Why do you believe HR is still seen as an order taker in some businesses?
HR has historically been seen as an order taker because it was born out of necessity for administrative and compliance-related functions. Early HR departments focused on tasks like payroll, hiring, and ensuring compliance with labour laws. While these functions are critical, they positioned HR as a reactive service rather than a strategic partner.
In many organisations, this perception has persisted because HR has not consistently stepped into a more transformative role. Moreover, there’s a lingering perception gap. Many businesses struggle to quantify HR’s impact because the results of good HR practices - such as strong culture, high engagement, and lower turnover - are not as immediately visible or measurable as, say, quarterly revenue.
This disconnect can cause HR to be undervalued and relegated to a supporting role, fulfilling requests rather than influencing strategy. To change this, HR needs to proactively demonstrate its value.
It must shift from focusing solely on execution to asking the critical questions: How does this decision align with our business goals? How are we preparing for future challenges? And how do our people strategies drive commercial outcomes?
What are the main contextual shifts pushing HR to increase its commercial impact?
Rapid technological advancements, particularly in artificial intelligence and automation, are transforming how businesses operate and how employees work. The rise of hybrid and remote work has also decentralised teams, creating new challenges for collaboration, productivity, and engagement.
Globalisation has intensified competition for top talent. Companies are often competing globally. That shift pushes HR to think creatively about employer branding and to offer compelling employee value propositions that appeal across diverse geographies and cultures.
Finally, employee expectations have evolved. Workers are demanding purpose, flexibility, and wellbeing—and they’re willing to leave employers who can’t deliver. The rise of ESG [environmental, social, and governance] initiatives has also placed pressure on HR. They [employees] expect businesses to address issues like diversity, inclusion, and sustainability.
What does it mean for HR to be a 'commercial thought provoker'?
A commercial thought provoker is someone who doesn’t just execute orders but actively shapes strategy and challenges conventional thinking. For HR, this means moving beyond traditional roles like recruitment and compliance to become a driver of business innovation and success. It’s about aligning people strategies with business goals and being unafraid to ask tough questions or challenge outdated norms.
For instance, if leadership proposes aggressive hiring targets, a thought-provoking HR leader doesn’t simply say, “Okay, we’ll hire 50 people.” Instead, they ask: “What’s the business impact of adding 50 people versus optimizing current talent? What skills are truly critical, and how do we ensure these hires align with our culture?”
This approach ensures that HR isn’t just following directives but driving outcomes that are sustainable and aligned with long-term goals.
Many businesses struggle to quantify HR’s impact because the results of good HR practices - such as strong culture, high engagement, and lower turnover - are not as immediately visible or measurable as, say, quarterly revenue
At Sparta Commodities, for example, we’re exploring policies like uncapped vacation and innovative recognition programs. These are deliberate strategies we’re using to foster a high-trust, high-performance culture. Being a thought provoker means leading these conversations and showing how progressive people strategies can directly enhance commercial performance.
How else can HR leaders drive business transformation?
One powerful lever is culture. HR can embed traits like adaptability, innovation, and resilience into the organisation by fostering an environment that rewards them.
This might involve a re-think of performance metrics, building cross-functional collaboration opportunities, or creating systems that celebrate experimentation and learning. HR can also lead the charge on diversity and equity of opportunity. Research consistently shows there’s a commercial advantage to diverse teams—they’re more innovative and make better decisions.
Adopting approaches like people analytics can HR help, too. Looking at data-driven insights into everything from turnover trends to productivity rates allows HR to measure the impact of initiatives, predict challenges, and make smarter, faster decisions.