HR budgets are stagnating, and even getting lower. In fact, up to
So, what gives? On one hand, this puts HR teams in a precarious position. The role is more draining than ever, and studies are pointing to
It's no surprise that when I talk to fellow HR practitioners, their job satisfaction varies widely, even on a daily basis. It feels like an undeniable pivot point. The good news is technology is evolving at an opportune time to sustainably transform HR. Let's address this complexity and how technology can shape a healthy future.
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Expectations have changed along with the world around us
COVID-19, along with social, environmental, and political reckonings, have had countless effects on the way we work and live. Meanwhile, it has never been more important for companies to have a strong value proposition to attract competitive talent from the market.
The combination of these forces emphasizes the importance of people feeling aligned with their employer. Employees want to identify with a shared value system where their employer acts in positive ways that impact not just them and their customers, but their broader community.
Simultaneously, companies are now more than ever, rightfully, supporting diversity — which necessitates creating meaningful space to allow for all opinions to be heard and a range of needs to be met. This is a good thing; we know healthy debate and supporting diversity makes us better and is the basis for innovation – it also requires intentional focus to achieve this level of healthy organizational culture. All this comes to a head within HR, who is tasked with addressing these forces under that nebulous umbrella of "employee engagement."
Considering this, it is no surprise that HR's involvement in complex or difficult topics is often misunderstood — a misplaced target to blame. Yet HR cannot sidestep these topics, nor should they. HR has an opportunity to foster a culture where the pushing of corporate cultural boundaries is practiced in a healthy way, with a foundation of psychological safety.
Meanwhile, economic factors and increasing competition add pressure to a company's bottom line, which HR must remain keenly attuned to. So, outcomes must align to the financial constraints and performance metrics required for company success.
If this new world of HR sounds exhausting, it's because it is.
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How can technology help?
Digitization enables HR to focus energy on strategic areas requiring human connection and complex problem solving, leaving repetitive tasks to chatbots, automation, and artificial intelligence. Imagine asking an AI co-pilot to take over analyzing and reporting metrics: "Tell me the attrition trend over the past 5 years in each department in a bar chart." The hiring process is another huge opportunity: scheduling interviews, generating job descriptions, and replying to candidates.
HR is filled with information that needs to be mined, processed, analyzed, and stored confidentially for various audiences, so the more that technology can handle such work, the more
Considerations for HR leaders going into 2024
Most organizations today recognize the opportunities for technological efficiencies, but have a long journey ahead. Meanwhile, HR is tasked with managing tight budgets and navigating complex cultural topics.
If this sounds familiar to any HR leaders out there, some of these tips might help:
Invest in creating a cross-functional community of practice areas
It may involve business leaders, finance, facilities, legal, and so on — collaborative teams are needed to address complex topics from all perspectives and determine the best solutions. By reducing silos and developing cross-functional teams, you can establish an agile way of navigating crises. Spend time genuinely supporting the effectiveness of these other teams, so the organizational will is there to partner.
Don't confuse experiences and engagement with pleasing everyone
In HR, we are most likely to hear from those who disagree and are upset. These voices need to be heard, but we shouldn't have a knee-jerk reaction, only assuming the loudest voice determines the direction the company needs to take. Sometimes this requires courage when popular opinion does not align with all the factors at play in a situation, some of which may not be known by all due to confidentiality.
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Be open to reframing your perspective and allowing people to challenge your assumptions
Experienced HR practitioners naturally develop perspectives over time based on knowledge of legal risk, company policy, and precedent to inform decision-making. In complex situations, remain curious and seek multiple perspectives, so that you don't make decisions based on what feels comfortable or has been done in the past.
Assume good intent
HR practitioners are frequently in the middle of crisis and disagreement. We need to be reminded that people generally mean well, but may not consider the impact of their words on the HR person receiving them. How HR chooses to react can create unity or work against it. Practicing grace, empathy, and open dialog is important, so encourage and celebrate this so that everyone feels valued.
My hope for 2024 is that companies recognize this complex cultural environment and HR's ability to lead through it to achieve strong organizational health. However, to do so, companies need to invest in technology so HR teams can sustainably focus on the work required to keep the "human" in "HR."
