Transforming HR: 10 Ways to Go from Compliance to Culture
February 19, 2025
For decades, HR has been seen primarily as a function focused on hiring, firing, and compliance. However, leading organizations recognize that HR’s true value lies in fostering employee engagement, shaping company culture, and enhancing the overall employee experience. Despite widespread acknowledgment of this shift, many executives continue to revert to old habits when faced with pressure. HR leaders and business partners must take proactive steps to drive lasting change within their organizations.
The Shift: From the Old Way to the New Way
Old Way:
- Hiring and firing as primary responsibilities
- Strict compliance enforcement
- Reactive problem-solving
- Viewing employees as resources
New Way:
- Creating a culture of engagement and belonging
- Prioritizing employee experience
- Proactively driving retention and development
- Viewing employees as valued contributors
Helping Executives Move Beyond Lip Service
Executives may voice support for culture and engagement but default to traditional methods under stress. HR leaders can help drive real change by:
1. Connecting Culture to Business Outcomes
Executives respond to measurable outcomes. Show data linking employee engagement to performance, retention, and profitability. Use case studies and internal analytics to illustrate the financial impact of investing in culture.
2. Making Employee Experience a Leadership KPI
Ensure executives are held accountable by integrating employee experience metrics into leadership performance reviews. Metrics can include engagement scores, retention rates, and pulse survey results.
3. Leading by Example
HR leaders must model the behaviors they want executives to adopt. Show how a people-first approach improves decision-making, productivity, and overall company success.
4. Embedding Engagement in Everyday Operations
Move engagement initiatives beyond HR’s domain and integrate them into daily business functions. Encourage leaders to incorporate recognition, feedback, and professional development into team meetings and performance reviews.
5. Providing Executive Coaching and Training
Offer leadership development programs that focus on emotional intelligence, effective communication, and people-first leadership strategies. Facilitate executive workshops on modern HR practices and their impact on business success.
6. Utilizing Storytelling and Employee Voices
Share powerful stories from employees about the impact of a positive workplace culture. First-hand testimonials help leaders understand the real-world benefits of engagement-focused strategies.
7. Implementing Small, Sustainable Changes
Avoid overwhelming leaders with large-scale overhauls. Instead, introduce incremental changes—such as a shift from annual performance reviews to regular check-ins—that gradually reshape company culture.
8. Holding Executives Accountable
Regularly follow up with leadership teams to ensure they are following through on engagement initiatives. Create dashboards or reports to track progress and discuss adjustments as needed.
9. Empowering Leadership with Peer Recognition
When companies utilize a solution like Recognize for social peer-to-peer recognition, leadership can login and discover top employees and employee accolades that drive the employee experience. Executives should utilize these recognitions to highlight achievements in a Friday Roundup.
10. Implement Employee Surveys
When leadership can see the before and after effects of implementing culture change via employee surveys, they will be encouraged to continue the good work towards elevating human resources from the old way to the new paradigm.
Conclusion
Transforming HR from a compliance-focused function to a culture-driven force requires strategic action and executive buy-in. By linking engagement to business outcomes, embedding cultural change into leadership expectations, and providing ongoing support, HR leaders can help executives make lasting improvements rather than reverting to outdated habits. The future of HR is not just about policies—it’s about people.