Letting Go: Three Functions HR May Want To Delegate Responsibility For

Letting Go-Three Functions HR May Want To Delegate Responsibility For

These days you can’t evade commentary on what HR should be doing and assuming responsibility for. The list is endless and maybe even unreasonable.

How organizations structure their HR departments differs based on an innumerable amount of variables. For starters, complexity of the organization, functional clarity and employee headcount are some of the more common variables that account for how HR gets structured within an organization.

The nature of work is changing and so Human Resources is also changing as a result. This means rethinking the way “the way we have always done things”. In shifting from the “Personnel Mindset” to present day HR, we must also realize and admit that some of the ways that we chose to operate never worked and as such will not be sustainable in the current business climate.

I’ve spoken a lot in the past about how we move forward as a discipline, but there is an elephant-in-the-room and it is about how we are structured. It doesn’t matter how many strategies, tips, or insights I or any other expert provides to you as an HR practitioner, if your HR department is so fat that it is bulging from all of the unnecessary sub-disciplines dragging it down from a both a functional and financial perspective – HR will be inert.

We can’t be all things to all people…

Perfection is impossible and while we are still collectively trying to get there – we miss the mark everytime, because some of our beloved sub-functions need go or need a makeover.

Here are three examples:

  1. Exhibit A: Payroll the odd HR stepchild. If you are a small to mid-size company, Payroll may be fine under HR. Still, I never understood how this was an HR function at all. I get that there is FLSA and other labor considerations that scream HR. Nevertheless, anytime a function is handling funds for an organization – I immediately think Finance. If you ask me, Payroll belongs under Finance with maybe a dotted-line reporting structure to HR because of the nature of their work. Why HR in many organizations remain responsible for this function is beyond me.
  2. Exhibit B: Very few employees trust Employee Relations/Conflict Mediation owned by the HR function. Let’s talk about transparency and HR’s “open door’ policies around employee complaints and disputes. I worked as a recruiter for many years. Transitioning to a Talent Management professional was easy, because I had so much practice being an ear for employee’s who didn’t trust HR let alone the conflict mediation/employee relations process.

Some of the concerns expressed over the years have been:

  •  ” The ER Specialists never listen to our side, they immediately jump to defend the managers and/or organization.”
  • ” I told the HR Business Partner something in confidence about my work environment and now everyone in my department is treating me indifferently.”
  • “I see my manager go to lunch with the ER Specialist all of the time, I could never go to her with my issue.”

When it comes to Employee Relations, it may make sense to have this be a standalone function separate from HR. HR needs to be aware of the volume complaints and may even partner with them on approach and resolution of larger organizational issues. Outside of that, you may find employees being a little more transparent with what’s going on when this is no longer under HR. Additionally, I like when functions that have a direct effect on Talent Management report directly to the CEO. It gives frequent ER and discrimination issues the visibility needed to stop them in their tracks.

3. Exhibit C: Diversity and Inclusion should be an organizational strategy not a slapped-together group in HR. I could be wrong, but I’m pretty sure I’m not. Unless there is a true dedication to fostering a diverse and inclusive environment from the top, HR is where Diversity and Inclusion strategy goes to die. Why you may ask? Every organization I have been in has suffered a year or more of a meager HR budget. In almost every instance, the first function to have their funds tremendously cut, was the Diversity group followed by Learning & Development. I don’t think any organization can afford to defund or piece together a Diversity function lacking in both financial and strategic support in today’s social and political climate. In my humble opinion, this sub-function needs a direct-line to the CEO as well.

I could make the case for a few more functions to move based on company specifics. The point is: no one should be structuring HR as it has been for the past 30 years because that is what has been done. The focus and challenge for HR is to be lean and flexible. To be both means we need to take a hard look at what we have on our plate and start creating smaller, smart portions of HR so we are able to focus and add value where we are truly needed.

 

Keeping up with disruption: Why every trend isn’t for your business

Keeping up with Disruption

There is nothing but trouble to follow when we believe that we can be all things to all people. We also endanger any good we have the potential of doing by feverishly jumping on every fad. I can remember so many days in HR reading articles about the trends for the year the next year. I would start counting from the day that I read the article (especially if it was published in SHRM, HBR or Forbes) to the few days after-when I would inevitably be asked about the article. The next request was always for me to start sourcing for ways to implement whatever was being touted as the “best-in-class” practice. While it might seem harmless- like we were keeping up with the times; it was indeed harmful. There was seldom any consideration of what we excelled at as a business and why adopting any of these suggestions were worth our time. It was merely a knee-jerk reaction to hearing what seemed like good advice.

Having worked in STEM and Healthcare, every new technology or methodology was not always for us. Composed under these disciplines are an inordinate amount of regulations at the state and federal levels and stringent requirements for doing business that is unlike any other industry. To make sound decisions about how we progressed was a consideration that required a lot of discussion and conceptualization of how to assimilate “the idea” of new ways into the a very rote, and established ecosystem. I repeat, “the idea”. Getting buy-in to potentially purchase was another round of discussion and conceptualization with several layers of approval.

For example, I was with a company that was in dire need of a new ATS and HRIS. I knew they outgrew what they had and all of our internal customers had their complaints about the system as well. To even begin sourcing for a new system, “the idea” was exposed to a six-sigma evaluation which took a few years and only then were we able to present the case to management for why this was needed. What they wanted was something “perfect” with all of the “bells and whistles” that would somehow give others the impression that they were being “innovative”. In striving for perfection and racing towards innovation, they forgot to focus on what they truly needed. What they needed was something with a simple interface, robust reporting features and the ability to streamline what we were doing from a hiring and on-boarding standpoint.

You may ask why were they worried about having “bells and whistles” for the new system? It was because they tuned into the same publications and reports as every other HR department and assumed that because “consulting firm x” says that it is the best then it must be so.

Can we stop with the “best-in-class” or best practices lingo?

What is best for me as a company of 15 is very different if I’m a company of 40,000. Similarly so, the best-in-class mantra does not necessarily work when there are two different companies in the same industry with the same headcount. The differentiating factors between businesses (especially those under the same company umbrella) are endless. Hence why, it is absurd for anyone to assume that every suggestion for innovation, change or disruption should be answered by an obligation to implement.

Disruption shouldn’t be a call-to-action for hasty moves. It is meant to keep us all aware and awake to how the nature of our work is changing. It is up to us to decide what changes make the most sense for the organization.

Consider the following when evaluating the ever-growing list of things to change:

1) How will these changes impact your workforce? In the implementation of the ATS that I spoke about, we actually spent too much time on this aspect. It’s important to understand how change will impact the people that do the work, but you must also be sure that you don’t stifle forward movement in an effort to be a crowd-pleaser.

2) Will these changes benefit you now or in the future? It’s important to consider how you stand to benefit from a short-term and long-term standpoint. If it isn’t clear how these suggestions will benefit you in either regard; it may not be the move for your company.

3) Is leadership prepared and invested in making these changes? It has been my experience that disruptive ideas die a slow and painful death without leadership being invested in the process.  The real question is: Are they truly invested in making this change or is this a whim? Many ideas seem novel on paper, but being truly dedicated to the process and willingly traversing the hurdles that inevitably crop-up is something altogether different.

There’s no question that we must always be looking for ways to improve and better serve our customers. The key is not to make moves under duress, but from a place of being informed and prepared to take action.

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