Business Success! Nestled in the vibrant community of Asheville, North Carolina, USA, John, a small bookstore owner, found himself in a difficult predicament. The bookstore, a cherished family legacy, and a local community hub, was on the brink of closure. John had tried everything – marketing promotions, inventory adjustments, even longer store hours – but nothing seemed to work. Then, he attended a seminar where he met Rachel, an HR veteran with decades of experience in turning businesses around. Rachel’s advice was simple yet profound, “Focus on your people, John.”

A year later, the bookstore was thriving. It wasn’t just the sales figures that had changed; the entire atmosphere of the store was different. The employees were more engaged, they provided superior customer service, and they came up with innovative ideas to attract more customers. John had transformed his business, and he owed it all to a stronger focus on HR.

Like John, many business professionals fail to recognize the power of effective human resource management. However, industry veterans, time and time again, have underscored the tremendous impact of robust HR practices on business success. Far from being a mere support function, HR is a strategic partner capable of shaping an organization’s future, building a competitive advantage, and driving organizational success.

In this article, we delve into insights and strategies shared by industry veterans on how to drive business success with stronger HR. We debunk misconceptions, highlight the core role of HR in business, share success stories, and provide practical advice on crafting a solid HR strategy. This isn’t about transforming your HR; it’s about transforming your business through HR. So, are you ready to drive your business to new heights? Let’s embark on this journey.

Drive Business Success with Stronger HR: Insights and Strategies from Industry Veterans

The Core Role of HR in Business

A misconception in many organizations is that HR is primarily for conflict resolution or event planning. These are mere fragments of HR’s role. In reality, HR acts as the spine of an organization, holding together the business’s operational, strategic, and people elements.

A report on Human Capital Trends underscores this point, revealing that organizations with a strong HR function exhibit 3.5 times more revenue growth than their counterparts.

The strategic importance of HR cannot be overstated, as it contributes to the very core of an organization’s operational and strategic functions.

Strategic Business Partner

HR’s role goes beyond merely executing business strategy; they contribute to the formulation of business strategy. HR professionals must understand the intricacies of the business environment, industry trends, and competitive landscape to help develop strategies that drive organizational success. They are critical in ensuring the organization’s talent pool is equipped to deliver strategic objectives. As the earlier report indicates, businesses with a strong strategic HR function are more likely to witness higher revenue growth.

Fostering Innovation

Innovation is a critical driver of business success. HR plays a significant role in fostering an innovative culture by building diverse teams, promoting a safe space for ideas, and rewarding creative thinking. The influence of HR in defining the organizational culture significantly impacts the extent of innovation within the enterprise.

Change Management

In the swiftly transforming landscape of both for-profit and non-profit sectors, change remains the only constant. HR plays a crucial role in managing change, ensuring smooth transitions, and minimizing resistance. Whether implementing a new business strategy, adopting new technology, or managing mergers and acquisitions, HR’s role in facilitating change is critical to business continuity and success.

Data Analytics for Decision-Making

With technological advancements, HR is also becoming a hub for data analytics. Using various HR metrics, businesses can gain insights into employee performance, engagement levels, attrition rates, and more. These insights aid in making informed decisions and developing strategies for talent management, retention, and succession planning. It also helps in predicting and managing risks related to human capital.

Building Employer Brand

In the modern talent market, having a strong employer brand can give companies a competitive edge. HR plays a vital role in building and promoting the employer brand, which helps attract, retain, and engage high-quality talent. This branding extends to the organization’s internal culture, affecting employee morale, engagement, and productivity—all of which directly impact business success.

Sustaining Business Ethics

Lastly, HR is the guardian of business ethics, ensuring the organization operates with integrity and responsibility. HR’s role in upholding ethical standards and ensuring compliance not only minimizes legal risks but also enhances the company’s reputation.

In essence, HR’s role as the spine of an organization represents its influence on business strategy, operations, people management, and organizational culture. Understanding and leveraging HR’s strategic potential is vital to driving business success.

Crafting a Strong HR Strategy

A strong HR strategy serves as the underpinning of a successful business. It aligns the business’s human capital with its long-term goals, fostering an environment that promotes productivity, innovation, and engagement. Here are key insights from industry veterans on developing a robust HR strategy.

Align with Business Strategy

The first step in crafting a robust HR strategy is to ensure alignment with the business strategy. The HR strategy should support and enable the achievement of business goals. This requires a deep understanding of the business’s strategic objectives and how the organization’s human capital can contribute to these objectives. This alignment is vital to ensuring that HR initiatives directly impact business success.

Conduct a SWOT Analysis

Just as businesses conduct SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis, the same should be done for your HR strategy. Analyze the current state of your HR processes, your organizational culture, the capabilities of your HR team, and your workforce. Identify areas where your organization excels and where it falls short. Understand external opportunities and threats, such as labor market trends, demographic shifts, and legislative changes. This analysis will provide a solid foundation for your HR strategy.

