why you should regularly conduct a PESTLE analysis:

• Recognize and proactively address threats early
• Capitalize on identified opportunities
• Enhance organizational resilience through dynamic and responsive strategies
• Look beyond internal metrics and consider external influences that impact your workforce
• Promote a holistic view of the HR environment
• Develop well-rounded HR policies and practices.

SWOT vs. PESTLE analysis

A SWOT (Strengths, Weaknesses, Opportunities, and Threats) is an established strategic tool organizations use to identify risk and growth areas within the business. While both are strategic tools, they differ from each other. 

Let’s examine where SWOT and PESTLE analyses overlap and differ and how you can leverage both to increase your value within your organization, solve key challenges, and unlock opportunities.

How to conduct a PESTLE analysis

Step 1: Identify the purpose and scope

Before beginning the PESTLE analysis, clearly define the purpose and scope. Determine what you want to achieve and which specific aspects of the business or HR strategy will be analyzed. This step ensures that the analysis remains focused and relevant.

→ Do this: Define the HR objectives you want to address with the PESTLE analysis, such as improving employee retention, planning workforce expansion, or adapting to new regulations.

Step 2: Gather relevant information

Collect data and information on each of the six PESTLE factors: political, economic, social, technological, legal, and environmental. Use reliable sources such as government reports, industry analyses, market research, and expert opinions.

→ Do this: Use HR analytics tools and external sources to gather data on workforce trends, such as changes in labor laws, economic forecasts, and technological advancements. This includes recruitment, candidate and employee reports, and surveys from respected sources.

Step 3: Analyze each PESTLE factor

Examine the data collected for each PESTLE factor. Identify how each factor might impact the organization and, specifically, the HR function. Consider both current influences and potential future trends.

→ Do this: Create a list of potential impacts on HR per factor in your PESTLE analysis template. Some factors may be more urgent and topical than others. You don’t need to address all six factors at once.

Step 4: Identify opportunities and threats

Based on the analysis, identify the opportunities and threats posed by each PESTLE factor. Again, there may not be an urgent opportunity or risk per factor. As you become more familiar with using your PESTLE analysis, you can prioritize which factors should be addressed now and which are longer-term focus areas (as discussed in step 5).

→ Do this: Develop a matrix for HR opportunities and threats. For instance, an opportunity might be the availability of advanced HR software, while a threat could be new data protection regulations requiring changes in HR data management.

Step 5: Prioritize the factors

Assess the significance of each PESTLE factor and prioritize them based on their potential impact on the organization and the HR function. Focus on the most critical factors that require immediate attention or present the greatest opportunities.

→ Do this: Rank the identified opportunities and threats based on their potential impact on HR objectives. Prioritize those significantly affecting workforce planning, employee engagement, or compliance.

Step 6: Develop strategic responses

Develop action plans that leverage the opportunities and mitigate the threats you have identified, ensuring that HR strategies are adaptable to external changes.

→ Do this: Create specific HR action plans for high-priority factors. For example, if technological advancements are a priority, plan for HR technology investments and employee training programs to enhance digital skills.

Step 7: Monitor and review

Monitor the external environment regularly and review the PESTLE analysis to ensure it remains current and relevant. Update the analysis to reflect any new information or changes in external factors.

→ Do this: Establish a schedule for periodic reviews of the PESTLE analysis, such as quarterly or bi-annually, to ensure HR strategies remain aligned with the latest external trends and developments. The world of work moves far quicker than previously. Strategies are only as relevant as the current economic, social, and legislative environment – not to mention the acceleration of technology. 

PESTLE analysis templates

These free downloadable PESTLE analysis templates in Word and Excel formats are designed to assist you in evaluating the external factors that may influence your business operations.

PESTLE analysis template: Excel

PESTLE analysis template: Word

A PESTLE analysis in action

Let’s now look at a hypothetical example of a PESTLE analysis performed by HR. 

Political factors

• Government initiatives aimed at reducing unemployment, such as subsidies for hiring unemployed individuals or tax incentives for creating new jobs, can positively impact recruitment efforts.
• The local government is stable and provides a conducive environment for business growth. However, upcoming elections may result in policy changes.

HR’s focus: Monitor the political environment regularly and update HR policies accordingly. Develop contingency plans to address potential labor policy changes.

Economic factors

• An expanding economy leads to increased business opportunities, requiring more hiring and training programs.
• Low unemployment rates, linked to a growing economy, have led to talent shortages, requiring HR to enhance recruitment strategies and employee retention efforts.

HR’s focus: Invest in employee development to retain talent during competitive job markets. Focus on proactive recruitment to meet the demands of a growing business.

Social factors

• An aging workforce requires more focus on retirement planning and succession planning.
• Shifts in societal values, such as the growing emphasis on work-life balance. Growing societal calls for improved Diversity and Inclusion in the workplace have influenced the expectations of younger employees and workplace culture.

HR’s focus: Promote a culture of continuous learning and development to accommodate different career stages and a transfer of knowledge that supports succession planning. Implement inclusive policies and programs that cater to diverse employee needs.

Technological factors

• Advancements in HR Technology: Innovations like artificial intelligence (AI) and HR analytics are streamlining HR processes, from recruitment to performance management.
• The rise of remote work technologies has transformed the workplace, making it essential for HR to manage remote teams effectively.

HR’s focus: Invest in cutting-edge HR technologies to enhance efficiency and data-driven decision-making. Develop robust remote work policies and provide training for employees to adapt to new technologies.

Legal factors

• Regulations like the General Data Protection Regulation (GDPR) require stringent data protection measures, impacting how HR manages employee information.

HR’s focus: Conduct training sessions for HR staff on the latest legal requirements and data protection practices regarding personally identifiable information (PII) that impact how employee data is collected, stored, and archived.

Environmental factors

• Promoting remote work to reduce carbon footprints or implementing green office practices. 
• At the same time, increasing environmental disruptions, such as floods and large-scale wildfires, disrupt workflows.

HR’s focus: Develop and promote sustainability initiatives within the organization. Create emergency preparedness plans to ensure business continuity and employee safety during environmental disruptions.

Getting started

A well-structured and regularly conducted PESTLE analysis is not just a strategic tool; it is a game-changer for organizational growth and the strategic importance of the HR department. By systematically examining political, economic, social, technological, legal, and environmental factors with a PESTLE analysis template, HR professionals can proactively address external challenges and seize emerging opportunities.

This foresight lets you align HR initiatives with broader business objectives, ensuring that the organization is agile, resilient, and prepared for the future. The insights gained from a thoughtful PESTLE analysis can empower you to make data-driven decisions, enhance employee engagement, and support a culture of continuous improvement. 

Ultimately, HR professionals should use a PESTLE analysis to elevate the HR department from a support function to a strategic partner, driving the organization’s long-term success and sustainability.

The post Free PESTLE Analysis Templates and Actionable Guide  appeared first on AIHR.

For many CHROs, managing the HR-board relationships is a relatively new experience, and many report feeling unprepared to meet the expectations set by the board and other executive team members. A further 39% also stated they wish they were more prepared to deal with the board in hindsight.

In this article, we explore the HR-board relationship, focusing on the CHRO’s responsibilities and the skills required for success.

Contents
The role of HR within the board of directors
The challenges that the CHRO faces at the board level
Getting HR-board relationships right: 5 steps
Getting started with the right skills

The role of HR within the board of directors

Externally, shifts in the labor market, economic pressures, and political and social influences have expanded the board’s roles and responsibilities in guiding organizations toward the future. 

Increasing governance oversight regarding executive pay and diversity, increasing demands for transparency, more pressure on performance, and more interest from board members related to executive succession, culture, and wellbeing have demanded more from CHROs regarding their interactions with the board. They primarily engage with the Social and Ethics Committee and the Remuneration Committee, often participating as invitees to address specific questions or topics.

Given the increasing importance of HR, the CHRO’s presence as a regular board member has also been rising. According to the Stuart Spencer Board Index, 93% of the 200 surveyed CHROs regularly attend their company board meetings, with 81% actively involved in driving CEO succession. Additionally, a survey of people leaders revealed that 43% reported an increase in their interactions with the board over the last 12 months.

While representation has improved, clarity regarding the CHRO’s role at the Board level still needs to be improved. Many still perceive the CHRO as a manager of people risks, viewing the position chiefly as focused on legislative and compliance matters, ensuring fair and just labor practices. Similarly, some CHROs are uncertain about how to engage with the board and which topics to present for discussion. 

In our view, the CHRO at the board level is the owner of four distinct agendas:

People strategy and risk agenda

The CHRO champions the people strategy at the board level. This involves helping the board understand the desired employer brand, the business’s market positioning regarding talent and skills, and the primary risks that must be managed to ensure a productive and impactful work environment.

These risks may encompass factors such as the shift towards AI-empowered work, navigating the complexities of remote working, and formulating responses to political unrest that impacts employees.

Talent, skills, and sustainability agenda

The CHRO serves as the custodian of the talent and skills agenda at the board level. Their role is to keep the board informed about approaches to talent sustainability and the attraction, development, and retention of critical skills.

Additionally, the CHRO must assure the board that the organization is actively managing skills gaps and has plans for the succession of critical skills and leadership. This responsibility often extends to involvement in CEO succession and the recruitment of future board members.

Beyond talent and skills, there is a growing emphasis on environmental, social, and governance (ESG) matters. CHROs are becoming key in shaping a culture of sustainability and fostering responsible organizational citizenship within the communities they serve.

Culture, engagement, and productivity agenda

The CHRO clarifies for the board the desired organizational culture, employee engagement, and how current workplace practices contribute to sustained productivity and performance over time.

In this role, the CHRO goes beyond merely reporting on employee engagement surveys and net promoter scores. Instead, the focus is on showing the board how specific HR initiatives drive the desired levels of engagement and culture necessary for success today and in the future.

Workforce diversity agenda

The CHRO promotes the workforce diversity agenda, ensuring the board recognizes that the organization is accessible, representative, and inclusive of talent at all levels.

