The role of human resources (HR) professionals is evolving, with an increased expectation for initiative and participation in executive-level strategic discussions, according to a chief people officer.Scott Austin, Group Chief People Officer at Bolttech, discussed challenges facing HR teams amid market changes, strategies for leveraging HR strengths, modifying perceptions of the HR function, and the importance of HR professionals proactively driving business changes, during a recent HR Leader podcast.
Strategic Engagement
Austin advised HR practitioners to become involved in ongoing strategic business planning by contributing to discussions. He emphasized the necessity of understanding individual business unit plans, aligning HR objectives with these plans, and integrating them into the overall business planning process.
For HR departments that may hesitate to initiate such engagement, Austin suggested discussing specific work initiatives with an executive. This approach involves iterative attempts, reflection on outcomes, and adapting communication styles based on individual executive drivers.
Increased Responsibility for Initiative
Austin indicated that in sectors like fintech and insurtech, there is a heightened expectation for HR to take initiative. This involves challenging leaders, continuously assessing organizational goals, and adapting the organization's current position to its future needs. HR can contribute by focusing on relevant capabilities, collaborating with leaders on performance challenges, and optimizing employee performance.
When C-suite leaders exhibit reluctance to include HR in strategic discussions, Austin recommended understanding their perspectives. This may involve enlisting support from other business areas to help create learning opportunities and facilitate problem-solving discussions for those leaders. He highlighted that HR's ability to network and establish internal connections is crucial, noting that the function risks obsolescence without strong business relationships.
Austin stated that the HR function's value lies in fostering connections, building trusted relationships, challenging ideas, and acting as a thought partner, a role that extends across industries. This includes understanding the broader commercial landscape and integrating HR insights.
Integration of Artificial Intelligence
Austin addressed the financial implications for companies that do not adopt new work methodologies involving Artificial Intelligence (AI). He stated that failure to invest in AI and explore alternative operational models could result in elevated functional costs. Austin projected an increase in AI's prevalence as more systems integrate AI capabilities, emphasizing the need for organizations to leverage these advancements effectively. He concluded that embracing AI's impact on the HR function itself and on broader workforce planning is essential.