Most of top managers in companies still perceive HR as a "soft" part of their business. They recognize the ability of HR to promote their companies, acquire talents and develop them. They are, however, less able to see a link between HR and financial and operational matters of the companies. So, how can human resource management gain greater respect and a stand on the same level as financial management and business operations as a provider of a real business value?
In his article on TLNT.com, Roderic Hewlett, current dean of the Business school at Bellevue University who teaches human capital management around the world, recommended the following steps.
Learn how to work with numbers and capital
To be heard at the top line, you have to speak the same language as other top managers. It means to know and be able to use economic terms such as value creation, return on investment (ROI), key performance indicators (KPIs), capital investment or cash flow. You do not need to take an MBA, some courses in finance and quantitative analysis will, however, certainly not hurt your. Try to find an internal or external mentor outside the HR department to help you with these topics. Remember to follow scientific literature that will teach you to perceive human capital in relation to financial capital and other types of capitals in the company.
Provide a clear analysis of the impact of HR on business operations
HR managers must be able to show how the people they develop (human capital) fit into the corporate culture, processes, systems, reputation, buildings, etc. (structural capital), how they contribute to customer satisfaction (social capital) and how they manage new technologies and ideas (intellectual capital). It is, however, not enough to explain all this in words. It must be supported by empirical research and analytical data so that potential effects of changes could be seen easily.
Build the position of a department interested in cooperation and problem solving
HR professionals are used to solve problems and they should show it at the highest levels of management, too. Top management likes to see that someone takes an active solution. Your market is still changing and you can certainly see the possibilities of human capital management to facilitate your company's response to these changes. Therefore, show your interest to cooperate on solutions with your colleagues in top management and do not hide your ideas.
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