In the 1920s, psychologists in the United States started the human relations movement to illustrate the importance of workers as individuals rather than interchangeable parts. Traditionally, human resources practitioners focused their efforts on supporting those workers, but in today’s environment, they also need to be proactive and work directly with business leaders to meet the strategic goals and objectives of the organization.

“Traditional human resources is administrative in nature,” said Mike Foster, chairman and CEO of Human Capital Institute. “In order to successfully matrix HR into the business organization, HR leaders must demonstrate strategic business knowledge as well as HR proficiency.”

A talent management approach is that bridge between administrative HR proficiency and strategic business knowledge. The problem is that many HR professionals were schooled in traditional HR and may lack the insight and skills to take the offensive in contemporary business.

Shifting Into High Gear
The shift from an industrial-based system to a knowledge-based one demands a shift in HR. It’s no longer simply about bringing in employees as quickly and cheaply as possible and managing them as raw materials for production. Talented people are increasingly regarded as an important source of competitive advantage.

“HR needs to be recruiting and retaining the best employees for the business based on the business needs that are tied to the organization’s overall strategy,” said Laura Durando, manager of strategic projects and organizational development at Cornerstone OnDemand. “Companies are competing now on the basis of strategy, transformational technologies and disintermediation, which illustrate the changing marketplace.”

In this environment, the HR role must still perform traditional administrative functions but also needs to develop new advancements. This means talent managers must play a hands-on role in shaping the organization’s approach to its workforce, align with the company’s business goals and contribute directly to strategic decision making.