The structure remodelling of HR provision and to position HR as a business partner defines the transformation in Human Resource. In this two-part series of Human Resource transformation, we will go through the step by step details right from objectives to tools to implementation and troubleshooting.
In this first part, we will cover the basics on HR transformation including, objectives and tools. Then in the second part, we will move to implementation or restructuring of HR and troubleshooting strategies.
HR transformation meaning
It is a process of first recognising the following elements:
– What HR department does now?
– What it should be doing in the future?
– How should the implementation be done?
Objectives of HR transformation
The wider business change including, acquisition, a merger, change of ownership or rapid growth push organisations to transform their Human Resource process. However, at the early stage in the practice of HR transformation, it is imperative for key people to set the objectives right. It will ensure that transformed HR department will not be only able to perform more efficiently but also focus and deliver other business aligned objectives.
The most common reasons for enterprise to go on board on transformation are to:
– Align HR more closely with the firm’s strategy in coordination with people management.
– Meet the business goals, including refocusing on changed priorities or cost reductions.
– Focus on business critical workforce issue including, performance or skills challenge, recruitment, etc.
– Adapt strategic response to cost-reduction pressure instead dealing them in an incremental way.
– Enhance the efficiency and effectiveness of operational processes.
Required tools for transforming HR
Changes to the structure and capabilities of the HR function, changes to the roles of HR team members, outsourcing of all or some HR functions, implementation of technology and changes in the structures and capabilities of the HR function – These factors cohesively delivers the HR transformation.
1. HR Capability and skills
Martin Reddington, Mark Williamson and Mark Withers mentioned in their write-up, “Transforming HR: Creating value through people” – HR teams must include individuals who:
– Demonstrate and articulate the value of their interventions
– Understand the business and valued as business people
– Act as an internal consultant, with the capabilities to create strong client relations
– Comprehend and contribute to the development of the strategy
2. Changing structure and roles
Improving the function and purpose of the HR team, along with the delivery mechanism and accountability for HR within an organisation. It involves reviewing the roles of:
– In-house HR function
– Line Managers
– Any external HR-delivery partner
Most enterprises undergoing the HR transformation realise that developing an HR function that meets the necessities of their business implicates the existence of:
– HR personnel who can act as an effective consultant for their organisation.
– Strategic, strong HR leaders who are not just skilled practitioner but act as business leaders
3. Role of technology
Technology is only one of the many tools in HR transformation that enterprise can use to meet their objectives, but quite significant when used effectively.
A common concern for the organisation is that they have diverse systems that are not integrated, so if there are separate payroll, recruitment and HR information databases. All data must be inputted again and again. Moreover, there are limitations on data analysis across different systems.
Consulting internally & seeking advice on the company’s current and future HR technology strategy is likely to be a significant element of any HR transformation practice.
Increasing adoption of SaaS (Software as a Service) model
The take-up of SaaS model in Human Resource is growing. Under the SaaS solutions, the applications are run on the SaaS provider’s servers. Therefore, services are delivered over the internet. Organisation adopting SaaS not only reduce cost by purchasing and updating software. Also, managers and employees empowered to use the service remotely over the web. Some other benefits of upgrading technology include:
– Analyse and plan working patterns
– Provide more accurate data to measure
How to develop the HR technology strategy?
Making a transition from information management system to engagement based system can be quite time-consuming and expensive process. Afore HR technology strategy is being considered as part of the HR transformation practice, following questions must be contemplated:
– How can the HR team ensure that line managers and employees can use technology to simplify decision making and processes without suffering from information overload?
– How will the new approach to technology help key decision makers at all levels?
– What expectations do employees have for online workplace communications?
– What changes will technology bring about data privacy, security and ownership?
The extent to which members of the HR team can use disruptive tools to transform the way organisation manages Human Capital will apparently be influenced by wider IT policy and budget considerations of the organisation.
Stay tuned for HR transformation Part 2, where we talk about implementation of HR transformation and troubleshooting strategies.