Most of us will admit that the most important asset of a company is its people and yet, we view our HR department as a necessary evil that is simply part of the overhead cost of doing business.  This is the case in poorly run companies that do not have HR as a strategic partner.  There are no world-class companies with weak HR departments; excellence requires an HR to plan and work strategically.  Throughout this article, you will see some of the reasons why as CEOs and managers, we tend to become frustrated with our HR departments and end up marginalizing them. 

To start with, we do not know what we want or need from our HR department - as companies evolve and grow, the focus of HR and what management needs them to do changes.  Often, there is no thought given to what the key drivers of human performance are.  In order for your HR to be a strategic partner, there needs to be a clear understanding of what the HR department will and will not do.  In the absence of a clear direction, HR is reduced to arranging picnics and Christmas parties.  Since there is no direction from the organization and no careful planning from the HR manager, the HR department ends up becoming a section where all the administrative jobs fall.  Inevitably,the HR department becomes overwhelmed with unprofitable activities and they do not have the time to conduct more vital and valuable work.  Being astrategic partner requires that HR is elevatedabove just administration.

Our HR department is not properly staffed -  If the HR department is filled with able administrators, but not people with any real business training or experience, you will not have HR being a strategic partner (although your staff picnics will probably be great).  If your organization expects outstanding performance from its HR department, it needs to staff it with outstanding people.  If HR becomes the dumping ground of the organization, where we put people who could not make it in the core business, or a place where we hire less than the best to try to meet diversity requirements, you will not have an HR strategic partner.  However, the onus lies on HR to train staff who have the zeal but lack the necessary skills to put up outstanding performances.

We like to use HR as a scapegoat - It is much easier for managers to tell their people unpleasant news if they can pin it on someone else.  Usually, the target of such finger-pointing is the HR department, who are seen as biased and insensitive to employee problems. When this happens, employee loyalty is lost, weakening any sense of ownership that might exist. An HR coaches, supports and advises managers through the enforcement of policy issues - tactfully.

Some companies have their HR report through finance.  The practice of having HR report through finance is far too common and not a healthy practice.   For HR to affect a company’s bottom-line, it needs to work exclusively, reporting directly to the people who are responsible for implementing the strategies that are put across.  If HR is not at the senior leadership table, then it is highly hypocritical to claim that “employees are the most important asset of a company.”

 In order to provide quality, professional advice to managers in the core business, an HR strategic partner needs to understand the core business; how the company operates, or how it manages and measures its success. The HR practitioner should be abreast with the various job descriptions in the company, so as to point a straying employee in the right direction. This, though it might seem small, saves the company a lot of time and money

The burden however, is not solely on managers and CEOs, the HR department needs to be better at selling itself and influencing others in the organization.  HR should be more of an influence than a decision-maker.  As such, HR needs to become much better at “selling” its viewpoint and policies and make sure that everybody understand the procedures or processes.  Moreover, for organizations that do not know how they should best use HR, it is up to the HR department to define and sell its role in the company.

 Have an HR business plan that is attached to the organization’s overall strategic plan. Without a clear focus, there is no chance of being a strategic partner and having your impact felt.  Get skilled business people into HR departments. If you staff your HR department like an organizational wasteland, your results will match your efforts.  An HR strategic partner is a highly skilled, high-potential human asset.  Get HR to the table. An HR strategic partner needs to be included in all important discussions.  If HR is not at the table when those discussions take place, there is no chance of maximizing the value of the human asset, and no chance of truly being a high performing organization. 

By Akua Ofori-Boateng, CEO of Sabine Solutions