Sarah Peiker is CEO of Orion Talent, a company with a strong reputation in military and diversity hiring, as well as RPO.
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What’s in a name? It’s a Shakespearean question that business leaders weigh all the time. From brands to service lines, the names we choose carry meaning and bring value. I was reminded of the power of choosing the right name when our human resources team recently made the strategic decision to drop the “HR” moniker and become "people and culture," a choice more businesses are making.
The name change was a part of a larger transformation of HR that we made, but it is indicative of where we are headed as a company. Once the change was announced, the questions started: “Does the name really matter?” “Can it have a measurable impact?” “Is it worth the effort?” Yes. Yes. And yes again.
Our initiative to build a true people and culture organization, from the name change to the processes that sustain it, has positively impacted our business and workforce in both surprising and foreseeable ways.
Why does HR need to elevate?
The primary reason many businesses are converting their HR practices into people and culture is a wide disconnect between business strategy, long-term goals and how HR works. HR is a necessary part of any business but has not traditionally been viewed as a deeply integrated, strategic function of business operations—an interesting truth considering the influence of HR. The organizational output of HR teams is tremendous when you look at the entirety of their responsibilities:
• Recruiting, onboarding and training
• Benefits and compensation
• Talent and skill development
• Performance management
• Employee engagement and retention
• Employer branding
• Rewards and recognition
• Compliance and workplace safety
• Health and well-being
• Succession planning
• Employment policy development
Every person inside a business interacts with HR in ways that are critical to their satisfaction, safety and success. Despite that reach, HR teams are not always aligned strategically with business goals. That divide can eventually turn into material losses. When HR teams do not understand the work and expectations that shape the employee experience, they lack the insight needed to create programs and processes that effectively support and retain talent.
The Risks Of A Transactional, Disconnected HR Department
When HR’s approach and programs do not reflect the mindset of a company’s leadership, employees see and feel it. For example, a business that is deeply focused on innovation but fails to support employee upskilling or advancement is disjointed, and employee engagement and company culture suffer. Employees will recognize that the growth mission of the organization is superficial, and their commitment will be equally shallow. In addition, rather than looking to the business for growth, employees will look elsewhere, hurting long-term workforce development.
HR teams that lack a strong understanding of corporate strategy and the effort required to meet business goals will not be highly effective at recruiting, performance management or retention. While HR leaders are fond of phrases like “employees are our greatest asset,” do they always understand the work people are doing? And does HR truly know how to align its many workforce programs with the employee experience? If the answers are no, then HR risks becoming an out-of-touch department with few opportunities to provide strategic guidance to leadership and positively impact business success.
Moving To A People And Culture Organization
The transition from a transactional HR mindset to a strategic and consultative people and culture approach takes more than a name change. The first of many steps is to send your HR team out into the business to build bridges.
Develop Connections Across The Business
At Orion Talent, we now have "people partners" to build bridges to every business unit. People partners are members of the people and culture team assigned to specific business units. They are responsible for supporting the leaders and team members across those groups. In addition, they need to gain a precise understanding of the business goals that drive each unit and team member.
People partners have disrupted the old HR model. Rather than employees and leaders reaching out to get information from HR, these team members are going out into the business to build partnerships, looking for opportunities to make an impact rather than sitting on the sidelines waiting for requests.
Welcome And Gather Input
Strong people and culture organizations are hungry for workforce knowledge because they understand the dynamic nature of people and business. They use surveys, focus groups, town halls and individual listening sessions to stay attuned to the business and the workforce. The data collected is used not only to fine-tune the many programs and tools of the people and culture team but to provide strategic guidance to managers and leaders as they work to cultivate a strong, connected workforce.
Refine And Safeguard The EVP
Today, employees have a bigger ask than just “what’s in it for me?" Many people also want to know what the purpose is behind the work they are doing; they want an employment value proposition (EVP).
A strong people and culture organization can and should help the business define that big “why” and build an authentic EVP that attracts and retains talent. This is a critical component of people and culture work that will sustain the talent required to drive growth.
Play A Key Role In Onboarding
Critical for talent retention, onboarding helps reinforce cultural values from Day 1. The involvement of people and culture in onboarding not only strengthens its role as a strategic partner but deepens its understanding of the kinds of communications and training programs required to make new hires feel valued from the start.
Is the new name right for you?
When you have a team that is ready to engage the business directly, eager to gather workforce knowledge and able to own and advance the EVP, you have the start of a strong people and culture team. Take the name, embrace the business strategy and keep everything you do (administrative or not) true to your unique business culture.
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