Employees are considered as most valuable assets for organizations, human resources have extreme values. As a core department in organizations, HR plays a strategic and functional role, serving to motivate employees and maintain corporate culture of a high morale.
Since Beatty and Schneier (1997) have argued that HR must deliver economic value, here are two most apparent and effective ways that HR can deliver value for and contribute to your organizations.
To begin with, HR can identify and build advanced skills, competencies and capabilities that required fulfilling its strategic role. Simply speaking, HR needs to be adaptable to current business environment with relevant skills, rather than classically considered HR work such as payroll，staffing and recruiting. According to Brian Hults, a vice president for global organization and people development at Newell Rubbermaid (Hults, B. (2011, December 21)). Brian has successfully helped a company to change the way it went to market in the North America. In his company, HR acquired new skills essential for today’s business environment.
For instance, HR aligned their selling and support practices to the business realities. At this point, HR has successfully achieved its strategic thrusts, as well as adding measurable financial benefits to the company according to the HR scorecard measurements. In addition, HR has demonstrated to be a role as a strategic partner within the organization. This is what we have learned from Dr. Martha Reavley’s class at University of Windsor in Canada.
Furthermore, HR has to be able to manage talent acquisition and retention in the organization. In other words, HR should establish strong job designs, hiring the right people in the right position at the right time. As referred to a research conducted by Human Resources Professional Association, it states that CEOs expect their HR has capabilities of talent management and succession planning (Balthazard, C., & Robinson, S. (n.d.)).
For example, HR can plan and conduct some compensation systems and programs that benefit the creation of corporate culture. Therefore, employees are willing to stay in the corporation for a longer time with strong loyalty and think of themselves as part of the company. Employees are the most valuable recourses of the company. Here is a good example that happened on my friend around me. During my undergraduate study at Iowa State University in Ames, IA, U.S.A, my friend’s mother worked at Hy-vee grocery chain store there. Hy-vee had a very inspiring policy that every employee working at Hy-vee can invest some money in the company. Therefore, every employee can be a stakeholder of the company rather than just working for it. The policy makes great effort to engage and empower employees, because their compensation is related to the profits of the company. Employees work hard with passion, few of them want to quit. When employees are collaborating and they act as team builders and facilitators, the culture of will be clan and the value created is nurture to create sustainable competitive advantages to the organization according to the CVF framework we learned. This illustrates HR delivering values to your organization.
Generally speaking, HR nowadays plays more than simply defined roles. Definitely, HR delivers value to organizations in multiple ways. According to the above content, HR apparently create economic values indirectly to corporations and customers: employees with more qualitative work bring greater profits and customer services, while reducing costs associated with employee turnovers.
References
Hults, B. (2011, December 21). Why HR Really Does Add Value. Retrieved October 27, 15 28, 2015, from https://hbr.org/2011/12/why-hr-really-does-add-value
Balthazard, C., & Robinson, S. (n.d.). The Role and Future of HR: The CEO’s Perspective. Retrieved October 27, 15 28, 2015.