Q&A: The Evolving Role of HR: From Administrative to Strategic Partner by Pooja Rawat

Q: What led to your involvement in the field of human resources?

I always wondered how human behaviour has its own meaning and scope in various settings and its impact on our day-to-day lives, including a professional work space. This realization led me to pursue an MBA, where I excelled academically.

It was during this period that I decided to specialize in human resources (HR) due to its crucial role in ensuring the smooth operation of any business.

Upon graduation, I faced the need for swift employment, partly driven by my family's desire for financial stability.

However, I stumbled upon a job opening at Steel Authority of India Limited (SAIL), which seemed to have a more accessible application process. With just eight months of preparation, I successfully secured a position as an assistant manager in HR.

Reflecting on my journey, I've transitioned from merely managing individuals to prioritizing their success and fostering a positive company culture.

This evolution has been a consistent theme in my career, progressing from an emphasis on individual management to championing teamwork and contributing to overall company growth.

Q: "How has 'personnel management' evolved into 'human resources,' and what are the main differences in their approaches and responsibilities?”

Historically, a personnel (or worker) is an individual employed in an organization, and personnel management refers to the process of effectively managing and overseeing the employees within the organization.

However, this terminology has become outdated, primarily originating in the 1960s and 1980s. As businesses evolved, so did the approach to managing employees.

In modern times, the responsibilities once handled by personnel managers have transitioned into the broader field of human resources (HR).

• Expanded Scope of HR: HR encompasses a wide range of functions beyond just managing employee lifecycle, including recruitment, training, performance management, and employee relations.

• Strategic Engagement: Today, HR professionals not only focus on compliance, audits, and policies but also actively engage in strategic conversations within the organization.

• Proactive Employee Management: Unlike the traditional approach, where interactions were limited to addressing grievances, modern HR professionals play a more proactive role in understanding the needs of employees and aligning them with the organization's objectives.

HR professionals now engage in one-on-one discussions with employees, addressing their concerns, providing support, and fostering a positive work environment.

In essence, while the term "personnel" may have been the norm in the past, the evolution into human resources signifies a broader scope of responsibilities and a more strategic approach to managing employees in today's dynamic business environment.

Q: What led to your interest in strategic administration within the HR profession, considering its diverse areas like talent acquisition and employee management?

About a year and a half ago, I felt stagnancy in my learning journey. In my tenure with SAIL, I was fortunate enough to learn the fundamentals of strong culture and ethics that a Maharatna PSU operated on; however, personally and professionally, I felt a step behind my own aspirations.

The stability and perks of my job were a good kick-start for a fresher like me, but it wasn’t too late before I realised that there needed to be something challenging to keep me motivated.

Now, almost a year and a half later, I'm really glad I made the change. I've had so many chances to share my ideas and make a difference.

Q: What role does HR play in organizational strategy, particularly in companies like Swiggy? How does HR contribute to strategic planning in product- or service-based organizations?

I think the role of HR in organizational strategy extends far beyond just handling HR-related tasks.

One crucial aspect where HR plays a pivotal role is in shaping the organizational structure, referring to how the company presents itself to its employees and the public.

• Hiring Strategy: HR is instrumental in finding the right talent to uphold a company’s brand and culture. This involves crafting a hiring strategy to onboard individuals who not only align with the company's values but also possess the capabilities to contribute to team building and structured branding efforts.

• Culture Building: Culture is another critical element. HR works on creating and maintaining a conducive work environment. This involves offering extended benefits, fostering a sense of belonging, and attracting like-minded individuals who resonate with the company's ethos.

• Conflict Management: Managing tensions within the organization is also a key responsibility of HR. By strategizing on how to address conflicts and keep employees engaged, HR contributes to retention efforts. Compensation strategies play a significant role here.

• Alignment with Business Objectives: Moreover, HR actively collaborates with the business to understand its objectives and align HR strategies accordingly. HR leaders now actively participate in shaping the company's external image and branding efforts.

In essence, HR's role in organizational strategy encompasses various facets, including compensation, retention, hiring, organizational structure, culture building, and branding. While much of this work may go unnoticed amidst technological advancements, it forms the backbone of the company's success and reputation.

Q: When is it best for a company to switch from having just one person handle all human resources tasks to splitting HR into different groups for better planning and organization?

