How Can HR Management Contribute to Long-Term Value Generation?

Compliance management is a driving factor for long-term value generation. If your organization fails to meet the industry’s compliances, it can lead to legal lawsuits and fines. This can damage the brand’s image and reputation.

Organizations aiming for long-term value generations cannot afford to lose market value due to poorly managed compliances. As an HR professional, you need to ensure that there is a robust HR management system that takes care of regulatory rules and compliance. The best way to stay vigilant on your HR compliances is to use an HR management software. It notifies you on all the compliance and keeps you updated on new information.

With clear visibility on your business goals, you can motivate your workforce to perform activities centered around your organization. Besides, with an HR management software in place, hiring according to the scope of the project and to the expectations of the company is possible to a greater extent.

If you align HR with business strategy, you can proactively be involved in fulfilling the company’s strategic goals. You can make better decisions on implementing changes and executing business processes efficiently. However, your job does not end there: you also need to check that your strategy for aligning HR with business goals pays off. You need to track the progress of HR activities and clearly identify that you are adding value to the business.

The human resources team needs to be focused on creating value for the organization and meeting employees’ expectations by enhancing every touchpoint during their tenure. Ideally, they should stay connected with employees during their entire life-cycle.

Modern-day technology is quite supportive in managing HR activities efficiently in a way that was not achievable before. For instance, employee analytics platform can give detailed insights about employees’ performance, engagement level, skill gaps, etc. You can use these metrics to discover their strengths and weaknesses and see which position suits them most. They also help you plan training programs that could further help them improve in their job.

Artificial intelligence and automation are other technologies that could make you more efficient and productive in your daily work. They can help you sort out candidates’ resumes automatically based on qualification, previous job records, skill set, etc. This will save you time and attract the best talent for the position.

Some HR professionals are also trying their hands on AR and VR to give candidates a virtual tour of the office and brief them about the work culture. Furthermore, HR bots are becoming increasingly important  in HR services. It is amazing to see how HR management adapts to the tech-driven world and uses it for value-creation.

Business organizations have recognized that the best way to generate value is to deliver quality service or product to the customers, and this is possible only if employees are totally engaged in their job. Organizations should tap on every opportunity that allows employees to work to their full potential, and one way to do this is to improve employee experience. Companies should therefore work closely with HR to develop strategies that can enhance employee experience.

There are various ways you can optimize employee experience, like using a Chatbot to facilitate employee onboarding, implementing flexible shift timing, giving 24/7 access to training material, implementing health and fitness programs, etc. This should not only be done on the operation level. You can also show your support on an emotional level. You could, for example, collect feedback from employees on their work stress or conduct behavior analysis to see how they perform under certain situations. Employees with high EI/EQ can be more creative and innovative in their tasks. It optimizes their problem-solving skills and naturally motivates them to achieve business goals.

External stakeholders invest in your organization, and their interests can be fulfilled when they make progress or profit. Every initiative that you take should therefore align with the external stakeholders’ expectations.

For long-term value generation, your HR strategy should make the organization competent and solve issues such as high turnover rate, low productivity, zero transparency, etc. You can make critical decisions that are not based on sheer intuition but that are data-driven and supported by stakeholders. It is in your best interest to involve external stakeholders in implementing your HR strategy. They can give their valuable inputs and provide a different perspective to solve HR issues.

Modern-day organizations have shifted from a revenue-generating business model to a value creator. HR has been instrumental in companies’ value-generation mission. 

Therefore, business enterprises are restructuring their HR strategies to address the needs of employees, suppliers, and stakeholders. As an HR professional, you must adopt a more dynamic approach to support the organization’s value proposition goal. If you have access to the right HR tool and resources, you can assist your organization in attaining its mission of long-term value generation.