Open access peer-reviewed chapter
Abstract
The topic of HR and Leadership Integration focuses on where HR and Leadership strategies intersect. In recent times, HR has achieved the proverbial seat at the table; however, HR in many organizations remains related to administrative and employee support roles. While those are important, an emerging need is for organizations to recognize that employees are critical strategic components of the organization. To a greater extent than in the past, the workforce can be a competitive advantage. Rather than relegating employee issues to HR, leaders are advised to view employee issues as leadership issues. Leadership must address operations, resources, and the workforce. This chapter explores the opportunities organizations have when they embrace employees as integral members of their service or production proposition. New partnership opportunities are available for organizational leaders to own the employee experience. The HR and the leadership lens must change to take advantage of where HR and organizational leadership intersect, creating the New HR.
Keywords
- organizational effectiveness
- leadership capacity
- HR and leadership integration
- HR practices
- strategic HR
1. Introduction
The topic of human resources (HR) and leadership integration focuses on where HR and Leadership strategies intersect. In more recent times, HR has achieved the proverbial seat at the table; however, HR in many organizations remains relegated to administrative and employee support roles [1]. While those are important, an emerging need is for organizations to recognize that employees are critical strategic components of the organization. The workforce, to a greater extent than in the past, can be a competitive advantage. There is an opportunity for integrating HR into the overall leadership practices of the enterprise, hereafter referred to as
Figure 1.
The New HR.
2. IRMA mapping
Within the academic community, the learning concept of IRMA mapping is used to ensure that learning outcomes across a curriculum are aligned [3]. For this chapter, we will use a variation of IRMA mapping. IRMA stands for
3. Terminology
The following terms are essential to the discussion of HR in this chapter:
HR refers to the HR function, such as the HR department or office.HR professionals refers to the leaders and staff in the HR function.HR practitioners refers to HR professionals and other leaders in the organization who interact with employees and address people issues.HR practices refers to the practices and procedures within the HR function.New HR refers to enterprise-level people practices embedded within the organizational leadership layer.
4. More than a seat at the table
The topic of New HR and leadership integration focuses on where HR and leadership strategies intersect. Recently, HR has achieved the proverbial seat at the table [4]; however, many organizations remain relegated to administrative and employee support roles. While those are important, an emerging need is for organizations to recognize that employees are critical strategic components of the organization. Having a seat at the table is essential, yet, more importantly, a strategic understanding that HR belongs to the entire organization and is a core component of every leader’s role is critical. HR needs to move from HR processes perceived as owned by the HR function to one that embraces HR practices that the entire organization owns.
5. HR issues are leadership issues
Recognizing employee issues as leadership issues is a fundamental shift highlighting the importance of leaders taking ownership of these matters and viewing them as integral to their role [5]. In short, HR issues are leadership issues. By embracing this perspective, leaders acknowledge that employee issues are not solely the responsibility of HR but are critical components that directly impact the overall performance and success of the organization. Leaders are vital in addressing operational, resource, and workforce-related challenges to optimize organizational performance and create a positive work environment. Enhancing the leadership attention to enterprise-wide workforce issues is a crucial focus of the New HR.
Leaders should actively engage in addressing operational challenges that impact employees. This involves understanding daily work processes, identifying inefficiencies or bottlenecks, and seeking opportunities for improvement. Leaders create an environment that supports employee productivity and reduces unnecessary obstacles that hinder performance by leading in streamlining workflows, optimizing resource allocation, and enhancing operational efficiency.
In addition, leaders need to address resource-related challenges that can affect employees’ ability to succeed. This includes ensuring employees can access the tools, technology, and training to perform their roles effectively. Leaders should advocate for sufficient resources and actively seek ways to provide employees with the support they need. By recognizing and addressing resource gaps, leaders enable employees to perform at their best and contribute to the organization’s success.
Furthermore, leaders must recognize that workforce-related challenges directly impact employee well-being and engagement. This involves addressing workload balance, work-life integration, and career development opportunities. Leaders should create an environment that promotes work-life balance, supports employee well-being, and provides avenues for growth and advancement. Leaders can enhance employee engagement, satisfaction, and retention by fostering a positive work culture that values employee development and recognizes individual contributions.
Recognizing HR issues as leadership issues is a critical shift in acknowledging leaders’ integral role in addressing operational, resource, and workforce-related challenges [5]. By taking ownership of these issues, leaders optimize organizational performance and create a positive work environment that supports employee productivity, engagement, and well-being. The New HR suggests that much of this can be and should be done with and by operational leaders and not relegated to a siloed HR function. Through active engagement, effective communication, and proactive problem-solving, leaders take the initiative to foster a culture that values employees and ensures their success within the organization.
