While some experts would say that the HR field has improved its ability to strategically impact organizations (Gubman, 2004), others would say that the profession is failing to help business leaders see the connection between human capital strategies and bottom line impact. While business leaders point to the high priority they place and direct relationship they see between employee skills, product quality, client relationships, and customer-service, they rank “Internal HR Strategy” dead last in a list of 20 business drivers. (Welbourne, 2009) Why? In a down-turned economy, is HR so inward facing that we’re missing important opportunities to help the business with outward facing imperatives such as building reputation (ranked #1 in this survey) and building customer relationships (#3)? Or are we missing the mark internally, failing to communicate the ways in which HRD strategies help improve the quality of the business’ offering (#2); develop the level of customer service (#4); and build the skills and knowledge of our employees (#5)?
The answer is two-fold. 1) HR Strategy is lagging in its ability to connect activities to business drivers, and 2) HR professionals are reluctant to explore opportunities to impact emerging business issues in a strategic way. In just one example, a SHRM study showed that only 16% of respondents proactively embrace HR’s strategic role in Corporate Responsibility (Benedict, 2006). As an emerging area of importance to customers, prospective hires, and even certain shareholder groups, each company should have a Corporate Responsibility strategy, yet the SHRM study revealed that HR respondents are content to see it conceptualized and managed through other departments, even though HR has potential to play a key role in developing a company culture of responsibility. This is a missed opportunity, since many links can be established between a company’s talent development approach and its strategy for corporate responsibility.