Keeping up with today’s fast-paced marketplace is a concern for many HR departments. This is why HR transformation should be a priority for forward-thinking companies.
Because the marketplace itself is transforming, businesses themselves must also transform.
In this article, we’ll take a look at HR transformation in detail – why it’s so critical and how to get started.
HR Transformation: Why, What, and How
HR transformation means modernizing HR processes.
There are a few reasons to undergo such a transformation:
- Many HR departments are not up-to-date with current digital trends and technological advancements
- Today, there is heavy competition for talent – so HR must rethink its approach to talent acquisition and management
- There is a growing awareness of the ROI of employee engagement – which means HR must play a more central role in career development
- Organizational change has become the norm, adding more responsibility when it comes to change management
These are just a few of the biggest reasons HR transformation has become so important today.
Below, we will look at 7 points to focus on during your HR transformation journey.
7 Tips for Your HR Transformation Journey
This list is by no means comprehensive, but it is an excellent starting place for your HR transformation journey.
These 7 points will help you understand why HR should transform, what to focus on, and how to do it.
1. Operational Efficiency
One of the biggest reasons to transform – and one of the central pillars upon which to build your transformation program – is efficiency.
Today, HR operations are not nearly as effective or efficient as they could be.
This is no one’s fault – in many cases, it is simply because the marketplace has moved faster than HR.
As we’ll see below, this often entails digital transformation.
However, it also means adopting modern business practices, adjusting to modern work cultures, and ensuring that HR plays a strategic role in the organization as a whole.
2. Process Standardization
How standardized are your business processes?
Standardization is essential to improving workflow, quality, and productivity.
As a result, HR itself will operate more efficiently. And it will generate better results for the organization.
Finally, employees will be happier and more engaged.
There are a number of ways to standardize processes inside HR departments:
- HR software
- Business process automation software
- Project and task management software
Virtually every process can be standardized or automated, including specific HR functions such as employee training and onboarding.
3. Digital Transformation
Digital transformation does not just include technology adoption.
It also refers to implementing a digital culture, using digital tools, and improving digital literacy.
Because HR departments are becoming more central to organizational strategy, they need to stay modern and digital.
This means using new HR tools, integrating with the organization’s digital workflow, and understanding how digital technology impacts today’s workforce.
4. Business Value
During HR transformation, departments should focus on their role as value creators within the organization.
No department is an island – and HR is no exception.
In today’s organizations, HR adds strategic value to the organization in a few ways:
- Employee engagement and retention
- Training and onboarding
- Career development
- Leadership development
- Change management
Each of these types of programs – which will be explored in more detail below – have a direct impact on the organization’s bottom line.
The more that HR understands this, the more valuable it will be to an organization.
5. HR Maturity
How mature is your HR department?
Any HR transformation agenda should gauge its current maturity level, then find out how to move up on the scale.
At the bottom of the scale is a company that does not manage its personnel, recruitment, or talent at all.
At the top of the scale is an organization that operates holistically, with HR actively participating at the strategic level.
Understanding where your organization fits in will help you create a goal-oriented transformation program.
6. Change Management
Change management is essential for today’s evolving organization.
HR must play a central role in change management, regardless of the size of the organization.
While large organizations may have dedicated change teams, smaller companies may rely on HR to manage the people side of change.
Regardless, it is important that HR work closely with change leaders and change managers to effect change.
When it comes to HR transformation, this may mean change management training, organizational development certification, or other education.
7. Integrating with Business Strategy
To be most effective, HR should be operating as a strategic partner within an organization.
Naturally, this depends on a great deal – executive support, the organization’s structure, resource constraints, and many other factors.
However, HR can work towards improving its status by engaging in dialogue with business leaders.
The more that HR can understand its role within an organization’s overall strategy, the better it will be able to contribute to the company’s mission.
HR transformation is ultimately about enhancing its business value.
As mentioned here, this should be approached from a few angles – improving internal HR processes, thinking more strategically, and adapting HR for the digital age.
The more an HR department can transform itself, the more relevant, profitable, and valuable it will become within an organization.