Thank you to those of you who commented on my previous post on this topic. Continuing this theme with one last look back to some of the lasting impacts of the 2008-2009 recession on the HR function, I offer three additional perspectives:

4) We became more process-oriented.

With the reduction in funds for new capital investments, organizations started looking closer at what they already had in place and how they could improve on it. While the vast majority of companies have systems in place for core HR, Benefits, and Payroll, most started looking at what additional processes could be automated or self-service-enabled in order to gain efficiencies and effectiveness, but mostly to reduce costs. Moving from transaction-oriented, organizations today are becoming process-oriented, meaning they are taking a holistic view of business activity and integrating processes across functions, such as pay-for-performance, development and succession planning, and staffing and workforce planning. While we still have ways to go, there is a definite movement toward process-oriented HR.

5) We became more talent-focused.

Talent Management has been the fastest growing area in the HR space for the last several years. Organizations are finally executing on what they have long maintained, that people are the most important asset. Gartner’s Jim Holincheck at IHRIM’s Global Forum in Chicago this past year reported that Talent Management grew ~7% through Q2 of 2009 while core HRMS revenues grew just ~4.5%. Clearly the HRMS market has matured while talent management is still in its infancy, but there is a definitive movement toward a more talent-focused HR approach and there will be no turning back. With a talent-focused approach, HR moves another step closer to becoming that elusive HR business partner.

6) We became more business-centric.

The successful HR professional today, post-recession, is a hybrid developed out of varied experiences who realizes the need to be business-centric, metrics-minded, systems-savvy. While many HR professionals may be stuck in an administrative quagmire, unable to focus on more strategic issues due to a lack of tools and strategies to eliminate and automate much of the administrative backbone of HR, there are few who don’t realize the importance of business knowledge and financial acumen to be a successful strategic partner to the business. Business-centric means understanding the role that HR strategies and services play in driving business growth — sales, revenues, and profits.

Other ideas?  What do you think has changed forever for HR as a result of the last two tumultuous years? I’d love to hear from you!