Annelise Pretorius https://www.aihr.com/blog/author/annelisepretorius/ Online HR Training Courses For Your HR Future Fri, 15 Nov 2024 12:14:31 +0000 en-US hourly 1 https://wordpress.org/?v=6.7.2 Decision-Making in HR: How To Take the Right Approach in HR Decisions  https://www.aihr.com/blog/decision-making-in-hr/ Fri, 15 Nov 2024 12:14:28 +0000 https://www.aihr.com/?p=248132 In the HR profession, you are constantly making decisions—whether it’s scheduling an interview, choosing a technology provider, or setting strategic priorities. Decision-making is a key part of your daily work. However, we often spend so much time figuring out what needs to be done and meeting expectations that we don’t always have the time to…

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In the HR profession, you are constantly making decisions—whether it’s scheduling an interview, choosing a technology provider, or setting strategic priorities. Decision-making is a key part of your daily work. However, we often spend so much time figuring out what needs to be done and meeting expectations that we don’t always have the time to think about how to make better decisions.

Organizations are now, more than ever, expecting HR to take more decisive action. Today, HR plays a key role in helping businesses use their human capital effectively, from routine processes like recruitment to complex decisions shaping organizational culture. Despite this, many HR professionals still feel unequipped to make these decisions confidently.

Contents
The importance of effective decision-making in HR
Complex decisions HR professionals face
The complete approach to HR decision-making: Think, empathize, act
The RED model explained
HR strategies for effective decision-making
FAQ


The importance of effective decision-making in HR

HR’s role has changed dramatically in recent years. Businesses are facing complex challenges like digital transformation and growing skills shortages. As a result, HR needs to take on a more active role in driving business outcomes. 

HR is now central to driving innovation, digital transformation, and business strategy. They shape organizational culture, anticipate workforce needs, and guide companies through growth and change. During significant transitions like mergers, acquisitions, or technological advancements, HR leads the way. Additionally, managing the employee experience—from onboarding to exit—has become a key responsibility.

This shift has also led to a need for HR practitioners to make intricate and high-stakes decisions. These complex decisions also demand a broader range of expertise than HR has needed before.

Complex decisions HR professionals face

HR is responsible for various decisions that majorly impact the business. This includes overseeing complex processes such as defining organizational values and culture and handling day-to-day tasks like recruiting, developing, and retaining employees.

All of these responsibilities play a crucial role in the company’s growth and success. For example, deciding to establish a culture that values continuous learning can lead to higher employee engagement and retention.

As HR’s role becomes more complex, the decisions you face are increasingly complicated. Balancing priorities, managing diverse perspectives, and integrating data-driven insights are now essential, all while ensuring compliance and maintaining organizational culture.

For instance, implementing data analytics in recruitment can help identify the best candidates, but it requires careful consideration to avoid biases and ensure fairness. 

Balancing conflicting priorities

HR professionals are involved in decisions that affect everything from working practices to relationships with employees, customers, and communities. A key challenge you may face is balancing conflicting priorities, such as aligning leadership goals with employee preferences and addressing immediate needs while planning for long-term success.

This can include managing the tension between leadership’s goals and employees’ preferences or addressing short-term needs while planning for long-term success.

For example, several companies, like Amazon and Goldman Sachs, have implemented top-down return-to-work mandates based on leadership’s belief that in-person collaboration is vital for productivity. However, many employees prefer flexible work arrangements. This places HR in the challenging position of reconciling these differing perspectives. 

Another example involves the challenge of balancing immediate hiring needs with strategic workforce planning. Addressing short-term staffing requirements while preparing future leaders through succession planning can cause conflict. It requires careful resource allocation to manage both without stretching budgets or talent pools too thin.

Quick fixes may resolve immediate issues but might not align with long-term goals, potentially hindering future growth. This balancing act needs strategic foresight to prevent talent gaps, especially in leadership roles.

Weighing multiple factors in decision-making

HR decision-making often involves weighing multiple factors beyond just the immediate stakeholders. Changes such as implementing new tools or restructuring departments can have far-reaching consequences across the entire organization.

For example, the dramatic restructuring at Twitter, where 50% of the workforce was laid off in just a few days, shows the complexity of these decisions. Though the goal was financial stability, the decision led to legal challenges, revenue loss, and lasting damage to the company’s culture. 

This case underscores the fact that HR decisions are rarely straightforward. Decisions need to align with business goals and adhere to legal requirements, adding another layer of complexity. Weighing strategic direction against legal, financial, and employee-related implications is crucial to making well-rounded decisions that avoid long-term negative impacts on the organization.

Incorporating data in decision-making

Another layer of complexity comes from effectively using data in decision-making. Data analytics has become a staple in business decision-making, but HR departments have not always been able to keep pace. Skills gaps, fragmented systems, and inconsistent data collection can make leveraging people’s data in decision-making difficult.

Even when data is available and shows certain patterns, the underlying reasons for those trends may not be immediately clear. Understanding the human factors involved—such as employee motivation, leadership styles, or team culture—requires subjective interpretation.  

As HR decisions expand, balancing data with human judgment is crucial. HR professionals must interpret complex data, account for human factors, and mitigate subjectivity, understanding that not all data provides clear explanations.

Given the challenges, decision-making in HR requires a combination of core skills. These include:

  1. Critical thinking: Essential for analyzing and evaluating information.
  2. Empathy: Relates to considering the viewpoints of different stakeholders.
  3. Considered action: Involves considering the potential impact and consequences before making decisions. 

The next section will explain how critical thinking, empathy, and considered action can help you make well-informed decisions that meet the organization’s goals and employees’ needs.


The complete approach to HR decision-making: Think, empathize, act

Critical thinking, empathy, and action are the most powerful tools HR decision-makers can use to solve challenges. These three involve evaluating available information, considering different perspectives, and considering long-term effects to make well-informed decisions.

