The evolution of HR: From administration to innovation

Human Resources (HR) has evolved significantly since the term was coined, many decades ago. Originally focused on personnel management and administration, HR now encompasses a whole spectrum of operations.

Terminology: Always something new

While "Human Resources" is still a widely used term, some feel that it may promote derogatory connotations. Frankly, yes, the people are here objectified and referred to as resources. It is both wrong and true.

Therefore, some companies prefer alternative titles, so as to reflect "the evolving nature of the field", rather than a traditional, administrative one.

Constant coining of new terms aims to better convey a more employee-centric approach. The choice of title can vary based on an organization's specific focus and values, but some of the common alternative names include:

• People Operations - Doesn't really convey the same meaning, but OK. Somehow both too vague and too narrow.
• Human Capital Development - Well, I don't see that "capital" is much of an upgrade from "resources".
• Human Capital Management (HCM) - See above.
• Employee Experience (EX) - Interesting, but covers only employee's side and perspective.
• Talent Management - Frankly, one of the better ones. At least the people are complimented with being a "talent".
• Workforce Solutions - My first association would be some IT solutions which facilitate better workflow.
• Organizational Development (OD) - Yes, people use OD as a synonym for this "extended HR". Sometimes it may be the case, but the term "organizational development" should not be tossed around lightly. In most cases, OD consists of expertise and areas that are not always part of contemporary "HR".
• Employee Relations - Public relations? Employee relations? I feel like the term puts an imaginary barrier between employees and management. Although, it does have potential.
• Workplace Services - This is a term that can really encompasses everything, and tells absolutely nothing.
• People and Culture - I have to admit that I like this one. It is also vague, but at least it mentions people as "people", and culture as an important element of any organization.

However, what would be the best term is left for discussion and depends on the company culture itself — this are just my personal opinions.

The alternative titles aim to reflect a shift from traditional HR functions to a more strategic, employee-focused, and value-oriented operations. They also require a more holistic approach and extensive knowledge.

And, not to forget - choosing whether a company will look for a Chief of Human Resources or Chief of People and Culture conveys a different image to all involved. Therefore, the choice is an important part of company's branding strategy.

What does contemporary HR involve?

HR has evolved from bookkeeping to psychotherapy and event management. Administrative functions such as record-keeping and compliance remain important, of course, but HR has taken on a more people-centric role. Here are just some of the points that show how the shift has occurred:

1. From administration to strategy: HR has moved from primarily administrative tasks to strategic workforce planning, aligning HR practices with overall business goals.
2. Employee well-being: There is a growing focus on employee well-being, mental health, and work-life balance. HR professionals are now responsible for creating a supportive work environment that prioritizes emotional health of employees.
3. Employee engagement: HR is increasingly involved in strategies to enhance employee engagement, job satisfaction, and a positive workplace culture.
4. Performance management and feedback: HR has moved beyond traditional performance appraisals to focus on continuous performance management, providing regular feedback and coaching.
5. Employee relations and conflict resolution: HR professionals often serve as mediators in workplace conflicts, emphasizing a more people-centric approach to resolving issues.
6. Learning and development: HR is instrumental in promoting a culture of continuous learning, facilitating training programs, and supporting employees in acquiring new skills.
7. Technology integration: HR leverages technology not only for administrative efficiency but also for data analytics, talent acquisition, and better internal communication.

In summary, the role of HR has expanded to encompass a more comprehensive approach to managing people. This shift reflects a broader understanding of the impact HR practices can have on organizational success and employee satisfaction. If done right, it naturally leads to more productivity and efficiency.

Is this shift the move in the right direction? Yes, of course it is!

Remote work and HR

A very demanding aspect of contemporary HR is remote and hybrid work. E.g., HR must revise and create policies for unique challenges, including security and legal compliance in remote work.

Maintaining a sense of community and fostering employee engagement becomes more complex in remote or hybrid settings, so HR must find creative ways to build a strong company culture and keep employees feeling connected.

Effective communication is crucial in remote and hybrid models. HR professionals need to establish clear communication channels, use technology appropriately, and ensure that employees have the information they need for successful performance.

Seamless technology integration is vital for remote collaboration. HR must ensure the effective use of video conferencing tools, project management platforms, and other digital solutions, addressing technical issues and providing necessary training.

Evaluating employee performance in a virtual or hybrid environment requires new strategies. HR usually needs to establish fair but different performance metrics and implement remote performance reviews. Recruiting and onboarding new employees also requires adjustments.

And, addressing isolation and burnout is crucial, requiring proactive well-being support.

HR professionals are essential in tackling these challenges as remote work becomes more and more common. They need to be smart, creative and flexible to adapt to the changing market conditions.

Closing remarks

People are the most important "resource" or "capital" of any company, even in the present world of automatization, robotics, and AI.

Like it or not, STEM is married to soft sciences, until death do them part.

The competition for attracting and retaining quality employees is getting stronger, remote work has changed the rules, and although price and profit are always the baseline — I'm glad there are companies that truly value their employees and their well-being. And it doesn't hurt their balance sheets (on the contrary, far from it).

HR (or People & Culture as I will call it from now on) is a topic that I am passionate about, so there will most definitely be more articles going deeper into some specific issues.