According to me, it's crucial to prioritize generating revenue. Just because a business is profitable doesn't mean it needs to hire more people right away. But as the business grows, it may need to bring in experts with different skills.

Consider the roles of a CFO or a CMO; under them, additional skills and competencies are required. Engaging with key individuals to understand their requirements, timelines, and desired team size marks the beginning of growth.

• Profitability First: Firstly, establish profitability and then leverage it to enhance brand recognition. This involves showcasing profitability, which necessitates effective branding.

• Opportunities Post-Visibility: Once visibility is achieved, opportunities like appearing on platforms such as Shark Tank arise. Despite initially having a small team, post-profitability businesses often seek funding rounds like seeding or unicorn rounds.

Once the financial resources are secured, the next step is strategic planning. This includes developing marketing strategies alongside performance marketing and HR initiatives.

• Strategic Planning and Scaling: Expanding involves not only branding but also engaging in platforms like Instagram for word-of-mouth marketing. This expansion necessitates a dedicated team.

• Competencies and Job Market Engagement: Therefore, after achieving profitability, the focus shifts to assembling the right competencies, scaling operations, and engaging in the job market as an employer.

Q: What's the priority among retention, hiring, and culture management for startups, mid-sized companies, and enterprises, and does it vary with business cycles?

These things keep changing and each one is really important. If one thing isn't right, it can mess up how a company works smoothly.

But if I had to pick one thing, I'd say building and keeping a positive company vibe is the most important. When I start working somewhere new, the atmosphere and values matter the most to me.

Creating a culture where HR supports everyone, encourages teamwork, and makes employees feel valued is really key.

Also, having a good brand is super important. It helps get new clients and keeps the company's reputation good in the market.

Q: How can one effectively embody the role of a "cool" HR professional?

In navigating interactions with others, I believe it's essential to employ a bit of strategy. You want to ensure that those you're engaging with feel valued and respected, perhaps even smarter than you in certain aspects.

It's a delicate balance of fostering their confidence while also guiding the conversation towards productive outcomes.

• Value and Respect: When someone comes to me with a question or concern, even if it seems small or something I think they should already know, I always handle it in a way that makes them feel valued and respected.

• Open Environment: It's about creating an environment where they feel comfortable expressing themselves openly. I encourage them to share their thoughts and ideas, framing it as though I'm eager to learn from their perspective, especially if they belong to a different generation like Gen Z.

• Empowering Others: By doing so, I not only empower them but also gain valuable feedback that can contribute to improving our organization.

This approach extends to my interactions with employees during one-on-one meetings. I actively seek out their feedback and suggestions, creating a space where they feel heard and appreciated.

• Building Genuine Connections: It's not just about answering their questions; it's about making real friendships and creating a feeling of being on the same team.

• HR as a Supportive Resource: I see HR not just as a problem-solving entity but as a supportive and interactive resource within the workplace. They should be approachable, empathetic, and, most importantly, seen as allies.

By cultivating this approachable persona, I've found that it enhances the overall dynamic within the organization, making for a more open and collaborative environment.

Q: How do you make connections with shy people? Planning is important, but hidden unhappiness can cause issues. What's a good way to deal with this?

Recently, I encountered an event while working on a specific task. The feedback I received highlighted its strict nature and the suggestion that it should allow for more flexibility.

While my team and I brainstormed extensively, we acknowledged the limitations of our own perceptions. As HR professionals, we often lean toward management's expectations. However, I emphasized the significance of involving our colleagues in the decision-making process.

By asking for their opinions and making changes based on them, we made sure everyone liked the process and could easily use it. This experience reinforced my belief in the value of feedback and the importance of considering different perspectives.

Ultimately, embracing feedback and addressing concerns seriously creates a more positive reception of new policies and processes. It's essential to involve individuals in the decision-making process to ensure their buy-in and satisfaction with the outcome.

Q: How does strategy play a role in handling major organizational changes like acquisitions or restructuring?

I believe the process of letting employees go is challenging for both management and HR. It's crucial to approach this transition with sensitivity and care to minimize its impact on individuals and the organization's culture.

While the term "strategy" might sound harsh in this context, we can focus on smoothing the transition and preserving our culture of valuing employees.

