HR – A Function lost in the din of Business

Recently, I came across an article about a company hiring a CHRO in India for several crores and I thought to myself that here is a company that values its employees and as an extension gives due importance to the Human Resource Function.

However, how many companies actually do so? While HR takes pride in partnering business, does business also see HR as its partner? The answer unfortunately may not be what HR would like to hear.

A business is as good or bad as its workforce. Yet, the very function that is focussed on that workforce often gets lost in the din of revenue, profit, loss, topline, bottomline, productivity etc. Investment in employees in terms of Learning and Development, Engagement activities, Service Delivery is many a times seen as a cost leading to budget cuts. Discussions take place in power corridors whether HR deserves an equal role in business decisions? The depressing reality is that several companies including those which are professional many a times push HR to the sidelines and worse still perceive it to be an administration function to manage the office and the surroundings.

HR took birth as an Industrial Relations functions primarily out of necessity of business when it needed a dedicated function to deal with labour problems, wage matters, statutory issues etc. Later it matured to a people well-being function with focus on overall manpower development, engagement, motivation, career progression, separation etc. covering the entire lifecycle of the workforce. Thus, ignoring a function born out of necessity would tantamount to moving backwards rather than being progressive.

While people may have different views and my view may appear biased, I strongly believe that HR is the foundation that holds the structure together. HR onboards the first employee in the company and hand holds all those who join along the way upto their exit and even beyond. It not only shapes the Organisation by designing an optimal hierarchical and reporting structure, it also shapes the Company’s leadership to ensure a succession pipeline. Policies that shape each employee’s journey and processes that will make the journey enjoyable and memorable is another continuous mission of HR.

As HR touches upon a zillion facets of the Organisation, the irony is that deliverables which are intangible and difficult to measure are often doubted upon. While sales and marketing can point to revenue metrics and operations can showcase efficiency gains, HR outcomes such as employee engagement, culture, or leadership development are harder to measure; but these aspects are equally, if not more, important for organisation’s success.

As competition intensifies, HR’s ability to demonstrate its value through data and measurable outcomes becomes important. Developing relevant performance metrics tied to business objectives could help HR showcase its strategic impact. However, it’s essential to recognize that not all HR roles can or should be reduced to numbers. Many of its contributions, such as shaping culture or building trust, remain inherently qualitative yet indispensable for organizational growth.

While the business may not give its due to HR, business should self-introspect whether it can survive without HR? If the answer is no then HR deserves an equal voice in every aspect of business.