How to supercharge your HR team and generate commercial value
Fractional People Director Ben Birchall explains how taking a strategic approach to HR can elevate your existing HR function beyond purely operational to drive business growth.
Having spent many years working in ambitious mid-tier businesses I have seen every type of HR set up, from HR being an add-on to someone’s remit, through to a fully embedded, strategically aligned people function.
Without fail, the most successful organisations were those that were proactively engaging their HR function to develop and deliver a people strategy which was aligned to the business strategy.
In my experience leaders of mid-tier businesses understand that their people are their greatest asset (or biggest headache!), but often they do not have a strategy in place which will get the most out of them. People strategy and HR practices can be complicated, especially as we are all adapting to the post-pandemic increase in remote working and the constantly changing regulations.
Taking a strategic approach
Most HR departments or individuals with responsibility for HR have great common sense and operational capabilities, but they rarely provide the strategic and commercial focus your organisation needs. They may have a remarkable ability to roll their sleeves up and deal with the day-to-day functions of processing the administrative and operational side of managing people and workforces, but are they fully equipped to implement a proactive people strategy which drives the achievement of business goals?
Many organisations reach a tipping point where they need a more strategic people plan to deliver the commercial outcomes that they aspire to in their business plan. In a nutshell they need an experienced People Director who can look ahead to where the business is trying to get and ensure that people throughout the organisation are aligned, capable and motivated to meet those targets.
As a fractional People Director I have come across many examples of how a purely operational HR approach is holding organisations back. Do you recognise any of these in your organisation?
HR is not represented at the top table
Whether it be around the board table or in the senior leadership team, if there is no people specialist around the table, then you are likely to be missing a trick. Managing the day-to-day operations of your HR team is crucial, but it’s not just about keeping the wheels turning. An experienced People Director brings a strategic perspective. Working with the board as a member of the senior leadership team, they can help to convert strategy to action through your people in line with the values and culture of the business, which in turn ensures that every member of the team is aligned behind a well-defined vision to drive the business forward.
You may have an HR team to maintain effective human resources policies, manage hiring policies and employment contracts, and ensure compliance with HR laws. Bringing in a senior level People Director can transform your ability to design, recruit, motivate, develop and retain a workforce who not only deliver what you need, but do so in an aligned, proactive and efficient manner.
The HR team are not supported and developed to think and operate strategically
Although investing in a full-time People Director often is not feasible for an ambitious mid-tier business, providing HR mentoring and guidance to the existing HR lead can be a game-changer.
The mentorship of an experienced People Director can help to upskill your in-house people team, providing them with the knowledge and confidence to handle an increasingly difficult workload. You can read this case study that explains how two of my colleagues at People Puzzles, Sarah Humphreys and Robin Stirzaker-Phillips, mentored and developed the existing in-house people function at The Fine Bedding Company, to take on additional scope and responsibility.
HR don’t support leadership development effectively
One of the key roles of a People Director is to identify and nurture potential leaders within your organisation, including the top team. Many organisations have to look externally in order to implement an effective leadership development programme. However, with a People Director in place, they can design and deliver leadership development opportunities, create succession plans, and foster a culture of continuous learning and growth. These strategic initiatives ensure that your business is not only prepared for today but is also building a strong foundation for tomorrow. You can read how my colleague, Helen Witt helped media agency December 19 handle the delicate task of identifying and developing a new Managing Director from amongst their exiting team.
There is no established HR function
Sometimes business grow faster than their support infrastructure, and where this is the case, it is not unusual to find that there is one person overburdened with HR responsibilities whilst also doing other work. In these situations, People Directors can be invaluable in building the right foundations for your HR team. I found this at 200 Degrees Coffee, where I helped to build the foundations of a solid people function capable of taking the business forward. I was able to oversee the establishment of their people team and mentor their newly appointed Head of People & Culture.
Many ambitious mid-tier organisations don’t want, don’t need or can’t afford a full time People Director, but this doesn’t mean that delivering a people strategy is off the table. At People Puzzles we specialise in providing fractional People Directors, which enables you to access the expertise of an HR Director as and when you need, typically one to two days a week. Our fractional People Directors, who have extensive experience from best-practice companies like Tesco, John Lewis, and BT, provide a cost-effective solution that brings senior-level expertise into your business without the long-term commitment of a full-time hire.
While our People Directors come from large business backgrounds, they are passionate about having an impact on entrepreneurial, growing businesses. By integrating their expertise into your company, they help drive positive change, ensuring your HR strategies are robust and aligned with your business goals.
The added value of a senior level People Director
Investing in the expertise of a fractional People Director, can bring tremendous benefits to your HR team and overall business. They provide strategic insight, operational excellence, and mentorship that empower your existing staff to excel. By doing so, they help your business navigate the complexities of today’s HR landscape, ensuring you have the right people doing the right things to help your business flourish.
If you’re ready to harness the power of experienced HR leadership to drive your business forward, consider reaching out. Together, we can make a positive impact on your business.