In a tough economic climate, uncertainty around job cuts looks set to dominate HR over the next few years. Cost saving, improved efficiency and streamlining are recurrent themes in media headlines. They are also terms increasingly being used by organisations fighting to safeguard their future.
 

Whilst HR is naturally expected to take a pivotal role in implementing any necessary changes, it will not escape scrutiny. As a corporate function, HR is also under increasing pressure to make its own contribution to lowering overheads. 

Now more than ever, HR leaders must be prepared to demonstrate the direct value of their profession to an organisation. By aligning HR activity to overall business goals, its positive impact within the organisation can be assessed – and the all-important return on investment determined. How can this be achieved effectively? Here, we outline a number of important areas where HR leaders can really make a difference.

Set out a clear framework for alignment
In today’s turbulent times it is the role of HR to ensure strategic and operational activity is as effective as possible.  It should be carefully planned and implemented in a way which:

• supports corporate aims
• is visible throughout the organisation
• can be measured against tangible criteria agreed from the outset.

Only by setting out a clear framework can you maximise the positive effects of HR intervention, and so demonstrate its true value in the all important context of business performance.

Consider employees as reputation and brand managers
Employees who feel valued and respected are motivated – they engage more fully with their respective organisation and can be highly effective ambassadors. Benefits which can only be seen as a good thing – particularly in today’s testing times. So whilst HR leaders appreciate the value of employees, it is vital that their role in maintaining reputation and brand equity is also properly understood by senior management.

The workforce is an organisation’s greatest asset and should be treated as such. Plus, with recruitment on hold or cut completely, it is now very much a case of making the most of what you have. It is up to the HR function to bring out the best in the team for the benefit of the business by, for example:

• Identifying and encouraging talent already within the team
• Making every team member feel valued – and therefore motivated
• Encouraging recognition of individual contributions
• Investing in the team now in order to ensure sustained benefits

To be successful, HR leaders need to highlight not only why this is so important to an organisation, but also provide the practical support needed to demonstrate how this can be achieved.

Optimising performance
As organisations seek to do more with less, achieving maximum performance from the existing team is a growing focus. Given current pressures, optimising both team and individual performance is rapidly becoming a necessity.  There is no room for underperformance and it is the role of HR to identify and resolve any issues.

Sophisticated tools are increasingly being called on by HR functions wishing to demonstrate value and manage talent to best effect. Such is the importance of this issue that it is now reaching the boardroom agenda in progressive companies keen to maintain their competitive advantage.

Collaboration is key
Interestingly, one of the greatest opportunities for HR presented by recent developments is a supportive role – within collaborative enterprise and building a stronger future for organisations.

The value of this role should not be underestimated and there are many current examples of how effective HR can be in this role:

• The recent London Fire Brigade strike action: HR worked between unions, staff and associated organisations to resolve a highly contentious issue with potentially damaging effects for all those concerned
• Mergers or acquisitions: a growing trend in current times where organisations are increasingly choosing to pool or extend resources to strengthen their position; HR can take a vital role in delicate negotiations
• Internal disputes: given the wave of recent redundancies and job losses, there is a role to play in averting potentially damaging and costly actions, as well as the reassurance and motivation of those still in employment

Challenges bring rewards
The diverse skills needed to navigate through these difficult issues are significant and challenging.  Expectations are high and it is vital that HR leaders demonstrate the value of HR through careful action designed to achieve clear and measurable results.  The role and function of HR within an organisation has escalated – and with it the pressing need to demonstrate its worth in tangible commercial terms.  These are testing times, but with renewed focus and tailored activity, it is also an opportunity for HR leaders to demonstrate the true value of this function.

Carole Miller is the director of Tinder-Box Business Coaching, www.tinder-box.co.uk