HR rebrands as focus shifts from processes to people

HR departments have started to rebrand as the focus shifts from processes to people following the trend of the past few years where the way people think about work and how employers think about employees shifted dramatically.

The world emerged from a public healthcare and economic crisis with a renewed appreciation for the central role of people in the business, and human resources (HR) departments realised top talent is more mobile than ever.

“In a competitive world, the organisations that are best at attracting, developing and retaining the best people have a competitive edge but despite this reality, there are widespread perceptions that human resources is all about pushing paper and filing reports,” says Sonia Tshabalala, regional people (not HR) director, at Sage AMEA.

She says forward-thinking HR departments understand how vital it is to challenge these perceptions. Sage’s latest global research, The changing face of HR in 2024, found that 91% of HR leaders say the profession has changed dramatically over the last five years, while only 39% of think employees know what HR does.

Therefore, more HR professionals are questioning whether the term ‘human resources’ is the right description for what they do. In Sage’s research, 73% of human resources leaders and 85% of the c-suite agreed that the term is outdated.

Tshabalala says the study signals that now could be a seminal moment for the HR industry and it is time for HR’s big rebrand.

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A name change?

She says a cynic might ask: What’s in a name. But the reality is that talking about humans as resources is the dehumanising language of the industrial age. “It creates the perception that HR is all about compliance, administration of hirings and firings and cost optimisation. However, today HR is a strategic business function that plays a vital role in building a more competitive business.”

Automated technologies are increasingly picking up compliance and admin work, empowering human resources to focus less on processes and more on people. Tshabalala says this is why we see many companies rebrand HR as the ‘People’ or ‘Talent’ function. “It is all about finding the best people, ensuring they have a great workplace experience and helping them unlock their full potential.”

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How to get the best from people

According to Tshabalala, progressive businesses know they will attract and keep the best people, as well as get the best out of them by offering a healthy company culture and an engaging workplace experience.

“HR has a vital role to play in nurturing this environment by partnering with the business to engineer rewards, incentives, career paths and training opportunities that help people be their best. In addition, HR is the steward of a potential goldmine of business data.”

This data provides insights into absenteeism, overtime, employee attrition and retention, skills available and employee well-being, engagement and satisfaction that can help the business make smart decisions as it grows and, therefore, HR deserves a seat at the table where important decisions are made.

“HR leaders are often the unsung heroes of an organisation but have demonstrated their influence, visibility, agility and impact over the last few years more than ever. Rebranding the function, in this context, is not a simple name change. It is a way to highlight why HR plays a vital role in helping people and businesses reach their growth and development targets.”