In this capacity, the CHRO helps the board understand the workforce beyond demographic data, enabling informed decisions related to key workforce drivers such as compensation and benefits, ethics, and policy.

Even though CHROs are welcomed into the boardroom, they still face challenges regarding their legitimacy, misunderstandings of the value of HR, and dynamics between the executive team members who already serve on the board.

The challenges that the CHRO faces at the board level

Research by the global executive search and leadership consulting firm Spencer Stuart indicates that more than 27% of board members come from a financial background. They prefer that boards recruit previous CEO, COO, or CFO individuals as board members.

The board’s composition significantly influences its knowledge and understanding of the HR agenda. A board inexperienced in HR matters may not fully grasp the CHRO’s value, leading to exclusion from critical conversations, derailment when contributing to the four agendas mentioned above, or dismissal of the CHRO’s suggestions.

Conversely, when boards welcome the CHRO and appreciate the topics presented, other executive dynamics often come into play. Some CEOs may view the CHRO as a threat to their credibility, particularly in environments with leadership and culture challenges.

Similarly, the CFO might perceive the CHRO’s efforts to secure investment for people initiatives as leveraging board influence for personal gain or see the discussion on people topics as a distraction and waste of valuable board time.

These scenarios, while extreme, occur more frequently than expected, and HR leaders need to manage these challenges to successfully represent HR at the board level.

Getting the HR-board relationship right: 5 steps

How can the CHRO ensure healthy board relationships while effectively representing the four agendas highlighted above?

1. Setting mutual expectations

First, CHROs must establish clear agreements with the board that align with the four agendas. This involves defining the CHRO’s role at the board level and agreeing on the frequency, cadence, and specific topics requiring more oversight.

CHROs should also use this opportunity to set their expectations for the board, including the type of input they seek from board members.

2. Actively investing in board relationships

Second, the CHRO should actively cultivate relationships with board members outside the boardroom, particularly with the chairpersons of committees related to the HR agenda.

While respecting boundaries, the CHRO must ensure open and transparent communication channels to test specific ideas and manage board expectations outside formal meetings.

We discussed building HR-board relationships with Emmanuel Michael, leadership and career success coach, author, and public speaker. See the full conversation below:

3. Simplifying upwards

As mentioned earlier, many board members lack an HR background. Therefore, the CHRO must simplify, translate, and relate HR information to demonstrate its relevance and value to the board.

Many CHROs view the board as merely another reporting forum for updates and progress discussions. While this is sometimes necessary, it is more important to provide context straightforwardly, enabling the board to connect HR priorities with business requirements.

A highly effective approach for this purpose is to incorporate storytelling and share information using a consistent HR board report format. This creates familiarity and helps board members engage more with the HR narrative.

4. Balancing listening with telling

A common mistake many CHROs make is approaching the board solely to inform them about HR activities rather than also seeking feedback and input.

A strong board offers diverse and often underrepresented perspectives, so the CHRO must balance “telling” with “listening” to maximize the limited time spent with the board. This allows for a productive exchange and effectively leverages the board’s insights.

5. Presenting a united front with the C-suite

Lastly, the CHRO must ensure alignment with the rest of the C-suite on critical matters presented to the board.

This doesn’t mean the CHRO should always agree without question; however, if a debate is likely, the CHRO should communicate their perspective to other executive team members before the board meeting. It’s a delicate balance, but the CHRO should strive to align with other business leaders on crucial topics and perspectives whenever possible.

This approach fosters mutual trust and support within the C-suite during board discussions.

Getting started with the right skills

Transitioning into a board-level role can be a daunting task for many CHROs. However, there are specific skills that can help them actively prepare for this next step. AIHR’s T-Shaped HR Competency Model shows the core competencies all HR professionals need:

Based on the model, CHROs must work on the following skills to succeed at the board level:

• Improving business acumen: Extend your knowledge beyond the organizational context to include insights into macro-market dynamics, megatrends, and industry developments. Stay informed about external events, build relationships with industry partners or bodies, and cultivate a diverse network of professionals to gain valuable insights.
• Active listening and storytelling: Develop the ability to actively listen, interpret information, and use data to tell compelling stories that drive business decisions. Storytelling is not just about visualizing information; it involves connecting the board cognitively and emotionally to what is being presented, ensuring balanced decision-making.
• Managing complexity: This level requires navigating the complexities, including balancing multiple and often conflicting priorities and handling the sheer volume of information that needs to be processed. CHROs can develop this skill by adopting specific frameworks for better analysis and organization, leveraging technology to access information in a manageable format, and increasing their ability to view arguments from various perspectives while recognizing their biases.
• People advocacy: CHROs must be able to manage the balance between building cultures of wellbeing that are also productive and drive performance. They need to develop this skill to represent the people’s voice while also responsibly balancing business priorities.

Final words

Building strong HR-board relationships is essential for CHROs to effectively influence key areas such as governance, executive pay, diversity, and succession planning. What’s more, successfully navigating board interactions can establish the legitimacy and credibility necessary to drive the strategic HR agenda.

The post How To Build the HR-Board Relationship for Organizational Success appeared first on AIHR.

This strategic alignment is crucial in addressing the changing expectations of the workforce and leveraging HR practices to build an innovative, inclusive, and efficient organizational environment.

Contents
What are HR strategic objectives?
What is strategic HR management?
Why are HR strategic goals important?
How can HR leaders determine HR goals and objectives?
7 HR strategic objectives examples

What are HR strategic objectives?

HR strategic objectives are specific, measurable goals that align with a company’s long-term vision and mission, providing direction and focus to allocate resources efficiently and monitor progress. Effective HR strategic objectives require HR leaders to deeply understand the organization’s goals and determine how HR can support them.

Some areas of focus when identifying HR strategic objectives include:  

• Workforce planning: Involves analyzing the current workforce, predicting future needs, and developing strategies such as aligning workforce capabilities with business needs, succession planning, and flexible workforce management. 
• Employer branding: Aims to create a positive company image to attract top talent and enhance employee engagement and reputation.
• Talent management: Covers the entire employee life cycle, focusing on developing talent, performance management, and career development. 
• Compensation and benefits: Ensure competitive pay structures, incentive programs, and optimized benefits packages. 
• Diversity, Equity, Inclusion, and Belonging: DEIB initiatives promote diverse hiring practices, an inclusive culture, equitable opportunities, and a sense of belonging. 
• Objectives in employee relations and engagement: Include enhancing communication, conflict resolution, and employee recognition. 
• Organizational development: Focuses on change management, process improvement, and leadership development. 

By setting and pursuing strategic HR objectives in these areas, HR leaders can significantly contribute to the organization’s overall success and long-term sustainability.

What is strategic HR management?

Strategic HR management (SHRM) is the proactive alignment of human resources with your organization’s long-term goals and objectives. Unlike traditional HR, which focuses on administrative tasks and daily operations, SHRM emphasizes the strategic role of HR in driving organizational success. This requires planning and implementing HR policies and practices that support the overall business strategy to ensure that HR functions are integrated with the business’s mission and vision.

Key components of strategic HR management include alignment with organizational goals, long-term planning, and comprehensive HR policies and practices. It also includes creating HR policies that support strategic objectives, adopting industry best practices, and managing talent effectively.

This involves attracting and selecting individuals who fit the strategic needs, investing in employee development, and implementing performance management systems. Additionally, SHRM focuses on enhancing employee engagement, creating a positive organizational culture, and promoting diversity, equity, inclusion, and belonging (DEIB).

The benefits of strategic HR management are substantial. It improves talent management by attracting and retaining top talent and developing capable leaders. Higher employee engagement and retention are achieved through strategic HR initiatives, leading to a more engaged workforce and a positive work culture. Also, SHRM equips organizations with the agility to adapt to changing business environments, ensuring sustainability and maintaining a competitive advantage over time.

Why are HR strategic goals important?

1. Driving organizational alignment: Aligning HR objectives with your organization’s overall business strategy ensures that every HR initiative contributes to the company’s growth and success, creating a cohesive approach toward achieving organizational goals.
2. Enhancing decision-making: Clearly defined HR objectives facilitate data-driven decision-making, ensuring that decisions support and advance organizational goals.
3. Facilitating resource allocation: Strategic objectives help in the efficient allocation of resources, ensuring that time, budget, and talent are applied effectively to achieve long-term goals.
4. Improving talent management: Strategic HR goals help attract, develop, and retain top talent, which is essential for the organization’s long-term success and competitiveness.
5. Boosting employee engagement: Clear HR objectives focused on employee engagement lead to a more motivated and productive workforce, directly impacting organizational performance.
6. Ensuring compliance and risk management: Setting strategic HR goals related to compliance ensures that the organization adheres to legal and regulatory requirements and minimizes risks.
7. Supporting organizational change: HR strategic goals facilitate effective change management by preparing and equipping the workforce to adapt to new business strategies and market conditions.
8. Promoting a positive organizational culture: Strategic HR goals focused on culture help build a positive work environment that aligns with the company’s values and mission, enhancing overall employee satisfaction and retention.
9. Improving performance management: Strategic HR goals help establish robust performance management systems that align individual performance with organizational objectives, driving overall business success.
10. Encouraging continuous improvement: Setting and reviewing HR strategic goals promotes a culture of constant improvement within the HR function, ensuring that HR practices remain relevant and effective in supporting organizational goals.
11. Driving innovation: Strategic HR goals can encourage innovation within the HR function and across the organization by promoting new ideas and practices that drive business growth.
12. Achieving competitive advantage: By aligning HR strategies with business objectives, organizations can build a strong employer brand and a capable workforce that provides a competitive edge in the market.

How can HR leaders determine HR goals and objectives?

 1. Analyze organizational goals

Understanding the broader business objectives is the first step. HR leaders must understand the company’s strategic direction to align HR goals effectively.

 Steps to analyze organizational goals

• Review strategic plans: Go through the company’s mission, vision, and strategic plans.
• Understand key initiatives: Identify key business initiatives and areas of focus.
• Identify critical success factors: Determine what factors are crucial for the company’s success.

