HR Corner Maintain the wealth of human capital by Charles Mak By delivering the best possible talents, HR managers can shape corporate expansion Many major organisations have recently been re-evaluating the multidimensional nature of the work undertaken by human resources professionals. They have started to acknowledge much more directly that matters of recruitment, retention and staff development not only have an impact on short-term corporate profitability, but also shape the long-term direction and plans for business expansion. According to Vicky Wong, associate director of human resources and administration at Tanrich Financial Holdings Limited, this has involved her HR team in more strategic issues and made it necessary to develop skills within the workforce which match current and future needs. "The company is committed to providing one-stop investment services for private and corporate clients, so we must proactively train employees in the competencies needed to achieve the five-year growth plan," she says. "As business partners, we devise tailor-made solutions to meet the requirements of the various internal functions, which can be very complicated." For this reason, HR has now become a more powerful force within the organisation. Ms Wong points out that the simplification of payroll and data administration procedures has allowed more time for strategic planning. This, in turn, has made it essential for HR managers to learn more about marketing, IT and business development. By acquiring knowledge in these diverse areas, they are better equipped to recruit and develop individuals who can subsequently fulfil the company's expectations. "Nowadays, we need a better organised and more systematic approach in daily HR operations," Ms Wong adds. "We also need to be flexible in offering career development opportunities." This starts with drawing up a clear career path for new recruits. A full range of in-house training programmes is then provided and development needs are regularly reassessed. The objective is to ensure that all skills are up to date and that staff realise they have great opportunities to advance. Hong Kong's success is still tied to the management of human capital Time management "Retention is a real challenge," Ms Wong says. "We have to make extra efforts and, in general, spend 30 per cent of our time attracting talent, 20 per cent on training and development, and 50 per cent on retention issues." She believes the best way to hold on to high-calibre staff is for the company to offer plenty of opportunities for personal growth and promotion. The increasing integration of functions has led to HR managers learning more about aspects of banking and finance, while Tanrich's senior executives and line managers have focused more on picking up the HR skills needed to be effective leaders. In Ms Wong's view, one of her key responsibilities is to monitor market trends and anticipate changes. This makes it easier to attract the right talent and establish more complete training programmes. "If we understand the company's business goals, we can also decide how to upgrade the competencies of existing staff," she says. "This is all part of a chain and HR is one of the most important links. Our job is to translate the company's strategies and come up with a formula to maximise talent and enhance it with additional training." Although the role of HR managers is evolving, it still entails many of the traditional responsibilities. For example, Ms Wong's team continues to oversees counselling and has to ensure line managers handle internal procedures in accordance with the agreed guidelines and policies. She is also closely involved in staff evaluations and providing career advice. Professional outlook Looking ahead, she believes that further changes are on the way. "Some of the more administrative HR functions have already been outsourced and are being performed outside Hong Kong," she says. "To remain competitive, we must therefore have sufficient skills to differentiate ourselves from our counterparts in the mainland and other neighbouring countries. Hong Kong's success is still tied to the management of human capital." She emphasises that HR practitioners must maintain their competencies at a high level and not risk falling behind. "We need to study, do research and then test the water before implementing any new initiatives or tools," she says. "This minimises risk and achieves greater effectiveness." General knowledge about the global economy and political issues is also necessary. "We are constantly learning and that's why we will never gain full marks," Ms Wong says. "However, every new trend serves as an opportunity to upgrade our professional status. It is only the people who are not prepared to change will regard change as a threat." Salient points The role of HR in handling recruitment, retention and staff development is vital to a company's success and plans for expansion In order to operate effectively, HR practitioners should cooperate with line managers to understand the full scope of the company's business To facilitate development, staff training must focus on providing skills needed to achieve current and future corporate goals HR managers must implement strategies which maximise and enhance talent Taken from Career Times 8 July 2005, p. A14 Your comments are welcome at [email protected]