• Garden Leave Approach: One approach is to offer what's known as "garden leave," where employees are relieved of their duties but remain on the payroll for a designated period, typically to search for a new job. During this time, they can maintain their professional network and seek new opportunities without worrying about immediate financial strain.

• Positive Framing in Communication: When communicating with future employers, it's important to frame the departure positively, emphasizing that it's not a reflection of the employee's performance or skills but rather a restructuring of positions within the organization.

• Supportive Options During Transition: Additionally, offering options such as sabbaticals or partial compensation during the transition period allows employees to focus on personal growth and job search without fearing a career gap.

• Severance Packages for Support: Providing severance packages, possibly distributed over time, further supports individuals as they navigate this change and seek new opportunities.

So while letting employees go is never easy, HR can implement strategies that prioritize employees' dignity, well-being, and future prospects while maintaining the organization's culture of care and respect.

Q: What are some common areas where you believe HR professionals may struggle with understanding or implementing effective strategic planning?

I believe a significant area of confusion for HR professionals lies within the realm of finances. Despite our efforts in managing compensation, payrolls, taxes, and flexible benefits, the ultimate driver behind these decisions is the financial health of the organization.

It's essential to align our strategies with the organization's overall financial strategy. While HR plays a role in researching market conditions and recommending adjustments to compensation structures, the organization's financial standing ultimately dictates the feasibility of such changes.

Furthermore, organizational performance and market conditions have a direct impact on performance evaluations and appraisals.

For example, if the market situation in the US, where we are based, is unfavorable, it can affect the performance of our teams, projects, and ultimately the organization as a whole. This, in turn, influences appraisal outcomes.

While we can mitigate some of these impacts by maintaining a margin of flexibility in performance evaluations, such as allowing for adjustments within a certain range, external factors beyond our control can still significantly influence outcomes.

It's crucial for HR professionals to navigate these complexities while ensuring fairness and transparency in performance evaluations.

Q: How do senior HR professionals assist in quarterly road-mapping, including goal alignment and talent management, to ensure realistic objectives are set and achieved?

Ensuring goals are both set and realistic involves several key steps. Firstly, it's crucial to analyze trends within the organization and the industry at large to inform the roadmap. Identifying areas for improvement and potential pitfalls is essential.

• Trend Analysis: Analyzing trends within the organization and the industry informs the goal-setting process by identifying areas for improvement and potential pitfalls.

Next, HR plays a vital role in talent management, focusing on retention and acquisition. This includes crafting recruiting and compensation strategies to attract and retain the right people.

Additionally, HR collaborates with other departments, such as marketing and engineering, to gather feedback and data for informed decision-making.

• Talent Management: HR focuses on retention and acquisition by crafting recruiting and compensation strategies to attract and retain the right people. Collaboration with other departments helps gather feedback and data for informed decision-making.

Implementing a people analytics strategy helps pinpoint areas for improvement and ensure the right individuals are assigned tasks.

However, it's not just about strategy; timely execution is also critical. Maintaining work-life balance and monitoring workload are essential to prevent burnout and retain valuable talent.

• People Analytics: Implementing a people analytics strategy helps pinpoint areas for improvement and ensure the right individuals are assigned to tasks. Timely execution and maintaining work-life balance are critical to preventing burnout and retaining talent.

Ultimately, every aspect, from recruitment to execution, is interconnected and requires constant vigilance to ensure success and mitigate potential losses.

Q: What did you learn from your time at a legacy steel company that differs from your current environment? Do you believe that people without similar experiences frequently overlook these insights?

In a legacy corporation like the one I worked for, everything operates within a well-defined structure. Budgets are strict, procedures are set, and changes come slowly, if at all. There's a sense of security and stability because of this established framework.

1. Rigid Structure: Legacy corporations often maintain a rigid structure where employees adhere to established protocols and procedures. This structure provides a sense of order and predictability, contributing to a stable work environment.

2. Cultural Inertia: The organization's long-standing culture can be both appealing and limiting. Initially, conformity to existing practices is encouraged, fostering a sense of security and belonging.

3. Limited Flexibility: Over time, employees may feel constrained by the lack of flexibility and a slow pace of change. This can hinder the expression of new ideas and innovative approaches, creating a potential barrier to personal and professional growth.

4. Contribution Challenges: Despite the desire to contribute ideas and suggestions, legacy organizations may not actively encourage or support such initiatives. Employees may find it challenging to voice their opinions in this rigid environment.