2. Assess current HR capabilities

Conduct a thorough analysis of the current HR capabilities to understand the existing strengths and areas for improvement.

 Steps to assess current HR capabilities

• Conduct a skills gap analysis: Identify the skills currently available and compare them with the skills needed.
• Evaluate HR processes: Review existing HR processes and systems for efficiency and effectiveness.
• Assess workforce demographics: Understand the current workforce composition, including diversity and inclusion metrics.

3. Conduct a SWOT analysis

A SWOT analysis helps in identifying the Strengths, Weaknesses, Opportunities, and Threats related to HR functions.

Steps to conduct a SWOT analysis

• Strengths: Identify internal HR strengths, such as strong leadership or advanced HR technology.
• Weaknesses: Recognize internal HR weaknesses, like outdated training programs or high turnover rates.
• Opportunities: Look for external opportunities, such as emerging HR trends or new recruitment channels.
• Threats: Identify external threats, such as labor market shortages or regulatory changes.

4. Engage with stakeholders

Involve key stakeholders in goal-setting to ensure alignment and buy-in across the organization.

Steps to engage stakeholders

• Identify key stakeholders: Include senior leadership, department heads, and employee representatives.
• Facilitate discussions: Organize workshops or meetings to discuss HR goals and their alignment with business objectives.
• Gather feedback: Collect input and feedback from stakeholders to refine HR objectives.

5. Set HR SMART goals

Define Specific, Measurable, Achievable, Relevant, and Time-bound (SMART) goals to ensure clarity and focus.

Steps to set HR SMART goals

• Specific: Clearly define what the goal aims to achieve.
• Measurable: Set criteria to track progress and success.
• Achievable: Ensure the goal is feasible and attainable.
• Relevant: Align the goal with broader business objectives.
• Time-bound: Establish a clear timeline for achieving the goal.

5 HR strategic objectives examples

Example 1: IBM’s 2024 strategy

IBM’s recent layoffs in its marketing and communications division were part of a broader strategic realignment toward a more agile and technology-centric organizational structure. IBM CEO Arvind Krishna emphasized the importance of massively upskilling employees to leverage AI effectively. This shift necessitated the upskilling of employees on AI to ensure they could support the company’s new technological initiatives.

The HR objective: Upskilling and reskilling employees

Objective: To enhance the current workforce’s skills to meet future business needs and stay competitive in a rapidly changing market.

Example 2: How Google reduced turnover

Google’s successful employee engagement strategies have resulted in a low turnover rate despite the tech industry’s high job-hopping trend. Google prioritizes psychological safety and employee needs, creating an inclusive environment where ideas are freely shared.

Career advancement is supported through internal job boards and growth courses, helping employees envision a long-term future at the company. These efforts have earned Google industry recognition, low turnover rates, and high rankings in “Best Places to Work” lists.

The HR objective: Enhancing employee engagement and retention

Objective: To develop a highly engaged workforce that is committed to the organization, reducing turnover rates and increasing productivity.

Example 3: Microsoft’s DEIB initiatives

Microsoft has implemented numerous DEIB initiatives. Over the past five years, the representation of women and various racial and ethnic minority groups at all levels of Microsoft’s workforce has increased. The company focuses on inclusive hiring practices, employee resource groups, and continuous learning on unconscious bias.

The HR Objective: Diversity, Equity, Inclusion, and Belonging (DEIB)

Objective: To build a diverse and inclusive workplace where all employees feel valued and have equal opportunities.

Example 4: Unilever’s HR digital transformation

Unilever has embraced digital HR tools to streamline recruitment, onboarding, and performance management processes. By leveraging AI and machine learning, Unilever has enhanced its talent acquisition and employee engagement strategies.

The HR objective: Implementing advanced HR technology

Objective: To streamline HR processes and improve efficiency through the adoption of advanced HR technologies.

Example 5: General Electric (GE) leadership programs

GE has a long history of investing in leadership development through programs like the Experienced Commercial Leadership Program (ECLP) and its management development center at Crotonville. These initiatives equip leaders with the skills to drive and manage innovation.

The HR objective: Enhancing leadership development

Objective: To develop strong leadership within the organization to ensure long-term success and stability.

To sum up

HR strategic objectives are essential for aligning HR practices with the organization’s broader goals. By setting clear, measurable goals in areas such as workforce planning, employer branding, talent management, compensation and benefits, DEIB, and employee relations, HR leaders can contribute significantly to the organization’s success.

Understanding your organization’s goals and developing HR strategies that support these goals ensures that your team plays a critical role in driving business performance and achieving long-term success.

The post HR Strategic Objectives: The Ultimate FAQ for HR Leaders appeared first on AIHR.

In this article, we explore the drivers of HR reputation, its influence on our credibility, and the actions required to move forward.

Contents
Why does HR have a bad reputation?
Should we care about the HR reputation?
How to establish credibility to improve HR’s reputation

Why does HR have a bad reputation?

Reputation is the beliefs and opinions others hold based on past behaviors or experiences. For HR, reputation refers to employees’ perception of their satisfaction with HR services, how HR is positioned in the organization, the skills and abilities of HR professionals, and the trust in the HR team.

Four realities currently influence HR’s reputation:

Reality 1: A lot of people have had a lousy HR experience in the past

The unfortunate reality is that many employees have had a less-than-stellar experience with HR at some point in their careers. Whether this has been due to a lack of feedback during a recruitment process, an administrative error when changing employee details leading to lack of payment, or not feeling adequately supported through HR advice.

Some of the criticism is warranted. Similar to functions dealing with clients or customers, HR had to professionalize how it provides services to employees and the underpinning processes and technologies to drive a good experience. However, this is only half of the story.  

HR professionals often get blamed for things that go wrong beyond our control or, even worse, not our responsibility. The fact that HR is seen as a custodian for practices such as performance, talent, and rewards does not imply that HR is the sole decision-maker in executing these practices. Often, the challenge is more related to line managers not being equipped to run people processes effectively, leading to blame being put at the door of HR.

Reality 2: People enter HR from various backgrounds, leading to a lack of baseline skill

HR professionals enter the profession from diverse backgrounds. As much as this is beneficial for the diversity of skills, there is not necessarily a consistent baseline of skills at junior levels of HR teams. This poses a challenge regarding the consistency of HR competence when compared to professions such as accounting, where formal standards and practices guide career development,

Several HR professionals enter from social sciences and education, bringing strengths related to practices such as learning and development. Yet, the basic knowledge of the HR value chain is not there.

Our State of HR report also found that some individuals move into HR later in their careers, bringing a wealth of business knowledge yet lacking basic HR expertise.

“HR has a little bit of an image problem. What really surprised me is how people get into the HR profession. It’s a lot later on average than in other functions such as, say, admin or finance or marketing, or any of the other big corporate functions. People seem to really stumble into HR, so those entries aren’t necessarily as planned as you think”.

Dr Lisa Simon, Chief Economist at Revelio Labs

Reality 3: HR is under-resourced with people and systems

HR is often expected to drive impact while not receiving adequate investment and resources to execute. HR is the function that receives the least investment, with HR headcount not proactively prioritized and lagging behind business growth.

Organizations also often do not invest in HR technologies to support transactional work, leading to many manual processes being executed with too few resources. This can lead to slow responses, high levels of burnout in HR professionals, and dissatisfaction with HR delivery within the wider organization.

“As organizations grow, the problems grow more than proportionally. Now, you have to worry about workforce planning retraining. So, this requires organizational skills at a much larger level. But what we see is that once companies hit a certain threshold, the HR team is not growing at the levels that you would expect, given the challenges that they face.”

Dr Hakki Ozdenoren, Senior Economist @ Revelio Labs

“We need to look at what HR needs to deliver — what are those skills? Sometimes, you need more of a particular skill, depending on where the organization is at. What was interesting for me from the investment conversation is seeing how HR compares to other functions. If you look at marketing and administration, HR is always the smallest little slither of the pie chart.”

Dr Marna van der Merwe, HR Subject Matter Expert at AIHR

Reality 4: The current perception of HR stems from its history as an admin function

When discussing HR reputation, we also need to consider the history of the function and its origins.

Even though HR today has evolved into a very different contributor than 100 years ago as part of the labor movement, many individuals still hold on to the “hiring and firing” perception of HR.  HR is often seen as representative of line management and as the “No” people in the room, acting more as a hindrance than an organizational enabler.

When reviewing these realities, feeling despondent as an HR professional is tempting. HR professionals often grudgingly accept these realities, and they do little to eradicate these misperceptions. Instead, they become numb to the criticism and usually see it as part of the job.

Given this mindset, it begs the question: Should we be concerned about the reputation of HR? Is the nature of the HR role one that will never be seen in a positive light?

Should we care about the HR reputation?

Stakeholders are selfish about their needs and less concerned about HR’s value to the broader organization.

For example, line managers are pushing HR to recruit faster for their roles, which might mean less focus on a critical candidate evaluation. Employees want HR to be responsive to their queries, while this inevitably means that they are not attending to others. Executives want HR to focus on culture, engagement, and talent succession without necessarily playing their part in shaping these practices.

These expectations position HR between a rock and a hard place. Pleasing one stakeholder inevitably leads to disappointing another. In many instances, HR is a thankless profession – never receiving recognition for a job well done but receiving criticism when things don’t go according to plan.

HR professionals must let go of the idea that positive feedback is the only success metric. Many HR teams measure their success through high levels of satisfaction with HR services, the achievement of positive eNPS scores, and positive stakeholder feedback.

However, the real success of HR should be measured differently and in line with the business outcomes and impact, not against the subjective perceptions of various stakeholders.

Strive for credibility not affirmation

We would argue that HR needs to strive for credibility rather than affirmation. Ulrich coined the term “Credible Activist” as one of the essential qualities of successful HR professionals. Let’s break this definition down:

• “Credible” refers to an individual who can be trusted, has influence over critical stakeholders, and earns credibility through their ability to contribute and add value to their stakeholders.  
• “Activist” refers to the ability to proactively advocate for their stakeholders’ requirements while keeping the business’s overall intent in mind.

