The Future of HR and the Need for Change: New Operating Models to Deliver Increased Value

The Future of HR and the Need for Change: New Operating Models to Deliver Increased Value

The Future of HR and the Need for Change: New Operating Models to Deliver Increased Value

The Future of HR and the Need for Change: New Operating Models to Deliver Increased Value

Excerpt

“The HR proffession should not be defined by what it does, but by what it delivers” ULRICH 1997

This report is about the future of the Human Resources (HR) profession; and in particular the changes in the organization, roles and skills through which the profession delivers value.

The development and adoption of new organizational solutions such as the creation of `shared service' organizations for the delivery of back-office HR transactions, combined with the growing interest in outsourcing (of both single services such as recruitment and training as well as the entirety of the HR administrative operation), has posed a new set of challenges and opportunities for the HR practitioner. These trends have also occurred at a time of heightened scrutiny of the role of the HR executive. The economic uncertainty of the last few years in many industrial economies, the growth of globalization and the increased pressure on Boards of Directors has led to demands that HR revalidate its contribution to the business. The ability to contribute to the strategic debates within a boardroom will increasingly be seen as important as the depth of technical understanding of HR processes, tools and techniques. The change in expectations combined with the continued pressures to squeeze costs, restructure and deliver headcount reductions will ensure that HR Directors and their teams truly need to partner with the business leaders they support, and seek to demonstrate their ability to deliver strategic advice while serving their internal customers with fewer resources. However, while repositioning HR as a strategic partner makes sense to many at a conceptual level, on a day-to-day basis it may be a little unrealistic. Only those who are truly in significant positions in the organizational hierarchy can realistically claim to the label of `business partners'. Those occupying positions much below board level may struggle to make the impact that the business partner role demands.

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