Taking HR To The Next Level

Implementing a more valuable model for HR

For some time, the familiar description of what human resources, “HR,” offers a company and its people has shifted and evolved into a broader, less-traditional function within an organization. Established protocols for HR usually consist of overseeing employment and managing everything from benefits to recruiting the right talent. Today, this department, typically found in every organization, has diversified. In forward-looking enterprises, HR is increasingly seen as a potential engine of growth and strategic partner to the business. However, there are significant barriers for HR achieving this elevated position and HR leaders will need to try new things to take their function to the next level.

A recent research study by Accenture offers proof that HR is not only beginning to think strategically, but that business leaders see the function positioned within the strategic heart of the enterprise. The HR professionals we spoke to have aligned their priorities with business concerns such as increasing profitability (59 percent), keeping up with competitors (49 percent) and generating new business (49 percent).

Business leaders, meanwhile, identified core HR activities as some of the most important enablers in meeting their goals. Two thirds, for example, cited ‘reskilling the workforce’ as a key enabler, on a par with significant business and technology enablers like automation and artificial intelligence (AI) (62 percent); risk mitigation (63 percent); and use of cloud technology (64 percent).

HR and business leaders are also aligned when it comes to the workforce requirements needed to cope with today’s business challenges. Here, creativity, ecosystem collaboration, and the ability to envision and realize change topped the list for both HR and business respondents.

Despite this alignment, most HR teams are not yet realizing their strategic potential within enterprises. This is because a number of barriers stand in the way of optimizing HR.

Some of these barriers are based on perception. Our survey shows that business leaders view HR as a static function that’s much slower to change than other parts of the business. This is damaging in a business world marked by rapid and far-reaching change – if HR is to prove its credentials as a strategic partner then it must be able to demonstrate change.

Other barriers relate to reskilling. Business leaders are aware that their organizations will increasingly rely on high-level digital skills to thrive, but HR professionals see less urgency in this task. In our survey, 54 percent of executives were concerned that their business lacks necessary skills in data analytics, AI and machine learning. However, just 41 percent of HR respondents agreed. Similarly, 56 percent of executives want more people versed in digital business models, but only 46 percent of HR respondents see that as a pressing need.

Technology, of course, also promises to make significant changes. AI and automation propose to transform HR by automating transactional tasks, freeing time for HR professionals to focus on strategy. In this focus, data analytics and AI-derived insights can help them identify hidden trends and make the best possible decisions for employees and the business alike.

However, HR seems to undervalue the impact of technology. Only 44 percent of HR executives noted the importance of the use of automation and AI as business enablers, compared to 62 percent of all respondents. Additionally, HR teams are missing an opportunity around data. 51 percent of the business executives we spoke to said that the ability to make data-driven decisions is the top business driver that will benefit the organization while just 28 percent of HR professionals thought the same. If HR is to transform into an intelligent operation that can react to business change it must embrace these analytics tools.

A new and more valuable model for HR is within grasp, but first HR teams need to embrace change. We’ve identified five key steps that your HR function can take to complete your move to the strategic center of the business.
 

1. Be business-relevant: It’s not enough to simply excel at HR processes, you need to excel as business partners. This means proactively driving the business agenda forward through the people, underlying programs and policies that support them.

2. Take a lead on customer-centricity: Just one in five respondents to our survey cited ‘staying relevant to customers’ as a key business challenge. This striking oversight presents an opportunity for HR to take a lead and establish the skills, capabilities, performance goals and metrics needed to support customer-focused operations.

3. Build an agile workforce: Currently, the management of permanent and contract staff is usually split between HR and procurement respectively while outsourcing companies take care of payroll and benefits data. If HR is to use analytics to create a more agile workforce, it will need to bring together and work with all the process, technology, and data owners.

4. Refocus reskilling: Budgets sometimes limit HR teams to basic training only. This needs to change. Your organization must make a business case for reskilling to get the most of your current employee base. Higher-level digital skills are critical to the growth of your business.

5. Become data-driven: To be more business-relevant, HR needs to consider broad issues such as how a person is aligned to the business in terms of skills and experience. Are they producing valuable outcomes, and what’s the value of that production? Gaining those insights requires looking beyond the typical HR data set.
 

Time is ripe for change. Enterprises need new ways of securing sustainable growth, and HR transformation promises just that. By focusing on data, customers and business outcomes, HR can elevate itself to the top table and help drive companies to long-term success. 

Jill K. Goldstein is Talent and HR Business Process Services Lead at Accenture. Jill has been helping leading global organizations deliver exceptional experiences for their employees for the last 6 years. Jill is responsible for improving market relevance and delighting our clients—deploying applied intelligence and cultivating innovative talent to help our clients deliver business outcomes. Connect Jill K.Goldstein Follow @JillKGoldstein