HR Future-Proofing vs Business Future-Proofing
As companies continue to adapt to the fast-paced changes in the business world, they face the challenge of future-proofing their day-to-day operations. But what does future-proofing mean exactly? To put it simply, it's the process of safeguarding a company from future risks or uncertainties.
However, there are two distinct approaches to future-proofing: HR future-proofing focuses on securing human resources while business future-proofing concentrates on ensuring the continuity of business operations. In this blog, we'll discuss the pros and cons of both approaches, so you can decide which one best suits your company's needs.
HR Future-Proofing
HR future-proofing is about investing in your workforce. It involves skills training and development, succession planning, diversity and inclusion, and employee retention. By focusing on HR future-proofing, companies can prepare themselves for potential changes in workforce demographics, technological advancements, and industry trends, which in turn enhances employee engagement, productivity, and loyalty.
However, HR future-proofing can be costly and requires significant planning and execution time. It is also difficult to measure the return on investment, which may make it challenging for small- to medium-sized enterprises to prioritize.
Business Future-Proofing
Business future-proofing focuses on protecting the business itself from external factors like economic downturns, natural disasters, and financial stability. It includes risk management, financial planning, and innovation initiatives. By implementing business future-proofing strategies, companies can ensure the sustainability and continuity of business operations, regardless of the external circumstances.
Business future-proofing, however, can come at the expense of employee well-being. This approach may require cost-cutting measures, such as layoffs or reduced benefits, to ensure the company's survival. It may also affect employee morale and job security, leading to poor engagement and high turnover rates.
Which One to Prioritize
The decision to prioritize HR future-proofing or business future-proofing depends on individual company needs. A small business starting out may prioritize business future-proofing to secure its foundation, while a large corporation might focus more on HR future-proofing to retain top talents and stay ahead of the competition.
Ultimately, both approaches are essential for a company's success. It's just a matter of choosing the correct balance between investing in employees and securing the business itself.
Conclusion
Future-proofing is becoming an increasingly important aspect of business strategy as companies try to stay ahead of the curve. While both HR future-proofing and business future-proofing are vital parts of that strategy, they have different goals and considerations.
By understanding the difference between the two, companies can achieve a better balance of workforce investment and business safeguarding to mitigate future risks and uncertainties.
References:
- Gartner. (2019). "HR Leaders’ Guide to Future-Proofing Your Workforce."
- Rivers, L. (2020). "Future-Proofing Your Business: A Guide." https://www.business.com/articles/future-proofing-guide/