With more emphasis being put on HR metrics, global recruiting, and using advanced technology to create databases and store information, HR departments are becoming more of a presence in company Board meetings and strategic planning sessions. While this is a positive step, are HR departments ready to handle the added responsibilities, and are they equipped to recruit the level of employees expected?

The great metrics debate
One of the reasons for this shift is the use of metrics that measure employee performance, turnover, referrals, and recruiting. While the debate continues over the usefulness of metrics and which metrics should be used in different working environments, presenting metrics to CEO's and others is one way that HR managers can influence decisions made within a company.

While this is a positive step, there are many HR departments that spend the majority of their time gathering evidence, but do little with it. Another issue concerning HR departments is that once they present these metrics to the Board, they may be given a new set of responsibilities they may not be equipped to handle because of the emphasis placed on data gathering.

In a recent interview with Workforce Management, Fred Foulkes, a professor of organizational behavior at Boston University said, "More and more CEOs see the significance of HR being a competitive weapon. As a result of that, expectations are really up.” Depending on the expectations of your company, you may need to work even harder by recruiting from other countries, trying to restructure the workplace to include those from different generations, and analyzing why turnover exists.

In addition to these tasks, many companies have begun integrating HR software that can help in tracking metrics, but is not always easy to learn. Tackling legal issues is another responsibility that companies may expect from their HR departments.

Coping with changes
While new tasks have been given to HR departments, how are they seen by executives?

As reported in a recent survey conducted by The Economist and Deloitte Consulting, of 531 executives and HR managers, there are still differences in how they view business priorities and the quality of HR departments.

When asked if HR contributed to business strategy, procedure, and workplace productivity, only 23% say yes. Only 46% think their HR departments are effective. However, 82% feel that HR will play a larger role in strategic planning in the near future.

What does this mean for HR departments? Given the wide variety of responsibilities that many in HR handle each day, this may mean more work ahead. While most companies see the need for HR, they don't fully recognize the potential that metrics have on retaining employees, expansion, and becoming more profitable.

In addition to metrics, HR departments may need to become more proactive. Instead of gathering data and presenting it, they may have to show executives and others how to use the information. This can be done in several ways.

Using metrics data effectively

• When presenting metrics, include changes that were made to policies and procedures along with results.
• Make use of new software so less time can be spent on metrics and more time can be spent in recruiting and retaining employees.
• Work with executives to understand what they need from an HR department.

HR departments need to show that they are capable of collecting, analyzing, and making changes that are beneficial by using the data collected instead of merely presenting it.

The future of strategic HR
In order to succeed in any business, companies must plan for the future. The same should be said of HR. Strategic planning is different for each department depending on the needs of the company. Plans can include:

• Improving turnover
• Increased productivity
• Increased employee input
• Better training/Cross-training
• Lowered costs
• Improved workplace conditions
• Increased hiring of innovative candidates
• Diverse workplace
• Implementing new HR analytics software

As you can see, there are many ways HR can improve its reputation and become a valued asset to any company.

One way to achieve this is by forecasting what will be the biggest challenges in the coming year. By creating metrics now, you will be able to present solutions to issues that come up even before they become a major obstacle.

The same approach can be used on issues that have grown over the years. By calculating the cost to the company, and making suggestions that would solve the problem and save money, HR will be able to address business issues while still focusing on people. By combining these two goals, HR can command greater respect and be utilized in many ways.

The workforce is changing. This is evident by the number of people who are retiring, the expectations of the next generation, and the lack of top performers in the market. Being prepared for these changes will help HR departments focus on what means the most: the happiness and well-being of productive employees.