HR and higher Ed: same page or different books? A focus on strategy in contributing to the school's mission is crucial for institutional HR officers

University Business, Jan, 2007 by Carol Patton

TAKE A GOOD LOOK AT your Human Resources department. What kind of grade does it deserve for helping your school achieve its key goals? At some schools, HR would barely pass, maybe even flunk.

HR officers are rarely invited into the leadership circle that addresses critical issues and makes key decisions about the school's future direction. The reason has little to do with small budgets or lack of metrics for HR activities and everything to do with whether the department's initiatives are aligned with the school's goals.

Much has been written about this topic over the past five years, yet there are still HR departments whose activities don't really contribute to their institution's overall mission. Instead of focusing on strategy, they keep busy with a variety of transactional or administrative issues. While those are important, HR still must learn to speak the language of business.

A lot of HR department staff and leaders choose to get so wrapped up in daily administrivia, and then get so bogged down and don't take the time to strategize, says Mike New, vice president of HR at Saint Michael's College (Vt.), a liberal arts school that supports about 500 employees and 2,200 students.

New grew up in corporate America, where HR was typically a big part of the strategy development process. So when he came to the college five years ago, it was natural for him to dive into strategy work. However, not everyone is comfortable with that role, he says.

According to the Society for Human Resource Management "2006 Strategic Management Survey Report," 75 percent of the 427 responding HR professionals (from all industries) stated that their HR department had a strategic plan in place. Of those, 96 percent felt the plan was aligned with the organization's strategic plan. Likewise, about three-fourths of respondents considered their own role and the role of their HR department as a combination of strategic and operational functions. Could we say the same about HR departments in higher education?

IN THIS TOGETHER

HR must take the time to understand business issues in order to develop effective programs that help achieve school goals. For those who work in HR roles, think about it. When was the last time you sat down with the dean of students or head of Admissions to learn about their unique challenges?

As an example, New points to a problem that nearly every employer faces: rising health care costs. While most schools explore different ways to minimize expenses, it's often difficult to achieve. Employees typically balk at paying higher copays and other out-of-pocket medical expenses. Sometimes, it can create strained or adversarial relationships between employees and the school, resulting in low morale and high staff turnover.

Several years ago, New says employees at his school had no idea about health care costs and probably thought someone other than the school paid for their medical expenses. To make matters worse; there was an "us against them" mentality between the administration and employees.

So he began conducting employee presentations across campus, focusing on how the school's health-care plan worked, how much costs have risen over recent years for the self-insured college, how much employees collectively contribute and how these costs fit into the overall financial well-being of the school. Then he addressed how the school's health benefits stacked up against other area employers, which also served as a retention tool.

"My goal was to say, 'We're in this together,'" New says, adding that HR must be patient. Change usually takes a long time in higher ed. "Now when we make changes, employees understand. It makes the process as we go forward much more collaborative," New says.

ACROSS BORDERS

There are many different ways to go about understanding the business of higher education at your school. One small college designed HR to be an integral component throughout the school. There is no segregation--HR's fingers touch every function or department.

"We take a unique approach that may not fit a traditional university," says Maurine Findley, executive vice president at Neumont University (Utah), who oversees HR and a number of other areas, including finance, student services, and operations. The college offers two degrees--an MBA and a B.S. in computer sciences--to its 290 students.

But even if the college achieved its planned growth--supporting multiple campuses--Findley says HR would still assume a broad role.

Take career services as an example. At many schools, this is a completely separate department from HR. But not at Neumont. One of the school's goals is to increase student enrollment by between 10 and 15 percent each year. On the employer side, demand is high for techies. More than 90 percent of its graduates are typically placed in jobs. However, interest in computer science at the high school level has been dropping.

So HR crosses a border and gets directly involved with career services. Together, they routinely survey employers about the school's graduates. Was their resume representative of their knowledge and job skills? Do they possess the right skills to perform their job?