The balance between credibility and activism is essential, as a lack of activism leads to HR professionals who have a lot of knowledge yet cannot translate it into real value. Inversely, without credibility, activism leads to HRBPs not being taken seriously, even though they might have good ideas.

As you can see, nothing in this definition is about HR being “liked” or that a positive rating from a business leader measures our value. Building credibility is highly dependent on managing the perceptions and reputation of HR within the organization, leading back to our initial challenge – HR has a bad reputation.

We discussed the state of HR, its reputation, and the future outlook with Lisa Simon, Chief Economist at a workforce intelligence company Revelio Labs, Hakki Ozdenoren, Senior Economist at Revelio Labs, and Dr. Marna van der Merwe, AIHR’s HR Subject Matter Expert.

How to establish credibility to improve HR’s reputation

HR needs to take several actions to establish credibility and improve the reputation of their function.

1. Shift stakeholder expectations of value

Stakeholders perceive HR based on their previous experiences with the function, and how HR has historically been positioned within the organization. More than 60% of business leaders still see the role of HR as administrative, with many not being educated to expect something different from HR today.

The top priority for HR must be to clarify stakeholder expectations of the function and align the value HR offers with business outcomes.

2. Legitimize the HR function within the business

For HR to change the perceptions of the past, the function needs to be legitimized. Legitimization means the positioning, power, and authority of HR within the organization. Not including HR in crucial strategic decisions or excluding HR from business activities creates a perception that HR is only there for reactive administrative work.

As a starting point, HR needs to work with the business to clarify the HR mandate and positioning within the organization. This could require education on new HR capabilities that the business might not have been exposed to, as well as demonstrating other case studies of how HR has contributed to similar organizations.

Even though this is difficult, the HR leader needs to have a candid conversation with the CEO about the role of HR, its mandate of operations, and how it should be positioned within the business. This can only happen if there is an existing relationship between these parties — if not, then building a relationship of trust should be the first step towards legitimizing the business.

3. Set clear standards and target experiences of HR solutions and products

Employees act more like consumers and evaluate HR products and services similarly. HR needs to set transparent service standards about the employee experience that are reasonable to expect.

Utilizing data to demonstrate how HR is meeting its commitments is also important. Here, stakeholder feedback and satisfaction metrics can be valuable. However, they must be measured against a benchmark of set criteria, not individual employee opinion.

The business and HR should agree upon acceptable standards. HR should also benchmark their processes and practices against the market.

4. Share HR success stories and visibly show progress

HR professionals are too humble about their contributions and rely on others to ratify their value.

As an output of setting clear expectations, organizations also need to give HR “permission” to share its impact and not be afraid to claim their contribution. In the past, there has been a narrative that HR is in the background, and its contributions are less visible and deemed less important than those of other teams.

Several factors influence HR results, but using data and metrics, both quantitative and qualitative, can enable HR to drive informed conversations on the function’s performance.

5. Build the skills and competencies to equip HR professionals to deliver

While the expectations of HR are changing, the skill set has not necessarily evolved. 

Skills related to data literacy and digital agility are still lacking, and many HR professionals still report higher confidence in interpersonal than business-related skills. Requirements for HR skills are not clearly articulated, often leading to a mismatch between available skills and the organization’s requirements.

At AIHR, we believe that HR professionals need to be T-shaped and build both breadth and depth of skills to be effective in the future world of work.

6. Balance the investment in HR with the desired impact

Similar to any other business function, if HR is expected to drive strategic value, execute at scale, and provide services to a complex workforce, it requires the right structure, skills, and systems investment to make that a reality.  

As a first step, HR can establish the same financial discipline as any other business function by collaborating with finance to gain a deeper understanding of financial forecasts, budgets, and operational costs. Creating a baseline and demonstrating the spending and impact of HR is essential for facilitating robust conversations about future investments.

HR also needs to work with the business to develop robust business cases where investment is required. For example, when considering implementing an ERP system, the business case should clearly show the required return on investment and the anticipated savings or value gains and provide a clear financial roadmap to obtain these investments.

Over to you

We can no longer ignore HR’s bad reputation. HR leaders need to take action by becoming credible activists for the profession, being respected for their contribution, and educating stakeholders on the role and impact of modern HR practices.

As the role and scope of HR continue to change, organizations need to ensure that they clarify expectations and set HR teams up for success.

The post HR Has a Bad Reputation: 6 Actions To Improve HR Credibility appeared first on AIHR.

Podcasts upgrade dull commutes, workouts, or chores into time-effective self-improvement opportunities, by expanding business knowledge and keeping you inspired.

Contents
At The Table with Patrick Lencioni Podcast
CEO School Podcast
Coaching Culture Podcast
CPO Playbook Podcast
Diary Of A CEO Podcast
Digital HR Leaders with David Green
Eye on AI Podcast
Future of HR Podcast
Good Morning, HR
HBR IdeaCast
HR Dialogues
HR Happy Hour
HR Leaders with Chris Rainey
HR Works Podcast
The Mel Robbins Podcast
Inside the Strategy Room Podcast
Masters of Scale Podcast
Murder in HR Podcast
People Managing People Podcast
Seth Godin’s Akimbo Podcast
The Happiness Lab Podcast
The Learning Leader Show Podcast
The Peter Zeihen Podcast
The Transformative Leader Podcast
The WorkLife Podcast Club
What You Will Learn
Wisdom From The Top with Guy Raz Podcast

This list features 27 of the best HR leadership podcasts you can integrate into your daily routine. They’re packed with insights and strategies to elevate your HR game and your general business acumen, so let’s dive in.

1. At The Table with Patrick Lencioni Podcast

What it offers

Hosted by leadership author Patrick Lencioni, this podcast offers practical advice for HR leaders on building healthy and successful organizations.

Why subscribe?

Gain actionable insights from a renowned expert to improve your leadership skills, fostering a more cohesive and productive team.

Topics covered

Lencioni tackles important themes for executive leaders, including:

• Building trust
• Fostering healthy conflict
• Creating a clear organizational purpose.

2. CEO School Podcast

What it offers

Hosted by entrepreneur Suneera Madhani, this podcast empowers women and minorities to break barriers in business.

Why subscribe?

Develop your general business acumen by gaining insights from successful female founders on the struggles and strategies involved in building million-dollar companies. Madhani, a self-made billionaire, shares her own experiences alongside expert guests.

Topics covered

Explore essential themes for female business leaders, including:

• Overcoming challenges
• Building strong teams
• Achieving work-life balance.

3. Coaching Culture Podcast

What it offers

This interview-driven podcast, dives deep into the world of coaching and its applications in business leadership.

Why subscribe?

HR leaders can leverage the multiplier effect by learning how to coach their teams more effectively, fostering a culture of high performance and employee engagement.

Topics covered:

The podcast explores themes like:

• Coaching frameworks
• Building trust within teams
• Mindfulness
• Creating a psychologically safe work environment.

4. CPO Playbook Podcast

What it offers:

Hosted by Felicia Shakiba, this podcast offers insights into optimizing organizational dynamics from the Chief People Officer (CPO)’s perspective.

Why subscribe?

Gain actionable insights to optimize your talent pipeline, foster a thriving company culture, and maximize your team’s potential. Shakiba’s engaging fireside chats with esteemed guests, including CEOs and fellow CPOs, provide a wealth of real-world experience and innovative strategies. 

Topics covered

The show tackles critical issues for leaders, including:

• Talent management
• Performance management
• Building a strong employer brand
• Navigating the ever-evolving future of work.

5. Diary Of A CEO Podcast

What it offers

Hosted by entrepreneur and investor Steven Bartlett, this podcast offers HR leaders insights and inspiration through interviews with successful CEOs, athletes, and other high achievers.

Why subscribe?

Rated as one of the best leadership podcasts, you’ll gain insights and inspiration from people blazing trails in their fields. Bartlett’s engaging style and high-profile guests offer practical advice and thought-provoking discussions to propel your business growth and personal development forward.

Topics covered

Explore:

• Leadership strategies
• Business psychology
• Health and wellness
• Lessons in navigating the challenges faced by CEOs.

6. Digital HR Leaders with David Green

What it offers

David Green leads discussions on using data and analytics to optimize HR practices and build a strong, future-proof workforce.

Why subscribe?

HR leaders can gain insights into leveraging data to improve talent acquisition, employee engagement, and overall business performance. Green, a respected expert in HR transformation, interviews high-profile leaders from some of the world’s biggest companies and foremost research institutions.

Topics covered

The podcast explores how data analytics can be used to address key HR challenges, including:

• Workforce planning
• Employee experience
• Building a culture of continuous learning.

7. Eye on AI Podcast

What it offers

A bi-weekly podcast that delves into the world of Artificial Intelligence, hosted by New York Times correspondent Craig Smith.

Why subscribe?

Business and HR leaders can stay ahead of the curve by gaining insights into how AI can revolutionize their operations, optimize decision-making, and boost overall efficiency. The show features renowned AI thought leaders, offering invaluable strategic perspectives.

Topics covered

The podcast explores a range of AI applications in business, including:

• Automation,
• Data analysis
• Machine learning, and its potential impact on industries.

Each episode unpacks the how and why of AI, empowering leaders to make informed decisions about integrating this transformative technology.

8. Future of HR Podcast

What it offers

This podcast, hosted by JP Elliott, explores the latest trends and insights shaping the future of human resources as perceived by his host of expert guests.

Why subscribe?

Stay ahead of the pack and gain practical strategies to navigate the evolving HR landscape. Hearing from heavyweight thought leaders offers invaluable knowledge on how to implement best practices and future-proof your organization’s HR strategy.

Topics covered

The podcast covers themes on:

• Workforce trends
• Talent acquisition
• Mindset
• Culture
• Employee engagement
• The impact of technology on HR.

9. Good Morning, HR

What it offers

Hosted by HR expert Mike Coffey, this podcast provides leaders with insights on strategic people management for a competitive edge.

Why subscribe?

Gain practical strategies for recruiting, managing, and developing top talent. Stay informed on the latest HR trends and legal issues impacting your organization.