Let’s consider policy implementation as a practical example of using critical thinking, empathy, and action. Imagine your organization is rolling out a new performance management policy. Without assessing how it affects different departments, a one-size-fits-all approach could leave some teams feeling stifled or demoralized by rigid metrics. 

A lack of consultation of employees or managers may raise concerns about fairness or transparency, increasing resistance. Overlooking ethical and legal implications could also expose the company to legal risks and reputational damage.

This example highlights how critical thinking leads to informed, well-rounded decisions. Let’s break it down into the key components: 

  • Critical thinking: Start by gathering and analyzing all relevant data to avoid assumptions. In the example, this means collecting insights on work processes and outcomes to tailor the policy to departmental needs.
  • Empathy: Understanding different perspectives ensures the human element is considered. Engaging employees through surveys or focus groups can uncover concerns about fairness, allowing you to make specific adjustments, like a clear appeals process.
  • Considered action: Evaluating decisions for legal and ethical impact ensures they are responsible. In this case, ensuring fair treatment and addressing bias protects against compliance issues and promotes transparency.

Mastering this formula can help you solve workplace complexities, leading to better outcomes for both your employees and the organization. Following Pearson’s RED model can help you structure your approach in the decision-making process.

The RED model explained

Decision-making is a process you can refine. Pearson’s RED model offers a simple structure to guide your thinking. 

It breaks the process into three key steps:

  1. R: Recognizing assumptions
  2. E: Evaluating arguments
  3. D: Drawing conclusions

By embedding critical thinking, empathy, and considered action into each step, you can approach HR challenges with greater clarity and confidence. Let’s explore how you can apply each component in your work.

1. Recognizing assumptions 

Recognizing assumptions helps us uncover gaps or biases in our thinking and gain a richer perspective on a topic. 

Consider the following scenario: You’re reviewing a promotion for an internal candidate, but some feedback suggests they’re not “leadership material.” Rather than accepting this at face value, you apply the critical thinking, empathy, and considered action formula. 

  • Critical thinking: What information do I need to investigate this claim? This could include performance scores, 360 feedback, the current job description, and past performance trends. Additionally, peer or team feedback and the candidate’s participation in leadership training programs can offer further insight.
  • Empathy: Who are the key stakeholders, and how does this decision affect them? Whose input should be considered to gain a fuller picture? This could include the candidate, their manager, direct report, and peers. 
  • Considered action: What legal risks and ethical factors, like biases, are relevant in this situation? This could include ensuring compliance with anti-discrimination laws, maintaining fairness in the promotion process, and adhering to company policies. Now, it is also important to act by gathering and organizing the data needed to proceed. Initiate feedback discussions or request further performance metrics to verify claims.

At this stage, the focus is primarily on identifying and gathering all the information you need to consider. The next step is to evaluate the strength and relevance of the evidence supporting these assumptions

2. Evaluating arguments

Not all evidence is created equal. The second step in the RED model involves evaluating whether the data supporting an argument is credible, relevant, and sufficient. 

Let’s say the internal candidate has strong technical skills, but there is mixed feedback about their team management. One argument supports promoting based on technical expertise, while the other questions their leadership ability.

  • Critical thinking: Examine the data you collected earlier. Does it reveal any patterns that validate or contradict the claim about the candidate’s leadership ability? What do the team feedback and participation in leadership programs tell you about their readiness for a management role?
  • Empathy: Understand the different perspectives. How do team dynamics or external challenges help explain the mixed feedback? Talk to key stakeholders to understand their concerns or reasons for their feedback, making sure to consider all viewpoints.
  • Considered action: After evaluating the arguments, weigh the evidence and feedback. Prioritize conversations with key team members to understand their concerns better. If necessary, conduct additional interviews or reviews to validate the input. 

At this stage, the focus is on evaluating arguments objectively and accurately. This involves examining the strengths and weaknesses of all the available evidence. It helps prevent biases and emotions from clouding your judgment and sets the stage for a well-rounded, informed decision in the next stage of the model

3. Drawing conclusions 

The final step involves combining all the information to make a final decision. The goal is to ensure that your conclusion is not only evidence-based but also considers the human impact and consequences.

Let’s apply it to our scenario: After evaluating the data and feedback, you find the candidate has strong technical skills but has areas for improvement in leadership. 

  • Critical thinking: Use the insights from performance scores, feedback, and past trends to draw a data-driven conclusion. Assess how their strengths and leadership gaps affect their fit for the role. Do they have the potential for growth? And if so, how can it be supported? 
  • Empathy: Reflect on how this decision will affect the candidate and their team. Would promoting them now, with room for leadership growth, set them up for success? Or could it risk creating tension within the team? Consider the impact on the candidate’s morale and motivation and how it could affect team dynamics.
  • Considered action: Communicate your decision and explain the next steps. If you promote the candidate, share a leadership development plan to help them grow in line with team needs. Also, meet with the team to explain how this decision benefits both the individual’s career and the organization’s goals. This ensures transparency and addresses any concerns, showing that your decision is well thought out and aligned with long-term goals.

This approach makes sure the decision is thorough and benefits both the candidate’s growth and the organization’s goals. By considering all these elements, you ensure each decision is carefully made and takes into account both the data and the human side.

HR strategies for effective decision-making

Beyond using frameworks like the RED model to guide your thinking, there are practical strategies that can enhance your decision-making.

  1. Leverage data-driven insights: Focus on improving data accuracy and integrating systems. Start with key metrics (e.g., turnover rates, engagement scores) and create simple dashboards to track trends and inform decisions.
  2. Implement feedback mechanisms: Regularly gather employee feedback through pulse surveys and exit interviews. Use the insights to challenge assumptions, adjust policies, and communicate how feedback drives change.
  3. Strengthen legal and ethical understanding: Attend legal and ethics training regularly to stay updated. Create a decision-making checklist for key decisions and consult with legal teams to catch potential risks early.
  4. Continuously grow and develop: Focus on continuously expanding your skills and knowledge to make better decisions. Our HR Consulting Course equips professionals with essential skills for strategic decision-making, and our People Analytics Certificate Program will help you make better, data-driven people decisions.

