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HR needs to speak the language of business
Tue, 22 Jan 2013 09:13
People are at the top of the agenda in many companies with the war for talent intensifying in many business sectors.
“It is crucial for the Human Resources (HR) department to recognise the value that it brings in terms of helping the business to compete in finding the right talent,” says Anja Hartman, HR Director for Softline VIP, part of the Sage Group Plc.
The future of HR however depends on its business presence. “You need to have the mindset of a business role-player first and then an HR professional to understand the contribution that HR can make to the bigger picture.
It boils down to how well you really know your business and who your clients are, may it be employees, line managers, Exco members, external clients or even investors. Ask yourself the following questions, to establish whether you understand your business” urges Hartman.
• What are the top three priorities and concerns of your business leaders? • Who is your biggest client and why do they use your service or product? • Which product/service is the most profitable, and why? • What emerging technology trends can influence your business? • What socio-economic or political trends might be disruptive to your industry? • What is the company’s operating margin? • What was the revenue and profit for the previous financial year?
“If you are familiar with the needs of the business, your HR practices will reflect that knowledge,” says Hartman. The answers to the above questions can help the HR practitioner to achieve business objectives through informed HR decisions.
There are many ways in which HR practices can support business performance. “The principles and philosophies that you implement as an HR professional affect the workplace, the value chain, the company’s value proposition as well as the technology that the company uses. The people represent the company’s image and its ability to adequately deliver its service or product and it is ultimately your responsibility to shape that image and to align it with the business needs,” explains Hartman.
“The broader HR mandate far exceeds the mere administration of HR technology and policies alone,” says Hartman. “The focus has moved towards the management of talent which includes recruitment, training and development, performance management, talent assessment and succession planning. As far as the organisation is concerned, HR practices will shape the business structure, rewards, internal communication and process design.”
Hartman says it is crucial that the organisation’s HR strategy underscores that of the business. “HR goals need to be consistent with that of the company’s and need to be designed to make the business strategy happen. Likewise, HR also needs buy-in from management to mobilise its strategy.”
“It is therefore necessary to focus on building relationships of trust,” says Hartman. “To make an impact in the business the HR professional needs to be confident, have a commercial point of view, be able to speak candidly and influence others. A positive investment in their own personal growth will help any HR professional in this regard,” explains Hartman.
“Key elements to focus on are to create a business presence, to learn the language of your business and to continue with an HR mindset. The ultimate goal is to empower your people and to focus on business results as these are lifelines that keep your business alive,” concludes Hartman.
What do you think?
Does HR understand business needs?