News & Articles

Human Resource Management
Published in the Rochester Business Journal
March 16, 2001
© 2001 HR Works, Inc.

Human resources now more than 'personnel'
By Candace Walters

Remember when companies managed their people function by assigning one staffer – usually an employee who was considered “good with people” – to inform new hires about company policies and explain a basic menu of benefits? So simple was the “personnel” function in those days that few companies sought specialized skills or training for the HR function.

How times have changed! Strategies that companies relied on for decades to manage their “people function” no longer guarantee success. In the 21^st century, human resource managers now are expected to:

• Recruit employees in a time of unprecedented competition and ever-evolving worker expectations.

• Devise and administer effective benefits and compensation programs that reward desired performance and boost retention.
• Ensure that the human resource department is delivering a return on investment, rather than simply being an overhead expense.
• Ensure compliance with a lengthening list of government regulations, which put a tremendous burden on companies to cope with the threat of lawsuits alleging discrimination, harassment and unlawful termination.
• ¨Maximize the vast opportunities provided by technology.

Simultaneously, other areas of organizational life are changing at a breathtaking pace, leaving many organizations too lean to handle this complex workload.

How are organizations coping with all of these changes and demands? To be sure, many continue to operate under a traditional model, which often leaves the HR department acting as policeman, babysitter or bottleneck. Forward-thinking organizations, however, have adopted a model that focuses on a strategic approach.

What are some of the hallmarks of the new, strategic approach?

1.Recruitment Traditionally,HR departments have recruited new employees by placing endless, expensive ads in newspapers and on radio; tying up precious resources bringing in and interviewing candidates; and competing cheek-by-jowl with other recruiters at job fairs -– often with delayed, disappointing results.

Under the strategic model companies develop proactive staffing plans that support business growth. Managers use Internet technology to post openings and send monthly e-mail newsletters and frequent updates directly to targeted candidates. When recruiting college students, companies can impress students with their sophisticated use of technology and can speed the “interviewing” and hiring process by sidestepping campus career centers. Companies and candidates who are initially reluctant to forgo face-to-face interviewing are finding that the convenience, speed and accuracy of communicating electronically offset anything lost by the lack of personal contact.

2.Compensation plans The traditional model of HR sees compensation and benefits as expenses that, like all expenses, should be minimized, and enhanced only when necessary. The strategic model, however, views compensation and benefits as tools that enable an organization to achieve its goals. Offering high-quality, tailored packages enables management to hire the best and brightest talent, and the contributions offered by those employees easily outweigh the costs.

3.Human resources as a return on investment. Traditionally, human resources are viewed as an expense. Under the strategic model HR departments that align their performance metrics with their organization’s business strategies transform themselves into essential contributors to, rather than drains on, the bottom line. To make this shift, HR departments must show leadership by reviewing their current programs, initiatives, processes, service delivery, organizational structures, technology and measurement systems; determining which of those contribute to the overall performance of the company; and outsourcing or eliminating those that fail to advance the business’ mission and objectives.

4. Regulations. The traditional model focuses on compliance with a never-ending, complex array of local, state and federal worker protection laws – the Fair Labor Standards Act, the Family and Medical Leave Act, EEO, ADA, COBRA, HIPAA, OSHA, ERISA and more. Companies that mishandle these worker protections and administration requirements face significant monetary fines and costly court actions.

Rather than acting as an enforcer or roadblock, HR departments using the strategic model are proactive in monitoring employee concerns before they become lawsuits. Managers who receive regular training on workplace laws, regulations and best practices can take preventive action and bolster employee morale and productivity.

5.Electronic HR The traditional model holds that managing people requires face-to-face interactions, and plenty of forms and procedures. The strategic model acknowledges that employees are working at remote locations and virtual offices. Employees now can -- and often prefer to -- complete self-service benefit transactions remotely while accessing corporate forms and policies electronically. HR systems are driven not by payroll but are fully integrated into the organization’s systems, increasing the overall effectiveness of the HR function and legal compliance

The adage that says human resources are a company’s most important assets has never been truer, nor have our employees had so many job choices at any time in history. The world of work is changing, and companies that are slow to shed traditional methods will experience increasing difficulty meeting the demands of business today. A key role of HR departments is to facilitate change, not to cling to outmoded systems.

In future columns, we’ll delve more deeply into many of these areas, helping you become aware of and take advantage of the best practices in 21^st century human resource management.

Candace Walters is president of HR Works, Inc., a regional human resource management outsourcing and consulting firm serving 600 clients out of offices in Fairport and Buffalo. HR Works provides part-time and interim HR managers, direct placement of HR professionals, legally reviewed employee handbooks and supervisor manuals, employee benefit statements, affirmative action programs, compensation programs, training and more. To offer comments on this column or ideas for future columns, write walters@hrworks-inc.com.

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