To sum up

With the increasing complexity of modern HR roles, effective decision-making is a cornerstone of HR success. Using structured tools like the RED model helps you to take a thoughtful, critical approach to solving complex problems, while strategies such as leveraging data and fostering continuous feedback can help you ground your decisions in real insights.

To stay ahead, HR professionals must actively work on enhancing their decision-making capabilities. Whether through ongoing learning, data literacy, or ethical understanding, the more you refine these skills, the more confident you can become in your decisions. 


FAQ

Is HR a decision-maker?

Yes, HR plays a key role in decision-making, particularly in areas like hiring, employee development, organizational culture, and workforce planning.

What is HR decision-making?

HR decision-making involves evaluating information and making choices related to employee management, policies, and organizational strategy to support business goals and improve the employee experience.

What are the decision-making models in HR?

Common decision-making models in HR include data-driven decision-making (using analytics), the RED model (Recognizing Assumptions, Evaluating Arguments, Drawing Conclusions), and consultative decision-making (involving key stakeholders in the process).

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Paula Garcia
HRBP Soft Skills: How To Successfully Influence Stakeholders https://www.aihr.com/blog/hr-business-partner-soft-skills/ Fri, 26 Jul 2024 08:44:18 +0000 https://www.aihr.com/?p=226401 The ability to influence empowers strategic HR business partners to align HR strategies with organizational goals, drive change, and foster a positive workplace culture. Our T-Shaped HR Competency Model emphasizes the importance of influencing others as a critical interpersonal skill for HR professionals to succeed. It’s also a skill that can be learned.  In this…

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The ability to influence empowers strategic HR business partners to align HR strategies with organizational goals, drive change, and foster a positive workplace culture. Our T-Shaped HR Competency Model emphasizes the importance of influencing others as a critical interpersonal skill for HR professionals to succeed. It’s also a skill that can be learned. 

In this article, we will explain why influence is important. We will also unpack the sources of influence and discuss how you can develop influence skills to build your credibility across the organization.

Contents
Why influence is crucial for HR business partners (HRBPs)
How to establish credibility with influence
1. Personal motivation: Make the undesirable desirable
2. Personal ability: Equip the right skills to build confidence
3. Social motivation: Leverage peer influence
4. Social ability: Use social structures for support
5. Structural motivation: Rewarding change
4 tips on using the sources of influence


Why influence is crucial for HR business partners (HRBPs)

Often, HR isn’t in a position of power and relies on its ability to influence stakeholders to manage the People agenda and priorities. This is why influence is a critical behavior for HRBPs to master. 

Influence: 

  • Enables you to guide stakeholder decision-making and set the strategic agenda with the business
  • Is critical in an HRBP’s toolbox for bringing about organizational change
  • Helps you gain support from different levels across the organization and secure essential resources, such as HR budget and technology, for impactful HR initiatives
  • Helps you champion policies that improve employee experience and create a positive workplace environment.

Lack of influence

However, a lack of influence can create many challenges for HRBPs. 

  • You may struggle to gain support from senior leadership, leading to unsuccessful change initiatives, low adoption rates, and doubts about HR’s effectiveness
  • It can impede efforts to enhance the employee experience, promote Diversity, Equity, and Inclusion (DEIB), improve working conditions, and boost engagement

Balancing different stakeholders’ diverse and sometimes conflicting interests can make it difficult for HRBPs to build influence. Based on findings from our HRBP Impact Assessment, 38% of HR Business Partners struggle to identify actions when faced with conflicting priorities. 

Building influence isn’t about using power but about earning trust, showing expertise, and communicating the value of HR initiatives. Using different strategies and understanding where influence comes from can help you position yourself as a strategic partner who drives essential organizational changes.

Take the HRBP Impact Assessment

Diagnose the quality of your HRBP model implementation with AIHR’s T-Shaped HR Competency Model Assessment. Get results and recommendations on how strategically aligned your HRBP model really is.

How to establish credibility with influence

Understanding and using different sources of influence is crucial for driving behavior change. Researchers Joseph Grenny, David Maxfield, and Andrew Shimberg identified six critical sources of influence in this process.

 Sources of influence: 

  1. Personal motivation 
  2. Personal ability
  3. Social motivation
  4. Social ability
  5. Structural motivation
  6. Structural ability

In the context of the HRBP role, we will focus on the first five sources of influence and explain how you can use them to gain influence and build credibility. 

1. Personal motivation: Make the undesirable desirable

The first source of motivation involves creating an internal desire for change in individuals. This means connecting the changes or initiatives with the core values and personal goals of others, making them see the direct benefits and relevance to their own lives.

How HRBPs can use personal motivation: 

  • Understand what’s important to your stakeholders and what they care about most: It’s essential to connect with the individuals’ personal values and priorities and show them how proposed initiatives align with or contribute to them. 
  • Recognize that change can be challenging and uncomfortable: Addressing this from the beginning can alleviate concerns and minimize resistance. 
  • Connect the change to the broader mission and organizational goals: This helps stakeholders see the bigger picture and how the changes will contribute to organizational success. 

Personal motivation in action:

Maria, an HRBP at a mid-sized manufacturing company, has been tasked with implementing a new Diversity, Equity, and Inclusion (DEI) initiative to foster a more inclusive workplace and improve employee satisfaction. But she knows that the success of this initiative hinges on gaining the full support and active participation of the leadership team.

Maria successfully secures buy-in and active participation from senior leadership by understanding their values and motivators through one-on-one meetings. She develops personalized engagement plans to highlight how the DEI initiative aligns with different goals, such as social responsibility for the CEO and innovation for the CTO.

