Human Resources as a Business Strategy

Human resources has been defined as the company department that administers benefits, compensation, insurance and training for as long as we can remember. If you have a job vacancy, then human resources steps in to find a qualified candidate to fill the void. In essence, human resources functions as the center that monitors how a company is managing its personnel. Enhancing your human resource department will make your overall company better.

The workplace is filled with various issues. The boomers, who are leaving the corner offices, are leaving a significant void in talent. Human resources personnel must these individuals. Additionally, employees are taking lateral position moves to attain a better work-life balance. Self-employment and home-based jobs are competing with corporate jobs as commuting times are increasing in large cities.

Here are a few ideas to consider when thinking of HR as a true strategy:

· Human resources are charged with the responsibility of finding and training the talent of the organization. To accomplish this task, HR must have a talented leader that is innovative and trusted as a steward of talent. You can't skip at the leadership level and still have the talent needed to compete in the global market.

· Human resources must move beyond a mere cost center to have responsibility for profits. HR must be responsible for adding value to the employee function through identifying talent, developing talent and retaining talent. It is this employee talent that drives the company profits.

· Human resources must add an element of innovation to the employment function. You can consider Google where 70% of an employees time is spent doing their core functions, 20% is spent on innovation and 10% is spent on discontinued innovation. HR must create a work environment with innovation being the responsibility of all company departments.

· Human resources must implement a plan for employee segmentation. The workforce is more diverse than ever before. This creates a situation where one size doesn't fit all. HR must create a talent plan that can be customized to the diverse workforce that maximizes both productivity and employee satisfaction. The key success factor is helping talent to create a career path that meets their personal career objectives.

· Human resources must be more focused on the development of talent. With more boomers leaving the workforce and being replaced with younger employees, training is of strategic importance. At General Electric, employee training takes a case study approach at the training headquarters known as "The Pit." It is here where GE creates the next level of potential company executives.

As a strategy, HR focuses on how to make the company more profitable by finding new methods to engage employees. Rather than dwell on the mechanics of performance review, the strategic HR finds ways to elevate employee performance to leverage the organizational strength's in the market.

A sea change is occurring in the workplace. Human resources must be deemed a strategic business model for today's leading companies to improve the function of attracting and retaining the most innovative talent in the workforce.