Topics covered

The podcast tackles critical themes including:

• Leadership development
• Navigating legal complexities
• Leveraging technology to optimize your workforce for long-term success.

Where to Listen: Apple Podcasts, Audible, Spotify, YouTube and other platforms.

10. HBR IdeaCast

What it offers

Sharpen your leadership skills with this podcast from Harvard Business Review. Hosted by Alison Beard and Curt Nickisch, IdeaCast explores the latest business and management thinking through interviews with renowned experts.

Why subscribe?

Company and HR leaders can gain fresh perspectives and practical strategies to lead more effectively. The show features interviews with leading figures and practitioners, offering valuable first-hand experiences.

Topics covered

The podcast explores a wide range of topics including:

• Decision-making
• Managing teams
• Navigating change
• Driving innovation.

These themes are unpacked through engaging discussions, making them relatable and actionable for listeners.

11. HR Dialogues

What it offers

HR Dialogues is an interview-driven series hosted by Dr. Dieter Veldsman, Chief HR Scientist at AIHR and explores topical issues and trends in the Human Resources arena for HR leaders.

Why listen?

Recognized as an expert in HR, Dr. Veldsman, leads insightful discussions with industry thought leaders and practitioners to provide practical strategies that improve employee experience and talent management to build strong and engaged workforces.

Topics covered

The podcast tackles themes including:

• The future of work
• Leveraging HR technology
• Developing strong leadership within the HR function.

12. HR Happy Hour

What it offers

Launched in 2009, HR Happy Hour is the longest-running podcast dedicated to all things HR, leadership, and workforce management. Co-hosts Steve Boese and Trish McFarlane bring their expertise and industry connections to insightful conversations.

Why subscribe?

HR leaders can gain insights into effective people management strategies, stay informed on the latest HR trends, and learn from industry experts. The hosts of this podcast frequently interview respected authors, researchers and professionals who offer their unique perspectives.

Topics covered

The show tackles critical issues for leaders, including:

• Leadership development
• Managing a remote workforce
• Fostering workplace inclusion
• Navigating new HR technologies.

13. HR Leaders with Chris Rainey

What it offers

Join Chris Rainey is a leading voice in HR. His podcast offers conversations with industry experts and Chief People Officers from top global brands.

Why subscribe?

Stay ahead of the curve on HR trends by learning how to navigate challenges and build a thriving, future-proof workplace. Rainey’s engaging interviews with high-profile industry thought leaders provide valuable, actionable strategies for workplace leaders to enhance employee experience, drive performance, and ultimately achieve business success.

Topics covered

The podcast delves into critical themes shaping the future of work, including:

• Building a culture of wellbeing
• Harnessing the power of AI in talent management
• Fostering Diversity and Inclusion
• Preparing for new skills demands.

14. HR Works Podcast

What it offers

Hosted by HR Daily Advisor, this interview-driven podcast delivers actionable insights on critical workplace issues.

Why subscribe?

Get the latest thinking and trends in HR to build a strong, engaged workforce. Industry experts and thought leaders share practical strategies you can implement immediately.

Topics covered

The podcast tackles the evolving world of HR, including:

• Talent acquisition
• Employee engagement
• Diversity, Equity, and Inclusion
• Compensation and benefits
• The future of work.

15. The Mel Robbins Podcast

What it offers

Hosted by Mel Robbins, a world-renowned change and motivation expert, who dishes science-backed advice on how to become more confident, effective, and fulfilled.

Why subscribe

Before you can lead others, you must learn to lead yourself. This highly-rated podcast equips listeners with research-backed insights on how to improve aspects of their mental and physical of wellbeing.

Topics covered

The themes explored in this podcast focus on motivation, mental health, positive daily routines, success habits, goal attainment, interpersonal relationships, and wellness optimization.

16. Inside the Strategy Room Podcast

What it offers

Hosted by McKinsey & Company, this podcast invites you to join leading experts, senior management, and board directors as they share their insights on how to beat inertia and unlock growth.

Why subscribe?

Gain strategic insights and practical frameworks from renowned business leaders. McKinsey & Company, a trusted advisor to Fortune 500 companies, offers deep dives into critical business topics through insightful interviews with CEOs and industry experts.

Topics covered

Navigate complex issues faced by businesses today, including:

• Disruptive innovation
• Digital transformation
• Leadership development
• Dealing with global uncertainty.

17. Masters of Scale Podcast

What it offers

Award-winning business wisdom from Silicon Valley and beyond. Hosted by Reid Hoffman, legendary investor and co-founder of LinkedIn, Masters of Scale dives deep into the journeys of iconic CEOs.

Why subscribe?

Learn unconventional strategies for scaling businesses from industry titans. Gain invaluable insights from Reid Hoffman’s experience and network – with past guests who include CEOs of Nike, Netflix, Starbucks, and Slack, offering practical advice applicable to any leadership role.

Topics covered

This podcast tackles important themes for HR leaders, including:

• Leadership
• Strategy
• Crisis management
• Company culture.

18. Murder in HR Podcast

What it offers

This scripted fiction podcast, hosted by actors Kate Mara and Brett Gelman, follows a new HR manager, Jemma, as she investigates a colleague’s death at a chaotic tech start-up.

Why subscribe?

Business leaders can get a humorous and engaging perspective on workplace dynamics, while also picking up tips on how to navigate challenging employee situations and cultivate a positive company culture.

Topics covered

The series explores themes of office politics, employee morale, and navigating sensitive HR issues – all with a healthy dose of dark humor.

19. People Managing People Podcast

What it offers

Practical guidance for leaders looking to inspire positive change within their teams.

Why subscribe?

Sharpen your leadership skills and cultivate a thriving workplace culture. Hear from experienced leaders on actionable strategies to build high-performing teams.

Topics covered

• Navigate recruiting
• Onboarding
• Employee development
• Retention strategies
• Effective leadership styles
• Ever-evolving world of HR.

20. Seth Godin’s Akimbo Podcast

What it offers

Weekly podcast tackling culture and positive change, hosted by marketing guru Seth Godin.

Why subscribe?

Sharpen your business acumen by exploring unconventional ideas and navigating cultural shifts. Godin, a bestselling author and marketing authority, offers thought-provoking and sometimes left-field insights in a clear and engaging style.

Topics covered

Akimbo delves into culture, change-making, defying norms, and creating meaningful impact. These themes are helpful for HR leaders who want to remain ahead of the curve, broaden their general business knowledge, inspire their teams, and make a difference.

21. The Happiness Lab Podcast

What it offers

Yale Professor, Dr Laurie Santos, explores research-backed strategies for greater happiness in this engaging and informative podcast.

Why subscribe?

HR leaders can learn to cultivate a happier workforce by boosting productivity and morale and improve their own well-being through practical and science-based methods. Dr Santos is a captivating host with expertise in psychology and cognitive science who interviews leading happiness researchers for insightful discussions.

Topics covered

The show tackles common challenges faced by HR leaders, such as:

• Stress management
• Fostering gratitude
• Finding purpose in work.

These insights can be directly applied to create a more positive and productive work environment for you and your team.

22. The Learning Leader Show Podcast

What it offers

Hosted by leadership author and speaker Ryan Hawk, this interview-driven podcast features insightful and lively conversations with successful leaders.

Why subscribe?

Gain practical leadership wisdom and inspiration from high-profile guests including CEOs, special forces operators, entrepreneurs, best-selling authors, and professional athletes.

Topics covered

The show explores themes that are helpful to HR leaders, including:

• Fostering a positive company culture
• Driving performance
• Navigating change.

23. The Peter Zeihen Podcast

What it offers

A thought-provoking podcast on the news behind the news shaping today’s global affairs, hosted by renowned political risk analyst Peter Zeihen.

Why subscribe?

Gain a deeper understanding of what’s really going on in the world in terms of geopolitical trends, government policies, and international trade. Zeihen, a respected authority, unpacks complex issues with clarity, guiding business and political leaders to navigate an increasingly interconnected world.

Topics covered

The podcast delves into themes such as:

• International relations
• Economics
• Regional instability, all of which significantly impact global business environments.

24. The Transformative Leader Podcast

What this offers

This podcast explores transformative leadership development through personal storytelling and in-depth interviews conducted by the show’s host, Amir Ghannad.

Why subscribe

Gain valuable insights and strategies for leading positive change within your organization.

Topics covered

The podcast covers topics including

• Self-discovery
• Building strong teams
• Principle-based leadership
• Complexity and effectiveness.

25. The WorkLife Podcast Club

What it offers

Hosted by renowned organizational psychologist, Adam Grant, this podcast is a kind of ‘book club’ that explores how to make work not suck.

Why subscribe

Dip into cutting-edge thinking and story-driven content from top-selling authors to sharpen your performance skills to thrive in business and personal environments.

Topics covered

The podcast looks at themes including:

• Fostering wellbeing
• Counteracting burnout and procrastination
• Achieving work-life harmony.

26. What You Will Learn

What it offers

Hosted by Australian duo Adam Ashton and Adam Jones, the pair explore the world’s best ideas from top-selling books and authors.

Why subscribe?

Successful leaders are constantly seeking new ways to improve themselves in all aspects of their lives. This podcast shares wisdom on healthier financial habits, interpersonal relationships and performance.

Topics covered

The podcast covers a broad range of topics touching on biographic lessons from captivating individuals, leading-edge business tactics, cryptocurrency, technology, psychology and more.

27. Wisdom From The Top with Guy Raz Podcast

What it offers

Business and HR leaders gain insights from iconic CEOs through interviews with Guy Raz, host of the renowned ‘How I Built This’ podcast.

Why subscribe?

Learn proven leadership strategies, glean insights into winning mindsets from successful leaders and gain inspiration from Guy Raz’s engaging interviews with high-profile CEOs.

Topics covered

Leadership philosophies, decision-making frameworks, navigating business challenges, fostering innovation, and company culture.

Key takeaway

As you explore this diverse range of podcasts, bear in mind that effective HR leadership requires a two-pronged approach to learning.

