How does your HR create value?

By Damon Klotz, June 17, 2010

I have been doing quite a bit of research and reading about HR as an overall function and the role it plays within organisations.

In my search I have found this great article by William C. Taylor on the Harvard Business Review blog on Why We (Shouldn’t) Hate HR which is his follow up to the somewhat controversial article Why We Hate HR.

I think this represents an important shift in thinking for the HR profession and an important milestone for HR professionals. I think we would all agree that our jobs become easier and far more meaningful when the organisation cares about the people aspect as well.

But I want to explore further than this. I want to talk about how you as an HR professional creates value. Dave Ulrich the well-known author and professor from the University of Michigan says that HR folks must create value for four groups:

1. They need to foster competence and commitment among employees
2. They need to develop the capabilities that allow managers to execute on strategy
3. They need to help build relationships with customers
4. They need to create confidence among investors in the future value of the firm

So now I want to hear how you and your organisations HR folks creates value and does your organisations position on its people directly and indirectly affect your performance as a HR professional?