[Excerpt] Human Resources has only just begun to move past its transactional roots into a truly strategic and value-adding role. Popular television characters like Toby from NBC’s The Office have all but glamorized HR, leaving individuals with a somewhat negative perception of the Human Resources function. When you add to this the personal interactions that individuals have had in the past with small and strictly transactional HR departments, it is understandable that these negative perceptions exist. For critics and skeptics of HR, these observations constitute reality. However, this doesn’t have to be the case. This essay will explore how focusing on a more results-driven analytical approach, adapting to an evolving workforce, and increasing visibility within the organization will help HR better convey its value and continue to evolve at all levels of the company

Lee, Christopher G.

English

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Cornell University ILR School 
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Cornell HR Review 
4-11-2011 
Forward-Thinking: HR's Path To Improving Its Worth 
Christopher G. Lee 
Cornell University 
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Forward-Thinking: HR's Path To Improving Its Worth 
Abstract 
[Excerpt] Human Resources has only just begun to move past its transactional roots into a truly strategic 
and value-adding role. Popular television characters like Toby from NBC’s The Office have all but 
glamorized HR, leaving individuals with a somewhat negative perception of the Human Resources 
function. When you add to this the personal interactions that individuals have had in the past with small 
and strictly transactional HR departments, it is understandable that these negative perceptions exist. For 
critics and skeptics of HR, these observations constitute reality. However, this doesn’t have to be the 
case. This essay will explore how focusing on a more results-driven analytical approach, adapting to an 
evolving workforce, and increasing visibility within the organization will help HR better convey its value 
and continue to evolve at all levels of the company. 
Keywords 
human resources, future 
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cornell HR review 
 
 
FORWARD-THINKING: HR’S PATH TO IMPROVING ITS WORTH 
 
Christopher G. Lee 
 
Human Resources has only just begun to move past its transactional roots into a truly 
strategic and value-adding role. Popular television characters like Toby from NBC’s The 
Office have all but glamorized HR, leaving individuals with a somewhat negative 
perception of the Human Resources function. When you add to this the personal 
interactions that individuals have had in the past with small and strictly transactional HR 
departments, it is understandable that these negative perceptions exist. For critics and 
skeptics of HR, these observations constitute reality. However, this doesn’t have to be the 
case. This essay will explore how focusing on a more results-driven analytical approach, 
adapting to an evolving workforce, and increasing visibility within the organization will 
help HR better convey its value and continue to evolve at all levels of the company. 
 
The Power of Metrics and Analytics 
 
Human capital metrics have evolved over time from that of transactional activity report 
monitoring to the present, as some companies are starting to tie HR metrics to business 
initiatives. However, many are still stuck in the “catch-up” game and are not able to 
devote the time and resources into this process. This has left them leaning on the crutch 
of external benchmarking. While benchmarking is a common practice, there is a danger 
with relying on it too heavily. As markets have fragmented with globalization, 
benchmarking in many instances is no longer as effective or relevant, as there are many 
unknowns influencing the benchmark. As some companies also may misuse the 
benchmarking information, it can be quite damaging to productivity and strategy. 
 
HR can bring a new dimension to the strategic level of operation by focusing less on 
external benchmarks and more on utilizing internal talent metrics. However, keep in mind 
that metrics alone will only give you a rearview mirror’s glimpse as to what has 
happened. In his book entitled The New HR Analytics, Jac Fitz-Enz outlines three levels 
of measurement that need to be integrated when using metrics to predict future outcomes: 
Strategic, HR Operations, and Leading Indicators.[1] Each level encompasses a variety of 
metrics that are all interrelated within levels and with each other. With a focus on 
predictive analytics, HR departments will be able to better understand the connections 
between these variables and track workforce data in a variety of areas including 
engagement, absenteeism/turnover, revenue per FTE, and other productivity statistics that 
can be effectively tied back to strategic planning initiatives. Properly measuring, tracking 
and acting on this data will not only allow HR to be more proactive in identifying 
opportunities, but it will allow for adaptability when predicting future occurrences.  
 
© 2011 Cornell HR Review  
 
 2 
Essentially, it will mitigate much of the risk that comes with strategizing the unknown 
and using unsound logic. No longer will HR make decisions off of past experiences and 
“gut feelings”, but rather, they will make evidenced-based decisions. These decisions will 
utilize both hard data and the experience of proper analysts that have been either 
employed or farmed out by the organization and can help in drawing conclusions from 
the data. The value added by this will be noticed by many within the organization 
because of its positive implications on cost savings, revenue growth, overall process 
effectiveness, and employee morale. 
 
Adapting to an Evolving Workforce 
 
Over the next ten years the demographic makeup and flow of the workforce is expected 
to change. In the near future, the workforce will be the most diverse it has ever been in 
terms of gender, ethnicity, and generation. While each of these diversity areas are 
important, generational understanding could be the most challenging as each generation 
brings its own knowledge, skills, behaviors and values to an organization.  
 
As the department with the most influential contact with employees, HR will be faced 
with the challenge of uniting this diverse workforce. One method to meet this challenge 
is through the use of social media. Research shows several similarities across generations 
and leads many to believe that the new workplace will be a more personalized and social 
environment that calls for the increased use of social media at work.
 
While it may come 
as a surprise, this research also shows that older generations are using social media 
almost as much as younger generations.[2] It is without a doubt that social media tools 
like Facebook, LinkedIn, and Twitter have revolutionized how we connect with each 
other and are credited with much of this change. While social connection is quite 
informal in the public arena, HR should expect to use similar social media programs in 
the workplace.  
 
