Expert insights from Stephanie Prenderville, Founder at SPConsulting Ltd.
I’ve spoken with hundreds – if not thousands - of leaders in Ireland and abroad this year asking the question: Does your organisation recognise the value of HR? The answer is consistently, disappointingly “No”. Even more demoralising is how many HR Leaders have told me you’re managing enormous expectations while being asked to do more with less. It’s little wonder that 95% of HR leaders report feeling overwhelmed, and 81% feel burnt out. (Sage, The changing face of HR 2024).
IMHO, HR has the most meaningful insights to offer on the culture, capabilities and capacity needed to drive business results. Yet, HR persistently battles with limited funding and support and being seen as an out-of-touch cost centre and not a value creator. The unvoiced reality is - most established HR processes require more effort from HR, employees, and people managers than that effort delivers in business results.
It’s time to move forward and re-evaluate HR’s purpose and approach to maximise impact.
Why does HR often lack the investment it needs?
The core issue lies systemically in Ulrich’s HR model, which even he says is past its due-by date. Built around centres of expertise and business partners, HR teams are stuck managing cyclical processes like pay reviews, performance management, and succession and talent planning - and measuring their own effectiveness through activity-based metrics, like headcounts or time-to-hire, without gauging whether HR’s work improves the broader business success. While these concepts make logical sense as behavioural best practice and are often supported by excellent, highly dedicated HR professionals, they are too time-consuming and inadvertly detract from the critical conversations that really matter for driving growth, relationships and skills development.
The Solution: Rip Up the HR Playbook!
It’s time to stop spinning our wheels. To truly elevate HR’s impact, as Directors we need to rewrite the HR manifesto—focusing not on rigid, labour-intensive processes but on what really matters. The north star for HR should be growth, skills and relationships—not just for the HR function, but for the organisation as a whole. This shift requires that HR moves beyond existing frameworks and metrics and begins defining and measuring progress in a way that reflects organisational success through its people.
5 Steps to Align HR with What Matters Most
To help HR Leaders and Director collaboratively focus on growth, skills and relationships, here are five high-level, actionable steps:
1. Check Your Own Growth Mindset
HR needs to be enabled as a value creator, not a cost center. With the future of HR admin being increasingly automated, leaders need to embrace technology and AI to augment human insight and engagement. Ask yourself: Are you resisting new ways of thinking and working because you’re stressed and too busy? Tools like Positive Intelligence can help reframe your mindset, allowing you to thrive in this AI-driven world.
2. Own Your Agenda
HR can no longer afford to be reactive. Instead, it’s crucial to redefine HR’s value and partner with leadership to re-establish what will drive the most impact. This is where AI tools like ChatGPT become invaluable. By using them as thinking partners, HR leaders can redefine their role in an organisation.
Sample prompt: “Can you help redefine HR’s value by identifying where AI can enhance engagement and streamline tasks, given we are a [size], [industry] company with a [workforce model]?”
3. Prioritise Using the 3Cs of Growth
Focus on three pillars:
- Culture: Does your culture foster growth? Use pulse surveys or AI sentiment analysis tools to assess employee mindsets
- Capacity: Do your teams have the bandwidth for growth initiatives? Leverage task automation tools like Zapier to free up time.
- Capability: Do your employees have the skills needed for growth and future-readiness? Online learning platforms (e.g. Skill Stack, LinkedIn Learning) can provide easy-to-access, tailored skills development.
4. Re-think What You Measure
HR metrics should move away from tracking activity (e.g., new hires) and measure how people are achieving business goals. Whether your key business outcomes are revenue, product innovation, or time efficiency, the data HR provides should show how people are progressing towards these goals. Hacks: tools like PowerBI can quickly provide actionable, data-led insights. More powerful AI-driven analytics are game-changers but require more planning and investment.
5. Build Targeted Business Partnerships
Once HR’s metrics have been realigned, use this data to build strategic partnerships with departments where HR can have the most impact. Collaborate with business units to trial new streamlined ways of working that align with the organisation’s growth objectives.
The Future of HR: Do Less to Achieve More
Looking forward, the future of HR isn’t about doing more with less—it’s about doing less to achieve more. By leveraging AI, using data-led insights, and maintaining a growth and skills mindset, HR can become the engine that drives organisational success. In this new model, HR isn’t just a department that maintains processes but a core function that fosters innovation, improves employee experience, and enables business transformation.