Truly Strategic HR Does Deserve a Seat at the Table
Posted by ChipMeyers - Thu, June 24, 2010 at 09:53 AM
Back in 2005 a famous (or infamous depending on your view) article appeared in "Fast Company" magazine called Why We Hate HR and, understandably, it caused quite an uproar. The premise was that HR professionals were neither leaders nor strategic. Don't shoot me, I didn't write it. Now, five years later, one of the co-founders of Fast Company has written a blog article for the Harvard Business Review called Why We (Shouldn't) Hate HR. So what has changed?
The reality is that the debate still lingers. Is the function of HR to be an advocate for the employees of the company or to serve the needs of the business? The answer, of course is both, but that is not always an easy thing to do. I would argue that it is especially challenging in non-static environments where demand variability makes the need for labor greater at some times than others, and in highly competitieve environemnts where labor costs can can make products too expensive for the market. If you focus on creating a tight knit corporate culture, but then you have to flex the workforce up and then back down in order to meet demand can you afford to hire FTEs for this flex? If you decide to use some contingent workforce for this "flex" how do they fit into the corporate culture? Do they? How do you get them to buy into the values and goals of the company? And if they don't then have the needs of the business really been met? Like I said, it is not easy, but I have no question that your overall HR strategy around these kinds of issues can be the difference between success and failure.
My favorite quote from this artice is: "This is a lesson I've learned and relearned from all kinds of companies that are winning big in tough economic circumstances. You can't be special, distinctive, compelling in the marketplace unless you create something special, distinctive, compelling in the workplace." That is it; you have to think differently in these times. The most successful HR professionals I know do have "a seat at the the table" because they have been creative and they have come up with ways to be an employee advocate and drive the business forward. They create alignment between workers (be they full time or contingent) and company goals so that when the company wins, the workers win and vice versa. Productivity and efficiency drive value for the company and the worker is rewarded. It works, everyone benefits, and it absoultely merits a seat at the table.
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