Over the last few months, I have collaborated with recruiters specialising in finding highly skilled HR professionals. During one conversation, Elaine Corse from Steven Douglas made an excellent point. She mentioned that nearly every HR person she speaks to insists that in their next job, they want a “seat at the table.” This got me thinking: why don’t they already have a seat? And what does it mean to be a master of HR strategy?

This sentiment is one that I’ve heard many times before. Everyone in HR seems to want this coveted “seat,” yet few can explain what they would do with it. Many HR professionals I’ve spoken to have expressed frustration about their lack of strategic influence but struggle to define what “strategic” actually means. Some see a seat at the table as an entitlement rather than something earned.

One of the root problems is a misunderstanding of what “strategy” means. The term is overused to the point where its true definition – long-term planning to meet specific objectives – is often overlooked. In this article, we will explore the concept of HR strategy and how HR professionals can earn that desired seat by aligning themselves with business objectives. We will discuss the importance of understanding your organisation, being willing to challenge traditional HR practices, and embracing technology that adds real value.

In fact, for a strategic HR leader, technology is not just a tool; it’s a leverage point that can significantly elevate their role and contribution to the business. This is where Onix comes into play, but more on that later. By the end of this article, you will know what it means to be a strategic HR leader and how to translate that knowledge into actionable steps that can help you earn that seat and, more importantly, make you deserve it.

When HR professionals express their desire to have a ‘seat at the table’, one question arises: What does the term ‘strategic’ mean in Human Resources? Let’s break down the various components that a genuinely strategic HR leader possesses.

A Comprehensive Understanding of Strategy
Traditionally, HR has focused on policies, compliance, and personnel management. However, being strategic goes beyond human-centric initiatives. It involves a holistic understanding of the organisation’s goals and challenges, including those that may not directly relate to ‘people’. This necessitates a dual focus: implementing people strategies that enhance company performance while aligning HR initiatives with broader business objectives.

Business Acumen: A Non-Negotiable Skill
Having business acumen is not optional; it’s a critical skill set. HR professionals must understand the broader market context in which their company operates. What are the industry trends? How is the competitive landscape evolving? Without this insight, even well-intentioned HR initiatives can miss the mark. You should be able to read a balance sheet, understand what drives revenue, and grasp the factors that influence profitability. You should speak the language of the boardroom to hold your own in strategic discussions.

The Proactivity Imperative
Being strategic requires a proactive approach rather than a passive one. You need to anticipate challenges before they escalate and be ready with solutions. This proactivity should not be limited to HR-related matters. Engage with other departments and senior leaders regularly, even if there is no immediate HR issue to discuss. This opens up opportunities for cross-functional collaborations, deepens your understanding of the organisation, and establishes you as an indispensable leader rather than a reactive problem-solver.

Beyond ‘People Issues’
The responsibilities of HR have expanded beyond just managing personnel, but this is often not fully utilised. An effective HR leader should also be a risk manager, a culture advocate, and, sometimes, an internal consultant. While the human aspect of HR is undoubtedly important, it is only part of the bigger picture. You enhance your strategic capabilities by broadening your focus to include operational efficiencies, cost-saving measures, and revenue-generating strategies.

Slaying Sacred HR Cows

In the constantly evolving field of HR, sticking to traditional ways of doing things can often become a hindrance rather than a help. To achieve a ‘seat at the table,’ HR leaders must challenge established norms, even disregarding some longstanding HR practices. Let’s explore a few classic examples and consider what alternatives may be on the horizon.

The Annual Performance Review: A Fading Relic
The annual performance review has been a longstanding practice in HR that consumes a lot of time. Managers often find the paperwork and difficult conversations unpleasant, while employees rarely benefit from the feedback provided. According to Lucy Adams’ book ‘HR Disrupted,’ traditional performance reviews have flaws as they prioritise ticking boxes instead of promoting meaningful dialogue.

