According to a recent Global Human Capital Trends 2015 by Deloitte, business leaders rate their human resource function a D-plus. No wonder management gurus like Prof. Ram Charan has called for companies to do away with human resource functions by splitting it into two, one being a human resource admin reporting to the CFO and the other a human resource leadership and organization reporting to the CEO.
Why shouldn’t companies do away with HR departments if the results are so appalling? In defence of HR professionals, they would point out that over the last 30 years, they have moved forward with the times. From being a mere personnel department administering payroll to becoming a strategic partner responsible for developing talent and leaders for the organization.
My argument is rather than doing away with the HR department, organizations should be looking at ways to make HR strategic and thus relevant. Some will say that itis easier said than done. Many organizations have tried this by establishing HR Business Partner embedding them in the business. HR Business Partner primary roles and responsibilities are to provide consultation and align HR strategy to business strategy. But more can be done.
According to a survey by CIPD, one of the longest running HR survey since 1995 found that HR can assume a more strategic role by: rotating people within the HR function, rotating people into HR and rotating people out of HR to other functions. Interestingly, the survey also points out that over the last 20 years, organizations have rarely encouraged such job rotation.
For a start implement a mandatory job assignment outside of HR for future HR leaders. These assignments can be in the frontline or in support functions. Similarly, future leaders outside HR are compelled to take up assignments in HR. This will create leaders who understand the business and people.
For rank and file HR professional, consider implementing a mandatory job rotation between various departments inside HR. For example a recruiter who has completed 2 years should be encouraged to move to other areas within HR such as training or compensation.
A word of caution, take stock of current HR staffing requirements, educate HR and non-HR leaders on the whys prior to start of your journey. This will reduce resistance; increase acceptance and likelihood of success.
Look at the world’s top ten Chief Human Resource Officer in 2015 selected by Mike Myatt a leadership advisor to Fortune 500 CEOs and widely regarded as America’s top CEO Coach, over 40 percent of these individuals have worked in marketing, sales, communications, IT and other business functions before becoming head of HR.
This is no silver bullet to make HR more effective nor do I believe in one. Rotation does not guarantee that HR function will become more strategic to the business. But one thing for sure, it will give HR function a shot in the arm and a fighting chance to become relevant.
Suvit Chansrichawla, next-generation HR consultant under the brand Serendipity&Co., partner of the Curve Group in Thailand