To make it relatable, she uses success stories of how such initiatives contributed to similar goals at other organizations. By continuously connecting the changes back to the broader mission and objectives of the organization, Maria helps stakeholders see the bigger picture and how the DEI initiative contributes to organizational success.

Because of this, the leaders actively champion the DEI initiative, leading to increased participation, improved employee satisfaction, and a more robust organizational culture focused on diversity and inclusion.

2. Personal ability: Equip the right skills to build confidence

HRBPs can develop personal abilities to help stakeholders feel confident and take ownership. This reduces resistance to change and increases the likelihood of successful implementation. 

For example, HRBPs can build influence by providing employees, managers and senior leadership with the right tools, training, and practice opportunities. 

How HRBPs can use personal ability: 

  • Take an incremental approach: Progressively build on previous knowledge to enhance stakeholders’ individual abilities. This will also prevent them from feeling overwhelmed, reinforce learning, and help them to retain skills over time. 
  • Mirror real-life situations: Ensure that the learning experiences closely mirror real-life situations where the changes will be implemented, including potential challenges. Help them to practice as frequently as possible with activities like role-plays or interactive workshops. These will help them to receive immediate feedback and identify any challenges in the application.
  • Enable autonomy and empowerment: Encourage stakeholders to take the initiative and make decisions to increase their sense of ownership and internal motivation.

Personal ability in action:

Maria conducts specialized training sessions tailored to senior leaders, covering DEI fundamentals and specific leadership actions.

She provides ongoing support through regular check-ins and advanced training, reinforcing learning and addressing challenges. She organizes role-playing exercises where leaders practice DEI concepts, such as conducting inclusive meetings.

By leveraging leaders’ existing team-building skills and providing accessible resources like DEI toolkits and executive briefings, Maria empowers them to champion the initiative confidently.


3. Social motivation: Leverage peer influence

Using social motivation means using the influence of peers and social networks to encourage the adoption of new behaviors. 

When important individuals and groups start using and supporting these new behaviors, others are likelier to do the same. This approach helps changes to be accepted more quickly and by more people, and it also creates a supportive community around new initiatives, making them more likely to last.

How HRBPs can use social motivation: 

  • Identify opinion leaders within the organization: These could be formal leaders, like managers and executives, or informal leaders, such as long-tenured employees or those with strong social connections. 
  • Engage opinion leaders during the design and planning stages: This will help them feel committed to the initiative’s success and establish role models who support it based on their positive experiences. 
  • Identify stakeholders most likely to raise concerns: By identifying these from the start, you can address their concerns upfront and turn potential resistance into support, making them advocates for the change.

Social motivation in action

Maria identifies critical influencers within the leadership team and engages them early, involving them in planning and securing their commitment. She ensures leaders are visible participants in the initiative by appointing DEI ambassadors within the leadership team.

She organizes events where they share their experiences and successes. This collective endorsement and visible commitment from the leadership team create a ripple effect, motivating the entire organization to embrace and support the DEI initiative.

4. Social ability: Use social structures for support

Social ability focuses on using the power of social interactions and networks to facilitate the adoption of new behaviors. 

Leveraging social ability as a source of influence is a powerful strategy to foster collective ownership and support for initiatives. When stakeholders feel connected and supported by their peers, they are more likely to embrace and lead changes. 

How HRBPs can use social ability:

  • Establish formal and informal networks connecting stakeholders: These could include councils, cross-functional committees, and other networking events that encourage open dialogue and relationship-building.
  • Create collaborative learning opportunities: These could include workshops, strategy sessions, and knowledge-sharing forums. Through interaction, discussion, and collective problem-solving, stakeholders can learn from each other and see the value of collective support. 
  • Create safe ways for stakeholders to seek help without embarrassment: This could include peer coaching programs and confidential discussion groups. 

Social ability in action:

Maria develops peer support systems, including confidential discussion groups and peer coaching programs, enabling leaders to share experiences and provide mutual support.

She also organizes leadership forums and panels where leaders discuss their challenges and successes with DEI, reinforcing collective ownership.

By incorporating these strategies, Maria fosters a connected and supportive leadership team that champions the DEI initiative, setting a strong example for the entire organization.

5. Structural motivation: Rewarding change

Structural motivation leverages tangible incentives and clear consequences to drive behavior change. 

People are more likely to adopt and maintain new behaviors if they see that their efforts are recognized and rewarded. On the other hand, clear expectations and consequences for not meeting standards help reinforce the importance of the desired behaviors.  

How HRBPs can use structured motivation: 

  • Ensure rewards are tangible, meaningful, and directly linked to the desired behaviors: Different people value different rewards. Some might prefer financial incentives, while others might value public recognition or opportunities for professional development. The important thing is that these rewards should be something stakeholders can see or experience and care about.
  • Take a balanced approach: Focus on positive reinforcement and create clear expectations for non-compliance. 
  • Promote accountability and support rather than punishment: This will help people stay motivated and committed to changing their daily routines. 
  • Implement clear and fair criteria for rewards and consequences: This will help everyone understand how their actions align with the desired behaviors, promote fairness, and motivate people to meet the set standards.

Structural motivation in action

Maria starts by designing tailored rewards, such as performance-based bonuses, public recognition, and executive training opportunities, that are linked directly to their active support of DEI programs.

She implements accountability measures, including performance reviews and feedback sessions, to maintain consistency and fairness. Maria also regularly gathers feedback from leaders to adjust the reward systems, keeping them relevant and motivating.