Define Clear Objectives

Based on the business strategy and your SWOT analysis, define clear objectives for your HR strategy. These might involve attracting and retaining top talent, developing leadership capabilities, improving employee engagement, fostering diversity and inclusion, or enhancing workplace culture. Your objectives should be SMART – Specific, Measurable, Achievable, Relevant, and Time-bound.

Develop Key HR Initiatives

Once you’ve defined your objectives, identify key initiatives to help you achieve them. For example, if one of your objectives is to improve employee skills and engagement, an HR initiative might be to invest in employee engagement programs. As per a study by Gallup, companies that invest in employee development see a 21% increase in productivity. An organization’s competitive advantage increasingly depends on its ability to learn faster than its competition. On the other hand, if your objective is to eliminate toxicity in the workplace, you may champion a culture that values respect, diversity, and openness. Your objective may also be to attract top talent. In that regard, an HR initiative might be to strengthen your employer brand.

Implement HR Tech

Technological advancement is a critical aspect of a modern HR strategy. Implementing the right HR tech can streamline processes, enhance efficiency, provide valuable data insights, and improve overall HR effectiveness. Consider utilizing digital solutions for talent acquisition, performance management, employee engagement, learning and development, and HR analytics.

Measure Outcomes

Just as with any business strategy, it’s essential to measure the outcomes of your HR strategy. Establish key performance indicators (KPIs) that align with your objectives. These might include turnover rate, time to fill positions, employee engagement scores, or diversity ratios. Regularly review these metrics to monitor progress and adjust your strategy as needed.

Review and Revise

A strong HR strategy is not static; it should be regularly reviewed and revised as necessary. As business objectives change, market conditions evolve, and workforce needs shift, your HR strategy should adapt. Regular review ensures your HR strategy remains relevant and effective in driving business success.

A robust HR strategy requires thoughtful planning, alignment with business goals, and a commitment to continual improvement. Done right, it can harness the full potential of your human capital and significantly contribute to business success.

The Success Story: Google’s People Operations

Google, with its industry-defining products and reputation for innovation, has long been regarded as one of the most desirable places to work. At the heart of Google’s success is its unconventional approach to HR, or as they call it, “People Operations.” Let’s check out what this operation entails and how it contributes to Google’s success.

Data-Driven Decision Making

Google has adopted a highly analytical, data-driven approach to HR decisions. The company collects and analyzes vast amounts of employee data, allowing it to make informed decisions about hiring, promotion, development, and retention. This data-driven approach reduces biases and ensures that HR decisions are based on evidence rather than gut feeling.

For instance, Google’s Project Oxygen, a research initiative launched in 2008, aimed to identify what makes a great manager at Google. The team analyzed over 10,000 observations about managers, spanning more than 100 variables, including performance reviews, surveys, and other reports. The outcomes were the eight critical behaviors of successful managers at Google, guiding their leadership development programs ever since.

Employee Engagement and Well-being

Google understands that employee engagement and well-being are critical drivers of productivity and innovation. Google’s offices worldwide are designed to be comfortable and inspiring, with amenities like on-site gyms, free meals, game rooms, and relaxation spaces.

In response to the stress and burnout experienced by many tech workers, Google has also invested heavily in employee well-being initiatives, including mindfulness programs like “Search Inside Yourself.” Such programs not only enhance employee well-being but also promote emotional intelligence and leadership skills.

Innovation and Freedom

Google encourages its employees to be innovative and offers them considerable freedom. Its ‘20% time’ policy allows engineers to spend one day a week working on a project unrelated to their primary job description. This freedom to explore and experiment has led to the creation of some of Google’s most successful products, including Gmail and AdSense.

Open Communication

Transparency and open communication are vital elements of Google’s culture. Google’s TGIF (Thank God It’s Friday) meetings, where executives answer questions from employees, are a testament to this. This openness fosters trust and engagement and ensures all employees feel heard and valued.

Focus on Learning and Development

Google is committed to the ongoing learning and development of its employees. It offers many development programs and learning resources, including in-house training programs, tuition reimbursement, and more. By investing in its employees’ growth, Google is able to innovate and stay ahead of the competition continually.

Industry Veterans on Strengthening HR

Many industry veterans have shared insights on strengthening HR, which can provide valuable takeaways for business professionals.

Digital Transformation

According to Josh Bersin, a prominent HR analyst, companies should embrace digital transformation in HR. Technology can enhance efficiency, facilitate employee engagement, and offer data insights for informed decision-making. Bersin states, “Just as we manage money, we must strategically manage and monitor our people.” In the era of remote work, leveraging HR tech tools like AI for recruitment, cloud-based HRIS, and virtual collaboration tools have become critical.

Focus on Employee Experience

Jeanne Meister, a partner at Future Workplace, emphasizes the importance of employee experience. “The employee experience drives the customer experience,” she claims. In her view, HR should work on creating a workplace where employees feel valued and involved. This includes everything from flexible working arrangements to recognitions and benefits that cater to the diverse needs of employees.

