HR vs People & Culture - What is the difference?
The People & Culture function within the HR space is gaining significance in today's corporate landscape. With the lines between professional and personal life often blurred, companies are now focusing on cultivating environments that prioritize employee well-being, foster creativity, and foster innovation.
A robust company culture plays a pivotal role in anchoring individuals to business triumph. According to Gallup, organizational culture serves as a "force multiplier" for crucial outcomes and can serve as a potent differentiator for a company. Surprisingly, only 20% (on-site) to 23% (remote) of U.S. employees report feeling truly connected to their company's culture.
The emergence of the People & Culture department signifies an exciting opportunity to bridge the gap between business goals and employee satisfaction, leading to more enriching work experiences that ultimately propel organizational achievements.
What is People & Culture?
People & Culture is a new name for HR that represents a major paradigm shift. The traditional HR department deals mainly with administrative tasks, while People & Culture focuses on a holistic approach to managing an organization’s workforce.
This approach emphasizes the link between fostering a positive work environment and Team Member wellbeing for high-performance outcomes. As such, more organizations are prioritizing People & Culture to create a workplace where Team Members feel valued, engaged, and empowered to contribute their best.
This shift goes beyond rebranding and optics – it signifies a deeper commitment to human-centric business operations, where people come first.
What is the role of People & Culture?
Employee Experience
Creating a positive and engaging environment where Team Members feel valued, supported, and motivated.
Organizational Culture
Building a distinctive company culture aligned with business goals and shared values, which appeals to and attracts/retains top talent.
Total Wellbeing
Supporting good physical, mental, and emotional health enhances Team Member satisfaction and productivity and reduces burnout.
Talent Development
Investing in ongoing Team Member growth and development through training, coaching, and mentorship.
Supportive Leadership
Fostering leadership qualities at all levels to reinforce the company’s positive culture and build a robust management pipeline.
Diversity, Equity, Inclusion, and Belonging (DEIB):
Fostering a working environment that nurtures inclusivity and acceptance so everyone feels included and respected. An environment where everybody can bring their whole self to work.
Strategic Business Partnerships
Instead of a siloed approach, focus on aligning people strategies with overall business objectives to drive performance.
HR vs. People & Culture: What are the differences?
While a People & Culture department includes traditional HR functions, it’s important to note that it goes beyond those responsibilities by creating positive Team Member experiences and a strong company culture.
It also places a far greater emphasis on achieving organizational goals and obtaining higher performance through a happier and more engaged workforce.
| HR | People & Culture |
Focus | Mostly transactional and administrative tasks include payroll, ensuring labor law compliance, and employee record maintenance. | Creating a positive employee experience, fostering a strong company culture, and aligning people strategies with business objectives. |
Function | · Recruitment · Onboarding · Compensation · Benefits Administration · Performance Management · Employee Relations | · Talent Acquisition · Talent Management · Organizational Development · DEIB · Employer Brand · Leadership Development · Employee Satisfaction · Total Rewards |
Approach | Typically reactive, often responding to issues as they arise. | More proactive and strategic, anticipating future needs and trends. |
Role | Operational Administrative | Strategic Advisor Business Influencer Organizational Change Agent |
Objective | Supporting core HR functions and ensuring compliance. | Contributing to overall business success by aligning people strategies with organizational goals. |
Culture | Often siloed within the organization, with a focus on internal operations. | Collaborative and integrated with other departments, acting as a strategic business partner. |
Engagement | Bi-Product After Thought | Focus Area Top Priority |
Metrics | Typically focused on efficiency metrics such as TTF, CPH, QOH & Turnover. | Emphasizes people-centric metrics such as CSAT, EX, Retention & Performance Outcomes. |
The Role
Every key business function within a large organization needs a leader to drive operations and be accountable for outcomes. In the case of People & Culture, this role falls to the Head of People and Culture – a strategic leader responsible for aligning HR functions with business objectives.
This strategic role sets the tone for the department and plays a pivotal role in the following areas:
Strategic Planning
The Head of People & Culture is responsible for translating organizational goals into actionable people and culture strategies. This includes aligning the talent needs of various business units, fostering a culture that supports the company’s objectives, and developing employee engagement initiatives that lead to higher productivity.
Change Management
Given that a dedicated People & Culture role is still relatively new in mainstream business, the Head of People & Culture may be required to spearhead change initiatives and cultivate a culture of continuous improvement. This requires specialized communication and change management skills.
Talent Management
Attracting, retaining, and developing top talent is at the core of the People & Culture function. The Head of this department also oversees talent acquisition strategies and employee development programs. Additionally, they ensure a rewarding work environment to foster high retention rates.
Employee Advocacy
Acts as a bridge between leadership and employees. They champion employee needs, listen to and address concerns, and ensure open communication channels for constant feedback and improvement.
Cultural Stewardship
Plays a crucial role in shaping, promoting, and preserving the organization’s desired culture. This involves implementing initiatives at all levels that clarify, reinforce, and reward behaviors that align with company values.
What are your thoughts?
Is there a role of both or is traditional HR a thing of the past?
This post emphasizes the crucial role of HR professionals in fostering a culture aligned with an organization's vision and performance goals. It stresses that beyond systems and processes, behaviors and values are key drivers of business success. The focus on People & Culture is highlighted as essential for achieving exponential value.
The post underscores the need for HR to prioritize these aspects at both organizational and individual levels to prevent organizational failures stemming from cultural misalignment.
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