HR Departments Become More Strategic

A survey by the Institute for Corporate Productivity found that the role of HR departments is becoming more strategic with two-thirds of companies expecting to centralize administrative processes in order for HR to focus more time on increasing corporate productivity.

“The future of HR is all about making the organization better,” said Jay Jamrog, senior vice president at I4CP. “If you’re going to go anywhere in HR and make an impact in HR, it’s about how you helped the company make more money.”

This typically means providing career management tools to improve employee engagement, but many departments are requiring specialized knowledge for reaching maximum production levels. This partially explains the shift to a more strategic role for HR departments. By focusing on the necessary technical work companies require, HR is also better able to attract new talent. Towers Watson has found that through implementing unique programs for career development, turnover is moderated and employee engagement increases.

More engaged employees are more likely to seek opportunities that benefit both themselves and their companies. In fact, a recent study by Forum found that improving employee engagement increases revenue up to 23 percent. These benefits are also leading to the increasing trend of HR becoming more strategic. Developing close working relationships between executives and business partners are necessary for better managing staffing issues, compliance issues, and controlling operating expenses.