6. The value of the workforce
To a greater extent than in the past, the workforce serves as a competitive advantage [6]. Leaders typically address operations, resources, productivity, and service issues. More than ever, leaders must focus on the workforce. In today’s business landscape, where products and services can be easily replicated, the unique capabilities, skills, and knowledge of the workforce set organizations apart from their competitors. By leveraging the talents and expertise of their employees, organizations can achieve sustainable competitive advantage in various ways [7].
A highly skilled and talented workforce enables organizations to deliver superior products or services. Employees with specialized knowledge and expertise can innovate, develop high-quality products, and deliver exceptional customer experiences. Their expertise allows organizations to differentiate themselves from competitors and attract customers who value the unique value proposition offered by the workforce [8, 9]. A motivated and engaged workforce contributes to higher productivity and efficiency, giving organizations a competitive edge. When employees are engaged and committed to their work, they are more likely to go above and beyond, resulting in increased productivity levels [10, 11]. This enhanced productivity allows organizations to produce goods or services more efficiently, meet customer demands more effectively, and achieve operational excellence, all contributing to a competitive advantage in the marketplace.
In addition, a diverse and inclusive workforce enhances an organization’s competitive advantage [12]. Diversity brings together individuals with different backgrounds, experiences, perspectives, and ideas. Diversity of experience, perspective, and thought fosters the organization’s innovation, creativity, and problem-solving capabilities. By embracing diversity and inclusion, organizations tap into a broader range of insights and approaches, enabling them to understand diverse customer needs better, adapt to changing market trends, and develop innovative solutions that give them a competitive advantage [13].
Furthermore, a committed and loyal workforce can significantly contribute to organizational success. Employees who feel valued, supported, and recognized for their contributions are more likely to stay with the organization long-term [14, 15]. This reduces turnover and provides stability and continuity, allowing organizations to build and retain valuable institutional knowledge and experience. Retaining talented employees provides a competitive advantage by ensuring a highly skilled and experienced workforce consistently delivers exceptional performance. While functional HR has typically been called upon to lead and champion culture and various initiatives demonstrating the organization values the employee, the New HR demands that evidence of valuing the workforce must emanate from enterprise leadership.
7. Where HR and leadership intersect
Embracing employees as integral members of the organization’s service or production proposition can open up opportunities for organizations. Employees are not resources, capital, or assets. This signifies a shift in perspective where employees are viewed as valuable contributors to and co-creators of the organization’s success. When this shift occurs, it leads to new partnership opportunities for organizational leaders to take ownership of the employee experience by recognizing the intersection of HR and leadership. This shift is integral to the New HR.
Traditionally, HR has been responsible for managing employee-related processes and ensuring compliance with policies and regulations. However, with the changing landscape and a New HR, organizations are realizing the need for a more holistic approach that integrates HR and leadership. This integration involves aligning HR strategies with the organization’s objectives, values, and mission and viewing employees as strategic assets that drive competitive advantage.
By recognizing this intersection, leaders can take an active role in shaping the employee experience and being an active part of organizational HR practices. Leaders must understand that effective leadership goes beyond managing operations and requires nurturing a positive work culture, fostering employee engagement, and supporting the growth and development of the workforce. Leaders must work closely with HR professionals to identify opportunities for improvement, establish effective communication channels, and create initiatives that enhance the overall employee experience.
In response to this new perspective, HR professionals must expand their role and mindset, move beyond transactional HR functions, and adopt a strategic approach supporting the organization’s goals. Beyond HR strategy, HR professionals must embrace a New HR by collaborating closely with leaders to develop and implement New HR practices, such as talent strategies, succession plans, and initiatives that support the organization’s growth and long-term success.
Moreover, the intersection of HR and leadership requires a shared commitment to fostering a culture of trust, collaboration, and continuous improvement. HR professionals and leaders must work together to create an environment that encourages open communication, values diversity and inclusion, and supports innovation and creativity. By leveraging their expertise and perspectives, HR and enterprise leadership can collectively address challenges, identify opportunities, and drive positive change.
