In todays world people issues are suddenly top of mind

In todays world people issues are suddenly top of mind ó a critical component and key business driver.

But not too long ago, people issues got more lip service than legitimacy.

What happened?

For one thing, the business world is constantly changing, and those changes are moving much faster, with a more intense focus on people. Perhaps most of all, fewer people are doing more work.

Employees have changed too. Employees today want more than a job; they want a life. Todayís employees are much more mobile as well ó a crucial factor in how a business can plan for succession and other critical people processes. So, todayís line managers and executives constantly talk about ìpeopleî issues. For example, the CEO of a major pharmaceutical company recently told senior managers, ìPopulating our leadership pipeline is as important as filling our drug pipelineÖpeople are the major limits to our growth.î Doubtful you would have heard that kind of senior executive comment 20, maybe even 10, years ago.

A recent Hay Group survey done with HR Magazine found that more than two-thirds of non-HR senior managers said talent management is either a high or ìnumber oneî business priority. An even higher number, 80 percent, said that getting talent management right (or wrong) would make a big difference in results.

Need more proof?

Take a look at the Harvard Business Review. In the 1970s, most articles focused on strategy and policy, with a smattering of articles about technology. Today, there are more HBR pieces on leadership and talent than any other issues. HBR editor Tom Stewart has even said that when they do readership surveys, itís the most frequently requested topic.

Flexibility, balance, and choices are much more predominant issues for todayís younger workforce. Those workers look at life differently. They expect employers to give them a reason for working and expending effort. In a related area, mobility now means a great candidate may not be mobile for a year or so, until his or her kids are out of high school.

HR today is responding to these challenges in two major ways: HR is insourcing. Itís bringing in-house, on a permanent basis, specialized expertise that might otherwise be hired temporarily. Hay Group knows about this trend first-hand. When Hay Group typically recruited people, it usually competed against other consulting firms. Today, it competes for talent with outstanding HR departments. In the past, Hay Group alums sometimes moved to HR, but not as frequently as today. There is more capability, more in-house expertise in HR functions today ó a direct response to line managersí changing expectations and perceptions of people issues.

HR is outsourcing. A recent Conference Board study reported that more than 66 percent of Fortune 500 companies had outsourced two or more parts of HR. Transactional processes (benefits, payroll) form the largest outsourcing functions, which makes sense. What makes HR outsourcing effective? Companies that maximize outsourcing know itís not just about cost; itís also about leveraging technology. Superior performers use technology to both reduce costs and to provide employees with better delivery, making a more responsive employer.

If employees want to be more in control of their lives, and the current trend says they do, then employers who set the pace are those that can respond and deliver control and flexibility to employees at the right cost, while serving the companyís overall needs.

HR executives constantly ask, ìWhat will it take for HR to be a strategic or business partner?î Itís hardly a new question. In fact, itís becoming more of an eternal question, likeÖDoes God exist? Why donít men ask for directions? Can HR be a business partner?

For starters, an HR Director or executive has to determine their role on the executive team. Think soccer. If your executive team were a soccer team, what position would the HR exec be playing? If the answer is ìtrainer,î there are problems. Maybe itís goalkeeper, with the role of keeping the team out of trouble (a reactive stance). Few HR executives see themselves as strikers, actually creating winning plays, scoring goals. Maybe midfield would be the most strategic role, depending on the management team.

No matter what position he or she plays, besides trainer, how can an HR director grow and develop into a pivotal player on the executive team?

First of all, become a program maestro. The HR leader must devise, sponsor, and orchestrate programs that are strongly related to the business agenda. Most importantly, focus on business is critical. The pharmaceutical company mentioned earlier has ìLeadership Pipelineî as one of its five key strategic objectives, focusing almost exclusively on assessing and developing talent through job experiences.

Second, become an HR craftsman. Be prepared to roll up your sleeves. When the CEO decides to restructure, an HR craftsman need to be a trusted advisor, of course, but also needs to do the ìdetailî work on what the relocation packages and contracts are going to look like for new divisional presidents. This can not be delegated!

Finally, become a business champion. Outstanding HR directors who are business champions are not afraid to take business positions ó not just about the HR implications of initiatives ó but also the substantive business issues. In fact, Hay Group research on effective senior executive teams found that one element that distinguishes the best from the rest is that these teams do not dedicate specific time on the agenda for ìPeople Implicationsî (inevitably led by HR Director). Rather people implications are integrated in every agenda item. This puts the challenge on the HR director to be on equal footing with his colleagues on business issues.

With ìpeopleî issues now at the heart of business issues, itís a very exciting time to be in HR. In the 80s, strategic innovation expanded the role and importance of the finance function. In the 90s, technology innovation took center stage, elevating the role of IT function. The way it looks, the current decade fast becoming the one where people issues are the rage.

By making the right moves, it also can be the decade where HR stops following, and finally starts leading.

Distributed by HRmarketer.com