The Future for HR: Are You Prepared?

The Future for HR: Are You Prepared?
by Linda Trainor

The complexion of an HR professional's job and status within his or her company has changed dramatically over the past several decades.
In the "real old days" (e.g., '50s and '60s), the "personnel function" was considered glamorous because professionals had almost unlimited access to numerous tools and resources that allowed them to manage every aspect of an employee's career. HR pros were allowed--and even encouraged--to build a powerful bureaucracy to handle the company's personnel needs.

The 1980s brought a surprise to HR dynasties when companies started experiencing financial and growth problems. Senior management realized that the only way to survive was to restructure and downsize. Because personnel/HR functions were clearly cost centers rather than profit centers, they inevitably became targets for cost-cutting. Management reasoned that all the sophisticated HR systems and processes were no longer needed.

The 1990s opened with the Gulf War, followed by another business growth trend that left many companies strapped for talent and resources. Technological advances and globalization initiatives added complexity.

The new century brought another economic downturn exacerbated by the terrorist attacks that changed our country forever. All of these developments created new challenges and opportunities for companies and their HR professionals.

The challenges
Experts and practitioners alike agree that one of the biggest challenges facing HR professionals is the ability to change their view of the essential HR function.

Traditional HR administrative tasks can be more effectively handled through outsourcing and leveraging smarter technologies, leaving HR staffers with more time and energy to focus on adding value to the business strategies and the bottom line. Here are some critical skills necessary for HR practitioners to accomplish this goal:

Dollars and sense. For several years, company executives have bemoaned HR's lack of business and financial acumen. In order to survive and excel in the future, you?ll need to be able to:

Understand your company's market and customers.
Identify economic and competitive trends that can impact your company.
Develop credible financial and staffing forecasts.
Analyze and solve complex financial and budget problems.
Help operating managers prepare valid budgets for HR-related services and resources, including talent acquisition.
Looking for leadership. HR professionals are not often seen as strong leaders because many tend to be reactive rather than proactive. To be seen as a leader, you need to act like a leader and improve your ability to:

Anticipate the changing needs of the organization and act quickly and decisively.
Continually challenge how you currently do things and seek better solutions.
Be an agent of change by introducing innovative, flexible solutions to line management problems.
Embrace technology and use it to provide managers and employees with faster, better quality service.
Managing effectively. Your functional management skills may also need to be expanded and refined to improve your ability to:

Complete projects on time and on budget.
Provide more effective insight and solutions to managing your talent.
Give better advice and guidance with respect to functional and business performance measures.
Manage multiple integrated projects
Become an HR services broker for needs such as talent acquisition, learning, professional development, etc.
Other forces. In addition to enhancing and adding skills to your personal resume, societal and external economic factors will force you to reevaluate how you design and implement compensation and benefit programs, work schedules, and other HR services.

For example, it's possible that in the not-too-distant future, the age of your workforce will span four generations. You will likely have a more culturally diverse workforce. The global economy will have an increasing impact on your business even if you have only one location. As a result, all of your HR programs will need to be more flexible, so you will need to expand your knowledge base and resources.

The opportunities
At first blush, the magnitude of all of these challenges may seem overwhelming. But every challenge presents a corresponding opportunity for you to take and maintain a strong leadership position in your company.

Since effective talent management -- having the right people in the right place at the right time -- will be critical to the future success of your company, you are well positioned to become a leadership role model if you accept the challenges and pursue the opportunities vigorously.