4 tips on using the sources of influence

When we look at the five sources of influence relevant to the HRBP role, it’s clear that to drive the changes and behaviors we want, having and using influence is not just about persuading others to follow orders. Here are some tips on how to effectively leverage different sources of influence for HRBPs:

  • Tip 1. Use diverse sources of influence: Drive the desired changes and behaviors by leveraging personal, social, and structural influences.
  • Tip 2. Don’t use all sources simultaneously: Implementing strategies aimed at all the different levels at once can lead to confusion, overwhelm, resistance, and strained resources. 
  • Tip 3. Plan and execute carefully: Each strategy needs careful planning, execution, and monitoring to work effectively.
  • Tip 4. Prioritize and sequence strategies: Rather, focus on one or two at a time to ensure effective implementation and allow employees to adjust gradually to changes. 

To sum up

Using these influence strategies effectively, you can motivate and engage stakeholders at all levels, gain support for HR initiatives, and promote a culture of continuous improvement and innovation. 

This influence transforms resistance into readiness and ensures that your HR efforts lead to ongoing organizational success. As HR’s role continues to expand, the ability to influence will remain a key aspect of effective HR leadership, allowing HRBPs to navigate complexities and shape the future of work.

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Catherine
Social Capital in the Workplace: How HR Can Build Stronger Employee Connections  https://www.aihr.com/blog/social-capital-in-the-workplace/ Fri, 19 Apr 2024 09:05:15 +0000 https://www.aihr.com/?p=209514 In a world increasingly shaped by technology, AI, and global shifts, strong interpersonal skills are more valuable than ever in business. For HR professionals, building social capital in the workplace isn’t just a nice-to-have; it’s essential for improving employee relationships, creating a strong culture, and boosting the company’s performance. According to McKinsey, teams with a…

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In a world increasingly shaped by technology, AI, and global shifts, strong interpersonal skills are more valuable than ever in business. For HR professionals, building social capital in the workplace isn’t just a nice-to-have; it’s essential for improving employee relationships, creating a strong culture, and boosting the company’s performance.

According to McKinsey, teams with a powerful sense of connection are more productive and complete tasks faster. Social capital builds trust between colleagues and managers, motivates employees to go beyond their job duties, improves retention, and makes staff more likely to recommend their company as a great place to work. And HR has a key role to play in fostering these interpersonal relationships.

In this article, we will further unpack why strong interpersonal skills are important – now more than ever – and provide you with steps on how to develop social capital in your organization.

Contents
The need for interpersonal skills in the workplace
What is social capital?
The benefits of social capital
How HR can foster social capital in the workplace
1. Build strong relationships
2. Promote employee engagement
3. Drive innovation and creativity
4. Support organizational resilience


The need for interpersonal skills in the workplace

The world has seen significant shifts in the last few years — fast advancements in technology, changing ways of work, and rapid development and uptake of AI tools, coupled with volatile political, social, and global economic changes. It’s impacted the skills we need to do our jobs and how we connect with others. 

The World Economic Forum’s Future of Jobs report indicates a significant change in the skills needed for the future workforce. Out of the top ten skills expected to be in high demand by 2025, eight focus on human qualities like emotional intelligence, creativity, leadership, and social influence.

However, as McKinsey’s survey reveals, we connect with others less frequently, have smaller networks, and spend less time and effort building relationships.

For those in HR, this shows an important point: it’s essential to invest in people’s social skills and foster a work environment where everyone can work well together, innovate, and deliver business results.

What is social capital?

Social capital is about the connections, relationships, and trust built within organizations. These networks help us communicate well, work together, and solve problems. By prioritizing social capital, HR creates a positive environment where individuals and the organization thrive.

When HR professionals focus on building social capital, they’re not just helping employees and the business succeed now and in the future; they’re also creating a positive environment where individuals and the organization can thrive.

This approach is key to increasing employee satisfaction and engagement, sparking innovation, and strengthening the company’s ability to adapt and grow.

Relationships marked by conflict and mistrust will have the opposite effect. Strained relationships lead to limited collaboration, low morale, and higher turnover rates. This can negatively affect both employee and organizational performance.

Social capital is helpful in many ways. As an employee, having a good relationship with a more experienced colleague can mean getting helpful advice on doing their job better. On a group level, social capital makes it easier for different departments to work together to achieve a shared goal. In the broader community, social capital helps unite people around a common cause, leading to action that benefits everyone.

The benefits of social capital 

Social capital in the workplace brings many benefits, including increased employee engagement, innovation, and organizational resilience. Strong relationships and networks provide access to expertise, information, and resources. 

This boosts innovation, problem-solving, and productivity by tapping into employees’ collective intelligence and creativity. The idea exchange, collaboration, and experimentation that social capital encourages are key for creating new products, services, and processes, giving companies a competitive advantage.

Simply put, social capital improves organizational performance and competitiveness.

Companies with high social capital can innovate and adapt to market changes more effectively. They attract top talent, maintain great customer relationships, and are likely to achieve long-term success.

For HR, social capital links HR practices to organizational success. In Talent Acquisition, for example, tapping into employees’ networks—a form of social capital—facilitates access to top talent. In talent management, promoting social capital helps to create an inclusive environment where individuals feel valued and purposeful, which is crucial for retaining talent. Likewise, social interactions and informal networks are vital for knowledge-sharing and organizational learning.

How HR can build social capital in the workplace.

How HR can foster social capital in the workplace

1. Build strong relationships

At its core, social capital is all about relationships — nurturing those that exist and building new ones. 

Stronger relationships have various benefits. When people get along better, they can work more efficiently, be more creative, and work together more cohesively. Open communication and collaboration lines help to establish a culture of trust and mutual respect. 

For HR teams, building stronger relationships involves creating opportunities and platforms that facilitate connections among employees. 

What HR can do:

  • Establish formal and informal communication channels that are incorporated as a way of work
  • Train employees on effective communication and active listening
  • Create consistency in collaboration tools used for work
  • Provide opportunities for employees to connect.

