From Human Resources to People and Culture: The Evolution of the Modern Workplace
Article of Beritan Tokdemir from InterSearch Turkey, Ageo International.
The transition from traditional Human Resources (HR) functions to a "People and Culture" paradigm represents a significant trend in the contemporary business environment. This shift not only underscores the administrative responsibilities of HR, such as recruitment and payroll management but also prioritizes the enhancement of employee engagement, development, talent acquisition, and organizational culture.
In this evolving context, the new paradigm underscores the centrality of employee development, engagement, and cultural integration as foundational elements for fostering sustainable business relationships. Furthermore, this approach aligns HR strategies with overarching business objectives, ensuring that organizations are equipped with the appropriate talent to achieve their goals while nurturing a positive and inclusive workplace culture.
This article will examine the similarities and differences between these two distinct paradigms and analyze the role and significance of each in contemporary organizational settings.
Human Resources
Human Resources Management is integral to organizational operations. Typically, HR is responsible for several key functions:
Recruitment and Selection: The HR department is tasked with identifying and recruiting the most suitable candidates for open positions within the organization.
Compensation and Benefits: HR is responsible for designing and managing employee compensation and benefits packages, including determining salaries, managing transportation allowances, bonuses, and other fringe benefits.
Performance Management: HR develops and implements performance management systems to assist managers in evaluating employee performance and providing constructive feedback.
Despite its critical role, Human Resources is often perceived primarily as a support function rather than a strategic partner. Within this framework, HR’s core responsibility is to ensure that organizational HR policies and procedures comply with legal standards and are effectively executed.
People and Culture
The People and Culture (P&C) approach emphasizes cultivating a positive workplace culture that aligns with the organization’s mission and values. Typical responsibilities of P&C include:
Employee Engagement: P&C is responsible for fostering an engaging and motivating workplace culture. This involves facilitating opportunities for employee interaction, providing professional development opportunities, and cultivating a supportive work environment.
Talent Development: P&C focuses on creating opportunities for employees to enhance their skills and advance their careers. This includes developing training programs, offering mentorship and coaching, and providing opportunities for employees to assume new roles and responsibilities.
Diversity: Diversity encompasses the presence of various differences within a particular environment, including race, gender, age, sexual orientation, socioeconomic status, physical abilities, religious beliefs, political views, or other ideologies (University of Michigan - Office of Diversity, Equity & Inclusion).
Inclusion: Inclusion involves creating environments where every individual or group feels welcomed, respected, supported, and valued (National Diversity Council).
While both HR and People & Culture (P&C) focus on workforce management, their approaches differ significantly. HR traditionally emphasizes procedural, policy-driven, and administrative aspects, whereas P&C adopts a more people-centered approach. P&C aims to address employees in a strategic and comprehensive manner, contributing to their development and fostering a workplace culture that aligns with organizational goals and supports business success (Morgan Philips Talent).
P&C is instrumental in cultivating a human-centric and culturally enriched workplace, thereby enhancing employee potential and contributing to organizational success. Although P&C is a relatively recent development in the HR field, it has garnered substantial attention in modern organizations. As work-life balance gains importance, employees seek more than competitive salaries; they desire to work for organizations that value their contributions, support their professional growth, and offer a positive work environment.
In conclusion, this evolving approach can be encapsulated by the following statement: "We transitioned from Human Resources to People and Culture because we recognize that our employees are not merely resources to be managed but individuals to be nurtured and empowered” (Jennifer Vinciguerra, SVP People & Culture, VIPdesk Connect).
About InterSearch Turkey, Ageo International
Ageo International history started in 1991, as the first international search firm in the region. After nearly 30 years of partnering with world’s leading multinationals and Turkey’s most innovative companies, we became the longest-running human resources consulting firm in Turkey, providing top-notch end-to-end HR solutions. Having lived through many business cycles, we have grown into a mature and confident firm.
We combine extensive international experience with a deep understanding of the Turkish market and culture since the beginning. As a first mover of the field, we influenced the way executive search has grown into a recognized and sophisticated consulting business which has now become a choice of a profession for many Turkish business consultants.