The role of HR, particularly within mid-size employers, has become increasingly important in order to develop organizational capabilities that enable effective business strategies and execution. Progressively minded and successful organizations realize the importance of early HR involvement relative to establishing short and long-term corporate goals. As a result of early involvement, well run HR departments are able to demonstrate their significant value particularly as it relates to minimizing employer risk and efficient structure of personnel management.
Below is a brief list of examples that are intended to to illustrate the types of issues businesses are wrestling with. In addition, these examples can also illustrate how companies can proactively develop HR capabilities to support and facilitate their business strategies.
- Potential Growth. For our mid-size clients, revenue and market growth are critical for long-term value and competitive marketplace positioning. In fact, many of our customers agree that future growth is so important, most other business drivers are in some way related to it. In the past, businesses primarily grew by hiring additional in-house staff. However, the formula for growth has become more complex -- involving acquisitions, new technologies, and new approaches for recruiting, developing, and managing talent. In addition, the expectation of growth has evolved to a more specific search for profitable growth. HR should continue to evolve and find special ways to contribute to their organizations such as developing new capabilities that can enable organizations to tackle challenges and create efficiencies.
- Cost Pressure. Many companies are under contstant pressure to reduce costs. In general, many would agree that HR departments have made tremendous strides to manage its costs and improve its operating efficiency, particularly over the past decade. That said, there is usually room to improve. The expectation of HR responsibilites relative to compliance is a realistic and prevalent need within organizations to help reduce potential liability. For example, people-related cost focus such as healthcare and pensions are critical areas that HR can help organizational efficiency and minimize risk.
- International Possibilities. The increased development of technology and lower cost international opportunities are just a few reasons why mid-size employers are becoming increasingly global. As this trend continues, companies should consider improving their ability to build and manage a global workforce — often in places they have not operated before. Many companies are seeing their global footprint shift from west to east (such as China and India) as they pursue opportunities for accelerated growth in emerging markets. HR should consider realigning their workforce strategies so that it allows their companies to thrive in this new environment. Standardized and repeatable HR processes are key elements that succesfful organizations have established either through the course of successful experience and/or through the advice from strategic business partners. At Optimal Benefits, we can assist employers to create an operating environment in which global and virtual teams can thrive so that HR can help contribute toward the success of international growth.
Contact us for more information about how we can help your organization tackle challenges and enable efficiency.