How HR can foster its own social capital

  1. Build trust and credibility: HR professionals need to build their own trust and credibility to increase their social capital with others in the organization. This is done by openly sharing policies, decisions, and processes. It also involves demonstrating transparency, consistency, and fairness in their application.
  2. Acting on employee feedback: Listen to what employees have to say and do something with their suggestions or worries. Feedback mechanisms could include employee suggestion programs, regular surveys, or open-door policies.
  3. Implement DEIB practices: Lastly, it is essential to incorporate diversity and inclusion practices into HR strategies. Feeling included and being accepted for who you are strengthens social bonds and builds trust among colleagues. This not only helps to build trust in HR but also to increase social capital within the organization. 

Example: Relationship-building at Salesforce

Salesforce, a cloud-based software company, is an excellent example of how an organization can prioritize relationship building. The company has an Ohana culture that emphasizes inclusivity, trust, and collaboration. This culture encourages employees to support one another professionally and personally, fostering solid social connections and mutual respect. Furthermore, the company also promotes social capital through initiatives such as employee resource groups (ERGs) and volunteer programs. Such initiatives provide opportunities for employees to connect, share experiences, and give back to their communities.


2. Promote employee engagement

Strong social ties are a crucial driver of employee engagement. HR should play a role in creating an environment where employees are not just passively fulfilling a role but actively participating and contributing in meaningful ways. But also in developing a culture where people feel respected, trusted, and part of the team. 

When done well, employees feel more connected to their work and each other, leading to increased organizational social capital.

Boosting job satisfaction and morale is also key to building social capital in the workplace. Employees who are happy and fulfilled in their roles tend to form strong bonds with their colleagues and work together more effectively. High morale creates a sense of loyalty and commitment among employees. Happy employees are also more likely to participate in team activities and go the extra mile. This helps strengthen relationships and trust and ultimately builds strong organizational social capital.

What HR can do:

  • Create performance management systems that recognize and reward employee achievements
  • Implement onboarding programs for swift integration and a sense of belonging among new hires
  • Establish Employee Resource Groups or affinity networks for employees. These groups help employees to connect, share experiences, and foster a sense of community.

How HR can foster its own social capital

Promoting employee engagement is also crucial to increase the social capital HR holds with others within the organization.

  1. Make work meaningful: Listen to employees, support their career growth, and make their work meaningful. By doing so, HR improves the work experience and strengthens their own relationships with employees. 

Engaged employees are more likely to trust HR and their colleagues, work well with others, and help create a positive work culture – which is key to the company’s success.

Example: Zappos unique organizational culture fosters social capital

Zappos, an online shoe and clothing retailer, strongly emphasizes building social capital through its unique organizational culture. The company prioritizes employee relationships and engagement by fostering a sense of community and belonging. Zappos produced an annual “Culture Book” where employees contributed personal stories and insights about the company culture. Additionally, Zappos offers cultural immersion programs for new hires to integrate them into the organization’s values and practices.

3. Drive innovation and creativity

Social capital acts as a catalyst for creativity and the sharing of new and innovative ideas. It builds a foundation for strong, collaborative networks where individuals feel more comfortable and inspired to share their insights and breakthroughs within the team or organization — leading to more diverse perspectives and experiences.

These diverse perspectives can result in a richer pool of ideas, helping to challenge conventional thinking and explore innovative solutions. This enriches both HR’s and the organization’s social capital. When everyone feels welcome and valued, no matter their background, they’re more likely to share their ideas. Likewise, a culture where everyone is open and works together leads to more creativity and new ways of thinking.

What HR can do:

  • Implement diversity training workshops, affinity groups, and inclusive recruitment strategies
  • Ensure recruitment and hiring practices attract a diverse pool of candidates
  • Establish training and development programs focused on diversity awareness and cultural competence
  • Implement systems that actively seek out and value employee ideas and suggestions
  • Encourage teamwork across departments and host problem-solving workshops and team-building activities
  • Introduce work policies that allow employees the freedom to work when and where they feel most creative and productive. This could include flexible hours, remote work options, or customized workspaces.

How HR can foster its own social capital

  1. Enhance HR’s own social capital: When HR works hard to create a place where new ideas are welcome, it improves relationships and teamwork across the organization. It also significantly enhances HR’s own social capital. 
  2. Value employee contributions: By demonstrating a commitment to and trust in employees’ abilities and ideas, HR signals that it respects and values employee contributions. This, in turn, helps to enhance HR’s reputation and influence within the organization.
  3. Build external social capital: Creating a place that values new ideas and creativity not only boosts HR’s image within the company but also helps to build external social capital. Innovative and creative cultures help attract top talent and enhance the organization’s reputation as a forward-thinking and dynamic workplace. This good reputation helps HR find more talented people and build stronger connections, making it even more successful both inside and outside the company.

Example: Google values innovation and collaboration

Google is known for its strong emphasis on fostering social capital in the workplace through various initiatives to drive innovation and collaboration. One notable example is its “20% time” policy, which allows employees to spend a portion of their workweek pursuing projects outside their core responsibilities. This policy encourages employee collaboration, creativity, and knowledge sharing, leading to innovations such as Gmail and Google Maps.

4. Support organizational resilience

Social capital becomes a vital resource for organizations during change and crises. Strong connections can be a source of support, information, and resources. 

The COVID pandemic showed just how crucial HR is in using social capital to keep things running smoothly. During this time, HR professionals across the globe served as the central point of contact for communication and coordination to ensure everyone knew what was going on and that work continued safely.

By tapping into the organization’s existing relationships, trust, and networks, social capital can help promote organizational resilience and drive successful change. 

What HR can do:

  • Provide consistent, transparent communication and genuine engagement. This helps to build credibility and trust.
  • Actively listen to employees’ feedback, address their concerns, and involve them in the change process. This helps to foster a sense of ownership and commitment.
  • Offer development opportunities that enable employees to handle new challenges and technologies
  • Encourage Community Engagement and Corporate Social Responsibility (CSR)
  • Promote Health and Wellbeing Programs and Employee Assistance Programs (EAPs) that address the holistic needs of employees.
  • Facilitate internal mobility to retain valuable talent and knowledge even in the face of change
  • Use the influence of well-respected team leaders and members to get others on board.