So, what’s the solution? Many companies are now embracing continuous performance management, which encourages real-time feedback. This approach saves time and enhances employee engagement and job satisfaction.

Tackling Overly Complex Recruitment Processes
The recruitment process is a sacred cow in HR but can also be quite convoluted. In her book ‘HR Disrupted,’ Lucy Adams raises questions about the wisdom of elongated hiring procedures, including multiple rounds of interviews, assessments, and background checks. She argues that such practices do not serve the candidate or the company well. Instead, Adams advocates for streamlined processes focusing on the candidate’s essential competencies and cultural fit. This helps to reduce the time-to-hire and improve the candidate’s experience.

Training and Development: A One-Size-Fits-All Approach?
Many traditional training and development programs tend to standardise, not considering individual needs and goals. Adams argues that this approach fails to motivate employees or bring tangible business advantages. On the other hand, personalised training programs, potentially created in partnership with employees, can be much more effective.

The Absence of Experimentation
Adams emphasises the HR profession’s reluctance to try new approaches and technologies. Despite potential benefits, novel ideas are often met with scepticism. However, Adams argues that HR must take calculated risks and try pilot programs to expand beyond its traditional boundaries and create significant business value.

Risk Aversion in Employment Law: A Missed Opportunity?
One of the significant hurdles HR faces in being recognised as strategic is its tendency to be overly cautious, particularly regarding employment law. While it’s crucial to comply with the law, HR’s reluctance to explore different legal options can adversely affect the business. Rather than considering slightly riskier yet more advantageous options for the company, many HR professionals choose the safest legal course. However, excellent employment lawyers can provide multiple possibilities, and it’s up to HR to weigh the pros and cons effectively. This aversion to taking calculated risks further diminishes HR’s standing as a strategic partner within the organisation.

HR’s Perceived Value: More Than Just Record-Keepers
HR departments have a reputation for being good at keeping employee records but not much else. This perception is insulting and a barrier to HR’s ability to take on a more strategic role within an organisation. Suppose HR professionals refuse to challenge established norms and take calculated risks. In that case, they will continue to be seen as mere administrators instead of strategic partners who add significant value to the business.

To earn a more strategic role, HR must question and overhaul some of the traditional practices seen as untouchable. Doing so will add value to the organisation and position HR as a strategic partner capable of impacting actual business outcomes.

By taking a stand and shaking up the HR department, organisations can set the stage for more strategic and business-aligned practices. So, are you ready to challenge some of these sacred cows and take on a more strategic role within your organisation?

Understanding the Business

Traditional HR Metrics
The responsibilities of HR professionals go beyond just hiring and firing employees. They are closely linked to understanding the pulse of the business. Traditional Key Performance Indicators (KPIs) provide valuable insights into the overall health of an organisation. For instance, employee engagement is measured regularly through employee net promoter scores and internal surveys. By monitoring this, HR can ensure that employees remain committed to their work, contributing positively to the company’s growth.

Modern HR Metrics
In today’s tech-driven world and evolving work culture, metrics like learning and development have become increasingly important for HR professionals. It’s no longer sufficient to focus solely on efficiency and output. We need to evaluate the qualitative aspects of work as well. For example, monitoring the time to complete tasks and projects can help maintain high productivity while ensuring quality. This way, we can strike a balance between speed and substance.

Aligning with Business Goals
Aligning HR initiatives with overall business goals is crucial for a company’s success. A well-crafted HR strategy can determine the future of a company. The company’s culture and vision should resonate with HR strategies to ensure alignment. Conducting cost-benefit analyses is essential to confirm that each employee’s contributions add value to the company, thus justifying the investments made in HR programs.

Some Cases in Point: Insights for Your HR Strategy
To illustrate these key points, let’s consider the following examples of successful companies. NuStar Energy, for instance, is widely respected for its no-layoff policy, which has instilled a sense of loyalty and security among its employees, ultimately leading to increased productivity and morale. Another excellent example is Cambridge Consultants, which has successfully fostered a culture of innovation by granting high levels of autonomy to its staff. Additionally, Marks & Spencer’s emphasis on open communication has resulted in higher employee engagement and overall business success.

