HR.PAYROLL.BENEFITS.
EXPERT OPINION Q&A
How can HR
demonstrate the
strategic value
they provide
to the company

2| How can HR demonstrate the strategic value they provide to the company
HR plays a key role in enabling a multinational
organization to meet its strategic goals. It
helps the wider business understand what
its employees value, and what makes them
productive and engaged. With appropriate
systems in place, HR can truly unlock the
workforce’s maximum potential, but how can HR
professionals demonstrate the strategic value
they provides to the company?
BY LEON VERGNES
SVP/GM EMEA,
ADP ES INTERNATIONAL
How can HR demonstrate
the strategic value they
provide to the company

How can HR demonstrate the strategic value they provide to the company | 3
WHAT DO STAKEHOLDERS
EXPECT FROM HR?
T
oday’s HR professionals work in an
increasingly complex environment, which
requires them to master all aspects of
business and management. Stakeholders count
on HR to manage the internal talent pool, increase
productivity and build the employer brand, while
being cost efficient and supporting the business
with appropriate people strategies.
In addition to the wider goals, HR and payroll
professionals have to listen to the requirements of
senior executives, line managers and staff, while
creating a culture that is attractive to prospective
employees. With so many stakeholders to consider,
accommodating the various needs and demands
can be a difficult task.
HOW CAN HR BECOME
A STRATEGIC BUSINESS
PARTNER?
P
eople – or Human Capital – are an
organization’s most important asset, so
HR is at the heart of setting its strategic
direction. But in order to enhance this position,
HR professionals must align its approach with
the broader business model and drive the
organizationtowardhighperformance.Thinkingin
terms of Human Capital can really help HR shape
their thinking and become a strategic partner.
By carefully managing and investing in their
people, companies can enhance the value they
generate.
An organization’s HCM (Human Capital
Management) strategy touches every aspect of its
business and should reflect its wider objectives and
vision, and prepare the company for what the future
might bring. However, the management of human
capital requires thorough planning and proper
resources, and HR professionals across the globe
may therefore find it helpful to work with a specialist
HCM partner. This will enable HR to become a well-
oiledmachineandshowitstrueorganizationalvalue
as a strategic business partner.

How can HR demonstrate the strategic value they provide to the company | 5
WHAT ARE THE BENEFITS
OF HR STANDARDIZATION
AND AUTOMATION?
B
y automating and standardizing processes,
HR and payroll departments can make
processes consistent and fully aligned.
Standardization reduces the costs and time
required for daily tasks and gives comparable
information to decision makers across
different departments. Technology plays a key
part in facilitating this strategic move. With a
comprehensive Human Capital Management
system in place, organizations can make
processes more strategic for executives, more
empowering for managers, more engaging for
employees and more efficient for HR.
An HCM solution simplifies everything, from
the organization of employee records to talent
management to administrative processes, which
also makes information simpler to locate during
audits and reduces the compliance risk. It can
really transform the way a company is managing
Human Capital by enabling it to move away from
running individual processes across fragmented
systemstomanagingtheentireemployeelifecycle
through one source.
Standardization also ensures that everyone
speaks the same language – from HR to senior
executives. Human Capital Management systems
allow companies to obtain consistent indicators,
resulting in easy-to-consolidate reports and
greater accountability. With appropriate systems
in place, organizations can overcome the complex
challenges of running a global business and help
unlock the workforce’s maximum potential.
HOW CAN HR BETTER
FOCUS ON SERVING
THE STRATEGIC AGENDA?
T
he core tasks of HR and payroll
professionals cover an array of activities,
from hiring the right talent and ensuring
their professional development to acting as an
internal coach. With such a demanding agenda,
HR must consider how it should organize
Human Capital resource management.
Companies often find that transactional and
administrative tasks which don’t require HR’s
full attention are best served by an external
specialist. Streamlining the core human capital
and talent management tasks will free up time
and release HR from the administrative burden.
This will enable them to focus on strategic
imperatives, while ensuring compliance.

6| How can HR demonstrate the strategic value they provide to the company
HOW CAN HR ADAPT TO
THE GENERATIONAL SHIFT
IN THE WORKFORCE?
I
t is essential that HR professionals understand
howemployeevaluesdifferacrossgenerations,
in order to tailor the workplace tools to fit each
generation and situation. This will contribute to
a happy and engaged workforce who feels their
needs are being met. What’s more, the company
will be perceived as a highly attractive place to
work, and will be able to pick and choose talent
from a larger pool of prospective staff.
The new generation of employees also has
a different approach to how they access and
consume information, manage their career and
network with other people, which is an area
that HCM technology is increasingly starting to
reflect. By arming workforces with the right tools,
organizations can retain strong teams that are not
restricted by location. A global HCM strategy will
empower the employees and increase their ability
to work productively – anywhere, at any time.
WHAT HR TRENDS WILL
BECOME MORE PROMINENT
IN THE COMING YEAR?
T
he changing demographic structure of
the workforce will bring about change in
employee needs and desires. We will see
millennials, who value a solid work-life balance,
flexible working opportunities and ‘meaningful’
work, enter the workplace. An HCM strategy that
incorporates these aspects could be the deciding
factor in whether they decide to work for an
organization or not.
As offices become interconnected across the
globe, technology tools will become key to
collaboration between cross-cultural teams. The
importance of tools such as video conferencing
technology, online communication hubs and
file sharing will only become more important
in facilitating teamwork across counties and
time zones.
Meanwhile, the war for talent will continue to
escalate and will become more crucial than
ever to manage the talent pipeline. With future
business needs in mind, employers are trying to
recruit ‘ahead of the curve’ and engage individuals
with particular skills and competencies. Many
recruiters are turning to social media tools, which
enable them to target specific candidates that
would best fit a vacancy.

How can HR demonstrate the strategic value they provide to the company | 7
HOW CAN HR DEFINE AND
MEASURE THE VALUE THEY
ADD TO THE ORGANIZATION?
HOW DOES A HCM
STRATEGY INFLUENCE
EMPLOYEE ENGAGEMENT
AND PRODUCTIVITY?
E
stablishing a Human Capital strategy
that caters to the employee is
essential to employee engagement and
productivity. Inspiring leadership and efficient
line management are critical to motivating
employees, and building a two-way relationship
enables organizations to understand how
the workplace could be improved and what
makes them thrive. Presenting employees with
development opportunities is absolutely crucial
in retaining an engaged workforce. Employees
who feel that they are constantly developing and
moving along their chosen career path are more
satisfied in their roles. Furthermore, tracking the
development of employees and their contribution
to the organization can reveal important patterns
of productivity and engagement levels. This
information can then be used to target any issues
and ensure the employee is presented with goals
that keep them engaged in their role.
H
R already owns much of an enterprise’s
most valuable internal data – its Human
Capitalinformation,providingorganizations
with a wealth of insight into employees, workplace
trends and the overall company performance.
HR departments have long invested in software
and systems devoted entirely to capturing,
reporting and securely storing its ‘people data’.
Integrated Human Capital Management systems
can truly unleash the information and enable HR
to demonstrate the value it generates, as well as
patterns in people management. This enables
HR professionals to translate the value of their
global human capital management strategy in a
way that is understood by senior management and
directors in other departments.

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