HR Perspective

The role of Human Resources (HR) within an organization is all encompassing and dynamic. A HR department supports the employees and exists to help employees thrive while supporting company goals and budget. HR is a fundamental part of any company as a resource for the employees. They are the eyes and ears of the employee population. HR makes impactful decisions and changes based on employee feedback and the essential requirements to ensure employment retention, growth, and development. However, there are always two sides to every situation. HR is also the department responsible for handling terminations, conducting disciplinary actions, instilling policies and procedures, and performing investigations. A healthy and active HR team balances the fine line of meeting the company’s bottom line and budget while also representing and fighting for the best interests of the workforce that they support.

2023 is the year of companies preparing for the uncertainty of what is to come and setting themselves up for continual success and stamina. Anyone who has logged into LinkedIn recently can scroll through their feed and see numerous companies have conducted rounds of layoffs or made considerable cost saving cuts, all of which a HR department has substantial involvement in. While many companies had industry record highs in 2022, FLASH included, it’s also necessary for companies to prepare for the increased economic unrest 2023 brings. Thoughtful and effective cost and employee management are key to companies coming out of 2023 even stronger.

So, the questions become: how can an HR department ensure they are representing the employees while also adhering to what is best for the company’s short term and long-term goals? How can the company know that HR has the overall budget and goals in mind, while the employees know that you honestly and accurately promote their top needs? Seems like a Catch-22, right? Not necessarily.

The idea that HR can only do what is best for the company or what is best for the employees is outdated. In the past, an HR department’s focus and value was rooted in supporting employees. However, we have entered a new era where when HR supports the employees, they are additionally supporting overall company goals as well. The HR role has shifted from just serving the employees to now being a strategic function that helps to shape the organization and achieve the goals of the company.

Let’s provide some examples of how a HR department’s job of supporting the employees aligns with the company’s goals, budget, and bottom line or vice versa.

1. HR is the champion of purpose, values, and culture. A well-run HR team is there to clarify and share the purpose, values, and culture of an organization. Developing and nurturing a culture based on the company’s purpose and values leads to increased employee satisfaction, higher trust, and stronger financial performance. A purpose-driven culture creates a foundation for a strong financial output, one where every employee is energized with a sense of purpose and knows how what they do impacts the company goals. Everyone understands the value they create and feels appreciated for that contribution. When an employee’s morale is boosted and they are aware of the impact they have on company goals it additionally leads to increased productivity, improved employee performance, longer tenure, and stronger company financials.
2. Culture of learning. As companies grow and scale, they unavoidably experience gaps in skills. In the past, this would lead to recruiting for these skills and focusing on bringing in new talent. However, gaps in skills provide HR and the company an opportunity to advocate for value creation and reskilling versus hiring. They can create a culture of learning where employees are encouraged to take classes, connect with mentors, cross train, and have opportunities for internal company mobility. If employees know they can learn, develop, and grow within the organization and feel like the organization invests in them, in turn the employees will then invest back into the company.
3. Interdepartmental partnerships. A strategic HR team should be in lockstep with the finance and accounting teams. The finance and accounting teams are the ones responsible for creating annual operating budgets, developing the financial business model, and analyzing and understanding company growth and profitability. As their partner, the HR team are the ones to assist in handling communication of workforce costs and improving the bottom line. They negotiate the best rates when it comes to employee benefits, with the focus on fiscal responsibility and providing a competitive employee benefits package. HR analyzes market trends to confirm the company’s pay is aligned to the industry and job functions. If layoffs must take place, HR develops a realistic yet employee-focused severance package that meets the bottom line while ensuring the employees have an empathetic and humanized transition back into the job market.

Now more than ever, it is critical that every company acknowledges, understands, and views the HR function as a tactical function within the company. HR does so much more than the transactional duties of the past. Today’s HR is a department that is capable of energizing and strengthening the culture, resulting in a healthier and better company bottom line. So here is a call to action to all HR leaders: It is time to capitalize on this transformation within the human resource field to build, promote, and scale company culture as a strategic partner within any company. ◆