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The Role of HR Specialists in the Modern Environment: How Does HR Create Value?

  • Martina Udovičić, voditeljica odjela za organizacijski razvoj i savjetovanje
  • 23. September 2024.
  • 8 min read

Due to increasing changes in work models, global competition, and technological advancements, the role of HR specialists has evolved from an administrative function to a strategic partner critical for sustainable growth and company development. Read on to discover how HR specialists can empower organizations and why their role is now more important than ever.

Redefining the Role of HR in Startups

In many startups, HR specialists are seen as an additional expense and something to be implemented later when the company reaches a certain size. Many founders believe they can handle all challenges without a dedicated HR function, focusing resources primarily on technological development and operational aspects of the business. However, this perspective can severely limit growth potential. The experience of numerous companies shows that HR can play a crucial role in the early stages of development, helping to lay the foundation for long-term success.

Based on years of experience working with companies across almost all industries, we’ve noticed that a lack of structured HR approaches can lead to problems such as internal conflicts, project delays, and difficulty adapting to rapid market changes. When a company recognizes the need for an HR specialist with a strategic understanding of the business and implements structured hiring, planning, and employee development processes, significant improvements occur. These HR specialists know how to ask the right questions and seek answers in the right places, stabilizing teams and strengthening organizational culture.

How to find out why are employees leaving the company? For example, a Deloitte study shows that companies that actively work on employee engagement are 87% more likely to retain employees. This clearly demonstrates the importance of HR in increasing employee satisfaction and creating an engaged and stable work environment.

Creating Value Through HR

HR specialists are not just administrative support; they are strategic partners who help organizations not only grow but thrive in a dynamic business environment. Here’s how HR can significantly contribute to value creation:

1. Talent development and leadership

HR specialists help identify and develop talent within the organization. Through mentorship programs, training, and professional development, HR enables employees to reach their full potential. By strengthening leadership competencies, employees can become better coaches and mentors, increasing employee engagement and fostering a culture of continuous learning and growth. According to data from Bersin by Deloitte, companies that invest in leadership development see 37% higher revenue per employee.

2. Increasing employee engagement

Engaged employees are more productive, innovative, and satisfied with their jobs. HR specialists play a key role in creating an environment that fosters engagement through transparent communication, recognition and rewards, and initiatives that balance work and private life. According to a SHRM report, companies with high employee engagement achieve 17% higher productivity and 21% higher profitability than those with low engagement. Additionally, some research shows that 85% of employees are most motivated when effective internal communication exists within the organization.

3. Building a positive organizational culture

Culture is the core of any organization and can significantly influence its success. HR specialists are crucial in shaping and maintaining a culture that reflects the organization’s values and supports its goals. According to a Gallup study, organizations with a positive culture see a 65% lower employee turnover rate. This greatly impacts talent retention and knowledge preservation within the organization.

Linking HR strategies with business goals

HR resource planning conducted by HR specialists is not just about filling positions. It’s a strategic process that ensures the organization has the right talents in the right places at the right time, thus supporting key business goals such as market expansion or new product development.

For example, a McKinsey study shows that companies that effectively manage their talent are 2.5 times more likely to outperform their competitors in terms of innovation. This means that strategic planning and talent management not only support current business needs but also lay the foundation for future growth and development.

Key Contributions of HR Specialists

Key areas where HR specialists contribute to the success of an organization include:

1. Strategic workforce planning

HR specialists help organizations recognize needed skills and plan for the hiring of key talents in alignment with business goals, ensuring all resources are optimally utilized.

2. Change management

As companies change and grow, HR specialists guide teams through these transitions, ensuring smooth processes and making employees feel supported and understood throughout. Harvard Business Review research shows that 70% of change initiatives fail due to employee resistance, but companies with strong HR teams successfully implement changes in 60% of cases.

3. Establishing feedback and reward systems

Effective HR specialists create systems that enable regular and constructive feedback, as well as fair and motivating reward systems. According to a Glassdoor survey, 81% of employees say they would work harder and longer for an employer who values their work. This ensures that employees feel appreciated and motivated to contribute to the company.

Practical examples

The experiences of many organizations show how HR can add value not only through operational aspects but also as a strategic partner. When organizations face high employee burnout and high turnover, they often recognize the need for HR consultants or specialists temporarily to stabilize the work environment.

For example, a company facing high-stress levels among employees might engage an HR expert to develop a comprehensive resilience and mental health support program. This program could include individual consultations, focus groups to identify key stressors, and educational workshops on stress management techniques.

Furthermore, HR can contribute to a technology company that, during rapid expansion, noticed its existing HR infrastructure was not capable of supporting rapid growth and increasingly complex employee needs. Through the engagement of external HR consultants, the company implemented leadership development programs, mentorship systems, and customized training programs for new employees, leading to better integration and retention of key talents.

Developing HR talent internally

Developing internal HR talent can be crucial for long-term success. Through targeted educational programs and mentorship, companies can create their own HR specialists who are fully aligned with the company’s culture and goals. This approach not only strengthens the organization but also creates more flexible and adaptable structures capable of responding to changing market conditions.

Experience shows that companies that recognize HR as a strategic partner have long-term advantages. HR specialists help shape culture, develop talent, and guide teams through changes. They are key to sustainability and success, especially in rapidly changing industries.

First steps toward strengthening the HR function

Are you thinking about how your organization can start preparing for the future? Start by analyzing your current HR capacities and identifying key areas for development. Invest in the continuous education of your HR team, consider engaging external consultants for fresh perspectives, and develop talent within the company.

Consider the following steps to maximize the potential of your HR function:

1. Assess current needs and capacities: Conduct an internal audit to identify the strengths and weaknesses of your existing HR function.

2. Invest in HR training and development: Ensure continuous training opportunities so your HR team can stay up to date with the latest trends and practices.

3. Consider flexible HR models: Engage external consultants or temporary specialists to bring fresh perspectives and initiate key changes.

4. Develop leaders from within: Encourage leadership development through mentorship, coaching, and leadership programs to build a strong internal HR function.

Now would be the best time to invest in your human resources. Remember that with the right approach, HR can be a key driver of innovation and growth for your company.

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