HR is evolving once again. Previously, ‘personnel’ administration became ‘Human Resource (HR) Management’, and now the sector is changing again towards ‘people and culture’. In 2019, 94% of HR leaders surveyed by Sage said they expected to see ‘HR’ change to ‘People’ in the next three to five years. This change in terminology may seem small, but it signifies a greater change in how companies approach their people-related operations. Find out what brought about this change, and the benefits of a people-first approach.
‘Human resources’ no longer reflects the changing people function
Human Resources has traditionally focused on necessary HR administration for compliance, performance management, policy and process. While these activities will continue to be a key part of your people function, the phrase ‘human resources’ has been criticised as being outdated in describing the rapidly changing work environment. Viewing employees as ‘resources’ does not reflect modern HR practices, whereas a ‘people and culture’ view focuses on creating a workplace culture where individuals have a positive employee experience and can grow and develop in their careers.
What do people-first strategies look like?
As we have established, the basics of HR operations will continue to be important, but in recent years, HR has also become the guardian of employee wellbeing, company culture, employee engagement, retention and more. The Covid-19 pandemic created irreversible change in how workplaces operate, with many companies continuing to operate on a hybrid or remote basis. We are also seeing legislation follow suit, with a successful #Flexfrom1st campaign by the CIPD creating a day-one right to request flexible working. You can read our guide for more information: Changes to the right to request flexible working.
The following areas of people operations are gaining importance, and our HR leaders will need to upskill to adapt:
- HR Strategy
- Employer Value Proposition (EVP)
- Employer branding
- Onboarding and employee retention
- Pay and benefits
- Employee engagement
- Continuous professional development
- Company culture
- Equity, Diversity and Inclusion
- Data, tech and people analytics
Key areas in future people and culture operations
HR strategy in modern people operations involves a comprehensive approach to managing an organisation’s workforce. So let’s explore some of these aspects:
- Talent acquisition: Attracting and recruiting top talent is a critical aspect of modern HR strategy. HR teams use data and technology to identify and engage with the right candidates and create a seamless and positive candidate experience. Getting your employer branding and employer value proposition (EVP) right will be crucial for your recruitment efforts.
- Employee engagement: In order to retain and motivate employees, HR teams must focus on employee engagement. This includes providing opportunities for career development, reward and recognition, and creating a positive workplace culture.
- Performance management: Modern HR teams are using continuous feedback approaches to performance management to help employees understand expectations and goals, provide feedback and coaching, and create a process for career growth and development.
- Diversity, equity, and inclusion: HR teams have a responsibility to create a diverse, equitable, and inclusive workplace. This involves promoting diversity in hiring and retention practices, providing training and resources to employees and leaders, and creating a culture of inclusivity.
- Technology and data: In modern people operations, technology plays a critical role in managing HR functions. HR teams need to use data analytics to gain insights into workforce trends, identify areas for improvement, and create a more data-driven approach to HR management.
Overall, modern HR strategy is focused on creating a positive employee experience, supporting career growth and development, and promoting a diverse and inclusive workplace culture, all while leveraging technology and data to drive better decision-making.
The benefits of having a people-focused approach in the new ‘people and culture’ function
There are many benefits to adopting a people-centric approach to management. It can lead to a more engaged and productive workforce, as employees feel more valued and supported in their roles, also resulting in reduced employee turnover. More than this, according to a Glassdoor survey, 92% of people would consider changing jobs for a company with an excellent reputation. Your employee experience impacts your resourcing efforts and how you can secure the best talent in a challenging job market with a growing skills gap.
Furthermore, using ‘people’ can help create a more inclusive and diverse workplace culture. By emphasising the individuals that make up an organisation, it sends a message that everyone’s unique experiences and perspectives are valued and that everyone has a place at the table.
How does HR need to adapt to become ‘people and culture’?
This change from HR to people and culture will not occur overnight and will require the buy-in from business leaders. Ultimately, the change from ‘HR’ to ‘people’ trend was described as ‘part of the profession’s natural evolution’ by Melissa Hume. This is reinforced by research by Sage which found that 82% of the 500 HR leaders and professionals surveyed believed that HR roles will be unrecognisable in 10 years’ time, with 86% believing HR skillsets need to change. More experts and specialists will be required to drive forward change in key people areas. Change is coming, so let’s be a part of it.
What are we doing at Fitzgerald to adapt?
At Fitzgerald, our HR Consultants are becoming ‘People Partners’. However, one thing that is not changing is our commitment to partnering with our clients to deliver bespoke people solutions for their organisations. If you have any questions, please do not hesitate to contact our team on 0330 223 5253.
