HR Evolution or HR transformation?

While many Human Resources (HR) functions doubt that a simple evolution of their ways of doing things is sufficient in the current context, others are struggling to complete their journey towards a more strategic role. Here’s a look at the trends that are leading to these challenges.

Influential trends

Employee experience: the customer experience, which is so important for customer relations, is now becoming an important HR issue. The employee experience is becoming, among other things, a must for attracting and retaining Millennials.

Digitalization and mobility: Current HRIS solutions offer the promise of digital innovation, including multi-channel interaction, mobile services and self-service. With the increased accessibility of open candidate directories such as LinkedIn, their adoption often requires a profound revision of the way things are done.

Cloud computing and data science: The shift to virtual HR platforms is accelerating the use of new techniques such as predictive models, automated employee interaction – which supports the concept of self-service – and artificial intelligence to better target candidates. However, these innovations require new skills to take full advantage of them, and the scope normally attributed to HR is becoming subject to review.

Organizational agility: Agile approaches specific to IT projects have given rise to organizational agility, a major trend that affects all organizations. HR’s central role is to effectively support the company’s efforts in this shift while meeting the challenge of making its own processes more agile.

Engagement and mobilization: Young people are more demanding and less patient than their predecessors. With the increased presence of multi-site or virtual teams, HR must now be creative in helping organizations attract and retain high-performing, engaged and mobilized employees.

Well-being at work: the next generation no longer adheres to the idea of working for the same company for a long time. Favoring their freedom and variety, they are forcing a fresh look at the notions of work-life balance, career and loyalty. The balance of power between employer and employee is therefore bound to change.

Role of the manager: a historical figure of decision-making authority, the modern manager now presents himself as a coach and a performance lever. Let’s not forget that the new generations have grown up with collective work and co-development approaches. Hierarchical authority seems outdated and lacking in transparency, as does the annual performance evaluation. HR needs to change managers into engaging leaders who provide constructive and frequent feedback.

HR Transformation: a must?

Because these trends disrupt the status quo of traditional HR practices, each represents a significant challenge. Cumulatively, they destabilize and force a profound rethinking of the traditional HR model.

Since traditional approaches to change are not well adapted to the complexity of the challenge, shouldn’t the HR function rely on a more global and transformational approach?

The context and business strategy of each organization must be taken into account in this reflection.

 

This article was originally written for E3 Services Conseils’ Winter 2018 Newsletter in collaboration with Isabelle Morin, CHRP.