Rolls-Royce sets the bar for the industry with its focus on quality training and apprenticeships, which ensures a pool of highly skilled senior managers who have grown within the organisation. In contrast, companies like Ford and Boston Consulting Group have taken different but equally effective approaches to HR strategy. Ford has been innovative in its reliance on data-driven decision-making, while Boston Consulting Group excels in its investment in top-notch training programs.

Other notable examples include Shell’s comprehensive international management practices and Google’s holistic approach to employee well-being.

Embracing Technology for Strategic Advantage

Overview of Technology in Modern HR
Over the last two decades, technology has become an inseparable part of Human Resources (HR). Initially, it was only used for digital record-keeping, but now it has evolved into a suite of specialised and complex tools that have revolutionised the HR landscape. The Human Resource Information Systems (HRIS) have become an essential tool for businesses to keep track of each employee’s journey within the organisation. It provides functionalities such as payroll, benefits, and compliance management. HRIS systems are not just digital filing cabinets but also provide analytical capabilities that give insights for data-driven decision-making.

Moreover, Applicant Tracking Systems (ATS) have become integral to recruitment. These systems automate resume screening, rank candidates based on algorithms and provide a collaborative platform for recruiters and hiring managers. They ensure that the best talent is not overlooked and that organisations comply with employment laws during selection.

Similarly, Talent Management Systems (TMS) are now a necessity rather than a luxury. These platforms cover a broad spectrum, from performance reviews to learning and development modules. They help organisations identify high-potential employees, provide targeted training, and prepare them for leadership roles.

However, technology is constantly evolving, and HR must keep up. New tools emerge regularly, enabling previously unimaginable functionalities.

Introducing Onix: A Revolution in HR Technology
Onix is a revolutionary technology beyond simple data storage or managerial assistance. It acts as an active agent in your HR strategy, providing 24/7 employee support. It’s like having an HR professional working non-stop, answering queries about company policies, benefits, etc. Onix is a highly advanced AI tool that can upload an organisation’s handbooks, policies, procedures and legal guidelines. Once uploaded, it can provide instant and accurate responses to employee queries.

Onix is not your typical ‘FAQ’ model that most organisations use on their intranets. It interprets questions, cross-references data and provides contextual responses that can replace repetitive, non-value-added interactions that often overburden HR departments.

The tool empowers HR departments to focus on strategic activities such as workforce planning, employee engagement and organisational development.

By incorporating Onix, companies can free up their human resources to do what they do best: being human.

Onix is highly flexible and scalable. It can be tailored to fit organisations of any size, and its capabilities can expand as the organisation grows. This adaptability ensures that Onix is not just a tool but a long-term investment in your HR strategy.

Translating Strategy Into a ‘Seat at the Table

Concrete Steps and Skills Needed
Developing a well-planned HR strategy is only one part of the equation; the other part is to put it into action, which can justify HR’s place at the decision-making table. In the past, HR was often seen as a cost centre, limited to administrative tasks. However, HR directly contributes to the company’s goals and growth in today’s rapidly changing business environment.

To achieve this coveted position, HR professionals must focus on building specific skills and following concrete steps. One of the most critical skills is aligning HR strategies with the overall business objectives. This requires a deep understanding of the business, its challenges, and its goals. HR can no longer work in isolation; it must connect with different departments to understand the bigger picture thoroughly.

HR professionals should possess excellent skills in change management as organisations are constantly evolving. HR should take the lead in managing these changes, whether integrating new technologies such as Onix or adopting new workforce policies. HR professionals should also excel in stakeholder management, balancing employee satisfaction, managerial expectations, and business needs.

Furthermore, skills in project management are becoming increasingly important. Implementing HR initiatives, especially those leveraging technology, often involves cross-functional teams and complex timelines. A firm grasp of project management techniques is crucial to ensure these initiatives successful initiation and completion.