To effectively embrace the intersection of HR and leadership, organizations must invest in leadership development programs that help leaders with the skills and competencies to succeed in a people-centric environment. This includes promoting emotional intelligence, communication skills, and the ability to motivate and inspire teams. While HR professionals play a crucial role in designing and delivering these programs, a New HR demands that HR professionals and leaders work together to design and lead leadership development initiatives.
When organizations recognize the intersection of HR and leadership, they can unlock new opportunities that enhance the employee experience and drive organizational success. By partnering closely, HR professionals and leaders, working together as organizational HR practitioners, can align their efforts, strategies, and initiatives to create a cohesive and engaging work environment. Embracing this intersection allows organizations to harness the full potential of their workforce, cultivate a culture of high performance and innovation, and ultimately achieve sustainable growth and competitive advantage. The HR and the leadership lens must change to take advantage of where HR and organizational leadership intersect.
8. Rethinking HR’s purpose
To shift the perception of HR toward the New HR, organizations must first reevaluate the purpose of HR within the organization [16]. In addition to valuing HR’s administrative function and recognizing HR as a strategic enabler, the New HR asks that HR professionals and organizational leaders work together as organizational HR practitioners. This shift in mindset requires practitioners and leaders to understand and appreciate the strategic value derived from HR practices, which goes beyond the contribution of the HR function. HR’s role can be considered as facilitating leadership capacity to broaden and embed HR practices with frontline leaders across the organization. The HR function can help organizations build the enterprise-level New HR layer.
9. Shifting the perception of HR
Shifting the perception of HR involves exploring how organizations can move beyond perceiving HR as an isolated organizational function. While HR needs to be effective and efficient with administrative and employee support roles and being part of strategy by being “at the table,” the shift in perception must focus on HR and leadership collaboration. Whether HR is or is not at the senior table, there is value embedded in shifting the perception of the role of HR in relation to the role of leaders. The intersection of HR and organizational leadership represents a new and dynamic opportunity for organizations.
A traditional approach to improving the value of HR within the organization is closely aligned with focusing on the strategic value that can be gained from the HR function. This traditional perspective suggests that the HR function does more than process transactions and serve in an administrative capacity and can be situated to contribute as a strategic partner addressing the organization’s overall success. While this perspective has value, a shift in perspective to a New HR emphasizes the workforce, suggesting the workforce is a critical strategic component of the organization that allows organizations to succeed. This chapter explores how this can be done in concert with organizational leadership. For example, the following figure (Figure 2) helps visualize the overlap of business strategy, HR contribution, and Leadership roles. While HR and organizational leaders can separately contribute to strategy when HR, leaders, and strategy are intentionally converged, more powerful and impactful outcomes are realized. The left side of the figure shows HR as an organizational function. In contrast, the right side of the figure shows the New HR, an integral part of enterprise leadership, and how it contributes cohesively to organizational strategy.
Figure 2.
HR contribution to strategy.
The following sections identify and briefly discuss various entry points into the broader discussion about where the New HR can emerge from the convergence of HR practices and leadership. The topics touched on are not prescriptive and are intended to prompt thought and reflection. Each topic is not industry-specific and is not relegated to organizations of any particular size. The various topics noted below are agnostic by design. Their purpose is not to provide a recipe for practitioners but rather to provide a variety of windows practitioners, and leaders can use to explore the intersection of HR and leadership, away to examine the New HR.
While there is much commonality across the breadth of HR practice, it is also true that HR practices differ from industry to industry and from organization to organization. This means that some topics may be more useful for some HR practitioners than others. However, each topic can serve as a thought prompt for any practitioner, leader, or organization exploring approaches to maximizing the role, the impact of HR, and the New HR.
9.1 Aligning HR with organizational goals
HR must align its objectives with the organization’s strategic goals to become a strategic partner [17]. By actively participating in strategic planning sessions and understanding the business landscape, HR professionals can identify ways to leverage the workforce as a critical strategic component. This alignment helps HR contribute directly to the organization’s success rather than being limited to support functions. Organizational leaders are encouraged to invite HR practitioners into these discussions. HR’s participation must be more than providing functional advice. Both leaders and HR must approach workforce issues as leadership issues that have a key role in overall organizational strategy.
9.2 Driving sustainable competitive advantage
HR is generally viewed as the driver for various strategic workforce initiatives. When HR and organizational leaders collectively embrace the workforce as a competitive advantage, numerous aspects of the organization can be leveraged. For example, collaborating on strategic workforce planning, talent management, leadership development, and data-driven decision-making allows organizations to attract, develop, and retain top talent. This, in turn, enhances the organization’s employer brand, fosters innovation, and positions the organization as an employer of choice, thereby driving sustainable competitive advantage in the marketplace [18].
