The alignment of Human Resource to business is quintessential as the former supports the later. The business performs as a result of the talent management. The innate nature of the talent affects the HR functions. The talent behaviour can be categorised under each vertical , as the lookout of each talent resonates with the vertical they work for . Here we look into different areas required to be considered to align Human Resource to business.
Business Acumen – The first step to align HR function is in understanding the core business .the study starts from drawing the core value of what the business produce . This includes the operations, finance and strategic functions of a company. Hence the HR needs to know:
- What does the company do?
- Who are its clients?
- What are the services and products offered by the company to its client?
- What is the production model is it batch processing? How do they work?
- What are the technologies used?
- What are the skill and academicals requirement?
- How does the billing cycle work? What are chief sources of revenue? How are the products and services billed to the client? What is the billability per each talent?
- Who are the competitors to the organization? What is the organization’s competitive advantage?
- What are the recent miles stones achieved?
- Where are the prime sources for the talent? Where does the talent go after leaving the company?
Building Process Know-how – This list of questions should add on to the business knowledge. This further needs to be deciphered in terms of the talent. Suppose if the company offer the technological service the reference for the HR is the nature of talent required i.e. the educational background may need to be technical with certification required to deliver the job . The information needs to be processed in three main areas including
- Revenue based – What is the revenue of the company? What was the operating expenses and profit after tax and etc ? This would directly impact the budget allocation towards hiring, planning compensation, talent engagement programs.
- Business cycle based – Is the company planning expansion or a ramp down ? What are the events on the business calendar? Is there a project completion in the next business quarter ? It would impact the HR function such as, how are the business cycle going to affect the HR functions such as Hiring, performance management and other areas
- Talent based – How the talent have been behaving? What have been their top aspirations? How have the movement been in the industry? How long do they work in one company? What are their motivations to join or leave a company? This would help HR decide on the talent acquisition and management.
The final step is to integrate and implement the understanding gained from the study and design the HR functions . Certain areas such as best practices can be viewed , but considered only if it is relevant . The legal and statutory functions would follow the guidlines as mentioned by the regulatory bodies . The task of aligning HR with business can be daunting , reflecting the words of Maslow ,”The way to recover the meaning of life and the worthwhileness of life is to recover the power of experience, to have impulse voices from within, and to be able to hear these impulse voices from within-and make the point: This can be done.”