There are two types of HR professionals in the world:
- Those who keep costs down.
- Those who add value.
Unfortunately, far too many human resource pros fall into the former category and not the latter.
If you work in human resources, there are two main things you should be focused on: Recruiting great people, and inspiring them to do amazing work. That’s where you add value. The other stuff – benefits administration, policy writing, dealing with employees who act like children – is necessary, but it doesn’t add value. It keeps risk and costs down.
Whenever possible, you should outsource the stuff that simply manages costs and focus as much of your time as possible on things that add-value. What are the value adding things human resource pros should be doing? Here’s my list:
- Innovative, evidence-based sourcing and selection methods
- Employer branding, using social media technologies whenever possible (see below for more info)
- Onboarding
- Training that engages the audience and influences people’s behavior.
- Performance management, including the use of strategic compensation to motivate people.
- Cultural leadership to create an environment that maximizes employee potential.
So, what kind of HR professional are you?
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Chris, I think there are more than two types of HR professionals. The two you mentioned are common, but there are also some others I’d encourage you to consider:
-Blind rule enforcers and general preventers of progress
-”I’ve fallen into HR and I can’t get out” folks who neither hold costs down or add value.
-Revolutionaries – Those who create value, hold costs down and change how business is done in their company.
We need more revolutionaries. I look forward to hearing more about your book.
chris – i think this is good. but i think beyond “adding value,” the enlightened HR pro needs to figure out how to “create value.” it’s the next step up. HR is always involved in selection, onboarding, training, performance management, etc. to create value, we need to find other ways to be involved including generate revenue. just something to think about further…
@Jason – all great additions to my list! How would you distinguish revolutionaries from value-adders?
@Jessica – Thanks for your comment. I think what you’re saying may be largely a semantic difference. The sad truth is that HR ISN’T always involved in selection, onboarding, training, etc. They should be, but often they are not. Often onboarding in a formal sense doesn’t occur at all. Training may be non-existent. So when I say add-value, I mean create value. And I mean doing so in a way that’s innovative, fresh, etc.
I don’t see HR as a business function that directly generates revenue. I can see HR as a function that indirectly does so by facilitating improve people functions though. I’m open to the idea, however. Any suggestions on ways HR could directly generate revenue?