HR: The new corporate therapist

Human resources (HR), once the department that handled payroll, kept track of who took more sick days (or less), and planned those awkward team-building retreats where you felt you would rather be anywhere else -- is now expected to do a lot more than just decorate artificial plants inside the office. According to the article, "HR's New Role", published in Harvard Business Review, HR has undergone more transformations than the local tea shop that has added bubble tea to its menu. HR is no more about hiring and firing, rather it is more about preventing employees from jumping ship faster than a Dhaka rickshaw-puller in heavy traffic.

The traditional HR recipe was to squeeze and watch the talent leave with indifference. We all remember a time when HR's primary task was cutting costs, as evident in the global giant IT companies, not to mention the MNCs in Bangladesh. The old approach was simple: reduce salaries, slash benefits, and limit training. The idea was to keep expenses low and profits high. And for a long time, this worked.

But that era is long gone. Workers have more options in today's tight skilled labour market. They don't want to stay in jobs where they feel underpaid, overworked, and unappreciated. So now, companies are struggling to keep essential positions filled. Squeezing employees is no longer a brilliant strategy as they exit the door faster than a busload of Dhaka commuters during rush hours.

The new priority of HR today is to keep the ship afloat. HR's biggest challenge these days is not cutting costs but preventing employees from leaving. Staff turnover is expensive and troublesome. In fact, the cost of replacing just one employee can exceed their annual salary! Unfortunately, this reality is yet to dawn on many companies that are still caught up in the traditional attitude of nonchalance.

Meanwhile, burnout is becoming a major issue. With rapid technological advancements and the looming threat of AI, employees are burning out faster than fuel on a highway. Workers are stressed, and HR needs to step in like a superhero, preventing burnout and keeping the workforce satisfied and engaged. More empathy and perhaps a few extra tea breaks can do the tricks!

To say HR has undergone major alterations in recent decades is an understatement. It has evolved from handling basic tasks like leave applications and payroll to becoming the "Corporate Therapist". It now educates leaders on the cost of staff turnover, alerting against layoffs that can slow down the process of recovery due to lengthy rehiring and retaining. HR also manages employee anxiety regarding automation and ensures transparency to prevent panic.

Moreover, training and development, once overlooked in Bangladesh, are now essential as businesses demand new skills. HR must advocate for skill development and foster Diversity, Equity, and Inclusion (DEI). After all, a homogenous team is less likely to innovate or excel in today's diverse market.

Gone are the days when HR's role was limited to being the "attendance police" or planning the awkward team-building exercises. Now, HR is the company's behind-the-scenes strategist, quietly pulling the strings to retain talent, prevent burnout, and give reality checks to leaders on recruitment costs. From lobbying for more training to calming everyone's AI-related fears, HR has become the unsung hero in today's cutthroat job market.

The new HR mantra is to keep employees motivated and, thereby, productive. In Bangladesh, HR is taking its time to step up to these new responsibilities compared to its global counterparts. But better late than never. With this dramatic shift, HR is no longer just a department but the engine driving business success.

The author is the founder and managing director of BuildCon Consultancies Ltd