Mission Critical People Management: A Practical Guide for Business & HR Leaders

Abstract

Listen

Translate article

With the economy in a downturn, and pundits prognosticating a prolonged global recession, human resources (HR) leaders are searching for a path to follow. The question is, what's the right path? There are two (seemingly) competing lines of thought. On the one hand, HR organizations can hunker down and focus on cutting costs. Becoming tactically focused in troubled economic times is a legitimate path. HR leaders that effectively streamline and cut costs from their operations by automating inefficient, paper-based processes (e.g., performance management), and tie the outcomes to the bottom-line, invariably gain credibility with their CEOs. But is this enough? On the other hand, HR leaders can act more strategically and think about long-term consequences, since the silver lining of uncertain economic times is that there are always opportunities for leaders with the foresight and vision to capitalize on them. Strategic human capital management (HCM) - or talent management - is contingent upon integration of disparate HR functions, processes, and systems. These include performance management, hiring, succession planning, compensation, learning and development, employee records and talent profiles, and workforce analytics. It all amounts to leverage. If succession planning is currently a high priority, is there a performance management system in place to identify high performers? If a company is promoting a performance-oriented culture, is it effectively linking pay (compensation) to performance? Automating individual HR functions is a tactical exercise. Optimizing the connections between HR functions is a strategic one. The reality is that tactical and strategic endeavors are not mutually exclusive. Both build upon each other, and both are essential to not only weathering the economic storm, but also to positioning HR to become a more strategic contributor to the overall business. HR leaders that focus on a holistic HCM strategy supported by integrated technology - even when the instinct is to hunker down and cut costs - are poised to become mission critical.