For too long the HR function have been denied a seat at the top table – this must change

Let us face it, Human Resource Management, HRM as a profession is too often down prioritized. Ever since the 1980s, the importance of strategic HRM has been discussed. Despite this, we see that Human Resource, HR function in several organizations is left-handed. The few companies that, by recruiting top talents for the position, have lifted HRM upwards and forwards have achieved particularly good results. In connection with the TIPS model, intellectual capital, or HRM, is one of four essential parameters for success. The TIPS model advocate HRM (intellectual capital) as a strategic parameter. The clearest indicators of which  position HR has in an organization is whether the function is represented as an own function around the top table. Several top executives talk about the importance of HRM, but when it comes down to the hard facts, HR is often placed under the CFO function. In other words, it shows that HRM is not important enough to have an own function at the top table.  Strategic HRM  is the process of linking the human resource function with the strategic objectives of the organization to improve performance.

In 2008 I wrote my MBA dissertation on HRM for the Norwegian energy company Statkraft. The title of the dissertation was: “How can Statkraft attract and retain talented academic student?”. The dissertation discussed how Statkraft could attract and keep talented and skilled employees in a dynamic business world.

A company can develop a competitive advantage through the skills and competencies of its employees. HR ”owns” the culture and employee experience of an organisation. HR are responsible for the effectiveness of people, organisational design, company mission, purpose, and values which all help drive the business and recruitment retention. This have a direct impact on the bottom line. If any organizations do not have the right recruitment strategy, one will not hire the right people. If one does not have the right employee value proposition, the right people will not want to work for the organization. It is about getting the right people on board with the right skills and behaviours, in the right roles, motivated in the right way and supported by the right leaders. The organizations must have the right expertise in the right place. The TIPS model also advocate the HRM function as bridge between corporate strategy and the management of human resources. One can only gain competitive advantage by using its people effectively, drawing on their expertise and ingenuity to meet clearly defined objectives. HRM function is care, nurture, and discipline and HR can build trust while setting the tone of the organization. How HR welcome and train and develop each new hire determines the course and the direction of the organization. HRM is a proactive way to manage people in an organization. By having HR at the top table allows the function to gain insight into the minds of the leadership team and expectations of the department. Through this knowledge HR can contribute to ensure that the organization are getting the best out of the employees, by enabling and empowering them to create more for the bottom line. If the employees within the organization are unsuccessful, then will the business also be unsuccessful.

More and more companies and CEOs are beginning to understand they can no longer consider HR as a back-office function. To improve the bottom line, one must invest people. Do not make HR a sub-function in the organization. People are the heart and soul of every company and it is about getting the right people on board with the right skills and behaviours, in the right roles, motivated in the right way and supported by the right leaders.

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