Being More Commercial in HR

It’s not long ago that being in HR meant endless paperwork and compliance audits.

It was boriiiing, beige and quite frankly, out of touch with the rest of business.

So, why are we focussing on being commercial in HR?

Because HR has WOKEN UP to the fact that it needs to be more commercial – because today’s HR professionals are strategic partners, not minute takers!

HR is no longer about personnel files, data entry and record keeping,” … Instead, today’s HR leaders need to be able to implement programs that align with business strategy and speak in management language.

(Jennifer Currence, author of Developing Business Acumen)

Let me ask you a question.

What’s the most important thing HR can do for an organisation?

I bet you’ll hear answers like …

A sense of belonging
A sense of purpose
Compensation
A clean toilet and a fruit bowl … <<cough>> (see my post here on workplace HR icks!)

I could go on… and all of that is (or most of it if we remove the ‘ick bit’), of course, a yes…

But what if I told you that you’ve missed the point?

What’s the most important thing HR can give an organisation?

My answer?

A company that’s winning in the marketplace!

One that’s freakin’ epic to work for and one that believes in the power of its people.

Today’s HR is all about adding value and impact to our stakeholders, investors, and networks because when we, as HR, look outside the business, we not only gain much more visibility inside the business, but we can also have a much bigger impact on employee productivity and satisfaction!

In simple terms, HR is the architect of any successful business!

Cool huh!?

HR really does have the opportunity to do incredible things, and that means being more commercial is more important than ever before!

[being commercial] is not about skills, but whether those skills drive outcomes that matter.

(Dave Ulrich)

The HR opportunity

Did you know that 41% of CHROs cite business acumen as the most lacking skill when searching for HR talent?

This means that focusing on commercial awareness as an HR pro is a massive opportunity not only to bridge the gap between strategy and action by translating its efforts into tangible results (that both attract top talent and propel the company forward), but it’s also great for your career!

That’s WIN-WIN in my book!

Now is the time to geek out and start contributing to the bottom line by connecting financials and commercial drivers to people initiatives!

My tips for being more commercial in HR

Get ‘Geeky’ about your business
This could be finding out something cool about what your organisation does, or what USPs you have. It could be learning about what your most profitable product or service is – whatever piques your geek! Shadow the sales team, sit in on finance meetings, and volunteer for cross-functional projects. Get your hands dirty, tell awesome stories using data and see where HR can sprinkle its magic.

Ask the stupid question
Don’t leave any questions unasked. People LOVE talking about their work, what they’re proud of, and how they got to where they are—the more you ask, the more you get!

Understand how your business works
Get curious! Understand where the money or funding comes from, how your products or services are sold, how you rank in your industry, and what markets you operate in. Talk to people and tease out the real problems! Become the ultimate bridge builder between people and profits by connecting the dots and finding brilliant solutions. Commercial days are great for this!

Speak in business terms
This is an easy one for HR peeps: convert your metrics into something that MEANS something in business terms – how much are you spending on recruitment as a percentage of EBIT? What’s the revenue per head? How many products or services do we have to sell to cover our costs?

Being more commercial doesn’t mean forgetting about the human side of the story. HRs foundation will always be people-centric, and I firmly believe in people first – ALWAYS!

But, being commercial allows you to find the sweet spot where business goals meet employee happiness.

And that’s where HR becomes the ultimate growth engine for the business!