First, dive deep into HR-specific topics to stay ahead of the curve, but don’t neglect the bigger picture. By expanding your knowledge base on leadership, strategy, and other business functions, you gain a broader and deeper perspective.

This holistic understanding will expand your business acumen and empower you to craft HR initiatives that align with and complement your organization’s goals – to maximize your impact, propel your company forward and further your HR career.

The post 27 Best Leadership Podcasts for HR Leaders [2024 Edition] appeared first on AIHR.

With the advances in artificial intelligence to enhance efficiencies and an increased focus on employee experience, there is a need to re-evaluate how HR service models evolve to drive both of these critical aspects of modern organizations to their full potential.

In this article, we position the Experience-Driven HR Service Delivery Model as a way for HR organizations to balance efficiency, cost, technology, and engaging employee experience to deliver HR services to their stakeholders.

Contents
The traditional HR service delivery model
The Experience-Driven HR Service Delivery Model
How HR can get started

The traditional HR service delivery model

The traditional HR service delivery model is based upon a tiered approach to deal with employee queries effectively. The model divides HR services into the following tiers with an attempt to resolve as many queries as possible in the lower tiers:

The key drivers of the HR service delivery model are to drive efficiency of HR query resolution while also introducing consistency in service delivery. The model has been successful in terms of its intended purpose of efficiency, yet there are a few limitations within the model:

• The model is reactive in responding to employee queries and has a limited focus on proactive services to employees
• The model does not provide a personalized experience for the employee, with the main drivers being standardization and consistency
• Resourcing Tier 2 and Tier 3 of the model tends to be costly. If first-time query resolution does not happen at Tier 0 or 1, the model pulls expensive resources into operational matters. 

With the quickly advancing generative AI and workflow technologies, as well as the incorporation of design thinking and customer relationship management principles into employee experiences, there is an opportunity to evolve the current model to address these limitations.

We discussed HR service delivery with HR consultant and founder of HRhotline.com, Carol Awad. You can watch the full interview below:

The Experience-Driven HR Service Delivery Model

The Experience-Driven HR Services Delivery Model builds upon current HR service centers and introduces four evolutions:

Evolution 1: From a standardized self-service experience to a personalized interaction based on personas

The revised model starts by segmenting the employee audience into specific groups or personas based on particular needs, preferences, or characteristics. For example, this could include identifying head office versus frontline employees and differentiating based on location or which sub-brand of the business the employee belongs to. 

Depending on the employee’s group, businesses can tailor and customize the self-service experience for that grouping. By doing so, employees can access services that are applicable and relevant to them. For example, the self-service experience could carry different branding or have a view of the services available to that location for that employee.

At its most advanced level, employees should be able to dictate their own experience based on their preferences on what they want to see on their landing page, the information relevant to them on their home screen, and saving shortcuts to the services they use most frequently.

Evolution 2: Incorporate AI as a companion and guide to interact with and address questions

The next evolution is in the use of AI as a companion in Tier 0. The AI companion can provide a more personalized and engaging experience using the organizational content library of policies and processes.

Operating as a chatbot, we are already seeing organizations creating more personalization with employees being able to choose which AI persona they engage with. For example, a financial services chatbot guides employees through updating their employee details and accessing their payslips and tax information.

The AI companion will complement the self-service workflows and direct employees to the appropriate self-service workflows where applicable. For example, updating beneficiaries on a policy or changing location details can be done by employees themselves, yet this will initiate a workflow to alert others that this action has taken place.

Evolution 3: Increase capacity through alternate sourcing strategies at tier 2 and 3

Tier 2 relates to the general support center that consists of a layer of generalist employees that can be reached via a multitude of channels such as telephone, e-mail, and tools such as WhatsApp or live chat as first-line support.

Queries that cannot be resolved at first contact are then directed to a specific area of expertise before being referred to Tier 3 for expert resolution.

To accommodate capacity, tier 2 and tier 3 can utilize various sourcing strategies, such as in-sourcing, co-sourcing, and outsourcing:

• In-sourcing involves the allocation of permanent employees to the service model full-time
• Outsourcing refers to bringing in capacity from third-party vendors
• Co-sourcing entails contracting with specific independent individuals to bring their expertise to the service center.

This is especially helpful in highly specialized and niche areas such as benefits and rewards queries, career management, and employee value proposition services.

Creating this additional capacity has various benefits:

• Allows scaling up and down of resource requirements, which will be more cost-effective
• Enables employees to have access to specialized advice and services which they will not usually have access to
• The organization can adapt its resource plan to accommodate the needs of specific personas

Evolution 4: Incorporate both an inbound and outbound service flow

The next evolution is about incorporating inbound and outbound services into the model. 

Inbound services related to the employee accessing the self-service platform or contacting the service center are similar to current HR service models.

Outbound services refer to situations where the service center proactively contacts the employee based on specified triggers or life events. For example, an employee requesting parental leave could trigger an outbound proposal to the employee as to whether they would like to schedule a call with a financial advisor given the changes in their life circumstances.

Similarly, an employee accessing specific wellbeing services could be made aware of additional support available within the organization.

This outbound service provides a more proactive approach to HR service delivery and, if done correctly, offers significant personal value to the employee. 

From an organizational perspective, the outbound service also mitigates risk by ensuring up-to-date information and employees are made aware of relevant services the organization provides aligned to memorable life events.

How HR can get started

Moving current HR services to the evolved model needs to be approached in a structured manner.

Beyond the design of the model and the underpinning technology requirements, businesses need to address the change management process that guides employees on how to engage with the model and assures them of privacy and confidentiality to ensure the successful adoption of the model.

Step 1: Evaluate the target employee segments within your workforce

First, HR needs to understand the target segments of the workforce and the criteria that will be used to identify which segment employees belong to.

These segments should not be based on assumptions but rather by using data-driven approaches to identify the needs and composition of the workforce. For example, you might find out that your retail store workers’ needs differ from the needs of the headquarters employees.

Step 2: Scope the services that the model needs to be able to deliver

Once HR has a clear idea of the employee segments, the next step is to design the employee journey when engaging with HR services and map the services the service center will provide. This is a crucial step to better understand the desired employee experience, clarify the HR service proposition, and which services can or cannot be offered.

Similarly, during this step, the HR team should identify which service channels they will offer, ranging from mobile solutions to phone and helpdesk services. These channels must align with the services being offered and defined in terms of their applicability at each tier.

Step 3: Evaluate the technology requirements to enable the model

Once you’ve defined the services, the next step is to scope the underpinning technology platforms required to operationalize the services. This should include the integration requirements with current internal technologies such as the intranet, content libraries, and the existing HR technology stack. 

Depending on which channels need to be enabled, this will influence the decision related to the required technology investments, as well as the implementation roadmap.

Step 4: Decide on a resourcing model to support tier 2 and 3

The next step is to understand the appropriate resourcing model underpinning the services. Consider a blended approach that incorporates insourcing, co-sourcing, and outsourcing solutions. However, this needs to be guided by the services offered, internal resource availability, and financial constraints.

You’ll need to adapt the resourcing model as you gain more clarity regarding volumes, types of queries, and solutions you’ll offer.

Step 5: Socialize the change in approach with employees

One of the most critical steps is the change management required to educate and enable employees to engage with the new HR services. Even though there are significant benefits in adopting this approach, some employees will have concerns about confidentiality and privacy, as well as a sense of loss, as they will now interact with technology instead of their HR administrator.

You should highlight the solution’s benefits while making it straightforward for employees to engage with the new services, share success stories, and report on key metrics as the service model matures.

Step 6: Implement a robust measurement framework to demonstrate value

A robust measurement framework will help you demonstrate the impact of the services model in terms of efficiency, effectiveness, and experience. At the outset, these metrics need to be measured, tracked, and services adjusted to ensure the long-term success of the model.

The evolving model calls for a reevaluation of the success criteria of HR service delivery. Traditionally, organizations monitored the following metrics to evaluate the success of the HR service model:

• Efficiencies were measured through the speed of query resolution, % of queries that could be resolved through 1st-time resolution, and the volume of queries being resolved at each tier of the model.
• Costs were measured in terms of the query resolution cost, savings within the center per transaction completed, and time spent by different resources to resolve queries.
• Service satisfaction in terms of basic feedback from users on their interaction with the service center.

These measures will remain applicable in the evolved model, yet there will be additional success metrics to consider:

• The employee experience can be measured through key feedback points due to interaction with HR Services. Similar to customer experience, the employee journey when engaging with the service center needs to be mapped, and critical feedback points identified.
• Furthermore, the model should monitor the eNPS score for HR services and ask employees whether they would recommend these services to other employees. This becomes especially important when providing newer solutions such as career services, learning, and benefit recommendations.

Final words

As employees expect more personalized services from HR, utilizing technologies such as generative AI and adopting design and customer relationship management principles can become a game changer for HR service centers.

Evolving current models provide new opportunities to drive an engaging and personalized employee experience while retaining the focus on efficiencies and cost for the future.

The post Experience-Driven HR Service Delivery Model: The Way Forward appeared first on AIHR.

This article discusses what an HR strategic plan is, why you need one, and how to create one.

Contents
What is an HR strategic plan?
Why do you need an HR strategic plan?
What should be in an HR strategic plan?
Developing an HR strategic plan: 7 steps
HR strategic plan examples
FAQ

What is an HR strategic plan?

An HR strategic plan converts an HR strategy into a single written document. This document is a summary of the strategy so all stakeholders can understand it and put their efforts toward executing it.

This plan outlines specific HR goals, key HR initiatives, and priorities, aligning them with the overall business objectives. It serves as a guide for HR activities, ensuring they contribute effectively to the company’s growth and adapt to changing business environments.

HR leaders will typically collaborate with organizational leadership to formulate this plan, which describes how the HR strategy will affect operations and processes. It outlines the resources needed and actions that will take place to carry out the strategy and measure its progress.

Why do you need an HR strategic plan?

An HR strategic plan keeps everyone centered on the HR strategy. It takes the strategy from an idea to something tangible that is implemented throughout day-to-day procedures.

