Value creation is now at the heart of HR’s evolving role. But finding a balance between short-term pressures and long-term strategic success can be tricky. Here are 4 ways to navigate this effectively.
1. move beyond cost savings
Actively driving long-term workforce efficiency and performance, rather than solely aiming for short-term cost reductions, is now a top concern for HR. In Randstad Enterprise’s 2023 Talent Trends survey of more than 900 C-suite and human capital leaders, 77% say their talent strategies are more about total value creation for the company than about achieving cost savings.
With this in mind, explore strategies that align talent with the overall value creation goals of your business. How can you contribute to the organization's growth and success in the long run, whilst being commercially astute?
2. embrace a systemic approach
Adopting a systemic approach to talent management is key to minimizing disruptions caused by hiring and downsizing cycles. Consider how you can map your talent strategy to your overall organizational strategy in actionable ways. This includes thinking about mobility, development, career pathways, and upskilling.
By aligning strategies and integrating your HR data, you can optimize your workforce and create a seamless talent journey. Reimagine the talent engine to connect all aspects of the talent life cycle and make data based decisions.
3. evangelize the value of transformation
Transformation can be daunting, especially during times of resource constraints. Breaking down the transformation into manageable chunks and incremental phases will increase the likelihood of obtaining buy-in from stakeholders. Be sure to communicate the strategic value and impact of the transformation. Not all transformation needs to be a large programme of work, ongoing iterative change ensures relevance. Clearly articulate the payoffs and benefits in the short-, medium- and long-term.
4. deliver meaningful employee experience
Engaging employees just isn’t enough. To remain competitive, it's essential to prioritize the needs, motivations and satisfaction of your people. Shift the conversation beyond engagement to focus on belonging across the entire talent life cycle. Evaluate, not just what, but how and why your work environment and outputs provide more meaning and rewards for your employees. How will you create an environment where everyone feels truly fulfilled and motivated, do you have a relationship value proposition for all who undertake work?How will you create an environment where everyone feels truly fulfilled and motivated?
Navigating current pressures while preparing for the future is the norm in business today, so adapting to this and discovering new ways to drive value for the organization is a key part of HR’s remit. If you prioritize value, you have the power to shift the perception of HR as a pure cost center by solving business challenges effectively.
Planning for sustainable workforces that can withstand future challenges, anticipating talent needs and investing in development and upskilling initiatives are all fundamental. It all comes down to having the right people, doing the right work, at the right time, for the right cost - not new but essential.
It’s also why embracing a systemic approach is crucial for fostering a resilient, adaptable and impactful culture. Limited connections and mandates between HR structures, data, technology and processes leading to action in siloes, are in the past. These steps will help you to begin creating environments that consistently deliver positive results and having teams that move from exhausted to energized.
Learn more about balancing short-term pressures with perduring transformation with support from our talent advisory team.
About the AuthorFollow on Linkedin More Content by Sam Schlimper