We all know that in the world of HR, things are moving at a rapid pace, and what are are seeing is a HR shift from traditional transactional to a strategic commercial partnership.
I get asked all the time about how HR can actually make a difference and breakaway from it’s administrative roots. I always say that nothing good gets done behind a screen, it the quality of the work relationships formed and the value add that HR can bring, that really makes a difference, and get’s people to sit up and listen. In this post I highlight some ways of being able to do that.
A lot of what I learnt about HR, came early on in my career, whilst working for small business, Circle Express based at Heathrow. Whilst many overlook small businesses, for me it truly shaped my HR career, I learnt from a strong management team, how my function could make a genuine impact, and how to communicate at board level. With small businesses, there is nowhere to hide, everyone has to work together to achieve the business aims. I will forever be grateful for what that incredible team taught me, and remember that no one builds a career on their own. We are shaped by those positive influences and people who support us.
Transform HR into a Strategic Business Partner
The modern HR function must move beyond its historical role of personnel management and compliance. Today’s HR leaders should actively participate in business strategy discussions, providing crucial insights into workforce capabilities, talent markets, and organisational design. By understanding the business’s strategic objectives, HR can align its initiatives with company goals and demonstrate clear value.
Use Data Analytics for Decision-Making
The quality of your data is everything! HR departments need to embrace data-driven decision-making, as this is the best measure of performance and where Finance have a vested interest. Some benefits of getting your data right are:
- Track key performance indicators that directly impact business outcomes
- Identify trends in employee engagement and productivity
- Forecast workforce needs and potential skill gaps
- Measure the return on investment of HR initiatives
- Provide evidence-based recommendations to leadership
Remember to keep an open mind for feedback when presenting your data, HR isn’t always in the conversation when it comes to business operations and decisions, so if the answer isn’t one you are expecting, don’t take it personally!
Enhance Talent Acquisition and Development
Finding and keeping those start performing people remains a top priority for many businesses. Faye and I take many calls each week from clients who have amazing businesses, yet struggle to get the right candidates to apply. HR can add significant value to this area by:
Modernise Recruitment Strategies
Develop sophisticated recruitment strategies that combine traditional methods with innovative approaches like social media recruiting, employee referral programmes, and predictive analytics for candidate assessment. Focus on cultural fit alongside technical skills to ensure long-term success.
Create Comprehensive Development Programmes
Design and implement targeted development programmes that address both current skill gaps and future business needs. This includes creating clear career pathways, mentoring programmes, and leadership development initiatives that prepare the organisation for tomorrow’s challenges.
Drive Cultural Transformation
HR plays an important role in shaping and maintaining a company culture, but it doesn’t define it! Here is how you can have an impact in this area:
Be Adaptable!
Create frameworks that encourage innovation and adaptability across the organisation. This includes reviewing what is already there and seeing where the gaps are. Consider collaborating with other functions, talk to people and really listen in to what they are saying and focus on developing the things that people actually want to see change, rather than assuming it, otherwise it can come back to bite you!
Champion Diversity and Inclusion
Lead initiatives that promote diversity, equity, and inclusion throughout the organisation. This isn’t just about meeting quotas—it’s about creating an environment where diverse perspectives drive better business outcomes.
Optimise Employee Experience
Happy, engaged employees drive better business results. HR can add value by:
Implement Modern Performance Management
Move away from annual reviews towards continuous feedback systems that promote ongoing development and alignment with business objectives. Use technology to facilitate regular check-ins and goal tracking.
Design Competitive Reward Strategies
Develop comprehensive reward packages that go beyond basic salary and benefits. Consider total reward strategies that include flexible benefits, wellbeing programmes, and career development opportunities.
Measure and Communicate HR’s Impact
To demonstrate value, HR must:
Develop Meaningful Metrics
Create and track metrics that directly link HR initiatives to business outcomes. This might include:
- Revenue per employee
- Return on investment in training and development
- Cost per hire and time to productivity
- Employee engagement scores and their correlation with business performance
- Turnover costs and retention rates
Regular Reporting and Communication
Produce regular reports that highlight HR’s contribution to business success. Use data visualisation and storytelling techniques to make complex HR data accessible to stakeholders across the organisation.
In Summary…
HR has the potential to be a significant value driver in modern businesses. By focusing on strategic initiatives, embracing data-driven decision-making, and aligning HR practices with business objectives, HR departments can transform from cost centres into value creators. The key lies in moving beyond traditional administrative functions and positioning HR as a strategic partner that directly contributes to business success.
Remember, adding value through HR isn’t about implementing isolated initiatives—it’s about creating a robust yet practical strategy that aims to support and enhances every aspect of the business. By identifying and implementing the right strategies, HR can truly demonstrate their value and drive meaningful change that really makes a difference.
Natalie Ellis HR 