Such workforce initiatives, to be effective, should not be left in the domain of traditional HR; instead, HR practitioners under the New HR (HR professionals and organizational leaders) must partner on design and delivery. This becomes a paradigm shift that unlocks the value of the workforce and positions enterprise HR practices as key drivers of organizational performance and growth. Embracing a dynamic partnership between HR and leadership transforms the organization, fostering enhanced agility, improved employee performance, a culture of strategic alignment, and sustainable competitive advantage.
9.3 Aligning HR initiatives with organizational goals
HR must align its initiatives with the organization’s goals and objectives to demonstrate its value as a strategic partner. By doing so, HR ensures that its efforts are purposeful and contribute to achieving desired outcomes. Whether it is talent acquisition, performance management, leadership development, or employee engagement [19]. Enterprise New HR initiatives should be designed and implemented in tandem with organizational leadership with a clear alignment with the organization’s strategic priorities.
9.4 Strategic workforce planning
One crucial aspect of HR’s evolution is its involvement in strategic workforce planning [20]. Instead of solely filling vacant positions, HR becomes actively involved in analyzing future workforce needs, identifying skill gaps, and developing strategies to attract, develop, and retain top talent [21]. However, this type of planning cannot be performed by the HR function. It can be coordinated by the HR function, yet the actual work must be the effort of all HR practitioners and part of the New HR. This is done by HR collaborating with leaders to analyze the future workforce needs.
9.5 Leadership development
As a strategic partner, HR plays a pivotal role in nurturing leadership within the organization. HR professionals identify high-potential employees, design leadership development programs, and provide coaching and mentoring to foster the growth of future leaders. HR contributes to the organization’s long-term sustainability and success by cultivating a robust leadership pipeline. While HR traditionally takes the lead with leadership development initiatives, frontline and senior leaders often have a unique and insightful perspective on what it means to be a leader. HR and leaders are advised to partner on leadership development efforts to ensure they are more relevant and useful to leaders.
9.6 Enhanced organizational agility
When viewed as a strategic partner, HR enhances the organization’s agility. By aligning the workforce with the organization’s strategic objectives, HR helps the organization adapt quickly to market changes, seize new opportunities, and effectively respond to challenges. This agility ensures the organization remains competitive in a rapidly evolving business landscape. Shifting the perception of HR and positioning it as a strategic partner yields significant benefits for organizations. By recognizing the workforce as a critical strategic component, HR and leaders can partner to drive positive outcomes that directly contribute to the organization’s success.
9.7 Improved employee performance
Many times, performance management is viewed as the role of HR. However, an aspect of recognizing HR’s strategic contribution focuses on establishing employee performance management as an organizational priority and not as an HR priority. Leaders must be coached and enabled to be the driver of assessing and responding to both positive and negative performance issues. Through well-designed performance management systems, career development programs, and effective feedback mechanisms, HR and leaders can work together to foster an environment of continuous growth and improvement. This focus on employee development directly impacts productivity, engagement, and overall organizational performance.
9.8 Cultivating a culture of strategic alignment
A culture of strategic alignment requires the active participation of HR practitioners and leaders. Initiatives, formerly thought of as HR initiatives, are jointly owned by HR and leaders on behalf of the organizations. These initiatives include strategic communication, values-based recognition programs, and inclusive leadership practices. They play a key role in helping employees understand the organization’s strategic direction and align their efforts accordingly. This cultural shift creates a cohesive workforce dedicated to achieving shared goals.
9.9 Strategic partner role
Traditionally, HR has been perceived as primarily focused on administrative tasks and employee support roles [1]. This limited perception has often marginalized HR within organizations, hindering its ability to make meaningful contributions beyond day-to-day operations. To shift this perception, organizations can embrace HR as a strategic partner. This means recognizing HR’s potential to contribute strategically to the organization’s success. HR professionals can actively engage with senior leaders and participate in strategic discussions and decision-making processes. By aligning HR initiatives with the organization’s goals and objectives, HR can demonstrate its value as a strategic partner rather than being limited to administrative functions. However, to unleash the true potential of HR and drive organizational success, it is essential for organizations to embrace HR as a strategic partner. By recognizing that enterprise HR must contribute to organizational strategy, deployment of the New HR can be leveraged to elevate organizational HR practices and foster a culture that values the workforce when shaping the organization’s future.
