The HR diamond: The new buzzword in managing people

The Human Resources team in every business and other organizations, the one that recruits, trains, pays the salaries, disciplines employees, and solves their grievances, has experienced a series of transformations and metamorphoses over the last five decades. They were called personnel, then human resources, and today, the latest buzzword is Human Capital.

They are going to come together on February 4 and 5 virtually, of course, here in Cebu, for a historic summit to discuss very compelling topics on leadership of people and management of people activities in all corporate and other organizations. The transition from Human Resources to Human Capital emerged with the advent of globalization and trade liberalization. They are changing the name of Human Resources because resources can be used, abused, disposed, encumbered, sold, or alienated. The people in the organizations are now called Human Capital so that they shall be considered as investments that create values and not burdens to organizations and businesses. Thus, it is not politically right to manage people. We lead people and we manage operations, we manage organizations. Thus, the better terms are leading people and managing businesses.

Along these new waves of thinking, this writer, as a long-time HR practitioner for more than 40 years, has created the HR Diamond, which is the analogy representing the four main components and functions of the Human Capital leadership. First, we have Talent Acquisition, which is the new name for Recruitment and Hiring; second, Learning and Development, which is now the lingo for Training, Coaching, and Mentoring; third, Total Rewards, the new buzzword for Compensation and Benefits; and fourth, Organizational Justice, the new nomenclature for Employee Relations, Labor Relations, and Industrial Relations. These are not merely peripheral changes in names. There are substantial enrichment in the contents of these functions.

For instance, Talent Acquisition is not merely putting up ads in newspapers, inviting applications for newly-opened job vacancies, or just reading résumés, interviewing applicants and conducting qualifying exams. This includes business conglomerates investing in academic institutions, as well as business taipans and industry moguls donating professorial chairs to universities to train high-caliber human capital for the future engagement by the sponsoring companies and executives. Training now is not just formal classroom instruction, it includes high-level executive coaching, mentoring, and behavioral counselling. They include on-line and digital learning modules that are attuned to the imperatives of the times.

Total Rewards are not only limited to financial compensation like basic salaries and allowances. They encompass non-monetary compensation packages like foreign leaves, paid vacations, cars, club memberships, training opportunities, housing and leisure packages, stock-sharing options and handsome retirement packages. These are benchmarked with the best and the latest in the regional and in the global arena. Organizational Justice is not just the usual adversarial investigations and grievance deliberations, and CBA negotiations and litigations as well as concerted actions. They now include collaborative schemes and more cooperative activities aimed at win-win results and outcomes.

If diamonds are forever, the HR Diamond is now the timeless gem in leading people and managing organizations, with ARM, meaning companies that Attract, Retain, and Motivate their people to create high-quality output with optimum impact to the business goals. The HR Diamond is the latest “in” thing. HR and line managers and professionals should attend the twin summit this coming fourth and fifth of February. They might be left behind if they won't.