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Human Resources (HR) has evolved significantly over the years, undergoing a massive transition from traditional administrative HR operations to becoming a strategic business partner. Today, HR plays a critical role in attracting top talent, retaining employees, and developing goals that align with organizations worldwide. However, not all HR departments are equal, and there are distinct differences between operational and high impact HR.
Operational HR vs. High Impact HR
Operational HR, also known as Traditional HR, mainly focuses on an organization’s administrative tasks, such as payroll processing, benefits administration, and compliance. Its primary objective is to ensure that employees receive accurate and timely benefits and compensation. However, the impact of Operational HR on organizational success is limited, as it fails to align with business objectives and lacks the agility to respond to transforming business needs.
On the other hand, High Impact HR is strategic and focuses on aligning HR initiatives with business objectives. High impact HR takes a proactive approach to HR, identifying opportunities to improve performance, develop talent, and create a positive work environment. It relies on data-driven practices and uses analytics to measure the effectiveness of HR initiatives and make informed decisions.
Operational HR and High Impact HR are different approaches to HRM. Operational HR manages HR functions such as recruitment, benefits, compensation, compliance, and employee retention. On the other hand, high impact HR takes a more strategic approach and seeks to align HR policies and practices with broader business goals and objectives.
Benefits of switching from an Operational HR to a Transformational HR Approach
Organizations can benefit from switching from an Operational HR approach to a Transformational HR approach in several ways, including:
1. Strategic Alignment
By ensuring that HR initiatives and processes are created to serve the company’s overarching objectives, a transformational HR approach can help align HR goals and objectives with the larger corporate strategy.
2. Increased Employee Engagement
A transformational HR approach can aid in boosting employee satisfaction and retention by emphasizing learning and development, corporate culture, and other elements that contribute to employee engagement.
3. Increased Productivity
A transformational HR strategy can make workers feel more appreciated, encouraged, and driven, which can boost output and improve business results.
4. Greater Agility
By embracing new technologies, tools, and techniques, a transformational HR approach can help organizations become more agile and responsive to changing business conditions.
Overall, high impact HR helps organizations build a robust, engaged, and highly productive workforce aligned with the company’s overall goals and objectives.
Roles & Uses of High Impact HR in every organization
1. Role of Onboarding Processing in High Impact HR
In addition to being the initial step in acclimating new employees to the company and its culture, an onboarding process is an essential part of the hiring process. The organization’s well-designed onboarding process can set the tone for a positive employee experience and staff retention. This involves welcoming new hires, familiarizing them with the company’s culture, rules, and practices, and providing them with the skills and resources they need to succeed. A study conducted by Glassdoor found that a robust onboarding process can improve new hire retention by 82% and productivity by over 70%.
2. Role of Payroll Management in High Impact HR
An essential part of running a business is managing payroll. It involves handling benefits, taxes, and employee compensation. Payroll management can be a challenging task, especially when dealing with diverse employee compensation plans, multiple locations, and tax regulations. By ensuring timely payment to employees and fulfilling all legal requirements, proper payroll management reduces the risk of non-compliance and related legal issues.
3. Role of Learning and Development in High Impact HR
High impact HR recognizes the importance of employee development and career growth. A study conducted by LinkedIn found that 94% of employees will stay with a company if it invests in learning, development, and career growth programs for them. To retain personnel and promote an organizational culture of growth and development, it is essential to invest in learning and development.
An organization that provides opportunities for advancement will better retain its employees. Employees participating in a rigorous learning and development program can upgrade their knowledge, work more efficiently, and have a clear path for professional advancement. Offering learning and development opportunities to workers can help businesses attract top talent.
4. Role of Company Culture in High Impact HR
A company’s culture reflects its personality. It encompasses the attitudes, practices, and values that influence how people behave at work in an organization. While a negative company culture can drive away personnel, a positive company culture can attract and retain top talent. Strong cultures foster a sense of community among employees, inspire teamwork and collaboration, and reward excellence in work. Increased employee engagement, job satisfaction, and overall productivity can all be attributed to a positive company culture. According to a poll by the Society for Human Resource Management, 94% of people managers state that “a positive workplace culture generates a resilient team of employees.”
Shifting from Operational to High Impact HR
The transition from Operational HR to High Impact HR has become increasingly crucial in today’s fast-paced business environment. Companies that adapt to prevent falling behind their competitors and losing top talent provide a superior employee experience. As a result, HR professionals need to stay updated on recommended practices and new advancements in high impact HR.
Employee well-being is another aspect gaining importance in High Impact HR. Companies must prioritize their employees’ physical, mental, and emotional health as the boundaries between work and personal life blur. This includes employee assistance programs, flexible work schedules, and mental health support.
HR is now playing a much larger strategic partner role within organizations, rather than just being an operational function. HR is no longer solely focused on finding and managing personnel; it is now essential for achieving corporate success. To adapt to this change, HR professionals must be proactive and creative, utilizing data-driven insights to align HR strategy with corporate goals.
This also involves leveraging technology, such as automation and AI, to optimize HR processes and enhance employee satisfaction. The shift from an operational to a high impact HR function can result in improved overall organizational performance, increased employee engagement, and enhanced talent retention. Organizations must embrace this HR transformation to thrive and maintain competitiveness in the evolving workplace.
From merely managing administrative tasks to strategically utilizing human resources for a competitive advantage is a shift in focus. This change calls for HR to take on the role of a trusted advisor, working with business leaders to identify and address critical talent gaps, creating meaningful metrics to assess workforce efficiency, and consistently improving the employee experience.
High impact HR goes beyond merely improving HR procedures to align HR strategies with corporate objectives in order to gain a competitive edge. It requires a shift in HR’s focus from routine tasks to strategic initiatives that enhance the employee experience and drive organizational success.
In conclusion, transforming from operational to High Impact HR is crucial for companies that want to remain competitive and attract top talent. Focusing on strategic initiatives such as payroll management, learning and development, and company culture, HR professionals can create a positive employee experience and drive high business outcomes. As new trends and best practices emerge, HR professionals must continue to evolve and adapt to meet the changes required for their organizations and employees.
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