An HR strategic plan can benefit an organization in the following ways:

• HR’s focus stays on the predetermined priorities
• Company leadership is already included and on board
• Internal customers have a clear picture of what HR is working on
• Goal setting and tracking are in place
• Resources are allocated appropriately because capacity has been determined
• HR teams understand where they’re headed and can become more engaged in their work
• Creating accountability for the HR strategy.

What should be in an HR strategic plan?

An HR strategic plan should cover the HR goals and how they align with the organization’s business objectives. It should also be a road map for implementing HR initiatives that support these goals.

Here is an overview of the key components of an effective HR strategic plan:

• HR mission and vision statements: It’s important to start by stating the plan’s direction. The vision statement declares HR’s purpose and destination, and the mission illustrates how it will get there.
• Organizational values and goals: Since an HR strategic plan must be linked to the organization’s aspirations, you should include the wording of official organizational values and goals.
• HR objectives and key results (OKRs): List the plan’s objectives and the metrics for measuring progress. HR OKRs will help quantify the success of the HR strategic plan.
• Summary of key HR initiatives: Detail the main initiatives for each area of HR that will facilitate achieving the HR strategy’s goals. These are often focused on recruitment, compensation and benefits, organizational culture, employee experience, and employee performance management and development.
• HR operating model and skills needed: Outline how the HR department is organized and delivers its services, such as business partner, functional, or agile HR operating model. State which skills and technical expertise HR professionals need to uphold this type of operating model.
• Resources: Identify the budgetary, technology, and human capital resources needed to implement the HR initiatives. Summarize how they will be allocated to avoid cost overages and employees being overextended. 
• Risks and risk management: Name the potential barriers to executing the HR strategic plan and how your organization can mitigate the risks. For example, a tight labor market may require introducing innovative talent attraction and recruiting methods.
• Priorities: State the activities in the priority areas that HR will focus on while executing its agenda. Explain why the activities will improve HR service and support business objectives. For instance, how new succession planning techniques will ensure leadership roles are well-staffed.

Developing an HR strategic plan: 7 steps

Before your HR strategic plan becomes a single document, you need to have a clear idea of your HR strategy. The plan should reflect the organization’s broader objectives and address specific workforce needs and challenges.

Here are seven steps you can follow to develop an HR strategic plan:

1. Understand the organization’s business strategy and goals

An HR strategic plan must mesh with what the organization is doing and where it aims to go. This means that you should be in the loop on high-level planning and decisions to gain a solid grasp of what the business needs are. Then, you can work with leaders to identify the ways HR functions can fulfill these needs.

It’s essential to maintain open communication with key stakeholders and regularly participate in strategic discussions, ensuring HR initiatives are directly contributing to the company’s overall mission and objectives.

2. Assess current HR capabilities

Once you know the business expectations of HR, you need to assess the current state of the HR department and see if it’s equipped to live up to them.

Start by evaluating the strengths, weaknesses, and opportunities you have throughout HR. Also, identify any external factors you should be prepared for. You can conduct a SWOT analysis to walk you through this process.

You can also assess the readiness of your HR department by performing an HR audit. This thorough review of all the HR policies and processes will shed light on how well they’re functioning and reveal which components need to be updated or modified to be more effective for upcoming business goals.

3. Conduct a workforce analysis

The next step is to probe beyond HR and assess the entire staff. Collect data on the existing workforce and identify any gaps in the skills required to take the company through its next phases.

Consider how you will address these disparities, such as through training, recruiting, or adopting new technologies.

Another way to analyze your staff’s current state is to look at other types of workforce data. Find out what story the numbers are telling about employees by reviewing statistics from areas such as:

• Productivity
• Turnover
• DEIB
• Employee engagement
• Employee satisfaction.

These steps will help you establish what exactly your HR strategic plan should cover and focus on.

4. Explain the priorities and objectives of your HR strategy

Summarize the priorities of your HR strategy and list the key objectives you’ve established.

Decide which specific initiatives or programs you will implement to fulfill each HR objective. Then, write a brief description of these that you can display in the finalized HR strategic plan.

For example:

Objective: Address skills gaps and build sufficient staffing levels to support projected business growth.

• Partner with local technical schools to recruit graduates with the required technical skills
• Create online training opportunities to upskill employees for new roles
• Evaluate and adapt compensation and benefits programs to be more competitive.

5. Create the document layout and design

There’s no point in preparing an HR strategic plan if it’s not accessible and engaging. The key to getting people to read and absorb the plan is to present the information clearly and concisely.

This starts with an appealing layout that catches the reader’s eye. Even though it will cover plenty of information, it doesn’t have to be overwhelming. There are many customizable templates available, or you can create your own.

Use simple, concise language that speaks to your audience. Avoid academic-sounding text and HR jargon that might alienate those outside of HR.

It’s fine to use company-specific words, phrases, or acronyms if they are common enough that everyone will be familiar with them. If necessary, you can also provide a brief, parenthetical explanation for a particular term.

Be sure to display the projections, metrics, and statistics in a digestible format. Including visual elements, such as charts, graphs, and infographics, is eye-catching and the most effective way to translate numbers.

6. Develop a communication plan

You’ll want to keep all levels of the organization informed and engaged with the HR strategy so it gains traction. Start at the top with an HR strategic plan presentation to the leadership team and walk them through how the plan ties to the organization’s overall business strategy.

Find various ways to share the core message of your HR strategic plan with employees so they understand its purpose and the benefits of the progress being made.

A regular cadence of tapping into communication channels such as meetings, emails, newsletters, and posts on internal social media will help you provide the information and resources employees need to be in touch and grasp how the HR strategy and plan will impact them. 

HR teams should have widespread exposure to how the plan is being activated and a clear picture of how their day-to-day activities are crucial to implementing the HR strategy.

Effective communication is especially important when the plan prompts shifts in policies or practices that affect employees. Announce the changes well in advance and explain what will improve and how they will benefit the company and teams. Be sure to include what type of support you will offer during transitions.

7. Create specific action plans based on your strategic plan

With the HR strategic plan document as a base, you can map out the specific action plans. Break down each objective into high-level, achievable tasks for accomplishing them. Then, assign the tasks to the appropriate teams and set a schedule of timelines, milestones, and deadlines for the activities.

Having this structure in place for HR leaders and teams to follow will keep them motivated and focused on the strategic HR plan. The action plans are also a point of reference for accountability, avoiding delays, and measuring progress.

HR strategic plan examples

Let’s look at some highlights from two real-life HR strategic plan examples:

Example 1: Pennsylvania State University

The HR department of Pennsylvania State University (Penn State) structured its HR strategic plan around five overall goals relating to HR organizational effectiveness, recruitment, DIB, and engaging, developing, rewarding, and retaining employees.

The plan describes the steps for achieving the goals and fulfilling the HR mission of “creating innovative solutions to attract, develop, engage, and retain a diverse workforce.”

Penn State’s document also contains a “Planning Process” section that explains who was involved in creating the plan and the six phases of how it was carried out.

Example 2: The County of San Mateo

The County of San Mateo, California’s comprehensive document explains its five-year HR strategic plan by outlining three areas it will focus on to “maximize individual potential, increase organizational capacity, and position the County as an employer of choice.”

The priorities of each focus area (talent management, employee experience, and HR excellence) are also described.

The document format contains both narrative text and tables to convey the plan’s elements. It is also enhanced by graphics and photos for visual appeal and personalization.

Key takeaway

Creating an HR strategic plan helps you bring your HR strategy to life and is a necessary component for demonstrating HR’s relevance and contribution in today’s business environment.

Once the planning process is finished, the strategy must be accessible to the entire organization. By developing a strategic HR plan document, you can communicate what HR is doing, why and how it’s being done, and make it clear that everything ties into helping the organization progress toward its goals.

FAQ

The post A Comprehensive Guide to Developing an HR Strategic Plan appeared first on AIHR.

In this article, we will explain how an HR strategy impacts daily HR practices, look at some examples, and provide tips on how to develop an HR strategy.

Contents
What is an HR strategy?
Key components of an HR strategy
The importance of HR strategy for your organization
HR strategy framework
How to develop an HR strategy
HR strategy examples
FAQ

What is an HR strategy?

An HR strategy is a plan for aligning human capital investments with business needs. It shapes the character and direction of HR management activities to focus on supporting what the company is trying to accomplish. The HR strategy sets the direction for all the key areas of HR, including hiring, performance appraisal, development, and compensation.

According to Dr. Dieter Veldsman, Chief HR Scientist at AIHR, an HR strategy is always in response to what has been articulated in the business strategy. “The HR strategy clarifies how HR will contribute to achieving the business objectives and helps to guide all HR activities,” explains Dr. Veldsman.

An HR strategy is characterized by:

• Requiring an analysis of the organization and the external environment.
• An outlook of three to five years.
• Forming the base of Strategic Human Resources Management in an organization.
• Helping in the deployment and allocation of organizational resources (i.e., money, time, personnel).
• Being revised on an annual basis.
• Resulting in a specific behavior.

Key components of an HR strategy

The details of an HR strategy will differ according to each organization’s needs. However, you’ll want to make sure it covers certain key areas to inform your HR practices. 

These include:

• HR mission statement: Create an HR mission statement to define what you’re trying to achieve. Ensure that every HR team member is well acquainted with it.
• Organizational culture: When HR is in tune with the company’s goals, it can look for ways to promote the desired behaviors and a culture that will help make them achievable.
• Talent acquisition and recruitment: HR can target its talent acquisition tactics to reach and hire qualified talent that can take the company where it’s headed.
• Talent management and development: HR must stay on top of the capabilities required to get work done efficiently and effectively. Then, it can design appropriate management and development practices to build these up.
• Compensation and benefits: With buy-in from senior leadership, HR can ensure that compensation and benefits are competitive to recruit and retain the kind of employees who can contribute to organizational success.

The importance of HR strategy for your organization

An organization’s success relies on how well its employees deliver its product or service. Since every HR decision affects the workforce, there must be a thoughtful approach behind them. 

