Human resources professionals are undertaking 'heroic work,' and market demand continues to rise

For much of the pandemic, the scope of HR work expanded. Now, however, the industry faces another kind of expansion: the HR job market is unusually hot.

According to research data recently released by Indeed, from early February 2020 to the end of September 2021, HR job postings on Indeedincreased by about 87%. This not only puts HR in competition with production and manufacturing, pharmaceuticals, and other industries in terms of job growth, but also makes it far higher than industries such as construction, food service, sales, hospitality, and tourism.

In HR Dive's 2020 HR Identity Survey, HR practitioners often mentioned the increased importance of their roles; 75% said theytook on work beyond their HR duties, whether temporarily or as part of their daily work. Industry veteran Josh Bersin said both types of expansion align with what HR organizations experienced during the pandemic.

"Almost every problem that came up during the pandemic was related to HR," Bersin told HR Dive. "I talk to HR people all day long. In a sense, this has been the most important period of their careers. They are under tremendous pressure, but they are truly doing heroic work."

Some executives describe the current state of the industry in similarly optimistic terms. Mike Webb, Executive Vice President and Chief Human Resources and Administrative Officer at Canadian fertilizer company Nutrien, said that during the pandemic, HR has been the "go-to function."

"The HR organization really was the center of everything related to the pandemic," Webb said, noting that his team needed to integrate organizational components from areas such as public affairs, facilities, information technology, and law. "What organizations learned is that the value of the HR team as a connector is incredible."

In short, this is a rare opportunity for HR to take a leading role. "Because of what happened over the past 18 months, HR teams have had to step up and take on leadership roles," said Reynaldo Ramirez, co-founder and managing consultant at Thrive HR Consulting.

"No longer boring"

All these factors have also prompted changes in how other business functions view HR, which may boost outsiders' interest in the industry. Ann Feyerherm, professor of organizational theory and management at Pepperdine University's Graziadio Business School, said this perception may also be reinforced by increased awareness of the importance of human capital in improving performance.

"I think people are beginning to realize that the human element of a business is just as important as its financial capabilities," Feyerherm added. She said social discussions around workplace issues such as diversity, equity, and inclusion may also increase HR's appeal, as may the general perception that companies are underperforming in these areas.

"It's not just about recruiting a diverse workforce; it's also about how to change organizational culture," Feyerherm said. "People realize that helping organizations think through these issues requires more specialized skills."

Bersin said the result of the past year and a half is that the skills and capabilities required of HR professionals have expanded significantly, including experience design, product management, and design thinking. This has even increased HR's appeal to outsiders.

"What a boring job," people outside the industry used to think, Bersin said. "Well, it's no longer boring now."

Specifically, Ramirez said, departments are looking for candidates with strong project management skills, as well as those with analytical and data science experience. He added that the latter are often asked to analyze an organization's vast HR data to spot trends and conduct predictive analytics.

Webb said Nutrien's enterprise resource planning system has facilitated an increasingly analytical view of HR internally. "It puts information in the hands of HR and its clients that didn't exist before," he noted.

This has helped Webb's team more closely analyze hot-button issues such as attrition risk, especially in the current labor market. But Webb said the problem with relying on turnover rates as a measure of organizational health is that it is a "lagging indicator," a result of past events. Instead, Nutrien's HR analytics focus on leading indicators such as time-to-fill positions and candidates' career plans, skill sets, and feedback.

This example may show that a commitment to analytics alone is not enough. "Statistics matter, and we need to look at them carefully, but what is truly most useful to us?" Webb said.

How to maintain momentum?

If November 2021 was HR's moment in the spotlight, it is natural to ask how the industry can continue to develop after the pandemic. Bersin believes that one of the biggest lessons of the past year—that HR can serve as the connector for the organization—may be exactly what the industry needs to do.

Webb agreed; "The pandemic provided HR with a great opportunity to act as a connector, bringing various parts of the organization together... Maintaining these relationships, continuing to build these networks, and taking on leadership roles is very important."

Moreover, leadership will not forget the importance of a strong HR function after the pandemic. "Leaders remember their experiences going through difficult times," said Jason Walker, co-founder and CEO of Thrive HR Consulting. "If you relied heavily on HR, you will essentially want to have a team you can rely on in the future."

Research also shows that even when industries reduce staffing, this does not always mean HR departments will shrink, Bersin said. As the pandemic forced HR teams to continually work on "redesign projects" focused on changing established processes like remote work, he noted that HR's workload increased further.

"These redesign projects are no longer long-term projects," Bersin said. "They are constantly happening."

This is another reason HR staffing may increase. "HR departments are flooded with a large amount of new work, so they have had to add resources on top of their existing staff to meet demand," Ramirez said.

Advice for HR job seekers

Bersin believes that industry professionals can advance their careers simply by joining projects and teams, even if the products, functions, or departments involved are usually unrelated to their daily work.

"Join a project you've never worked on," Bersin said. "You'll find you know more than you think you do."

As HR becomes increasingly aligned with core business functions, Ramirez said it is important for mid-career HR professionals to be familiar with these functions so they can effectively "talk business first, then HR." He added that rather than identifying problems, he believes employees need to become problem solvers.

"The value of HR lies in being able to execute and execute flawlessly," he said.

Webb said data analytics and artificial intelligence are crucial; "Make sure you understand what a digital organization looks like—a truly digital organization—and how digital organizations use AI to make decisions in HR." Similarly, he noted the importance of having financial acumen when discussing business decisions.

Then there are those just entering the HR field. Bersin said that if a person is in this situation, it is important to find a company that "takes HR seriously, rather than just having you sit around running reports all day." He also said it is best to avoid organizations that view HR merely as a compliance function. Instead, he added, job seekers can "look for a company that is truly willing to go the extra mile financially to improve the employee experience," as this may lead to more interesting projects in the future.

Walker said that even if a person is unsure whether their skills fit HR, they may be surprised. He recounted a conversation with a colleague who had a background in survey research and wanted to apply for a position focused on employee engagement. He added that for people whose skills can cross over, like in this example, now is the best time to consider a career change.

"This might be the best time," Walker said. "I would seize the opportunity now."

Feyerherm pointed out the importance of thinking creatively about HR solutions. For example, recruiters may want to become familiar with innovative hiring models, such as the open hiring models that retailers and a few other companies have piloted in recent years.

Walker said that in interviews, regardless of experience level, candidates should point out their experiences helping their organizations get through the past year and a half. He noted this is crucial given the important role HR will play in the coming generational transition.