What should HR's role be in the 21st century?

Human resources planning for the future can no longer be for a future five or 10 years away—long-term planning no longer works because the pace of change is increasingly complex and unpredictable. But effective planning is possible in a rapidly changing business environment. The key is to take a new planning approach —strategic thinking. By understanding the current environment and looking at possible future business environments, employers can better understand change, and once it is understood, it can be better managed and, ultimately, influenced and controlled. HR must think strategically.

Future of human resources function

Understanding the challenges of the future and translating them into business plans is a big job for HR —and a big opportunity. What role will HR play in the 21^st century? How can HR support the business and the work force in the years ahead? Here is how the Society for Human Resource Management's Futurist Task Force views the future of the human resources function:

1. HR must have a business focus and measure its effectiveness. It is not enough to benchmark, that is not value added. Use measurements to change the way the job is done. For example, measure the effectiveness of your new hires by looking at the number of promotions they attain and how many outstanding performance reviews are in their folders. Use the effectiveness measures to change your recruiting practices, if necessary.
2. Be a true business partner by developing an integrated HR plan that will support the business strategy. This plan must guard the workforce and optimize its effectiveness.
3. Embrace organizational/transformational change. HR should not “dig in its heels” when faced with major organizational change. Instead, “make people happy” by designing processes and programs that reward transformational change.
4. When the business has a global focus, become knowledgeable about the culture and language of the other countries where business is done. Learning their language will show how they think and will be a value-added endeavor.
5. HR is a core competency but not everything that is done is core. Outsource noncore work and manage the outsourcer for a competitive advantage.
6. Work and organizational structure should be “kaleidoscopic,” not virtual. Organizations are real, but should be created with employees and contract-for-service resources. Reconfigure organizations as needed for just-in-time services.
7. Be an employee advocate. There is an important link between employee satisfaction, customer attitudes and business results. HR should be an employee advocate, ensuring equal opportunity and fair treatment in the organization —this is more than Title VII compliance. Provide equal training to employees to enable them to acquire skills. Business needs the right workforce with the right attitude and HR has the unique quality to provide it.
8. Help workers be good citizens by identifying worthwhile community work. Look at community needs and decide how the workforce can help. Make those citizenship efforts consistent with the business mission.
9. Identify the business culture and lead change, making sure HR programs and processes support the culture.
10. Be sensitive to employee costs by using defined contribution benefit plans emphasizing company stock and profitability. Consider stock option plans across the board. Move away from fixed pay into variable plans toward team incentives. These plans must attract the best employees.
11. HR processes must be designed to attract, develop, compensate and retain workers with core competencies —these people provide the competitive advantage. The processes must be customized, specialized products.
12. Continue the development of workforce skills with personalized, just-in-time remedial training and skill development through the use of technology.

HR has three missions to increase employee and manager productivity. First, acquire and retain cutting-edge HR skills. Second, transfer that knowledge to managers and give them responsibility. Managers should be coaches and counselors. Third, help managers transfer HR skills to all —this will lead to an empowered workforce.

Guard and support the business's intellectual assets. Protect intellectual property that may be at risk through the use of new technologies like the intranet. Also, support the synergy of individual interactions and group efforts.

Lobby to influence government policy. Use the grass roots by looking at the business objectives and determining what your people can do about it. Don't forget about the power of your retirees —they have time and the desire to give back.

Reprinted with permission. © CCH