Transactional HR vs. Strategic HR
I am told there was a time when human resources was called personnel. The personnel department processed payroll, administered benefits, interviewed candidates for jobs, and other administrative duties. I refer to those types of functions as transactional HR.
As time went by, human resources became the compliance police in addition to their personnel duties. HR oversaw OSHA compliance, Family Medical Leave Act, Fair Labor Standards Act, wage and hour guidelines, kept the company from getting sued, well you get the picture.
Today human resources is strategic as well as transactional. Human resource professionals have to understand a profit and loss statement and have a deep understanding of the business to best support their teams. Â Â Business leaders today look to the HR department to assess labor availability before entering new markets, identify future leaders and find assignments to ensure those individuals are ready for their new roles, and put performance plans in place to hold people accountable for business results.
When choosing a human resource support company, consider these things. â€śDo I need help with the transactions associated with HR, the legal and regulatory, or a strategic partner in finding and developing talent to meet my business goalsâ€ť? Being clear on these points will make finding the right human resource partner a shorter and painless process!