5. Defined Compensation: The structured nature of operations ensures well-defined aspects such as salaries and appraisals. However, certain elements, like bonuses, can be more ambiguous and may require a deep understanding of historical contexts and insights from experienced colleagues.

For instance, when I started, I followed existing practices without questioning them. The organization's long-standing culture and perceived job security were appealing.

But over time, I began to feel constrained by the lack of flexibility and the slow pace of change. I realized I wanted to contribute ideas and suggestions, which wasn't encouraged in the rigid environment.

Despite this, there are advantages. The structured nature of operations means that things like salaries and appraisals are well defined.

Q: After leaving a structured organization, do you aim to create a legacy within your current workplace that mirrors the organization you left?

In any changing workplace, whether it's an old company or a new one just starting out, rules and ways of doing things are always changing.

What's important right now might not be important later on. What works well today might not work well in a few months.

It's really important to keep updating our ideas and ways of doing things, and I'm always trying to improve. This inner motivation pushes me to make big contributions that make a real difference in the projects we take on.

Q: How frequently do you anticipate human resources (HR) professionals contributing to the strategic direction of an organization?

I believe that the role of HR in contributing to organizational strategy is in a constant state of evolution. While there may not always be a need to reinvent the wheel, there is certainly value in adapting existing strategies to address new challenges.

A notable example is the shift to remote work during the pandemic, which underscored the necessity for strategic adjustments in areas such as employee engagement and technology integration.

It's important to emphasize that this evolution extends beyond technological strategies; it encompasses a profound understanding of and responsiveness to the needs of individuals.

HR professionals are no longer confined to behind-the-scenes administrative roles; instead, they have become active partners in driving business success. The transition from back-end support to front-facing consultants involves engaging with clients and aligning company strategies with the capabilities of its talent.

This transformation is ongoing, mirroring the dynamic nature of both businesses and the workforce. As HR professionals, our role is to ensure that our strategies are not only effective but also adaptable to the ever-changing landscape of work.

Q: Looking back, HR mainly handled compliance and hiring, but now culture is paramount. Looking forward, when do you foresee HR playing a significant role in strategy?

In the past, one HR manager could handle multiple responsibilities without the need for separate departments like insights or payroll.

However, as you rightly pointed out, with the growing importance of strategy, specialized departments or individuals dedicated to strategic initiatives have become necessary.

1. Historical HR Practices: Previously, HR managers often juggled multiple responsibilities within a single role. This approach worked well in simpler organizational structures where HR encompassed various functions.

2. Evolution of Strategic Focus: With the evolving business landscape, there's a growing recognition of the importance of strategic initiatives. This has led to the emergence of specialized departments or individuals focusing solely on strategic interventions.

3. Role of HR Business Partners: The rise of HR business partners signifies a shift towards specialized strategic roles within HR. Unlike before, when HR roles were more generalized, these specialists now focus specifically on strategic planning and implementation.

4. Adaptation to External Dynamics: Specialized strategic roles allow organizations to better manage internal tensions while responding effectively to external changes, particularly in today's dynamic entrepreneurial environment.

5. Broadening Understanding of Strategy: There's a shift towards viewing strategy as a collective responsibility rather than confined to specific roles. Employees across various functions are expected to contribute strategically, reflecting a broader organizational understanding of strategic concepts.

The emergence of HR business partners reflects this shift. Unlike before, where HR roles encompassed various tasks, now there are specialists focused solely on strategic interventions.

Being strategic is no longer limited to specific roles but is expected from everyone. Whether it's a salesperson or any other role, individuals are increasingly seen as strategists in their own right. This indicates a broader understanding of strategy across the organization, although it's still evolving and not yet fully defined.

Q: In how many years do you think strategy will become as prominent as culture, diversity, gender equality, and bias in organizations, both for HR professionals and individuals?

I believe that the influence of older people will soon diminish since many individuals—especially younger people—are always learning and doing multiple things at once.

Maybe in the next three to five years, we'll see more recognition and need for jobs that involve planning and strategy on platforms like LinkedIn. As more creative and forward-thinking people join companies, especially those who are open to trying different things, we'll see a big change towards focusing more on planning and strategy.

This shift will show that organizations are putting more attention on thinking ahead and planning things out.