9.10 Challenging traditional perceptions
Organizations must challenge the traditional assumptions about HR’s role to shift the perception of HR from an administrative function to a strategic partner. This involves redefining HR’s purpose and reframing how it is viewed within the organization. Rather than seeing HR solely as a support function, organizations need to recognize HR as a key driver of strategic initiatives that contribute to the organization’s overall success. Challenging traditional perceptions requires looking at traditional topics and issues from a new perspective [22, 23]. The New HR requires that traditional perspectives be challenged.
9.11 Separating strategy from transaction management
HR must move beyond its traditional administrative transaction role to fully embrace the strategic partner role [1]. While transactional tasks such as payroll, benefits administration, and record-keeping remain essential, they should not define the entirety of HR’s role. HR professionals should be encouraged and empowered to contribute strategically, leveraging their expertise to drive initiatives that enhance organizational performance, foster innovation, and cultivate a high-performing workforce. Therefore, the administrative versus strategic conversation becomes one of where to place an organization’s human resource emphasis. Outsourcing or separating the transactional layer into a separate business unit may add an overall advantage to the organization [24, 25]. The New HR requires reevaluating how work gets done, focusing on outcomes.
9.12 Leveraging and sharing HR expertise
HR professionals bring expertise in talent management, employee development, organizational culture, and change management. Organizations can address critical challenges and drive strategic initiatives by leveraging this expertise. For example, HR can play a crucial role in talent acquisition and retention by designing effective recruitment strategies, creating robust onboarding programs, and implementing performance management systems that align with the organization’s strategic goals. However, these domains of HR expertise must not remain locked in HR. HR subject matter experts must share their expertise with frontline and senior leaders [26, 27]. When this happens, leaders begin to think in terms of people management. They are able to engage with the workforce using real-time decision-making, and problem-solving thought processes that demonstrate the value of employees and direct line-of-sight connections to organizational goals. The New HR moves the operational leader closer to the employee when managing and resolving people-related matters.
9.13 Embedded workforce decision-making
As a strategic partner, HR professionals can influence decision-making processes within the organization. HR can shape talent management, workforce planning, and organizational development decisions by providing senior leaders with valuable insights and data-driven recommendations. HR professionals have access to employee data, performance metrics, and engagement surveys that can inform strategic decision-making and drive positive organizational change [28, 29]. However, the need to influence the workforce and other organizational decision-making from an HR perspective is predicated on the notion that HR is somehow separate from organizational decision-making. When HR is embedded within organizational leadership, organizational decisions must automatically consider the workforce and related factors, much like financial, operational, productivity, and other factors are considered.
Embracing HR as a strategic partner, organizations position themselves to thrive in today’s complex and competitive business environment [30, 31]. By recognizing HR’s potential for strategic contribution, actively engaging HR professionals with senior leaders, aligning HR initiatives with organizational goals, moving beyond administrative functions, leveraging HR expertise, influencing decision-making processes, and consistently demonstrating value, organizations can transform HR from a strategic functional partner to an embedded enterprise practice that drives organizational success.
9.14 Value creation and business impact
Shifting the perception of HR involves emphasizing the value creation and business impact of HR activities. Instead of viewing HR as a cost center, organizations can recognize the New HR as a driver of organizational success. HR practitioners can proactively demonstrate the return on investment (ROI) of enterprise HR programs and initiatives by measuring their impact on key business metrics such as employee productivity, engagement, retention, and overall organizational performance [32].
For example, the organization can measure the effect of training and development programs on employee performance or the impact of employee engagement initiatives on productivity and customer satisfaction. These measurements provide concrete evidence of HR activities’ value to the organization [33, 34]. These measures can be incorporated into an organizational dashboard [35]. HR practitioners can proactively demonstrate the return on investment (ROI) of enterprise HR programs and initiatives by measuring their impact on key business metrics, such as employee productivity, engagement, retention, and overall organizational performance. Organizational metrics highlighting outcomes are key to showing the New HR’s impact on desired organizational outcomes.
9.15 Employee productivity
One area where HR can create significant business impact is by enhancing employee productivity. HR plays a crucial role in ensuring that employees have the necessary skills, resources, and support to perform at their best. By investing in training and development programs, implementing performance management systems, and fostering a positive work environment, HR can contribute to improved productivity levels throughout the organization [36]. By measuring the increase in productivity resulting from New HR initiatives, organizations can demonstrate the direct correlation between HR activities and business outcomes.
