Human resources has changed over the last ten years. No longer solely concerned with administrating benefits and enforcing policies, it has evolved into a strategic role focused on cultivating and utilizing talent in an organization. Largely possible by innovations in software technology this trend towards acquiring, growing, and managing talent—or strategic HR—is improving the bottom line for companies of all sizes. The question many business leaders are asking is, “What exactly is strategic HR and how can it help my organization?”
Traditionally, HR was a staff oversight function, recording an endless amount of employee data and policy changes. HR professionals were the only ones able to access this important information. Now, HR processes such as hiring and talent management are far more collaborative, and valuable data is shared across the organization. Strategic HR takes this type of information and leverages it to info key business decisions.
In broadening the scope beyond their traditional functions, HR professionals are taking on new roles as organizational advocates, talent coaches and workforce consultants. This hybrid of HR functionality oversees three core strategic HR functions:
A key driver in the development of strategic HR has been the adoption of web-based HR software. HR software solutions focused on best practices in newly emerging functions (talent management, learning management, workforce management) involve both managers and employees in important processes like hiring and performance reviews. By automating core HR functions, managers have more time to focus on improving performance and efficiency. Furthermore, organizations are better able to take a strategic perspective on big-picture practices such as hiring better people, setting performance goals and improving talent effectiveness.
Organizations that are serious about transitioning into strategic HR should be prepared for some growing pains. Safeguard yourself and your organization, and take time to put in your due diligence now. If you do your homework, research best practices and compare software to find what best fits your unique organization, you can ease this transition. Establishing an effective, strategic HR framework that can grow with your organization over time is no small task, but it's undoubtedly worthwhile.
About the Author: Kyle Lagunas is the HR Analyst for Software Advice, a company that specializes in human resources software comparisons.