'People' as Critical as Business

In the present competitive landscape and ever-changing external factors, businesses are more susceptible to disruption. In an ongoing great resignation era, attracting, retaining, and engaging human capital is a top challenge for every company. No doubt, people play a vital role in driving an organization’s success. Therefore, a strategic amalgamation between businesses and people strategy brings great success to the organization by providing a competitive advantage in the long run. Such alignment ensures business continuity and successful maneuvering during tough times.

CHROs can play a pivotal role in understanding business nuances and proactively diagnosing people problems impacting business and organization’s performance at large. They should come up with prescriptive actions backed by data insights and facts. Most studies show that CEOs undermine the HR function rather than redefining and enriching the CHRO’s role. To make a shift in the mindset of the CEO, CHRO needs to play a role of a strategic business partner by having strong business acumen and by ensuring alignment of business and people strategy.

CEOs should also mandate and assess CHROs for driving business value, enhancing employer value proposition, unleashing full human potential and alternatively contributing to revenues by implementing and continuously improving various people processes.

CHROs continuously need to bring actionable insights by diagnosing people problems in various business scenarios and be an advisor to the board. For an instance, understanding drivers of business productivity and its correlation with various people parameters can improve business decisions and bring win-win for the management team.

Another instance can be an analysis of a section of employees who are high performing or more productive, about their source mix, age group, tenure, and threshold competency levels etc to help in better decision making across hiring and retaining competent staff.

In my opinion, future CHROs must focus on these two facets. One facet being Consulting & Advisory role to the management backed by data analytics and insights. Another value adds as a technology partner to enhance employee experience and improve responsiveness and agility in the culture.

Probability modelling on attrition data can trigger early warning signals for disengaged employees and HR can take proactive measures with more personalized approach to retain talent. HR and L&D functions have gold mine of data when it gets married with business data (lead or lag indicators per se) , it can give more sense and insights to make policy changes and help in better decision making.

Another facet as a Technology Partner to the organization can be more transformative. Managing employee life cycle and enhancing employee experience is a continuous process and automation linked with design thinking approach can bring more delight to employees. For an instance, automation in designing and mapping total rewards with career journey can be more engaging for an employee and employee can visualize a long and rewarding career ahead.

In my opinion, future CHROs must focus on these two facets. One facet being Consulting & Advisory role to the management backed by data analytics and insights. Another value adds as a technology partner to enhance employee experience and improve responsiveness and agility in the culture.

It’s time to change the perspective.