back to home

Market Bytes - November 13, 2024

Why HR Needs to Be at the Forefront of Organizational Change

Over the last five years, I’ve observed firsthand that businesses often have the best ideas, secure funding, and strong leadership, yet still fail. One of the biggest stumbling blocks is people matters—a failure to attract and retain the best talent and the dogmatic founder mindset that “candidates should want to work for us.” The reality is that candidates are unlikely to share the same unwavering belief in a product or idea. It takes more than that to keep them, especially when faced with the competing interests of their own career and personal development, wellbeing, and personal matters. It’s the HR department’s job to take stock of all this, and it’s very easy to underrate. In fact, it’s the absolute do-or-die facet of any organization. Overlooking this is fatal, and there are numerous case studies to support this.

The Stubborn Perception of HR

Why does HR continue to face skepticism? It’s often the first department blamed by disgruntled employees. Sure, there are times when HR falls short, both operationally and philosophically, which can damage its reputation. However, if we keep disparaging HR and denying its value, we’ll never see improvement.

My Journey with HR

In my role leading Kinetik Hiring, a leading RPO services company across SEA over the last four years, I have been brought closer to the world and mindset of HR. I feel both privileged and excited about the capability and potential in this community. HR is one sector that enables people to transfer from other disciplines—I have seen individuals from finance, operations, and even engineering successfully break into the sector. The level of intellectual acumen and the depth of organizational experience required to handle complex business challenges, both technical and people-oriented, is very much in evidence.

A Self-Fulfilling Prophecy

This negative perception leads to setting low expectations for HR, which in turn hampers its development. It’s a self-fulfilling prophecy: the belief that HR is subpar results in it being treated as such, preventing progress and innovation.

The Need for a Paradigm Shift

For companies to experience the true value of HR, there needs to be a collective buy-in. Organizations must recognize and invest in the potential of HR to drive transformational change. There are countless case studies demonstrating how excellent HR practices lead to exceptional results.

Investing in Excellence

Companies should embrace the possibility of HR excellence and invest in best practices. The evolving role of HR in Southeast Asia (SEA) is a testament to this. The bar is being raised, with HR increasingly seen as a value-generating function through structural, data-driven models and the application of best practices in organizational development.

The Benefits of HR Transformation

The benefits of this transformation are manifold. A well-supported HR function can lead to significant improvements in employee satisfaction, productivity, and overall organizational success. By placing HR at the center of transformational change, companies can unlock new levels of performance and innovation.

Embracing the Future

The right thing for the business community as a whole is to lean into HR and move away from legacy perceptions. A new era is upon us, marked by the transformative impact of HR. The evidence is there and cannot be denied. Businesses need an objective layer of governance to drive people excellence, with goals of retention, sustainability, and raising the skill bar generally. This shift will improve employer branding and general wellbeing in the wake of the war on talent and increased consumer awareness among candidates about what constitutes an employer of choice.

Equally important is paving the way for future talent considering their career options. HR has definitely climbed up the rankings, and we need the brightest and best to want to enter the sector and make an impact.