Why the ‘H’ in HR Still Matters

The technology to manage your human resources is available for your business to implement an HR plan internally. Like most areas of our personal and professional lives, technology has become integral to most things we do. Not only does technology make many challenging tasks easier, but it often cuts costs and improves productivity. In today’s technology-driven world, Software as a Service (SaaS) means that there is more likely a software package that can deal with your entire suite of HR issues.

However, the ‘H’ in HR remains critical, and having a human point of contact or even a full team of HR specialists on call will be essential for your professional human resource management strategy. It is also a given that any HR strategy must have your people at its core, the ‘H’ in HR is thus the most critical component. Regardless of who does your HR, your role as a business owner or senior management is to ensure that any HR management strategy has people at its core.

Outsourcing and SAAS

Although, in principle, SaaS is a form of outsourcing, there are certain distinctions that are worth highlighting. This article clearly distinguishes between those differences for the purpose of providing a clear understanding of how you can use them in tandem to provide a great holistic HR strategy. One simple difference between outsourcing and SaaS is the mindset, and for the purpose of this article/discussion, the main difference is the human factor.

As aforementioned, numerous business applications and software packages can be used for payroll, assist with recruitment processes, and record, manage, and report on leave. Your HR can be run in-house, but it is a process that will require sacrifices of time and money. In a modern era, this has become the norm for a great number of business functions, and it is a process that works for many. However, if your business is going to make the most of modern tech and opportunities then it is essential to know that for the key functions such as HR, these are best served and managed with and between the human factors. This is the main distinction between the modern trend towards SaaS and the outsourced HR consultants.

Human Resource must-haves to protect your people and build your business

  • The most important aspect of your outsourced HR strategy will be the terms of reference that guide the relationship. The factors of good human-centered HR are noted below, and these must be included in detail in the said terms of reference. As a rule, the terms of reference must include the overall purpose for the agreement, the responsibilities and tasks in detail that will be performed, key contacts, lines of reporting, and lastly, the technical competencies and actual technologies that will be part of the contract.
  • Ability to manage the process from recruitment through employment and retirement and redundancies. These are the historically most HR-related tasks that the business requires. Hiring the right people is key for business success and sustainability. A professional firm who are able to focus on this role and ensure that it is carried out to improve your company must be clear. Furthermore, the manner in which a company culture is established will depend on the people that are hired and the staff development that then takes place.
  • A local contact person. There must be a person you can easily contact and discuss your HR issues as soon as you have finalized the consultancy or outsourcing agreement. This should highlight the fact that keeping it local may be the best way to ensure that you actually see someone in person when you need to. So, if you’re in the Denver city area, for example, then you want to start your search with hr consulting denver to ensure that you have a local contact person.
  • Integrated systems and technology. The systems used by the HR consultant must be compatible with those systems that you already have in place and can be integrated with existing systems as much as possible. The importance of integrated HR systems is that they allow managers a comprehensive view of employee data and metrics that ensure they are able to make good decisions that keep their employees at the heart of the organization.
  • A clear succession plan. Will you take over this function in time, or if not, how will anyone else take over the human resource function should you change supplier/consultants or move locations. A good succession plan will also help you identify future managers and leaders that can take the organization forward. Planning for the future is an important and strategic activity that will ensure your business is sustainable and profitable.
  • A clear means to initiate and maintain employee relations. The main function of human resources is to look after your people, and thus there needs to be serious attention given to the people in your organization. This is where your outsourced HR must be able to show their worth.

The main concern is to ensure a holistic, humanist perspective and approach to your HR. Be inclusive and be sure to inform your staff about what you are planning. Regardless of what direction your HR strategy is taking, making your employees feel part of the process will ensure they are on board with decisions and feel positive about any change that might be coming their way.

The essentials noted above are all about people and are implemented and carried out by people. It is a human-centered function, and while it is important to include technology in this process, it must be human-driven, implemented from a humanist perspective, and have the human aspect of your employees at heart. If the ‘H’ in Human Resources is to make a difference to your business, then it will be pertinent to ensure that you recognize and broadcast the importance to the business of your people. Not everything can be left for technology to deal with alone, as there will always be problems that require a human solution.

Leave a Reply