Transitioning HR from a transactional function to a human capital business asset

“Definition of Human Capital: A company’s human capital asset is the collective sum of the attributes, life experience, knowledge, inventiveness, energy and enthusiasm that its people choose to invest in their work.” -SHRM Research Quarterly

Expectations are clear for Human Resources (according to research from the Society for Human Resources Management):

• Align people strategies with business goals
• Manage organizational change
• Partner with front line leaders
• Identify and develop future leaders
• Create structures and cultures that promote loyalty and productivity
• Choose cost-effective HR solutions
• Demonstrate knowledge of business
• Provide strategic advice while delivering superior HR services

What gets measured; gets done. The common issue is that too many HR departments cannot easily address these expectations due to lack of data. To keep a seat at the table, HR has to know which human capital practices add the most value.

Components of a Strategic HR Business Plan

• Company’s strategic plan
• Pre-work questionnaire for HR dept
• Strategic business questionnaire for company’s business leaders regarding:
  • Market Issues
  • Leadership Issues
  • HR Issues
• One day work session
  • Defining a human capital business leader
  • Human Resources Evolution
  • Assess
  • Analyze
  • Achieve
  • Action
• Two hour quarterly follow up sessions

An organizations’ number one competitive advantage is the people who work there. The people are the business.