Putting People First: How Renaming HR Is Improving Company Culture

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Renaming HR: If you’re a Chief People Officer or just someone interested in HR, you may have noticed a trend of companies using the term “People” instead of “HR” to describe their HR department. But is this just a trendy new name, or is there something deeper going on here? Let’s dive into the pros and cons of calling HR “People”.

The human resources department is an essential part of any organisation, responsible for managing the workforce and ensuring that employees are satisfied and productive. However, the terminology used to describe this department has been a matter of debate for some time.

Background

The term “human resources” has been in use for several decades and has become widely accepted as a way of describing the department responsible for managing a companies workforce. However, some have argued that the term can be dehumanising and reduces employees to the status of a resource or commodity.

In contrast, the term “People” is seen as more inclusive and humanising, acknowledging the unique needs and aspirations of the individual employees.

Arguments for Renaming HR

One of the primary arguments in favour of using “HR” is that it is a well-established term that is widely recognised in the business world.

According to data from Google Trends, searches for the term “HR” have been consistently higher than searches for “People” over the past five years, indicating that the term is more commonly used and understood.

Another argument for “HR” is that it accurately reflects the department’s role in managing the workforce as a resource. This can be especially important in industries such as retail, manufacturing or construction, where labour is a critical input and needs to be managed efficiently to ensure productivity.

According to a survey of HR professionals conducted by the Society for Human Resource Management (SHRM), 62% of respondents felt that the term “HR” accurately reflected their department’s role in managing human capital.

Finally, a number of people argue that “HR” is a more professional-sounding term that may help to establish the department’s credibility and authority within the organisation. This can be important when dealing with senior management or other stakeholders who may be sceptical of the department’s role or importance.

According to a survey of HR professionals conducted by the HR Certification Institute (HRCI), 82% of respondents felt that the term “HR” conveyed a sense of professionalism and expertise.

Arguments for “People”

One of the main arguments in favour of using “People” is that it is a more inclusive term that acknowledges the individuality of employees.

According to a survey conducted by the software company BambooHR, 70% of employees felt that the term “People” was more humanising than “HR.”

Another argument for “People” is that it is less objectifying than “HR” and may help to create a more collaborative and cooperative relationship between the department and employees.

According to a survey conducted by the consulting firm Deloitte, 73% of employees felt that the term “People” conveyed a sense of partnership and collaboration.

By the same token, a final argument for “People” is that it reflects the changing nature of work and the role of employees in the organisation. As more companies embrace flexible work arrangements and remote work, the role of the HR department is evolving to focus more on supporting the needs and aspirations of individual employees.

According to a survey conducted by the consulting firm McKinsey & Company, 67% of employees felt that the term “People” was more aligned with their own values and priorities than “HR.”

Our Opinion about Renaming HR

Based on the data presented and out own personal experiences, we recommend using the term “People” to describe the HR department.

While “HR” may be more well-established and specific, we believe that “People” better reflects the changing nature of work and the importance of creating a supportive and inclusive culture.

Our focus on long-term partnerships

At re:find Executive Search we believe that recruitment is not a one-off transaction but rather a long-term partnership. By building long-term relationships with our clients, we help them to find and retain the best talent for their organisation.

Every organisation is unique. We feel that there is no one-size-fits-all solution when it comes to recruitment.

re:find offer bespoke recruitment solutions, that are tailored to meet the specific needs of each client. Whether you need help with a single hire or a full recruitment campaign, we can help.

We commit to providing our clients with the highest quality service. We take the time to understand your organisation’s culture and values, as well as the specific skills needed for each campaign.

For more information please get in contact with our Managing Director, James Cumming.

Creating a People Experience Function: How to Improve Employee Engagement and Drive Business Success

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A lot of clients I am talking to are thinking of creating a people experience function… but what is it? And should you consider one for yourself?

People Experience (PX), is the sum of all interactions that employees have with an organisation. It encompasses everything from the recruiting process to onboarding, training and development, performance management, and offboarding. A positive PX can lead to higher employee engagement, better retention, and increased productivity.

The different between People Experience (or Employee Experience) and Engagement, is that engagement is what can typically be measured as an outcome of the experience people have had within an organisation.

Here we dive in to the potential benefits of creating a PX team and explore some of the companies that have done this successfully.

The Business Case for Creating a People Experience Function:

A strong people experience function can help the company attract and retain top talent, improve customer satisfaction, and increase overall productivity. By investing in the employee experience, the company can create a positive culture that attracts and retains high-performing employees.

Overview:

In today’s competitive business environment, companies need to focus on creating a positive and engaging employee experience to attract and retain top talent. By creating a PX function, your company can really focus on improving employee engagement, increase retention rates, and drive overall business success.

Objectives:

  • Improve employee engagement and satisfaction
  • Increase retention rates
  • Enhance the overall quality of the employee experience
  • Drive business success through increased productivity, innovation, and customer satisfaction

Potential problems

If your company is currently experiencing high turnover rates and low employee engagement scores. This is negatively impacting productivity, innovation, and customer satisfaction.