How HR can foster its own social capital

Supporting organizational resilience enhances the social capital HR has within an organization. HR becomes a key source of stability, flexibility, and ongoing operation during changes or challenging times. Clear and direct communication, along with policies and practices that look after employees’ wellbeing, builds trust. This shows employees they are supported and valued.

When HR proactively contributes to building resilience, it not only aids the organization in navigating challenges but also strengthens the relationships, trust, and collaboration essential for social capital. Engaging employees in the change process, addressing their concerns, and providing the necessary training and resources reinforce HR’s role as a trusted advisor and change agent. 

Example: Patagonia prioritized employee health and safety

Known for its commitment to sustainability and employee wellbeing, Patagonia lived up to its reputation during the pandemic by prioritizing the health and safety of its employees. The company quickly adapted its operations, implementing safety measures in its warehouses and maintaining full pay and benefits for all employees, even those unable to work due to store closures. This level of support reinforced the trust and loyalty between Patagonia and its employees, crucial elements of the company’s strong organizational capital. 

How HR professionals can develop their own interpersonal skills

Developing interpersonal skills is not just advantageous but essential for those in HR, too. These skills help HR professionals navigate the complexities of the current work environment, spur innovation, and manage the balance between daily tasks and the overarching strategic objectives.

In the AIHR T-shaped HR Competency Model, the Execution Excellence competency is centered on creating meaningful connections and encouraging teamwork to achieve goals efficiently. A key strategy that HR can employ to achieve this is through cultivating social capital.


Final words

Social capital is crucial for organizational and HR success. It sets the foundation for creating an innovative, engaged, and resilient workforce. HR plays a critical role in building an environment rich in social capital, which helps organizations harness the collective potential of their human capital. 

In the digital future of work, it will not be our digital skills that will make us successful. Our ability to connect as human beings, leveraging social capital and authentically connecting with each other will be what makes the difference.

The post Social Capital in the Workplace: How HR Can Build Stronger Employee Connections  appeared first on AIHR.

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Paula Garcia
Execution Excellence: Core HR Competency To Develop https://www.aihr.com/blog/execution-excellence/ Fri, 24 Nov 2023 10:28:52 +0000 https://www.aihr.com/?p=182962 Over the last few years, the role of HR professionals has changed dramatically due to market labor changes, generative AI, and global skills shortages. Successfully executing the HR strategy has become more important than ever, which requires HR professionals to develop a new set of competencies to meet the business needs. This article introduces Execution…

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Over the last few years, the role of HR professionals has changed dramatically due to market labor changes, generative AI, and global skills shortages. Successfully executing the HR strategy has become more important than ever, which requires HR professionals to develop a new set of competencies to meet the business needs.

This article introduces Execution Excellence, a Core Competency of AIHR’s T-Shaped HR Competency Model. We also propose tactics for you to adopt when developing this competency.

Contents
What is Execution Excellence?
1. Action Orientation
2. Problem Solving
3. Interpersonal Skills


What is Execution Excellence?

Execution Excellence refers to “how HR gets the job done.” It describes a set of behaviors that underpin the additional four Core Competencies of the T-Shaped HR Competency Model (Business Acumen, Data Literacy, Digital Ability, and People Advocacy). It is also key to enabling the Specialist and Leadership Competencies. 

Put simply, Execution Excellence guides HR professionals in how to execute and ensure that HR drives meaningful impact for all stakeholders. 

With increasing workplace complexity, it’s important for HR to become master problem-solvers and find new solutions to address organizational needs — all this while balancing long-term strategy with short-term operational responsibilities. Increasingly, we see HR professionals being asked to apply analytical thinking to drive informed and decisive action.

The AIHR T-Shaped HR competency Model.

Execution Excellence is divided into three key dimensions that relate to the ability to work with different people, solve problems, and carry out plans to achieve desired results. These are: 

  1. Action Orientation
  2. Problem Solving
  3. Interpersonal Skills

Mastering these skills can help you to be effective in your role and help your organization succeed.

For example: 

  • Action Orientation skills are key to developing effective strategies or implementing change programs. 
  • Problem Solving capabilities enable you to tackle complex challenges, such as how to adapt employee value propositions to the hybrid workforce. 
  • Strong Interpersonal Skills are vital for communicating and building relationships to drive effective HR partnering. 

Below, we explore each of these dimensions and how you can develop these behaviors.

1. Action Orientation

The first dimension is called Action Orientation. Here, the focus is on managing resources and planning, adapting, and organizing activities to get the desired results. Being action-oriented helps HR drive the implementation of new projects, processes, and practices. In addition, it also enables you to be more resilient in dealing with changes and ambiguity in the environment.

One of the key dimensions of execution excellence: Action orientation.

Action-oriented behaviors include:

  • Setting clear goals, planning tasks, and using time well
  • Being responsible for reaching goals on time
  • Adapting to and embracing changes
  • Organizing and using resources well to achieve results. 
Action Orientation in practice

Betty is an HR manager who wants to implement a new HR service technology platform over the next 12 months. She starts by setting clear goals for the new platform and creating a step-by-step plan for the whole project. She involves her team in selecting the platform, ensuring it does what they need. She also sets up regular meetings with the IT department and vendor to track how things are going and ensure they stick to the plan. 

During the testing phase, there are technical issues, and some employees are unhappy with changing to this new system. To address this, Betty allocates more team members to the training and performance coaching team to help with the implementation and upskilling.

In the final stages, she puts ongoing support for system users in place and implements a maintenance review process to ensure new system enhancements are implemented responsibly.

The project is delivered on time, within budget, and achieves the objectives that were initially promised in the business case.

