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Do you think HR is caught between its two major functions– transactional and strategic?


Companies in first world, shared services and BPMs require compliance to international standards before they collaborate or start into partnerships with local companies. And PH companies, must adhere to these. One way to achieve this is for HR to take a proactive and strategic role to increase productivity, efficiency ,and enhance its employer brand to reduce attrition.

However, most HR cannot keep pace with the strategic requirements because they are bugged down with the transactional responsibilities.

Dynamic companies have resorted to outsourcing the transactional processes like

  • Recruitment
  • Timekeeping and Payroll
  • Training (mid to top level)
  • And to some extent, Medical Services.

Those who have not gone into outsourcing have ventured into an integrated HR system to expedite and simplify the process so they can have more time for the strategic role.

This practice is becoming a viable option in order for HR to focus on its strategic role, ensure industrial peace and spearhead Corporate Social Responsibility.


READ: HR 3.0- The Digital, Social and Mobile HR


But conservative thinking HR would not want to venture in any of the two because it’ll result into a leaner manpower compliment for HR.


In your observation, what else prevents HR from spending more time on its strategic role?


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