9.16 Employee engagement and retention
Employee engagement and retention are key factors that contribute to organizational success [18, 37]. HR professionals can implement strategies to create a positive and engaging work environment that motivates employees to perform at their best and remain committed to the organization. By measuring employee engagement levels and tracking retention rates, HR can showcase the impact of its initiatives on reducing turnover, increasing employee loyalty, and, ultimately, enhancing organizational performance. A traditional approach considers engagement and retention to be owned or driven by HR practitioners. However, highly effective organizations fully integrate employee engagement and retention initiatives at the leadership layer [38, 39]. The New HR fully embraces operational leadership ownership of employee engagement and retention.
9.17 Organizational performance
HR’s impact on organizational performance extends beyond individual productivity and employee engagement. HR practices and programs can contribute to the organization’s overall performance by aligning the workforce with the organization’s strategic goals, fostering innovation and collaboration, and driving cultural transformation. By measuring key performance indicators such as revenue growth, profitability, and market share, organizations can assess the impact of New HR initiatives on the business’s overall success. HR strategists and HR leaders must have more than basic HR knowledge and must find a way to integrate what is known about the workforce into what is known about the business. Business knowledge is equally important for HR and operational leaders, both of whom must find ways to integrate workforce knowledge and business knowledge into a seamless knowledge layer [40].
9.18 Continuous improvement and optimization
Shifting the perception of HR as a value creator and business driver requires a commitment to continuous improvement and optimization. HR practitioners, which includes enterprise leaders, should regularly evaluate the effectiveness of HR workforce practices, measure their impact, and make data-informed adjustments to improve outcomes [41, 42]. By adopting a continuous improvement mindset that fully integrates workforce factors with other operational factors, such as ROI, costs, logistics, scheduling, performance, productivity, quality, and other desired organizational outcomes, the workforce layer can be leveraged to maximize actual and perceived value and ensure alignment with evolving business needs. This level of fully integrated continuous improvement is integral to the New HR.
9.19 Data-driven decision-making
To shift the perception of HR, organizations must encourage HR practitioners and leaders to adopt a data-driven approach to workforce decision-making. By leveraging HR analytics and metrics, valuable insights on various aspects of the workforce, such as talent acquisition, performance management, and employee engagement, can be exposed to organizational leadership. Similar to how organizational leaders expect to receive regular, perhaps monthly, budget reports [43, 44]. Regular, data-driven insights leaders to make workforce-informed decisions and recommendations based on evidence and objective data. By embracing data-driven decision-making, leaders can integrate workforce data with other operational data and contribute to strategic discussions by providing valuable insights that support effective workforce planning and talent management strategies [45, 46]. Leveraging HR metrics and analytics tools, organizational leaders gain insights into key workforce metrics such as turnover rates, employee engagement scores, time-to-fill vacancies, and training effectiveness [47, 48]. This data provides a foundation for evidence-based workforce decision-making. The New HR demands workforce data-driven decision-making at all levels of the organization.
9.20 Talent acquisition and retention
Data-driven decision-making can significantly impact talent acquisition and retention strategies. Enterprise HR practitioners must analyze recruitment data, such as sourcing channels, candidate demographics, and hiring success rates, to identify the most effective recruitment strategies and make data-backed decisions on where to invest recruitment resources [49]. Similarly, by analyzing turnover data, leaders can identify patterns and reasons for employee attrition, allowing them to implement targeted retention strategies that address specific areas of concern. Frontline and senior leaders must address these concerns. In the recent past, talent acquisition was viewed as a transactional, labor-intensive set of activities relegated to mid-level HR staff. If there is consensus that talent equates to a competitive advantage, then operational leaders must own the key outcomes associated with talent acquisition. This means those leaders need access to relevant data and methods and approaches to take action on that data [50, 51]. By leveraging data, organizations can enhance their ability to attract and retain top talent. Within the context of enterprise HR, it is fully understood that talent acquisition and retention are linked directly to competitive advantage and desired organizational outcomes.
9.21 Integrated performance management
Data-driven decision-making plays a crucial role in effective performance management. When considering performance management, the traditional HR lens frequently looks at certain desired or idealized employee behaviors [52, 53]. Employee performance outcomes are less often aligned with organizational performance aspects. The organization has data relevant to productivity and other desired outcomes [54, 55]. This data can be aligned with employee performance data to gain a richer, more robust understanding of where opportunities for improvement exist and for areas of organizational excellence. An integrated approach to performance management ensures the organization invests resources strategically to support areas of weakness and leverage areas of strength.
