Apart from working with small businesses, I’m also a CIPD Tutor with one of the UK’s leading HR training providers. Quite often when doing some of the more “theoretical” stuff, I can see learners’ eyes glaze over with a “what has this got to do with the real world and my job as an HR business partner” expression.
But the practical application of some of these theories and models is frequently key to many HR and business decisions. For example, what we rather grandly like to call “environmental scanning” – with models such as STEEPLE, Five Forces and Blue Ocean – is essential to anticipating likely changes that may affect our organisations.
Take for instance George Osborne’s “National Living Wage”. Judging by some of the reactions from some business organisations, this is the greatest disaster to hit business for years. Yet businesses have worked within the minimum wage rules for nearly 20 years and the “shock” of this new policy was that – for many – it was an unexpectedly large increase. But any business which had done any kind of serious forward planning would have been aware that all the parties at the last election were committed to significant increases in minimum wage levels – not necessarily for altruistic reasons but as part of the strategy to reduce the deficit. (I’m happy to say that a client I work with in a low pay sector had factored in big increases to their wage costs into their business plans as a result of doing some of this planning, so it hasn’t proved as much of an issue for them).
HR professionals continue to agonise about how they “add value” to businesses. Being aware of what’s going on in the wider world, and anticipating how this might affect the companies we work for, is one easy way in which we can demonstrate that HR is actually a vital part of modern business.