Diversity, Equity, and Inclusion (DEI):

Diversity is more than a buzzword; it’s a business imperative. Industry veteran Johnny C. Taylor Jr., CEO of the Society for Human Resource Management (SHRM), stated, “Inclusivity means everyone has the opportunity to fully participate in creating business success.” HR leaders should foster DEI, not just for its inherent ethical value but because diverse teams lead to better decision-making and business performance.

Case Study: Microsoft’s HR Transformation

In recent years, Microsoft has undergone a significant HR transformation, leading to substantial business success. In 2014, Satya Nadella became CEO and brought a new philosophy: “Employees must find meaning in their work.” This belief initiated a culture change, with HR playing a vital role.

Growth Mindset: Microsoft introduced the concept of a “growth mindset,” encouraging employees to learn from failures and view challenges as opportunities. This cultural shift played a significant role in boosting innovation and productivity within the company.

Performance Management: Microsoft ditched the traditional performance ratings system and introduced more frequent, development-focused conversations between employees and managers. This change fostered better relationships, improved feedback quality, and increased employee engagement and satisfaction.

Leadership Transformation: Microsoft revamped its leadership competencies to reflect its growth mindset culture. It started valuing leaders’ ability to bring clarity, generate energy, and deliver success. This change contributed to creating a motivated, collaborative, and efficient workforce.

The result? A significant increase in Microsoft’s business performance and a massive increase in profit. As of December 2014, the company’s stock price per share closed at $46.45. On the other hand, as of June 1st, 2023, the company’s stock price per share sits at a whopping $332.58. This represents a massive 616.42% increase in stock price. The Microsoft story reaffirms that HR strategies, when aligned with the company’s goals and culture, can lead to a significant business success.

The HR-Business Success Connection

A dynamic understanding of the HR-Business success connection is crucial in the current business landscape. The belief that HR is merely an administrative function is outdated and impractical. The reality is that HR holds a key role in driving business success, acting as a strategic partner in shaping an organization’s future.

Let’s explore this idea of HR as a strategic partner.

Unlike traditional HR functions, which often focus on operational tasks such as recruitment, payroll, and compliance, strategic HR involves a deep understanding of the business’s goals and developing human resource initiatives that align with these goals.

For example, if a company’s business strategy involves expanding into new markets, the HR strategy might focus on attracting, developing, and retaining employees with the skills and experiences needed for this expansion. Similarly, if a company aims to drive innovation, HR might focus on creating a culture that encourages creative thinking, provides opportunities for continuous learning, and rewards innovation.

But the connection goes even more profound. Consider the concept of employees as a competitive advantage. Today, organizations operate in a highly competitive, rapidly changing environment. In such a landscape, a company’s people – their skills, creativity, commitment, and adaptability – can be a significant source of competitive advantage.

In this context, HR’s role becomes even more critical

HR is responsible for attracting, developing, and retaining these valuable employees. HR strategies, such as employer branding, talent management, employee engagement, and learning and development, can help organizations build a talented, committed, and innovative workforce to drive business success.

Moreover, by helping to build a positive organizational culture, HR can enhance employee morale, productivity, and loyalty. These factors contribute not only to a company’s competitive advantage but also to its reputation, customer satisfaction, and financial performance.

In essence, the HR-Business success connection lies in the understanding that HR is not merely a support function but a strategic partner, a builder of competitive advantage, and a driver of transformation. This connection is increasingly critical in our dynamic, competitive, and people-centered business world. It’s about recognizing that business success is not just about products, technologies, or strategies – it’s about people. And it’s HR that connects these people to the business’s vision, goals, and strategy, driving success and shaping the future.


Every business’s journey is unique, but one thing is universal – the power of HR in driving business success. So, invest in your HR function, value your people, align your business and human strategies, and watch your business thrive. As an industry veteran and HR thought leader Libby Sartain said, “HR’s responsibility is to the community of employees first, then to the managers, and through satisfying these first two constituencies, they deliver to shareholders.”

Harness the insights from industry veterans and learn from the success stories of companies like Google and Microsoft. With more robust HR strategies, your business can cultivate a motivated and high-performing workforce, ensuring sustained success in an ever-evolving business landscape.

Every organization has its unique strengths, challenges, and goals. It’s not about replicating another’s HR strategy but about understanding your business profoundly and creating a tailored HR strategy that aligns with your business objectives.

Remember, your people are your greatest asset, and HR is the steward of that asset. When you nurture this asset with a strong HR function, you set your business on the path to success.

In an era of rapid technological change and increasing workplace expectations, HR’s role has never been more crucial. It’s time to view HR not as a cost center but as a strategic partner that can significantly contribute to your business’s success.

Take inspiration from industry veterans, learn from successful businesses, and embark on your journey to strengthen your HR function. Your business success depends on it.