Past, present, future: How HR is evolving

Benefits, compensation, hybrid work, COVID-19, employee relations, data analytics and strategy. Is there anything HR doesn't do in today's organizations? HR is the bridge between employees and management, between the present and the future. Especially over the past three years, HR has lived on that edge, running with the ball, dodging and darting, and trying to make it to the goal post. How did we get here? It's useful to take a few steps back to look at the big picture. It may help you reflect on where you are and where you want to go.

From Transactional to Partnership
The HR function began to develop in the mid-20th century. Often called "Personnel," it was mostly concerned with hiring and firing, benefits, compliance and working with unions. Even into the 1990's and 2000's, a great deal of what HR dealt with on a day-to-day basis was transactional. Too often, if you got a call from HR, you thought you were in trouble or about to be laid off. And while these traditional HR functions are essential, setting HR apart from the business, in its own silo, is a great loss for the organization. With its pulse on the employee population, HR can inform and support business strategy.

HR professionals are in a unique position. They're not frontline leaders, so there's not a direct reporting relationship, but they do have an opportunity to "hear" employees and share that information with management. In this way they can truly partner with business leaders. It's not just employee survey data either. Having real-time talent data, for example, means that when management discusses business expansion, they turn to HR and ask, "Is this doable? Is the talent available to support this business objective?" HR can funnel data about retention, employee well-being, sentiment, engagement and other metrics to leaders to help them plan realistically.

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It's really a push-pull relationship. HR pushes out information to senior leaders, frontline managers and employees — and not just about comp and benefits, either. Recently, one of our HR business partners brought together the company's leaders to discuss mental health and wellbeing. That probably wouldn't have happened five years ago. It demonstrates how HR can bring valuable information to make an impact on people.

There's also the "pull" side of the relationship as when HR responds to requests for information and support. Many large organizations offer a lot in benefits, career development, DEI resources and more. But people tend to not pay attention to these resources until they need them. An employee who wants to learn more about savings programs. A frontline manager who needs to discuss issues on his team. An executive who wants to know turnover and competitive talent statistics in her business unit. These are the ways HR can have a real effect on the business.

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What's Coming
In which ways will HR continue to change? Certainly, the need to service employees won't go away, which is why HR automation has become so important. As companies continue to invest in HR automation, the challenge will be to improve ROI and optimize processes in their current HR tech stacks. AI, robotic process automation (RPA) and chatbots can take care of the more mundane, repeatable tasks, answering basic inquiries like, "Where do I find medical coverage?" This evolution won't happen immediately, but as we continue to layer in these automation tools, it provides an opportunity for HR business partners to have more complex, problem-solving interactions with employees. Let's say an employee is experiencing personal issues that require going on FMLA leave. The nuts and bolts can be done via a bot, but the deeper discussion needs to happen with a human who can listen and respond.

Automation will definitely help remove the simple, repetitive tasks, freeing up HR for more complex work. At the same time, the expectations of HR are changing and growing. More is being added to the plate. The data tells us one thing today, but then in three months it tells us something different, so our initiatives may change and our goals may shift, which might create more work but also more opportunity to help the business.

Data analytics is also playing a much larger role in HR. With real-time data at their fingertips, HR professionals can better care for employees, support leaders and lead conversations that dig deeper. For example, the data might show that turnover is increasing. Sentiment surveys tell us what is propelling that: It's not just numbers; it's the insights that HR can draw from the data to take the right actions. This data also strengthens HR's role because it informs management and supports the business.

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These trends are also shaping how HR is structured in many organizations. While in a small company, one person handles everything HR-related, some larger companies are centralizing the different HR functions. This entails taking a specific area — like employee relations — and creating a small team of experts to provide service to the broader organization. This frees up the HR business partner to work more closely with individual business units, teams and individuals. 

More and more, HR is looking to engage their population, whether it's educating the leadership team or helping individual employees find the resources they need. With data, HR is also providing essential information to the C-suite. In the past, HR was bringing this data forward. Now, more executives are asking for it. "Where are we with this metric? You reported this last quarter, how do we look today?" Now there's more of a thirst and a hunger for this information. This shift not only gives HR a "seat at the table," but the opportunity to be a true business partner.