There is a shift happening. The name change of HR to People and Culture is a clear indication of what is happening in this space. Human Resources is reinventing itself and we want to be part of that change!
Traditional HR departments have long been focused on ensuring compliance and decreasing liabilities for companies. On the other hand, People teams are looking to maximise the value of employees and drive performance and revenue from this. These differences are just the beginning when it comes to separating good companies with great ones.
Here are a few of the trends which have driven this shift:
- Technology and the digital revolution. The greatest assets of technology companies are their people. Unlike the industrial revolution where success depended on the efficiency of factories, the value of technology companies comes from its people functions: design, engineering, marketing, sales, management, etc.
- Power to the people. People have more power over their careers then ever before! The mobility and accessibility to new job opportunities has pushed organisations to focus on the people, their retention and employer branding in order to compete for top talent.
- Engagement and culture. We now see that companies with high employee engagement and strong company culture outperform others in all areas of business!
In practice the differences that separate traditional HR and modern People teams are very clear. Traditional HR teams are informed about decisions, reactive to issues, tactical with tasks and narrow when it comes to HR practices. Modern People teams are consulted in the decision-making process, deliberate with goals, strategic with planning and holistic with their view of business.
It’s an exciting time to be in this space. Find out more about how to set up your People teams and achieve your organisational goals with HR advice and strategy by giving us a call today!