Introduction
The latest directive? Push for improvements in HR technology and operating models while preserving the “human” element of HR.
Multinational corporations have been managing their workforces according to a single, well-recognized method for decades. The three pillars of this approach—business collaborators in HR (human resources), specialized multi-disciplinary components referred to as excellence centers, and centers for shared service—were developed in 1996 by management coach and professor Dave Ulrich and are tailored to meet the specific requirements of each organization.
That’s evolving. The days of having one HR typology that fits all are long gone. HR is now a key component in helping businesses manage change, and contemporary CHROs are developing new strategies to support the evolution of HR services. A pool of experts who can be promptly called upon to handle the most pressing problems or those with the greatest importance is replacing the 3-pillar model. Because of this, the role of the CHRO is becoming more complex than it has ever been.
How are today’s CHROs expanding the boundaries and purview of the human resources department, along with how are their positions evolving? Continue reading to figure it out.
Which five HR operational models are currently in use?
With the rise of the millennial workforce and hybrid working patterns, workers have made it obvious that they expect to be handled differently. As a result, companies are reconsidering their strategies. A robust, reliable data foundation and an intuitive, incredibly dependable service foundation are the two fundamental components that enable all 5 of the developing HR models of operation that are being examined in detail.
1. Ulrich-plus framework
The traditional HR approach, in the opinion of many CHROs, fails to handle the problems of today, particularly when it comes to large corporations with established business plans. However, by giving human resources business partners additional execution responsibilities and increasing the flexibility of excellence centers, a revised Ulrich model may persuade them to reconsider.
2. Agile model
Proponents of this type of CHRO thinking argue that in order to keep up with the speedy changes occurring in their companies, HR needs to react faster. With a focus on advising senior management, the agile approach has fewer human resources business partners. Excellence Center teams are also dedicated to workforce planning, statistics, and activities related to DEI (diversity, equity, and inclusion).
3. The model is driven by employee experience
By developing an exceptional employee experience, this concept is intended to give a CHRO an edge in the market. For “moments that are important,” like onboarding, this entails dedicating excessive resources. High-level talent is crucial to the organizations using this approach.
4. Leader-led framework
Under this paradigm, a CHRO transfers HR responsibility to the company’s side and provides back-office help with recruiting, onboarding, and training procedures, as well as HR tools, to line managers. Businesses that are investigating this strategy usually employ a large percentage of white-collar employees and place a high priority on development and research.
5. Machine-powered framework
HR specialists under a machine-powered system concentrate on offering advice to employees, leaving chores like absence analysis and talent selection to algorithms. Many digital natives work for companies that are experimenting with digitalization.
A variety of HR strategies may be adopted by a CHRO in a big, diversified company if they discover that certain archetypes are more suited for different business elements.
How does a CHRO reintroduce “human” to human resources?
HR directors have been battling with a greater focus on cost-effectiveness for many years. Their mandate, while commendable, is uninspired: optimize the cost of labor, enforce compliance through uniform metrics, and facilitate technology adoption. Management has been forced to concentrate more on efficiency as well as ways to quantify it in the most important and culturally important facets of HR: recruitment, development, and learning.
For every corporate function, technology represents an essential driver of value generation. A CHRO needs to establish a connection between business choices and technical insights in HR. Four approaches to this process are as follows:
1. Interact with workers more personally and thoroughly
Rejecting self-service options, a number of CHROs in Europe we spoke with expressed a desire to restructure their departments in order to interact with workers more directly. In order to make distant conversations feel personal, it is preferable to conduct procedures in person with personnel, or at the very least, with sufficient individualized or customized attention.
2. Give workers the freedom to be who they are at work.
Most CHROs that we met with expressed a desire to tackle the employee situation in an improved and innovative manner. Considering DEI in the workplace from a wider perspective as well as recognizing and addressing workers’ sense of mission may be necessary to achieve this.
3. Let the “new possibility” come to pass.
By distributing decision-making throughout the company, a CHRO can bring agile workforces to life. Encouraging staff across the board to adopt agile attitudes and abilities will be crucial, as will empowering managers in charge.
4. Become “human capitalists”
In order to adapt to shifts in the sort of work needed and alterations in demand, a CHRO may need to broaden her/his perspective on talent. For example, in order to enhance flexibility and access various talent pools, they would need to hire more freelancers and temporary workers—not necessarily to reduce expenses.
In relation to talent, what are the best ways for a CHRO to attract and retain highly skilled tech personnel?
Following the tech layoffs in 2023, an analysis revealed that over 80 percent of the laid-off technical staff were able to secure new employment within 3 months, most of them with established organizations. This implies that incumbents are growing more “techie,” while technology businesses are getting slightly less so.
In order to enhance their companies’ technological prowess, a CHRO ought to collaborate effectively with tech executives to investigate novel methods for locating, assisting, and expanding technical knowledge. HR and technology executives can prioritize skills over experience when it involves sourcing for key technology positions. Leaders may leverage digitization to optimize procedures wherever feasible while also fostering a talent pool for technology. Leaders might suggest particular training that a worker might require prior to an event or in advance of an in-house change by using digital methods and technologies like psychometrics or gen AI. Last but not least, in order to grow a skills-based approach to work, leaders must guarantee ongoing re-skilling and up-skilling.
What potential effects might Gen AI have on HR?
Gene artificial intelligence (Gen AI) has applications beyond computer science. With eighty percent of occupations able to integrate gen AI technologies and abilities into work processes now, according to OpenAI, the AI research group that created ChatGPT, CHROs may play a significant role in easing employee fears about loss and replacement. By the close of this decade, general artificial intelligence (gen AI) will reach par with humans in a wide range of technological domains, such as multi-agent coordination, social and affective output, and comprehension of natural languages.
A CHRO has numerous significant methods to apply gen AI to influence talent management. By assisting in the training & up-skilling process and making it easier for staff members to take up new abilities more rapidly, Gen AI may enhance the worker experience. By opening up greater capacity, it can enable middle executives to concentrate on higher-value duties as leaders including strategy-focused job duties and staff management. In order to provide a more individualized approach, it can facilitate candidate relationships by pointing out additional positions that might suit the candidate’s skill set. Furthermore, with Gen AI, employers may match newly recruited candidates with coaches and mentors to enhance the onboarding process, develop talent, and expedite administrative duties.
HR directors need to be inspiring role models for their organization, emphasizing the organization’s ability to change and its internal culture. Aside from their primary duties, a CHRO should make time for listening, suggesting, elaborating, and persuading in addition to watching and observing.
What are some ways that a CHRO can develop the leadership skills needed to implement an agile change?
Agile working practices can be used in employee management roles, according to some of the insights provided by CHROs from Asia-Pacific and Europe.
The key factor that both helps and hinders an effective agile transformation, they observe, is leadership. A leader’s perspective must transition from one of power to cooperation, abundance to scarcity, and certainty to exploration in order to effectively lead agile transformation. Such changes can have a significant effect. According to one CHRO, the move from individual to group performance review assisted the executive team in dismantling silos and adopting a more strategic mindset.
However, in order to work in novel and innovative ways, mentalities must change much beyond the leadership team, all from headquarters to the front lines. Speaking with a CHRO, we learned how important the quarterly company evaluation process is in changing organizational culture, particularly when it comes to defining goals and important outcomes: “If you’re getting the [quarterly company review] procedures right, I believe it’s an essential component to help propel accountability.”
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Amit2025-03-28 04:24:272025-03-28 04:24:29What Is a Pay Stub and Why It Matters for Employees and Employers