Developing Action Orientation: Strategies and techniques

You can use the following strategies and techniques to develop your Action Orientation: 

  • Scenario planning: This entails thinking about different possible future situations and planning for them. Scenario planning helps to prepare for changes and surprises. 
  • Project management methods: Methods like Agile, Scrum, or Waterfall can help improve the planning and execution of projects. 
  • RACI charts: Responsible, Accountable, Consulted and Informed charts can help clarify who is responsible for what in a project and set clear deadlines. Several software options are available, as well as a free template from AIHR to help you create a RACI matrix for your projects. 
  • SMART goals: Using SMART (Specific, Measurable, Achievable, Realistic, and Timebound) goals can help professionals turn vague goals into clear and achievable ones. Digital tools like Trello or Asana can help organize and keep track of these goals. 
  • Change management: Developing your change management skills can help in becoming more adaptable when dealing with ambiguity. A good model to master is the Cynefin change model, which serves as a helpful guide when dealing with complex changes.

2. Problem Solving

The second dimension is Problem Solving. This refers to how an HR professional thinks about different issues to handle complex problems and situations. Solving problems is important for any job, but for HR professionals, this is really critical. You often have to deal with complicated and conflicting issues involving many different viewpoints and needs. 

One of the key dimensions of execution excellence: Problem solving.

Behaviors related to the problem-solving dimension include:

  • Thinking analytically about situations or information to create a clear idea or plan
  • Bringing people with different and often conflicting priorities together and moving them towards action
  • Making smart, timely decisions based on facts and the situation.
Problem Solving in practice

Desmond is an Organizational Development Specialist working at a Technology company. He recently completed a project analyzing the performance and employee engagement survey data for the past three years.

His analysis found that the company needs to improve how they collaborate virtually and to ensure that more regular feedback is provided on performance.

The challenge is that some employees still prefer in-person meetings and emails, especially those in senior management positions. Many employees have been pushing to use quicker online collaboration tools, yet they have received a very low level of adoption by senior management.

To solve this, Desmond organizes workshops with different groups in the company. In these workshops, he wants to understand why some employees are hesitant and what benefits others see in these new tools. Based on this input, he presents a business case to the senior leadership team and convinces them to champion the adoption of new digital tools and to start working more virtually themselves going forward.

Developing Problem Solving: Methods and techniques

Solving problems is not new for HR professionals, but the challenges are becoming more complex and nuanced. 

You can adopt the following methods and techniques to develop this dimension:

  • Consensus-building techniques: These techniques include the Delphi method, Nominal Group, or Six Thinking Hats, which help groups work together to solve problems and meet goals.
  • Problem analysis techniques: Problem solving techniques and digital tools like Miro or LucidSpark can help break down big ideas into smaller parts and see how they connect.
  • Decision-making frameworks: There are many decision-making frameworks available, such as the SWOT analysis technique for strategy These frameworks help make balanced and strategic decisions, even when things are complex. 

3. Interpersonal Skills

The third dimension is Interpersonal Skills. HR has always required strong interpersonal skills, especially in communicating effectively, building relationships, and collaborating with others. Given the increasingly complex nature of the HR stakeholders landscape, HR is expected to apply these behaviors more frequently as they deal with internal and external stakeholders. 

One of the key dimensions of execution excellence: Interpersonal skills.

Behaviors included in the Interpersonal Skills dimension are: 

  • Building and maintaining good relationships with others and building effective networks
  • Clearly and effectively sharing information to ensure a shared understanding
  • Working with others to improve ideas and find solutions by collaborating effectively. 
The Interpersonal Skills dimension in practice

Thembi is the HR Operations Manager for a global hospitality group. She deals with various stakeholders across various hotels and countries, each with its own culture and diverse leadership team.

An important stakeholder group for her is the General Managers of each Hotel. She wants to build good relationships with them to ensure they have open conversations and find solutions to challenges together.

To do so, she regularly engages with them and sets up frequent interactions according to the different needs of the managers. Gerald, the General Manager at Hotel A, is different than Nonto, the manager at Hotel B. Thembi meets with Gerald weekly as he prefers a more formal way of engagement, while Thembi touches base with Nonto on a more ad-hoc basis and visits their property once a quarter to meet Nonto face to face.

Thembi has already seen the benefit of investing in these relationships and networks. When a crisis arises, she has an established relationship to speak directly to these stakeholders, find a solution together, and can depend on them to ensure that the solutions put in place are implemented successfully.

Developing Interpersonal Skills: Tips and techniques

As AI and technology change our workplaces, good people skills become the cornerstone of what makes humans unique and indispensable. 

Here are some ways you can get better at these skills:

  •  Regular check-ins: These can help to keep relationships strong and to understand others’ ongoing needs and challenges. Being consistent, reliable, and open can help to create and maintain trusting relationships. You can use a stakeholder playbook as a starting point to understand your stakeholder requirements.
  • Impactful communication: Communicating with impact and using specific techniques to adopt different communication styles. 
  • Group problem-solving: Using methods like brainstorming, mind mapping, and group agreement techniques helps set the stage for working well with others.

To wrap up

In today’s fast-changing workplaces, the role of HR goes far beyond traditional tasks. As businesses move towards a more digital and varied world, HR professionals need a strong mix of different skills and knowledge. That’s why it is so important for them to become T-shaped.

In the modern workplace, it is not just about doing your job well but also about positively impacting employees and the organization. Skills like understanding business and being able to understand data are non-negotiable, not just nice to have. But to make a difference in the company and its employees, HR professionals must master Execution Excellence. As the people who look after the company’s most important part—its employees—HR professionals should always strive to improve these skills.

How T-shaped are you? 

You can complete our T-Shaped HR Competency Assessment to gain deeper insight into your current strengths and development areas. This will also help you identify the right AIHR courses and resources to equip yourself with the tools you need to excel. 

The post Execution Excellence: Core HR Competency To Develop appeared first on AIHR.

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Paula Garcia