HR is in the middle of an epic transformation towards becoming an embedded business adviser to leaders and managers.

HR in its current form is having a hard time keeping up with the pace of change, but the time has come for HR to adopt a more efficient model, writes Josh Bersin

2015 is shaping up to be a year of growth and digital transformation, accelerating the need to transform HR. Not only are most companies struggling to build leaders and engage employees in a more competitive job market, technology has transformed the world of work.

Consider the impact of technology. Mobile phones, for example, now make up more than 50 per cent of the traffic on the internet and mobile apps are already more widely used than desktop computers around the world. The result? The average worker now checks their mobile device more than 100 times a day, according to a Kleiner Perkins Internet Trends report.

Our latest research shows that HR is having a hard time keeping up. Fewer than 30 per cent of surveyed HR professionals say they believe they are able to provide an “optimum” work environment for their people, and only 20 per cent say they feel that they are considered business advisers to senior leaders.

There is a solution – drive a new model for HR. Our research shows that today, high-performing companies should put more HR services into the cloud, invest in self-service technologies and easy-to-use talent systems, and free HR professionals to become consultants instead of generalists or administrators. We call this “high-impact HR”, and the keys to transformation are simple.

7 keys to HR transformation

  1. Shift from a centralised to a more “co-ordinated distributed” model with HR leaders and specialists located close to business units. By being local and close to business leaders, they can innovate and drive programs that are locally relevant.
  2.  Shift from a team of generalists to a team of “networked specialists”. Recruiting, organisational development, training, and employee relations are specialist roles, and we need more of them closer to the business. Technology should reduce the number of generalists needed by pushing more of the generalist work onto the backs of integrated technology and tools.
  3. Build a focus on data and analytic-driven HR decisions. Most HR tools today have embedded analytics to help make decisions – teach and enable your HR leaders to turn these tools over to business leaders wherever possible to help with sourcing, selection, hiring and development.
  4. Focus on employee engagement and simplification of work. We have too much technology to deal with, and more than 65 per cent of companies feel they have “overwhelmed employees” according to the Deloitte Human Capital Trends 2014 research report. HR can play a major role spearheading programs to make work more humane and engaging.
  5. Simplify and invest in learning and development. Programs like on-boarding, compliance and technical skills development are becoming critically important in 2015, and many companies let these programs become splintered or under-funded during the recession.
  6. Revamp your leadership model and leadership assessment process. More than 85 per cent of the companies we studied this year have significant leadership gaps – these can only be fixed with a focus and investment in core leadership development.
  7. Invest in the professional development of HR. Many studies now show a dramatic shift in capabilities needed – senior HR business partners embedded in the business need to be consultants; specialists must know their craft. Only with strong internal development, research and benchmarking can HR itself stay ahead of the curve.

HR is in the middle of an epic transformation towards becoming an embedded business adviser to leaders and managers. Take the lead by guiding your team in this direction and you’ll likely be more valued and important to your organisation.

5 top takeaways for HR

  1. Shift HR teams into more coordinated, business-integrated roles – assigned or located in business units or functional areas.
  2. Connect specialists together in “networks of specialists” so they learn from each other but act locally.
  3. Invest in standard tools and technologies to make HR and employees’ lives easier, with a focus on ease of use and self-service.
  4. Build a skills model for HR itself, with a focus on teaching people to act as valued consultants and function as senior advisers to business leaders and managers.
  5. Start and focus programs on on-boarding, employee development, and simplification of the workplace to improve engagement, help address leadership gaps and improve employee engagement. 

 

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