9.22 Employee recognition and satisfaction
Enterprise HR practitioners can significantly impact employee recognition and satisfaction initiatives. HR practitioners and leaders can gather and analyze data from various sources, such as employee surveys and other channels, to understand employee perceptions, identify motivational drivers, and uncover areas for improvement [56, 57]. By leveraging these insights, interventions can be designed and implemented to enhance the employee experience, such as implementing tailored recognition programs, promoting work-life balance, or improving communication channels [10, 11, 17]. In the past, such initiatives were believed to be the domain of traditional HR. The New HR suggests that listening to employees, gathering feedback, and deploying initiatives that have a positive impact on the workforce belong to enterprise leadership.
9.23 Providing organizational insights
Adopting a data-driven approach allows HR practitioners and leaders to explore valuable insights contributing to strategic discussions and decision-making processes. Rather than thinking of workforce topics as separate, stand-alone matters (such as hiring, retaining, and motivating employees), the breadth of workforce-related topics is considered an integral element of how the organization is led, how planning is done, how resources are invested, how decisions are made, and how goals are set. Workforce data allows organizational leaders and decision-makers to analyze and interpret aspects of the workforce from which organizational insights are gleaned [48, 58]. These insights might be related to talent trends, skill gaps, market growth, brand recognition, training, and risk avoidance. Furthermore, such insights contribute to strategic discussions on organizational restructuring, merger and acquisition integration, and cultural transformation by providing decision-makers with key workforce data that immediately impacts organizational initiatives and change management considerations [59].
This includes training HR practitioners and leaders in data analysis, data visualization tools, and statistical techniques. By equipping leaders and decision-makers with the necessary skills and tools, organizations empower them to leverage data and contribute to evidence-based decision-making effectively. Additionally, organizations should create a data-driven culture associated with the workforce layer, where data is consistently used to inform decisions and monitor the impact of organizational initiatives [60, 61, 62]. The New HR suggests that organizations must strategically use workforce data to reshape the perception of what HR is and how an enhanced enterprise HR approach contributes valuable workforce insights that contribute to desired organizational outcomes [63, 64].
9.24 Anticipating future talent needs
Strategic workforce planning involves identifying future talent needs and ensuring the organization has the right people with the right skills to achieve its strategic objectives [65, 66, 67]. Traditionally, HR professionals were tasked with forecasting workforce needs [68]. However, forecasting workforce needs requires a collaborative approach that involves operational leaders so that market trends, technological advancements, and industry changes can be analyzed from various perspectives to anticipate shifts in talent demands. Of the various HR practices, it has been noted that forecasting workforce needs is not a common practice [20]. However, by proactively identifying emerging skill requirements, enterprise HR practitioners can develop talent acquisition and development strategies to address anticipated gaps, ensuring that the organization remains competitive and adaptable [69, 70]. The New HR must focus on current needs and forecasting future needs.
9.25 Skills gap analysis
One crucial aspect of strategic workforce planning is conducting a thorough skills gap analysis. Competency mapping is an appropriate, data-centric approach to analyzing workforce skills [71, 72, 73]. Though traditionally considered an HR initiative, outcomes are improved when HR practitioners and organizational leaders partner to determine and assess current and required future competencies. By identifying gaps in skill sets, organizations can develop targeted training programs, implement succession planning initiatives, or explore external talent acquisition strategies to bridge those gaps [74, 75]. Assessing and managing required workforce skills and competencies is an ideal domain for the New HR.
9.26 Agile workforce strategies
In today’s rapidly changing business landscape, organizations need an agile workforce that can adapt to evolving needs [70, 76]. Strategic workforce planning involves developing strategies for flexible staffing, including contingent workforce management, remote work arrangements, and cross-functional teams. An agile workforce allows the organization to rapidly adapt to internal and external business realities [77, 78]. Within the context of the New HR, enterprise HR practitioners can analyze workforce data and market trends to identify where flexible staffing models and adaptable skill mixes will optimize resource allocation, improve reaction to business realities, and enhance organizational efficiency.