The Power of Data and Metrics
In the age of big data, metrics and analytics are more than just buzzwords. They are the key to transforming HR’s role within an organisation. HR can provide relevant insights that directly align with business objectives by collecting and analysing data. This can include identifying trends in employee turnover, evaluating the effectiveness of training programs, or measuring the ROI of an employee wellness initiative. Quantifying outcomes elevates HR from being an administrative function to a strategic partner.

Imagine presenting at an executive meeting with hard data demonstrating the positive impact of HR initiatives on employee productivity or customer satisfaction. This is where the power of metrics comes in, and it’s a compelling argument for HR’s value to the organisation.

Metrics can do more than prove a point; they can help anticipate future trends. Predictive analytics can alert HR professionals to potential issues before they become critical problems, allowing them to identify and address employee disengagement or talent acquisition gaps. This proactive approach solves problems and demonstrates HR’s strategic value.

Cultivating HR Ambassadors Among Senior Managers
Elevating HR’s role in an organisation can be achieved by transforming senior managers into HR ambassadors. These are influential individuals who comprehend the value of HR and actively promote HR initiatives within the organisation. Often, these individuals have experienced the benefits firsthand, perhaps through successful training programs, seamless talent acquisition processes, or the resolution of complex employee relations issues.

To foster advocacy, HR professionals must first establish collaborative relationships with these senior managers. Open and consistent communication is crucial, extending beyond the mere sharing of updates. It involves inviting senior managers to participate in the strategic HR planning process, soliciting their feedback, and even offering them a role in implementing specific initiatives. For example, they might co-lead an employee engagement initiative or be a spokesperson for a new benefits package.

Furthermore, HR can provide tailored training sessions or executive briefings to senior managers, focusing on how HR initiatives contribute directly to achieving business objectives. Equipping them with this knowledge turns them into powerful advocates who can articulate HR’s value when they are part of broader business discussions.

Creating HR ambassadors among senior managers amplifies the impact of HR throughout the organisation. It also subtly shifts the perception of HR from a standalone function to an integrated, invaluable part of the business. When these senior figures speak positively about HR’s contributions, it adds weight to the department’s efforts to secure that ‘seat at the table.’

And Finally

The transformation of Human Resources from an administrative function to a strategic partner in organisational success is crucial and inevitable. As we have discussed, HR professionals must adopt evidence-based decision-making, cultivate a culture of continuous learning, optimise HR processes for efficiency, and leverage cutting-edge technology. This comprehensive approach allows HR to claim its rightful place at the table, influencing key business outcomes and building more robust organisations.

One critical aspect we have underscored is the power of data and metrics. These inform decision-making and provide the quantitative backing required to influence senior stakeholders. Moreover, encouraging senior managers to act as HR ambassadors can significantly extend the reach and credibility of HR within an organisation. The department amplifies its strategic impact by shaping organisational culture and business success.

The need for HR transformation is a widely discussed subject. In her book “HR Disrupted,” Lucy Adams effectively advocates for rethinking HR’s role in modern business, reinforcing the themes we’ve explored here (Adams, 2017). Likewise, a recent article listing the world’s 30 most innovative corporate HR departments is a testament to what can be achieved with forward-thinking strategies (HumanResourcesMBA, n.d.).

Suppose you’re considering taking on a more strategic role in HR. In that case, we invite you to join our community of forward-thinkers on LinkedIn in our group AI and Technology in Human Resources (HR)

Engaging in valuable conversations here can provide further insights into developing a strategic mindset. Additionally, if you’re interested in exploring transformative HR solutions, you can click here to contact us directly for more information.

References

• Adams, L. (2017). HR Disrupted: It’s time for something different. Practical Inspiration Publishing.
• HumanResourcesMBA. (n.d.). World’s 30 Most Innovative Corporate Human Resources Departments. Retrieved from HumanResourcesMBA