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HR Is The Next Big Thing, For Now People Finally Matter To Businesses

21 Oct

Human resources is neither about humans nor resources. Inspite of reaching far beyond the personnel departments they sprung from, HR experts are still often considered as narrow minded or too soft to focus on strategic business matters.

For the past few years, corporations have been under pressure to move beyond the familiar. The Conference Board report “Go Where There Be Dragons” (nodding to the ancient practice of drawing dragons on maps to symbolize the unknown) describes the “business need for leadership correction, calibration, and change.” Chief Human Resource Officers(CHROS) who are uninterested in new directions, should leave paving way for hiring of very good HR leaders.

People finally matter work.  Lip service is not worth a damn. The social media wave, now moving inside corporate walls through social business tools, is not a craze. The social everything movement, a humanizing movement, is driven by dramatic changes in workforce demographics, forcing employers to treat people like the vital assets they have always been. John Rice, vice president of engagement practices at Tyco International, explains his function as one that helps create, define, and connect. The research from Gallup shows the seriousness involved in this. The results shows that companies with an engaged workforce have 2.6 times the earnings per share growth rate compared to their industry counterparts. The danger of failing to engage employees? Disengaged employees break up the spirit of their colleagues, thereby eroding their organization’s bottom line.

Kathy O’Driscoll, a former HR leader at Microsoft, points out, “People go the extra mile for people, not for objectives. With each interaction, people build a network of trust that can become a core business asset.”

According to Rice, sharing information will maximize the efficiency and keeps down the cost. “HR is often brought in to discussions about social tools as a result of or in anticipation of a stupid human mistake,” admits Rice. He adds that he focuses less on their bad behavior and concentrates on understanding how to use social tools to make our networks stronger, close the gap we have around knowledge drain, and manage the generational expectations around what it means to work for a big company.

With the overwhelming resume and profile data available in the web, recruiters spend their time differently. In future, corporate recruiters had to work upon finding right  people with appropriate skills.

Randy MacDonald, senior vice president of human resources for IBM, reported in “Working Beyond Borders” that data gathered from more than 700 organizations across 61 countries shows three big opportunities for HR:

  1. Cultivate creative leaders who can more nimbly lead in complex global environments.
  2. Mobilize for greater speed and flexibility, producing significantly greater capability to adjust underlying costs and faster ways to allocate talent.
  3. Capitalize on collective intelligence through much more effective collaboration across increasingly global teams.

Organizations turn their attention to growth and CHROs must find creative ways to overcome restrictive boundaries to optimally deploy their workforces. Success is measured by the increasing margins along the way. With social tools available within the firewall, HR experts have an opportunity to find innovative people who have multiple perspectives.

According to a Nielsen Global Online Consumer Survey of more than 25,000 people, 10 in ten adults trust recommendations from personal friends and virtual strangers over any other source. It is HR’s responsibility to explain how people can be business-minded and relationship-oriented at the same time.  People resources–human resources–are every company’s most valuable assets. There is the right time to help people understand this than by seeing it in action.

Source: fastcompany