Rethinking How HR Invests Its Resources

HR practitioners want to make a difference in their organization. They want to help attract new talent, develop current employees, and strategically manage the impact of their company’s people. But are HR business units best investing their resources to achieve those results?

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Why HR Needs to Rethink Where It Invests Its Resources

According to The Hackett Group, more than 50% of HR time and resources are spent on administrative and compliance functions. While necessary to run a successful business, those tasks rarely set a company apart from its competitors.

When it comes to projects that create competitive advantages, most businesses only dedicate 10% of their HR resources.

With that discrepancy in resource spending, is it surprising many regard HR solely as a support function? Or that many see HR only as a necessary expense?

Few other business units allocate the same level of resources to low-impact work. While critical to individual employee experience and organizational risk management, Core HR is often reactive instead of proactive.

The business units that have been able to reallocate their staff’s time (and most, importantly, their creativity) toward creating competitive advantages are the ones leading their organization forward.

HR can be one of them. With technology increasingly able to take over the most time-consuming work, now is the time for HR to become a driver of change and innovation.

Wrapping Up

In the next few posts, we’ll discuss how Digital Transformation can allow HR to reallocate its time and become a strategic differentiator in any organization.

In the meantime, take a step back and look at how your HR team currently spends its resources. Is the majority of your time spent on administration and compliance?

Need to quickly prioritize your team’s time and resources? Check out our step-by-step guide to the lightweight prioritization technique, Keep, Kill, Combine.

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