What Does It Mean for HR Leaders to ‘Support the Business’ Today?

16/9/2024

The role of HR leaders has evolved significantly over the decades. In the late 1980s, the focus was on aligning HR practices with emerging business strategies, as companies began to realize that their competitive edge lay in their core competencies, largely driven by human capital. This realization led HR to transition from merely filling positions to crafting a workforce capable of sustaining distinctive capabilities through training, development, and culture-building. However, as the landscape of business strategy shifted, so did the mandate for HR leaders.

Today, supporting the business requires HR leaders to navigate a landscape where top executives prioritize agility and constant restructuring. But this mandate comes with significant challenges, particularly for the employees who must bear the brunt of these frequent changes.

So, how can HR leaders effectively support a business that demands continual adaptation while safeguarding employee well-being and maintaining workforce engagement?

The Challenge of Constant Restructuring HR Leaders

Modern business demands agility, but for HR leaders, this often means managing the fallout of frequent restructuring efforts—layoffs, redeployments, and the anxiety these changes create among employees. The uncertainty that comes with constant restructuring is a major source of stress for workers, leading to disengagement and turnover. This presents a paradox: the business demands flexibility and cost-efficiency, but these goals can undermine the human capital that HR manages.

Back to Basics: Talent Management as a Strategic Imperative HR Leaders

One way HR leaders can support the business in this environment is by returning to what may seem like basic principles: talent management. In a world where labor markets are tight and cost pressures are high, getting the right people in the right place at the right time is no longer just a fundamental HR task—it’s a strategic imperative. This means that HR leaders must be vocal about the trade-offs involved in constant restructuring. They need to articulate the potential costs of turnover, stress, and disengagement to business leaders who may not fully grasp the long-term implications of these decisions. 

Rethinking the Approach to Restructuring HR Leaders

Another key strategy is to reconsider how restructuring is communicated and implemented. Instead of making sweeping announcements that provoke anxiety, HR leaders can advocate for more measured, transparent communication. By involving employees in the conversation and being honest about uncertainties and plans, HR can reduce the stress associated with restructuring and maintain higher levels of engagement.

Moreover, HR can play a crucial role in protecting the workforce by advocating for retraining and redeployment rather than layoffs. Companies like PwC have set a strong example by committing to retrain employees in response to market shifts, such as the rise of generative AI, rather than resorting to layoffs. This approach reduces turnover costs and fosters a culture of trust and loyalty.

The Role of HR in Strategic Business Support

Ultimately, supporting the business today requires HR leaders to be more than just implementers of business strategy; they must be strategic partners who can foresee and mitigate the human impact of business decisions. This involves having the courage to tell business leaders what they might not want to hear; but doing so in a way that aligns with the organization’s broader goals. It’s about finding that balance between agility and stability, between cost-efficiency and employee well-being.

In conclusion, the role of HR in supporting the business has come full circle in many ways; with talent management and employee well-being once again taking center stage. HR leaders must navigate these challenges with a keen understanding of both business imperatives and human costs, ensuring that the pursuit of agility does not come at the expense of the organization’s most valuable asset—its people.

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