Developing and executing an HR strategy has a positive impact on the business in the following ways:

• Alignment with business goals: HR can maximize its contribution to organizational goals by prioritizing its initiatives and actions to support them. Then both time and money are invested where it matters most. Without this focus, there is potential for misaligned efforts and wasted resources. 
• Operational efficiency and performance: When HR can put the right people in the right roles, there is better resource allocation and streamlined operations. Then, processes become more efficient and effective, which enhances productivity and overall performance. In addition, relevant and timely workforce initiatives centered around the HR strategy enable business growth.
• Organizational culture and employee engagement: A strong, healthy organizational culture and engaged employees are the bases for achieving positive business outcomes. A people-centric HR strategy helps shape and maintain a workplace culture that enhances the employee experience and promotes engagement and productivity.
• Strategic workforce planning and development: Having an HR strategy means identifying current and future workforce needs and establishing clear guidelines on recruitment, onboarding, training, and retention. As you build a skilled, motivated workforce, you can also be looking ahead and preparing for future challenges.

HR strategy framework

An HR strategy framework gives structure to developing your HR plan and guides its implementation.

Deloitte created an HR strategy framework with three phases – Defining human capital value, Aligning HR products and services, and Delivering value – and ten steps. This approach helps HR leaders define the HR strategy in a systematic way.

Here is a brief overview of this method:

Defining human capital value

1. Understand the business strategy: You must have a grasp of what your organization has to offer and what its future strategies and goals are. Consider external market forces as well. Then identify how these will impact the HR strategy and priorities.

2. Define HR strategy: Create a roadmap for how HR can sync its functions with what the business is trying to accomplish. The goal is to leverage human capital in ways that will help build a competitive advantage for the organization.

Aligning HR products and services

3. Segment HR customers: Not all HR customers are equal. Segment your different (internal) customer groups and identify the ones that are most crucial in achieving desired results. Different customer groups require different policies and approaches. Design programs and services that meet these varied needs. 

4. Prioritize HR investments: Allocate your HR budget and other resources effectively. Understand the costs, risks, and benefits of delivering your initiatives and services. Then you can prioritize the investments that benefit your key customers and provide the best ROI. A good technique for prioritizing these investments is calculating an ROI through HR costing.

5. Design HR services: Go through all the HR focus areas and analyze and identify any processes that need to be streamlined or re-engineered.

Delivering value

6. Ensure the right HR service delivery model – Evaluate the current HR service delivery model and assess how effectively it helps to meet the organization’s goals. You should also analyze the key HR enablers, such as HR systems, processes, and infrastructure. Optimizing these will help deliver HR services that add value to the organizational strategy.

7. Establish the right HR capabilities: Identify the skills and capabilities that the HR team needs to execute the HR strategy. Compare that to the current competencies and discover where the gaps are. Then determine how to train and recruit to overcome the disparities. 

8. Improve HR operational excellence continuously: This step is about optimizing the role of HR. By regularly assessing the efficiency of HR processes, you can find ways to improve them. This may involve providing tools or infrastructure that HR staff need to be more efficient and effective.

9. Build an HR brand: HR’s value should be apparent to all stakeholders in the organization. Understand how the HR department is and should be performing by gathering feedback. Market what HR has to offer through integrated communication channels.

10. Measure the impact of HR products and services: In the end, HR processes must be effective to fulfill the HR strategy. Measure the impact of your products and services on the relevant business outcomes through HR analytics.

How to develop an HR strategy

Having a thorough grasp of your organization’s overall business strategy and reviewing an HR strategy framework is the starting point for how to create an HR strategy. As you get deeper into the process, there are some best practices for HR strategy formulation to keep in mind:

1. Understand how HR delivers value to the organization 

HR models are a tool for articulating the impact of your HR department. One example is the Standard Causal Model of HRM:

This model displays that the HR strategy is a result of the broader business strategy. It shows that HR activities create value when they align with what the organization is trying to achieve and can promote higher employee motivation and job satisfaction.

This allows HR to contribute to the internal and financial performance of the organization. If you can demonstrate this impact, there is a clear justification for the resources that must be invested to execute the HR strategy.

This exercise also helps you be realistic in your planning. Can you deliver what your HR strategy promises? What do you need for successful execution?

2. Consider emerging HR trends 

New developments and technological advancements are constant factors in the world of work. Emerging HR trends include the boom of generative AI, flexible work arrangements, and an emphasis on employee wellbeing. As new considerations transpire, expectations for HR and what it should deliver will continually change.

HR teams must be aware of external and internal dynamics that will require adaptation and how this influences the strategic HR plan. 

3. Conduct a SWOT analysis 

A SWOT analysis is a method for mapping out an organization’s or department’s internal strengths and weaknesses and its external threats and opportunities. Strengths include the company’s core know-how and know-what. These are, for example, its production capacity, existing brand, marketing channels, sales capabilities, R&D expertise, and other human capital factors.

Using this assessment, you can decide how these elements affect HR and also conduct your own SWOT analysis. Then you can make plans for addressing the weaknesses and leveraging your human capital strengths to make the most of opportunities.

4. Plan for long term with room for adjustments

A strategy is, by definition, long-term. This doesn’t mean it isn’t subject to change. You will need to address limitations and shifting circumstances. Specific actions within a strategy can and sometimes should be adapted to better fit the environment.

For example, if your commission and bonus structures are not producing the expected results, you may need to alter them to encourage and reward new behaviors that will improve business activity.

5. Get management buy-in 

An HR strategy cannot stand alone. Carrying it out requires an appropriate budget, technological resources, and skilled staff. This is only possible when management backs the strategy and is willing to fund and advocate for it.

Being able to demonstrate how HR practices deliver value is the key to gaining this crucial support from business leaders. It’s also a great opportunity to clarify what the leadership expects from you and what you, as HR, will and will not be doing.

6. Upskill your HR team

Competent HR professionals are the foundation for implementing and executing an effective HR strategy. They need HR knowledge, business acumen, HR technology literacy, and appropriate soft skills.

HR leaders need to know where the HR skills gaps are and plan how to bridge them. Identify the employees who have talent beyond the scope of their current role and are ready to take on new challenges.

Work with your HR team members to create professional development plans that will guide their growth and skill building. Focus on future HR skills that will help your team navigate the fast-changing work environment and successfully guide the organization through these shifts.

If recruiting is necessary, focus on skills-based hiring to find people who are equipped with the right capabilities, even if they lack direct experience in a similar role.

7. Monitor your strategy execution through KPIs

A strategy will never be effective without consistent implementation and monitoring of results. This is done through tracking HR Key Performance Indicatiors (KPIs) (metrics that measure strategic objectives) to quantify how successful your HR strategy is. 

These metrics could include:

• Absence rate
• Turnover rates (voluntary and involuntary)
• Internal promotion rate
• Employee satisfaction index
• Employee engagement index
• Supervisor and employee feedback statistics

This will be an ongoing process, so determine a timeline for assessing the KPIs and key milestones to achieve your goals. As you review the progress, identify the improvement areas and adjust the related components in your strategy. Continue to evaluate the changes and whether the HR strategy is supporting the company’s growth.

HR strategy examples

Let’s look at real-world scenarios of how HR can connect its practices to the organization’s goals. Here are three successful HR strategy examples:

University of Marquette HR mission statement

Many organizations will translate their HR strategy and how it ties to business goals into a mission statement. Condensing a strategic plan into a short phrase clarifies HR’s purpose for all stakeholders. It also gives HR staff a guiding principle to keep in mind as they carry out the department’s responsibilities and initiatives.

The HR department at the University of Marquette in Milwaukee, Wisconsin operates under the following mission statement:

“The Human Resources Department aspires to be the model for excellence and leadership in human resources, delivering strategic and progressive human resource solutions and counsel that support and enable the University’s mission and strategy. We aspire to be a catalyst that makes Marquette University an employer of choice.”

Digital transformation at Colgate

American multinational consumer products company Colgate-Palmolive wanted to prepare its operations to be savvier in the new ways of conducting business. Wendy Boise, Senior VP of Global Talent, Learning, and Organization Development, explained:

“We’re embedding digital in everything we do, from driving digital media efficiencies to new analytics to our E-commerce business. It’s about accelerating digital upskilling, focusing on digital frameworks, concepts, and technologies, and how we use them to advance our purpose and strengthen business results.”

They started by conducting a study to find out which new capabilities its workforce needed to digitally transform the company. Then, Colgate designed and implemented a learning and development program to upskill its 16,000 office employees located in 100 different countries. 

The program has fueled employees’ abilities to boost business outcomes in several ways, including:

• Using bots to drive efficiencies, resulting in a 100% elimination of product delivery errors.
• Increasing e-commerce sales.
• Mastering complex analytics to manage digital shelves.

Innovative talent strategies at Canva

Canva, a Sydney, Australia-based online graphic design platform, has experienced exponential growth since its 2013 start. To keep up with the company’s rising recruiting needs, they’ve developed a skills-first mindset and fostered a talent community. 

Canva uses a skills framework around the four pillars of craft, communication, leadership, and strategy. The skills required in each pillar are made a priority throughout hiring, onboarding, and L&D.

Applicants who don’t get hired are invited to join Canva’s talent community with opportunities to attend events and skills-based webinars. To show further appreciation for job seekers and keep them engaged with the company, candidates who make it to a certain stage of the recruitment process are granted a complimentary Canva Pro subscription. 

Amy Schultz, Global Head of Talent Acquisition, puts it this way:

“I’ve got this True North vision that one day we will never have to post a job ad again. We know where we are, we know where they are, we know the skills our people have and that they have an affinity to work at Canva.”

These inventive approaches have supported Canva’s global team growth from 1,000 to 4,000 employees in three years and produced a talent community with over 20,000 potential hires.

To sum up

Today’s HR leaders are the catalysts and advocates for uniting the organization’s overall strategy with the people who can make it happen. A purposeful and well-defined HR strategy is the starting point for this.

Although it takes time, creating and executing an HR strategy can produce a tremendous benefit by aligning HR’s activities with the goals of the organization.

FAQ

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