HR Software – Value Proposition

HR Software – Value Proposition

HR Software – Value Proposition

In today’s world, there is an extremely high pressure on HR to create and add value to an organization. The markets and business environments are very complex, and the fulfilment of contemporary business requirements demands a robust yet flexible approach that can move with changing circumstances. With changing scenario, however, processes are created, identified and monitored on HRM portals within an HR Software as they make for seamless creation of documentation and instant communication of the same to all key stakeholders, line managers and team members of an organization.

HR Transformation and HR Value Proposition

HR Transformation starts by defining HR value by the organization, but in actual terms it is the receiver of this value that defines it. The work of a body of HR Systems starts with the business functions of the organization. The recipients of the organizational business functions are its customers, investors, and other market entities the organization would be associated with.

HR can be responsible for competitive advantage, but for this to happen it must align its practices with internal and external stakeholder requirements. HR practitioners and policy makers must acquaint themselves well with the knowledge and skills required to link HR activity to stakeholder value.

HR has a unique and a powerful perspective to incorporate and transform business processes through process modelling, through which they can attain global agility, effectiveness and competitiveness.

Elements of HR Value Proposition:

The following parameters influence HR Value Proposition at its core:

1. Knowing external business realities

The HR team must be very well aware of the external business scenario if they are to optimise the factors which influence business processes and models.

2. Serving external and internal stakeholders

All internal and external business stakeholders are important as far as the organizational business growth is concerned. For effective Value Proposition, the HR must ensure that its processes and growth ideologies are hand-in-glove with all business stakeholders, both internal and external, if maximum results are to be achieved.

3. Crafting HR practices

According to HR researchers this is the most important factor which influences HR Value Proposition in an organization. HR practices have the single greatest influence on the workforce effectiveness and productivity within an organization. Therefore, ensuring that the right policies and practices are crafted and implemented can go a long way in making an organization profitable. Researchers have adopted different theoretical perspectives to explain the influence of HR practices on employee outcomes.

4. Building HR resources

Human Resources Management constitutes a powerhouse of organizational vision and perspective to develop and imbibe productiveness and efficiency in the organizational resources through processes, practice and training. How the HR resources are trained to handle and optimise organizational process is an important factor influencing HR Value Proposition and thus growth and future of the organization.

5. Ensuring HR professionalism

HR Systems must ensure a good degree of professionalism and strictly conform to compliance to maintain a proper workforce culture and uniformity of standards to ensure the creation and sustenance of an ecosystem which is conducive for business longevity.

Business Scenario

The key external areas influencing the business are – technology, economic and regulatory issues and workforce demographics. Globalisation is an important factor which transcends the other three areas. Understanding the trends within each of these key areas is extremely important to develop outstanding business models and workforce solutions.

External Stakeholders

Investors - The HR should become fully aware of the investors and their requirements. The HR must also understand the importance of intangible parameters and create practices which significantly increase intangible value, and see the intangible return in the light of the total shareholder return.

Customers – Developing customer literacy and emulating customer mentality are important. HR should also measure the share of targeted customers and the customer value proposition and engage target customer in HR practices.

Internal stakeholders

Managers – HR should assist managers to build and grow organisational capability. This can be done by building relationships based on trust, emphasizing focus on deliverables and not ‘do-ables’. HR should also prioritise capabilities and create actions plans for delivering them.


Employees – HR should help employees to build personal ability through the creation of an employee value proposition system that assures employees of their high value within the organization, allows them to add value to processes and projects, and makes them approachable and to be heard by the management.

HR practices

Prominent HR practices which form the core processes that are central to organisational success are:

  • Flow of People – Flow of people can be into, through, up and out of the organisation.
  • Performance management – This can link people to work through standards and measures, rewards and feedback.
  • Information – Information keeps the workforce aware of the organisation.
  • Flow of work – Workflows generally includes the actual executives who execute work, and those that handle the workflow hierarchy.
  • Core processes such as action planning

HR resources

HR strategy – HR strategy outlines the organizational development process which illustrates and showcases the workflow process for the workforce, identifies the key questions and concerns and solves and bottlenecks related to execution.

HR organisation – The structure of an HR organisation depends on the nature of business handled or the services rendered by the organization. Thus, this function can be different for different types of organisations. For example, solitary business lines support functional HR teams.

HR professionalism

The following HR roles influence the HR Value Proposition

  • An Employee Advocate listens and respond to employees by focusing on their welfare and thus maximizing their output.
  • A Human Capital Developer develops the workforce and ensures that employees have the skills to meet future needs.
  • A Functional Expert fulfils the functional needs of the organisation.
  • A Strategic Partner influences and brings in business opportunities and learning knowledge to managers and thus creates value.
  • An HR Leader leads and takes ownership of their respective function.

Processes forming the core functionality of HR Value Proposition can be documented and updated within HRM Systems from where they can be monitored seamlessly and easily. HR Software can be used to easily update any change in documentation and then to communicate the same to all the key stakeholders.

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