9.27 Driving organizational change
Traditionally, HR has been viewed as an organization’s change agent [79, 80]. However, driving organizational change must move far beyond the scope of HR professionals. Organizational change must be considered within the broader context of the entire workforce. Whether adopting new technologies, restructuring processes, or redesigning organizational structures, enterprise HR practitioners not only guide and support these initiatives but also gather employee feedback. In this way, organizational change becomes a genuine initiative involving the workforce [81, 82]. HR professionals can provide change management expertise [83]; however, others within the organization must provide change agency expertise [84, 85]. To the extent that organizational change involves the workforce, which is the case for most change initiatives, enterprise HR practices must be considered. Indeed, HR professionals can provide input. Muchira and Kiambati [86], yet organizational change from a workforce perspective is a leadership matter, and to be successful, it must involve and be led by all aspects of the organization [82, 87, 88]. Change agency is a critical organizational competency, and to be successful must be integrated and embedded within New HR enterprise practices.
10. Conclusion
In conclusion, HR professionals can expand their role and mindset to partner with leaders in fostering experimentation and risk-taking. By implementing systems that support controlled risk-taking, providing resources for innovation projects, and establishing feedback mechanisms for learning, enterprise HR practitioners create an environment where creativity and innovation thrive. By embracing risk and fostering a culture of experimentation, organizations can unlock their full potential, gain a competitive advantage, and drive meaningful innovation that propels them forward in today’s rapidly changing business landscape. The New HR must be viewed by organizational leadership as a critical enterprise mindset. Keep in mind that the term
The various topics noted in this chapter serve as thought prompts for HR professionals and organizational leaders to explore opportunities for close collaboration. Perhaps, more importantly, these topics serve as starting points for implementing New HR practices. While the workforce is integral to the nature of the organization, practices that involve the workforce must be integral to the practice of leadership.
From this perspective, the workforce is the organization, and the organization is the workforce. The workforce is not an asset, like the balance in a bank account or an equipment inventory. The workforce is comprised of people, and people are not assets, capital, or commodities. Too often, employees have been described as human capital. While it is true people can deliver value, people are not the value. There is no actual value attached to any individual employee or leader. People are beyond value. Individuals can create value, and occupational roles generate different levels and types of value. The results of value created by individual people can be converted into assets and various types of capital or into various commodities that possess value. Yet, it is important to recognize that the workforce is an integral component of the organization and merits regular leadership attention.
For both HR and organizational leaders, there is an emerging requirement for the workforce to be recognized as a sufficiently significant element of the organization, which requires leadership attention, nurturing, honor, and respect. Significant elements of the organization require considerable attention. The workforce is not a separate item that merits occasional input or advocacy from HR professionals. Organizational leadership must embrace the workforce [89] on an equal footing along with other significant elements of the organization, such as finances and budgets (resources) and production and service (operations). Understanding and leading the workforce at all levels of the organization must be part of what effective leaders address daily. New HR practices must be fully embedded into the practice of leadership.
11. Self-assessment
What follows is a self-assessment. For each item, indicate how regularly that item is a topic of enterprise leadership discussion or action. Consider how regularly you, as a leader, are actively engaged with that item. Regular refers to weekly or monthly, while infrequently refers to quarterly or less.
For each item, enter
_____ Agile Workforce Strategies.
_____ Aligning HR Initiatives with Organizational Goals.
_____ Aligning HR with Organizational Goals.
_____ Anticipating Future Talent Needs.
_____ Challenging Traditional Perceptions.
_____ Continuous Improvement and Optimization.
_____ Cultivating a Culture of Strategic Alignment.
_____ Driving Organizational Change.
_____ Driving Sustainable Competitive Advantage.
_____ Embedded Decision-Making.
_____ Employee Engagement and Retention.
_____ Employee Recognition and Satisfaction.
_____ Employee Productivity.
_____ Enhanced Organizational Agility.
_____ Enhancing HR’s Analytical Capabilities.
_____ Improved Employee Performance.
_____ Integrated Performance Management.
_____ Leadership Development.
_____ Leveraging and Sharing HR Expertise.
_____ Measuring Business Impact.
_____ Organizational Performance.
_____ Providing Organizational Insights.
_____ Separating Strategy from Transaction Management.
_____ Skills Gap Analysis.
_____ Strategic Partner Role.
_____ Strategic Workforce Planning.
_____ Talent Acquisition and Retention.
_____ Value Creation and Business Impact.
After completing the self-assessment, review the results thoughtfully. Identify where you see strengths that can be leveraged and opportunities for improving Enterprise HR integration within the organization. Based on your review, establish specific goals that they are realistic and time-bound. Bring other organizational HR practitioners (organizational leadership) into the assessment and goal setting.
Conflict of interest
The author declares no conflict of interest.
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