The Significance and Challenges of Investing in Human Resources

Human Resources also commonly referred to as HR, is known as the engine of an organisation as it helps provide structure and keeps the organisation going, through the inputs of a capable workforce, without which no organisation can survive.

Business leaders with long term organizational vision should rethink their valuation and investment decisions in Human Resources. The significance of a professionally driven HR department that manages the employee structure, welfare, training and development, discipline and is up to date with labour laws and changes in the global workplace, cannot be overemphasized. 

In today’s rapidly changing and competitive marketplace, HR should lead organizational transformation and adaptability to modern environments by creating a conducive professional climate where individual talents can blossom and contribute towards achieving organizational goals.

In recent times, especially with the dotcom boom of the mid nighties and most recently the growth of tech startups in Silicon Valley, Human Resources is fast becoming the face of corporate businesses, sought after to stir organisations into the new and contemporary work environment where ideation is key to the success of businesses.

Some of the key innovations of this period are the flat and flatter organizational structure which Human Resources is keying into to encourage closer relationships and break communication barriers between the top, middle and lower offices. This gives talents the flexibility to focus their skills, knowledge and expertise in individual manners―as against set rules―towards yielding the expected results.

The virtual and remote work of the pandemic era also posed a challenge―and continues to challenge the concept of work as was known―creating a new form of talent and productivity management process that only HR can address.

In the absence of a professionally run and managed Human Resources, would be the loss of opportunity to recruit quality talent or retain them, despite employment benefits or high remuneration.

Human Resources identify individual talent either during an interview session or after an initial period of assessment within the organisation. This positions HR to effectively harness individual qualities for personal, departmental and organizational growth. Having a capable workforce, with various skills, knowledge and experience combined, gives the organisation an edge in the marketplace.

As organizational processes continue to change, HR faces several challenges with the potentials to threaten the success of an organisation, as its roles are constantly impacted by several factors.

One major challenge Human Resources try to limit is the difficulty of attracting a capable workforce in a competitive environment where other organisations are bidding for the same talents.

The new work mode of remote delivery has also made the challenge of talent attraction and retention a lot more difficult, as positions have become more fluid and staff are no longer obligated to sit at a spot for nine hours to deliver on a task they can easily deliver from any location they are.

The challenges of Human Resources are as multifaceted and ever-evolving, just as the significance. To mitigate these challenges and continually provide a culture of growth and belonging, an organisation would have to view its workforce (1) as an asset under the management of HR, important for its ability to produce positive economic value (2) as investors, under the management of HR, to invest their skills, knowledge and experience for the greater good of the business. This belief, permeating from the Human Resource to other departments of an organisation, would instantly create an ownership attitude and help towards loyalty and a low attrition rate. It would also encourage the development of personal leadership, which goes a long way in creating a competitive organisation.

Organisations crave success. Understanding the necessary resources and their functionality is vital to achieving growth and success. This culture of success and growth naturally permeates through a culture sustained by a good Human Resources policy which in the long run boosts organizational strength and retains the best of talents.

Continuous investment in Human Resources is critical for the long-time success of a company. These investments can be in a myriad of ways that include, staff welfare, equipment, travel, company stock. This will not only help retain the core of the talent, but it will also help attract the best of talents in its chosen industry.

Investing in HR will also ensure staff gets trained and developed in areas of their strengths as constant engagement and integration gives HR a better understanding of challenges being faced by the workforce or individually as the lifespan of acquired skills in today’s constantly changing marketplace, reduces and becomes outdated.

Investing in HR increases its proficiency to modify trainings to meet organisations need.

Investing in HR can lead to measured transformation in organizational processes as the marketplace continually evolves. In the era of technology, a process-driven and productivity-boosting technology must be engaged to help recognize and provide quick solutions to new challenges in the workplace. 

Despite the significance of investing in Human Resources towards building an organisation’s competitiveness in the marketplace, talents retention remains a major challenge that discourages investing in Human Resources. The workforce is an intangible asset with unpredictable behaviour. There are no guarantee talents will remain after huge investments in them by an organisation. Losing talents can also cause disaffection, loss of morale and mass exodus which is detrimental to the organisation.

Organisations have been known to go to huge lengths of tying down their employees, and some approaches to checkmate staff exodus usually have a reverse effect as productivity drops significantly and an atmosphere of camaraderie deteriorates to that of an overseer and a slave relationship.

The Human Resources of an organisation will continue to be the soul of the entity, one where there is an opportunity to earn a decent wage, grow in one’s individual plans intertwined with the corporate goals of the organisation.

Organisations must decide if investing in Human Resources will positively impact the future of work.   

Adewole Oriade

Adewole Oriade

Chief Executive Officer

Dexnova Consulting Limited

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