Social media tools implemented in the workplace will drive success on several fronts. 
The first is that they will help foster collaboration. The tools can be designed and used in 
a way that offers direct messaging or video-conferencing in a variety of established 
forums that help drive innovation. Second, they will also allow for relationship building 
amongst employees and their cohorts. Social media tools will provide an outlet for 
employees to learn more about each other personally as well as offer an area for them to 
publicize events, news about the company and its departments, and other information 
deemed appropriate and within company guidelines. Third, social media can help HR 
better engage its employees. It can provide a personalized platform for employees to go 
through e-learning tutorials, locate company intranet files with ease, or even access a 
job’s specific FAQ area all in one convenient location. Lastly, as employees use these 
tools, HR could use analytics to track individual performance and how it is linked to 
social media.  
 
In going along with the idea of a more personalized work environment, HR could also 
employ segmentation strategies for their employees that are usually targeted at their 
consumers.[3] Similar to the way a company like Dell can customize a laptop to a 
© 2011 Cornell HR Review  
 
 3 
customer’s specifications, interests, and budget, HR could adjust things like 
compensation and benefits packages, on-boarding processes, and development 
opportunities to align with the values, behaviors, and expectations that each generation 
(employee segment) has of their employer. Those employers that aren’t cognizant of this 
diverse workforce will not perform well because they will lack the necessary processes 
and strategies in place to communicate with, retain, develop, and engage this future 
talent. Those that can understand and adapt to both generational similarities and 
differences will have a distinct competitive advantage on their peers and will be poised 
for battle in the war for talent. 
 
Visibility and Engagement 
 
While the previous two considerations of analytics and adaptation are important, they 
will seldom be noticed if the organization isn’t aware of HR’s progressive work and isn’t 
utilizing it for strategic purposes. As HR seeks to increase its worth and brand equity 
within an organization, it will need to ensure the alignment of its initiatives with overall 
business strategy. Therefore, it is important for HR to be involved in the strategy 
development with input that is truly valued at all levels. One recent study showed that, 
“only 22 percent of respondents claim that HR is a full partner in developing and 
implementing business strategy, and only 47 percent claim that HR does more than 
simply help implement the business strategy once it has been developed.”[4] 
 
So why isn’t HR providing counsel in important business strategy decisions? In many 
cases this occurs in an organizational culture created by an HR department that isn’t 
visible enough. In these situations, HR isn’t actively engaging with and communicating 
its initiatives, results, and successes with other functions and levels of the organization. 
This may be improved through the use of annual reports to leadership and through greater 
interaction with other departments. HR is often siloed in an organization, which prevents 
it from providing and receiving valuable insight from other departments. To be more 
effective, HR should be working closely with finance and operations, while better 
understanding talent pipelines and employer branding from areas like supply-chain 
management and marketing, respectively.  
 
In addition, HR departments that are leveraging the workforce and making sound 
decisions based on analytics should be informing leadership of this progressive work. In 
addition to engagement, the use of annual reports should increase credibility, trust, and 
voice in strategy decisions of HR. Information that is often pertinent to leadership and 
can drive strategic business decisions are qualitative and quantitative measures like 
Return on Investment (ROI) for various HR initiatives, workforce evolution and 
planning, learning and development, and key performance indicators. By including this 
information in a formal report, it will help leaders understand the overall level of talent 
and infrastructure that is in place to ensure that strategic initiatives are well aligned with 
the general vision of the organization. 
  
© 2011 Cornell HR Review  
 
 4 
The Future Value of HR 
 
Through the implementation of the aforementioned social media tools, analytics and 
annual reports, HR can earn and receive the credit it deserves. Human Resources 
professionals will be able to combat comments like “HR is for people who aren’t good 
with numbers” with showing their use of analytics; or “HR just hires and fires” with 
forethought on the future workforce and strategic initiatives like internal social media; or 
even “They plan parties and don’t contribute any value to the business” with the use of 
annual reports that quantifiably show HR’s value and will allow HR to take on more of a 
role in business strategy development.[5] The path for HR improving its brand equity and 
credibility within an organization is undoubtedly tough. As HR professionals continue to 
become more strategic and innovative in their practices, they will yield favorable results 
that increase HR’s functional value and worth in ways that will be difficult to be 
overlooked. ℵ 
 
Christopher G. Lee is a student at Cornell University, pursuing an MILR at the School of 
Industrial & Labor Relations. He is a member of the Cornell HR Review, currently 
serving as its Director of Business Development. This essay received the third place prize 
in the Cornell HR Review 2011 Essay Competition. 
 
______________________________ 
 
[1] Fitz-Enz, Jac. The New HR Analytics: Predicting the Economic Value of Your  
   Company's Human Capital Investments. (New York: AMACOM, 2010), 185-191.  
 
[2] Meister, Jeanne C., and Karie Willyerd. The 2020 Workplace: How Innovative  
   Companies Attract, Develop, and Keep Tomorrow's Employees Today. (New York:  
   HarperCollins, 2010), 55-61. 
 
[3] Ibid., 66 
 
[4] Fitz-Enz, Jac. The New HR Analytics: Predicting the Economic Value of Your  
   Company's Human Capital Investments. (New York: AMACOM, 2010), 29.  
 
[5] Cornell HR Review, “2011 Essay Competition,” 2011, 1. http://cornellhrreview.org/essay-competition/ 
 


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