How to Solve the Mystery of the Two HRs Part 4

If you have been following along, you now know that my contention is that there are two HRs. The first HR is focused on the administrative functions that support operational tasks such as staffing, benefits, training, recordkeeping, and legal compliance. The second HR, is focused on making the business better, faster, and cheaper. However, to complicate matters there is actually a third HR, one that is hidden and rarely discussed.

Arguably, the third HR is comprised of two elements. The first element is the contingent work force that supports the organization such as temporary staff, independent contractors, consultants, and the people working on your firm’s site that work for someone else. This last group can include the UPS delivery driver as well as the gaggle of IT technicians actively implementing a new software application for the organization.

The second element consists of the vendors who supply HR related services to the company such as; background checks, legalrepresentation, compensation programs, benefits, training, payroll, etc. To keep from getting too complicated, this assessment ignores staff employed by these and other service providers, since only rarely do they come into contact with the firm, “on location” as it were.

Therefore, you now perceive that in addition to having responsibility for the organization’s employees, HR has the ability to influence a significant representation of contingent workers. Furthermore, not only is HR expected to deliver services and solutions utilizing the staff who report to HR, but the HR function is also accountable for the delivery of HR services (benefits for example) that are performed by people who are not employees.

This view suggests that HR’s domain can be viewed as including:

      1.      HR administrative work performed by the HR staff
      2.      HR administrative work performed by the HR vendors
      3.      HR’s responsibility for a sub set of the contingent workforce
      4.      HR’s added value contribution to the organization from a better faster, cheaper perspective
      5.      HR service providers who perform work that is expected to contribute added value to the
              organization

I hope this assessment has solved the mystery of the two HRs for you and provides a fresh and practical framework from which to view the HR function. With this new framework we can now structure the HR function so that both the HR administrative needs and HR’s opportunities for contributions to the firm, can be maximized.

Please note that this structure may have  more value for a larger organization. However, even if the firm has only one HR Manager, this structure can still apply and may lead to significant opportunities for that HR Manager to demonstrate cotributions. As we move forward in this blog, we will uncover a series of opportunities for HR professional at any size company, to make valuable and appreciated business contributions.

From Michael Salisbury with the Human Resource Alliance (HRA) at www.hralliance.biz