Importance of Understanding the Unique Challenges and Requirements of HR in Social Enterprises

(Here's another excerpt from the book that I am working on.  If you enjoy this article, please share and comment.)

What makes HR in social enterprises uniquely challenging yet profoundly impactful? Unlike traditional corporate environments, social enterprises operate at the intersection of business and community service, requiring HR to balance employee management with a mission to create social impact.

In this excerpt, I explore the distinctive nature of HR in social enterprises, from supporting overlooked roles to fostering a culture of engagement and ownership. My journey from the IT sector to the cooperative movement has shaped my understanding of how HR can drive sustainability and transformation in these organizations.

The Overlooked Backbone: Backend Operations

In my early career, I worked for an IT company where Japanese expatriates highly valued the work of computer engineers. These engineers were often pampered and received all the support they needed to thrive. However, those of us in backend roles—handling operations and logistics—were rarely acknowledged for our contributions. This imbalance left us feeling undervalued despite our crucial role in enabling the engineers’ success.

This experience taught me an important lesson: backend operations are the silent engine that powers the organization. High turnover in these roles disrupts workflows and affects overall performance. When backend employees are supported and recognized, their work directly contributes to the organization’s ability to achieve its goals.

This lesson is even more critical in social enterprises. Recognizing backend staff as strategic partners rather than auxiliary support is key to sustainable growth. By implementing policies and processes that empower these roles, organizations can create a culture of collaboration where every employee feels valued.

Unique Decision-Making Structures in Social Enterprises

When I transitioned to working as an HR consultant for cooperatives, the contrast with corporate structures was stark. In cooperatives, decision-makers are often the members themselves—employees who also own the organization. This dynamic creates a unique HR challenge: balancing the immediate needs of the members with long-term strategic goals.

The frequent turnover of board members through elections adds another layer of complexity. 

HR must continuously educate new decision-makers while ensuring continuity in strategic plans. This requires a level of flexibility and adaptability that goes beyond traditional HR practices.

Moreover, cooperatives' participatory nature fosters a sense of ownership among employees. This involvement leads to higher commitment but also demands that HR design programs that align with members' evolving needs and expectations.

Investing in People: Training for Growth

One standout feature of HR in social enterprises is the emphasis on education and development. Unlike corporations, where training programs must demonstrate a clear return on investment, social enterprises prioritize learning as a pathway to empowerment.

For example, cooperatives often allocate budgets for employee training, focusing on personal growth and financial wellness. This commitment reflects the organization’s mission to uplift not only its employees but also the broader community it serves. In doing so, HR acts as a driver of social impact, equipping employees with the tools they need to thrive professionally and personally.

HR as a Catalyst for Social Impact

The role of HR in social enterprises extends far beyond administrative tasks. It is about fostering a supportive environment where employees feel valued and empowered to contribute to the organization’s mission.

While the general manager typically focuses on operations, HR plays a nurturing role, guiding the organization’s people strategy like a compass. From designing inclusive programs to addressing employee needs, HR ensures that the workforce remains engaged and aligned with the enterprise's social goals.

By integrating processes that promote collaboration, education, and ownership, HR in social enterprises becomes a transformative force—one that bridges the gap between business success and community development.

Conclusion: Transforming Challenges into Opportunities

HR in social enterprises operates in a unique space, balancing the demands of members and employees with the broader mission of social impact. By recognizing the value of overlooked roles, adapting to participatory governance structures, and prioritizing education, HR professionals can transform these challenges into opportunities for growth.

HR in social enterprises is a journey of collaboration and innovation. By fostering a culture that values every contribution, social enterprises can achieve organizational success and meaningful social change.

From Transactions to Transformation – My HR Journey and the Power of Values (an excerpt from Chapter 1)

 As I continue working on my book, I invite you, my readers, to join me on this exciting journey of discovery and transformation. Over the years, I’ve accumulated invaluable lessons from various roles across industries and institutions. These experiences have shaped my belief that human resource management (HR) is more than just a corporate function—it is a mission fueled by values that empower individuals and communities. Today, I’d like to share a glimpse of my journey and the lessons that have led me to this pivotal point, and I’d love to hear your insights and stories as well.

Finding My Path: Early Lessons in Career and Purpose

My professional journey started unexpectedly. I was hired as an executive assistant to a Chinese businessman in the trading industry. Though it was a brief six-month experience, it taught me a valuable lesson: I wasn't cut out for a role that simply involved organizing another person’s life. I craved more—a career where my work directly impacted people's growth and success. This desire led me to transition into HR, and I took my first steps as an assistant in a Japanese IT company.

These early years were eye-opening, filled with roles ranging from recruitment to compensation and benefits and even managing software engineers’ deployments to Japan. I learned the ropes of administrative HR, but my true passion was ignited when I began exploring areas like learning and development. I quickly realized that HR could be a powerful tool for fostering personal and professional growth—not just a transactional function.

Lessons on HR's True Potential

Looking back, I recognize that those formative years of HR were focused on processes and systems. While these are critical components, I began to realize that they often overlooked individuals' deeper, more meaningful needs. In those early stages, HR felt more transactional—a necessary function but one that didn’t always contribute to transformation. That’s when I started to question the very nature of HR and how it could be more aligned with human development.

The Shift to Values-Driven HR

As my career progressed, I became more involved with organizations that championed social development. I began to see HR not just as a function within an organization but as a force capable of driving social change. It was during this phase that I began to understand the true potential of HR—when it's guided by values like empathy, inclusivity, and community empowerment.

I began working with social enterprises, where HR was not only about hiring and firing—it was about nurturing talent, fostering a sense of belonging, and contributing to the greater good of society. This shift was not just a career transition but a personal transformation that made me view HR through a completely different lens.

Your Stories: The Power of Shared Experiences

Now, as I write my book, I want to hear from you. What have been the defining moments in your career that shaped your views on HR and its role in social development? Have you had any transformative experiences in HR that made you rethink its purpose? I invite you to share your stories in the comments below or reach out to me directly.

Join the Conversation

As we continue this journey together, I encourage you to think about how HR has impacted your life. What values do you think HR should embody to truly drive social development? How can HR help empower individuals and communities? Your insights are invaluable, and by sharing them, you’ll help shape the future of this book and inspire others who are navigating similar paths.

Together, let's explore how HR can be more than just a function—it can be a values-driven force that transforms lives and builds stronger, more resilient communities. Your voice is an essential part of this conversation, and I can’t wait to hear what you have to say!