HR as a function dates back to the time where factories had to handle industrial relations and where large numbers of staff had simple manual tasks to perform. At the time, administrative, operational and mediating HR was a step forward for the organisations. This was before the world became as open and connected as it is today thanks to globalisation and technology.
Today, as a large proportion of the jobs in the developed world are knowledge and service based, the needs of the companies are different. It is not enough to simply administer the start and finish of the employment, run a payroll and deal with employee relations. People have access to information about companies to make knowledgeable choices where to work. HR in the leading global organisations has evolved to a function that takes lead in keeping the organisations competitive by assuring the organisational set up allows to be quickly adapted to change while achieving strategic goals. On a high level this is done by ensuring the right people with the right competencies and fit are hired at the right time; talent is spotted early and supported in their development; the key people are retained, supported and promoted; fair and attractive EVP is continually evaluated and communicated; organisational culture, practices and internal communication is evaluated and adapted for the best environment for highly effective and efficient work to sustainably take place.
Fierce competition, global marketplace, always advancing technology and shortage of the top talent doesn’t allow HR function to be merely administrative and operational.