by Jenny Reid
In the rapidly changing landscape of global business, Human Resources (HR) is no longer just an administrative function managing payroll, recruitment, and employee records. The trajectory of HR's evolution over recent decades shows a clear shift toward becoming a strategic driver within organisations, a vital partner in shaping corporate success and mitigating human-related risks.
Since the 1990s, HR has been "at a crossroads," with its role continually shifting amidst broader economic, technological, and societal forces. Initially, the focus was on elevating HR from a primarily administrative support role to that of a strategic business partner.
Following the 2008 financial crisis, HR had to balance cost-cutting initiatives with strategies for talent retention and employee engagement. During the COVID-19 pandemic and the so-called "Great Resignation," HR's role was further challenged to navigate remote work, labour shortages, and evolving employee expectations.
Now, as we face the impacts of Artificial Intelligence (AI), political shifts around Diversity, Equity and Inclusion (DEI), and a hybrid workforce becoming the new norm, the stakes are even higher. It's clear that the internal dynamics of HR, how decisions are made, problems are formulated, and opportunities are seized, are at the heart of its future survival.
The current crisis isn't solely external; it's internal. HR professionals are overwhelmed by complexity, with many feeling unable to cope with the challenges they face fully. This internal crisis in thinking and decision-making hampers HR's ability to contribute strategically.
To transcend this impasse, one of the key things that HR must adopt is a more proactive role focused on managing human risk, which is one of the most significant threats and opportunities for businesses today.
At iFacts, we believe that HR can significantly enhance organisational resilience and performance by playing a more strategic role in minimising human risk through comprehensive employee screening, background checks, employee satisfaction initiatives, and lifestyle audits.
These tools enable HR to:
Identify risks early: Screening and background checks help prevent bad hires, theft, fraud, or reputational damage. With sophisticated verification tools, especially in Africa, where document authenticity can be challenging, HR can ensure they're making informed, compliant decisions.
Foster a safety culture: Regular employee satisfaction assessments and lifestyle audits can flag potential issues before they escalate, ensuring a safer and more engaged workforce.
Align talent with business strategy: A deep understanding of employee backgrounds and risks feeds into broader strategic planning, helping align talent acquisition with long-term corporate goals.
Reduce human-related expenses: Bad hires can cost a company a significant percentage of their annual salary. Proactive screening reduces turnover, legal liabilities, and the risk of workplace misconduct.
What HR Can Do Differently
Integrate human risk assessments into strategic planning: Move beyond reactive hiring to proactive risk management.
Leverage technology and local expertise: Use AI-powered verification tools, digital databases, and local knowledge networks to authenticate qualifications and detect fraud.
Create a culture of transparency and continuous improvement: Regularly review and update screening processes and foster an environment where honest dialogue about risks is welcomed.
Focus on employee well-being: Satisfaction surveys and lifestyle audits not only reduce risk but also enhance engagement and productivity.
The future of HR depends on its ability to adapt from a transactional, operational function to a strategic powerhouse. By embedding robust employee screening, background verification, and risk mitigation practices into the core of HR activities, organisations can better navigate the complexities of the 4IR and beyond.
In doing so, HR not only survives but thrives, unlocking human potential, strengthening organisational resilience, and contributing meaningfully to sustainable growth. It's time for HR to step up as an essential strategic partner, your organisation's most vital asset in managing human risk in an uncertain world.
Jenny Reid is a Human Risk Expert and Professional Speaker, and the owner of iFacts based in South Africa, a specialist employee screening and vetting service. She is constantly assessing new and innovative ways to remove the people risk in any organisation. Since 2009 when she took over iFacts completely, she has seen the company double in size and hopes to continue this growth. iFacts specializes in employee Screening, risk assessments, employee wellness, investigations, and truth verification. Jenny is a past President of the Security Association of South Africa. Contact Jenni via email jenny@ifacts.co.za
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