What makes the best in human resources the best? HR is a complex, multifaceted role that requires the ability to juggle priorities and excel at a number of tasksfrom the tedious to the strategic. It takes knowing what to concentrate on and what to delegate, staying on top of trends in compensation and always having the inside scoop on employee relations. The many misconceptions about HR mean that practitioners must be ahead of the curve and able to identify the newest technologies in order to successfully drive HR for the company. HR has the potential to make a big impact on the lives of individuals working for the company, but practitioners must exercise caution because managers may feel less than appreciated if bottom line is questioned. These perceptions are just some of the many myths that surround human resources, which can prevent practitioners and companies from getting the most from their HR department.
HR as a cost-center
The view of HR as a cost center may be one of the hardest to overcome. How executives view the HR department and its role often plays a huge part in its perception and function, and may have an influence on whether the job is managed in-house. Frequently HR must take every opportunity to be its own proponent in providing greater education on the value of its offerings.
However, some companies do realize that HR managers contribute more directly in taking care of their most valuable assets. This can include handling anything from recruiting to interviewing to providing medical, dental, vision, life and other ancillary benefits. HR can also help companies with job training, creating programs for retention and growth of employees, establishing tools and guidance for management reviews and reviewing and selecting technology to support HR functions. Each of these details contributes to the company's bottom line.
Group benefits, for instance, are a major part of the compensation employers offer to entice and retain employees while maintaining the organization's competitive nature. These compensations are derived and presented greatly impact a company's success. Companies can save thousands of dollars by retaining good employees and avoiding hiring and training costs. It is important for HR practitioners to have intimate knowledge of the costs associated with individual employees in order to explain any cost to management.
HR's role: strategic and/or tactical
HR's role in an organization is often more tactical than strategic, which may not be ideal to practitioners themselves. This point is illustrated by USC Professor Edward E. Lawler III, who noted that HR professionals reported spending only 23% of their time in 2005 "being a strategic business partner - no more than they reported in 1995. And line managers, he found, said HR is far less involved in strategy than HR perceives itself to be.
Though company culture often sets the stage, HR practitioners must be progressive, find key areas for improvement and make the most of their role within the company.
Employee capabilities/technology's prevalence
Sometimes employees and executives are guilty of downplaying HR's role, but likewise, HR practitioners can underestimate employees' abilities to manage information. Computers first appeared in schools over 12 years ago, and today are used by 75 percent of Americans to access the Internetfor an average of three hours a day. Many HR managers are reluctant to give up manual self-service benefit management tasks. However, if managers integrated computers and technology into their projects, they would save a tremendous amount of time and allow them to better address company objectives.
While it is true that online benefits management can be a scary prospect for those who are not computer savvy, having access to employee benefits online is an important option that improves employee satisfaction because of increased accessibility and plan choice. Many employees, particularly today's generation, have come to expect online options.
Integrating technology and utilizing computers has the potential to increase HR productivity by 80% over manual processes (according to the Cedar 2001 Human Resources Self Service/Portal Survey). HR managers who want to stay competitive in their processes and businesses must integrate technology or compromise their time and efficiency.
Not all HR tools are created equal
Another way that HR can increase strategic input is by using technology to access, manage and report on information. It is often hard to cut through the clutter and hype surrounding proposed solutions and select the best technology to meet an organization's needs. Though one provider may offer self-service capabilities, for instance, it may not be the benefits program most closely aligned with employees' needs, and can provide disappointing results if it provides either unnecessary or limited services. It is therefore extremely important for HR managers to know what proposals entail, and use technology to provide management with a precise idea of the needs of the company and individual employees.
Selecting the best tools requires assessing key factors, such as the ability to:
" Grow and scale with the organization
" Provide full ownership of the data
" Simplify processes through wizards
" Provide full security for backups, servers, added protective layers. etc. and transfer data within secure encrypted sessions, secure SSL Session (128 bit encryption), or be encrypted prior to being sent
" Provide authority to decide who will be allowed access and to what degree
" Offer a robust eligibility engine for company enrollment activities and rules
" Link with carriers with clean, validated transfers, beyond basic ANSI files
" Offer 24-hour service from a direct contact that can help.
In conclusion, though managing human resources is often a difficult job, the challenge is offset for many practitioners because of the opportunity to make a difference at companies and in the lives of individuals. HR managers need to understand that relying more heavily on employees and technology can not only make their jobs easier, but can also increase productivity and organize information to help create more specialized programs, which in turn benefits individuals and companies. Technology will also help HR to keep its work focused and increase its department's worth. Helping to debunk some of the most common myths about HR and utilizing the tips discussed in this article may be the first step of many to making a change in the general perception in HR and the efficiency that practitioners and managers see on the job.
Art Brooks is Vice President of BeneTrac at www.BeneTrac.com.