Additionally, in order to remain competitive and to drive business success, your company needs to focus on creating a positive and engaging employee experience.

Proposed Solution:

By creating a dedicated People Experience (PX) function, your company can focus on designing and delivering an engaging experience for employees across the entire employee lifecycle.

The PX function will be responsible for a range of activities, including onboarding, training, ongoing support, and community building. Further more, the function will also leverage data and feedback from employees to continuously improve and refine the employee experience.

Expected Benefits:

  • Improved employee engagement and satisfaction: By creating a more engaging and positive employee experience, your company can improve employee engagement and satisfaction, which will lead to higher productivity, innovation, and customer satisfaction.
  • Increased retention rates: By creating a more engaging and positive employee experience, your company can increase retention rates and reduce turnover costs.
  • Enhanced overall quality of the employee experience: By focusing on the employee experience, your company can create a more positive and supportive work environment, which will enhance the overall quality of the employee experience.
  • Drive business success: By improving employee engagement, satisfaction, and retention rates, your company can drive business success through increased productivity, innovation, and customer satisfaction.
Time for a Change of Leadership?

Costs:

The costs of creating a PX function will depend on the size and scope of the function. Key cost considerations include:

  • Hiring and training PX team members
  • Developing and implementing PX initiatives and programs
  • Investing in technology and tools to support PX initiatives

Return on Investment:

The return on investment (ROI) of creating a PX function will depend on the specific goals and objectives of your company. Some potential ROI metrics include:

  • Increased employee engagement and satisfaction scores
  • Reduced turnover rates and costs
  • Increased productivity, innovation, and customer satisfaction
  • Improved overall business performance and profitability

Examples of businesses that have done this successfully:

  • Sony Music Entertainment: in 2022 Sony Music announced they were moving to a PX Model “we are reimagining the role Human Resources has served and will play in our business. Sony Music Entertainment is there for every step of our artists’ creative journey—and our People Experience teams do the same thing for our employees at work”
  • Cisco: Cisco has a PX function that is focused on delivering a positive experience for employees across the entire employee lifecycle. The team uses a range of tools and techniques, including design thinking and user research, to identify areas for improvement and develop solutions that meet the needs of employees. Through its PX initiatives, Cisco has been able to improve employee engagement, reduce turnover rates, and enhance the overall quality of the employee experience.
  • HubSpot: HubSpot has a dedicated Employee Experience team that focuses on creating a positive experience for employees and customers alike. The team is responsible for a range of activities, including onboarding, training, and ongoing support. Through its PX initiatives, HubSpot has been able to increase employee engagement, improve customer satisfaction, and drive overall business success.

How might I approach creating a PX product?

  • Define the problem and objectives: The first step in creating a PX product is to clearly define the problem that you are trying to solve and the objectives that you hope to achieve. This might involve conducting research and gathering data on employee engagement, turnover rates, and other key metrics. You should also identify any pain points or challenges that employees are facing in their day-to-day work.
  • Conduct user research: To create a successful PX product, you need to understand the needs, preferences, and behaviours of your target audience. This might involve conducting focus groups, surveys, or interviews with employees to gather feedback and insights.
  • Develop a prototype: Once you have a clear understanding of the problem and user needs, you can begin to develop a prototype of your PX product. This might involve creating wireframes, mock-ups, or a minimum viable product (MVP) that you can test with a small group of users.
  • Test and iterate: After developing your prototype, you should test it with a group of users to gather feedback and identify areas for improvement. Use this feedback to iterate on your product and refine it until it meets the needs of your target audience.
  • Launch and measure success: Once you have a final version of your PX product, you can launch it to a wider audience and measure its success using key metrics such as engagement, retention, and productivity. Use this data to continuously improve and refine your PX product over time.
  • Monitor and adapt: The final step in creating a successful PX product is to continuously monitor and adapt to changing user needs and preferences. Keep gathering feedback and data, and use this information to make ongoing improvements to your product to ensure that it remains relevant and effective.

Conclusion:

In conclusion, we believe that by creating a dedicated PX function, you can improve employee engagement, increase retention rates, and drive overall business success. While there are costs associated with this, the potential benefits and ROI make it a worthwhile investment.

Our focus on long-term partnerships

At re:find Executive Search we believe that recruitment is not a one-off transaction but rather a long-term partnership. By building long-term relationships with our clients, we help them to find and retain the best talent for their organisation.

Every organisation is unique and we feel that there is no one-size-fits-all solution when it comes to recruitment. re:find offer bespoke recruitment solutions, that are tailored to meet the specific needs of each client. Whether you need help with a single hire or a full recruitment campaign, we can help.

We commit to providing our clients with the highest quality service. We take the time to understand your organisation’s culture and values, as well as the specific skills needed for each campaign.

For more information please get in contact with our Managing Director, James Cumming.