Andy Brady, Head of DenholmHR, is a seasoned HR recruitment specialist, with over two decades of expertise in the field.
Speaking with senior HR professionals, one frustration keeps coming up – organisations are failing to take a long-term strategic approach when it comes to their people strategy. Instead of looking 5–10 years ahead, businesses are focused on immediate survival, prioritising short-term profits over sustainable workforce planning.
Understandably, given the tough economic climate, many organisations are looking at making it through the end of the year rather than investing in a robust, long-term people plan. However, this short-sightedness is having unintended consequences. HR leaders who were once at the heart of shaping strategic business initiatives now find themselves stuck in reactive cycles, addressing the same challenges year after year with no real innovation. As a result, frustration is growing among HR professionals who want to drive meaningful change but are left handling transactional tasks instead of true business transformation.
HR’s Role as a Commercial Partner
This isn’t just about employee engagement or retention – it’s about the critical role HR plays in shaping commercial success. Historically, HR has been perceived in two ways: as a people-focused function or as policy enforcers. However, the modern HR leader understands that their role must go beyond administration and compliance to directly impact business strategy.
Commercial HR professionals don’t just manage people; they drive business outcomes. They quantify their impact through a model often referred to as “SAM” (Saved, Achieved, Made):
- Saved: Identifying efficiencies that reduce costs—whether through workforce planning, restructuring, or optimising processes.
- Achieved: Aligning HR strategies with wider business objectives, such as expansion plans, operational improvements, or digital transformation.
- Made: Driving profitability through efficiency, whether by reducing time-to-productivity for new hires or streamlining performance management systems.
The Risk of Neglecting Long-Term Planning
While cost-cutting and short-term efficiencies may seem like the logical focus in difficult times, failing to invest in HR’s strategic role can lead to significant long-term risks:
- Talent Drain: Without a forward-thinking people strategy, organisations struggle to attract and retain top talent. Employees who don’t see career growth or development opportunities will seek out employers with a clearer vision.
- Lack of Innovation: Without HR’s involvement in long-term workforce planning, businesses risk stagnation, with outdated skills and processes failing to keep up with industry changes.
- Cultural Erosion: A short-term mindset can erode company culture, leading to disengagement, low morale, and a lack of alignment with company values.
Personalised Learning for a New Era
To overcome these challenges, HR leaders need to reclaim their strategic influence. This means:
- Encouraging leadership teams to look beyond immediate financial pressures and focus on sustainable workforce planning.
- Demonstrating the commercial impact of HR initiatives using measurable data—showing how talent strategy directly supports business growth.
- Pushing for innovation in people management, ensuring HR is involved in discussions about digital transformation, organisational design, and future skill requirements.
The businesses that thrive in the next decade will be those that recognise HR as a fundamental driver of long-term success—not just a function that reacts to the challenges of today. Now is the time for HR leaders to push back against short-term thinking and advocate for the strategic role they were meant to play.
If you’re a commercially minded HR professional frustrated by a lack of strategic vision in your organisation, let’s connect. I’d love to hear your thoughts on how HR can drive real, long-term impact.
Talk to Denholm
We’re problem-solvers. Whether it’s scarce skillsets, cost-effective solutions, or you just needed them to start yesterday… We are experts in hiring the talent you simply can’t find yourself. Contact Andy Brady on 07305 043 327 or andyb@denholmassociates.com for more details.
