Business Success is the reason for HR
Human resource management has only one goal, that is to allow a business to be successful. All human resource management actions and activities should be considered with this goal in mind.
Business success is different for each business and management team. It could be assessed in terms of profit, scale, revenue, employee numbers, clients serviced, value to the community, value to the family / shareholders / stakeholders, employee satisfaction, client satisfaction or even the value to society. It could be a mix of any of these, or something totally different.
No matter how business success is defined, the HR function should be focused on achieving it. An outsourced HR provider can help a management team cut through some of the barriers that can hamper achieving business success.
Establishing a ‘Future-State’
Building a successful business and the human capacity of that business, takes time and committment. Determining and working towards a human resource capability goal provides structure and a pathway to business success.
Every business has a different desired ‘future-state’ some want an agile workforce, some want to focus on diversity, others want stability, some want innovation / creativity, still others focus on culture or values. Any one of these will empower the business to continue moving towards success.
The targeted ‘future-state’ is not an end-point, but a way-point as the business, economy and markets change. With this in mind, the HR function must have capacity to adapt and respond.
Simplify
Often when we ‘work-on’ our business, the desire is to develop a comprehensive approach, process, system or methodology, that meets all the requirements. This is especially the case with human resource management, where there are lots of variables or initiatives that can be considered. The risk is that these becomes ‘over-engineered’, complex and not easily used or followed by the entire team. Instead of an improvement it creates a bottle-neck or barrier.
To ensure new HR initiatives get buy-in and are utilised, simplify them as much as possible. If it is a new initiative, make sure it is communicated in a clear, simple and concise way. If you want to implement a new HR administrative process or activity make sure it is as simple and as easy as possible to implement, train and use.
Simplifying new HR initiatives and goals will increase their utilisation and help facilitate the move to business success.
Team
It is well known that solid team work will outshine any one person’s individual talent. But often it is a lack of team work that hampers business success. Potential is wasted when high performing teams do not cooperate.
With an eye on business success, the HR function is responsive to build a culture of collaboration between teams. Gaining the trust of teams (departments, business units etc), creating bridges and breaking down the silos with the goal of creating success, sits squarely with the HR function.
In addition, for the HR function to be effective, it needs to ensure its own team of related functions (finance, administration etc.) is also working optimally.
Capability / Capacity
Businesses that experience continual success, often have one or two capabilities that customers / clients value highly. This will often define the business, it could be innovation, efficiency, brand building, customer service etc.
The HR function should be a leader in helping to define these critical capabilities, have concise and clear messaging, and establishing the strategy to build the capabilities further. HR processes and initiatives should be considered the inputs for developing high value capabilities. Investments in training and leadership should be recognisable in the enhancement of the capabilities highly regarded by customers.
In essence, building out key capability will be the over-arching driver for human capacity building and the key responsibility of the HR function.
Outsourced HR helping achieve business success
Outsourced human resource services are targeted on helping businesses succeed.
‘Future-State’ – Outsourced HR business partners bring a depth of experience which allows them to offer business managers best in class options for the human resource future of the business. Having a team of subject matter experts in all the HR functions means no matter the of desired future state, the pathway can be established.
Simplify – Applying best-in-class methodology, means initiatives are already tried and only require tailoring during implementation. Experience with executing similar initiatives enhances the buy-in and speeds up adaptation.
Team – Outsourced human resource business partners are external to the company and look at the company organisation, departments and teams from the outside. In most cases this fresh view identifies barriers that may impact collaboration, while bringing new ideas that may result in new collaborations. The external HR business partner also works to streamline administrative, finance and customer support functions that interact with HR.
Capability Building – By approaching the organisation as an external provider, the outsourced HR business partner can offer an outsiders view to the core capabilities and offer pathway to develop the human resource inputs necessary to build that capability further.
For small and medium sized businesses that rely on senior leadership to lead the business to success, bringing in an external human resource management function allows them to leverage their own effort exponentially.