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Roadmap to Achieving HR Operational Excellence and Strategic Value in Hybrid Work

HR Tech Outlook | Monday, October 31, 2022

Transforming HR means integrating service delivery, talent, and technology seamlessly into HR strategy to drive operational excellence, strategic impact, and business value.

FREMONT, CA: HR transformation for chief human resources officers (CHROs) entails developing their roles, and the HR function to integrate people strategy, processes better, and technology with business objectives to better influence all stakeholders.

The HR department has long been vital to corporate operations, with responsibilities ranging from staff planning to performance management and remuneration. In the pandemic era, however, HR transformation has become more critical as talent has become an even stronger driver of competitive advantage.

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Hybrid work patterns, cost challenges, and rapidly changing employee expectations present firms with both dangers and opportunities to differentiate themselves by how they attract, retain, and treat people. The transformation of human resources will be a crucial success factor.

What benefits can HR transformation provide?

World-class leadership:   Managing an increasingly hybrid workforce and turbulent business conditions requires CHROs to be strategic thinkers and visionaries.

Modern HR operating model: HR structures must develop to provide the expanding and growing "on-demand" service alternatives that company leaders, managers, and employees seek today and meet the fundamental requirements for business value and agility in HR service delivery.

Future-forward roles and competencies: HR business partners (HRBPs) must be effective in the growing operating model, and HR teams must be able to advise and strategize with business executives regarding hybrid and other evolving work patterns.

Integrated HR analytics and technology: HR leaders must be able to identify and utilize technologies and talent analytics that may assist them in planning workforce strategies, innovating processes, securing remote operations, protecting employee data, and assisting business leaders in making quicker, more intelligent decisions.

The focus of effective CHROs

CHROs who are highly effective produce influence and business results by—constructing a strategy for the HR department and modifying it as the business evolves, spearheading the formulation of corporate strategies, and aligning the HR function (operational model, structure, and personnel) with business requirements.

Budget optimization for the HR function

The top CHROs also understand how to allocate HR leadership among their direct reports to strike a balance between efficiency and control of critical initiatives and establish a fiscally disciplined, future-focused function.

Exemplary of a global-class CHRO

The Gartner Model of the World-Class CHRO presents a road map for enhanced personal performance and leadership based on the greatest traits displayed by HR professionals in five core roles—Board's human capital leader, Author of the talent strategy, Enterprise change leader, influence on culture and mission, and Credible advisor and mentor.

CHROs must debate with their CEOs which of these tasks to prioritize based on the imperatives facing senior leadership and the strategic position and direction of the organization to be most effective.

In their increasingly important roles, CHROs interact more frequently with the board, but many struggles to influence board decisions. Gartner defines success in board interactions as ensuring that the board is in the best position to engage in discussions and make choices that aid the CEO, C-suite, and company in achieving their objectives.

CHROs can promote greater success by ensuring that the board's composition and culture foster openness, trust, diversity, and respect. Both executive and non-executive directors understand their respective roles and are committed to continual development.

CHRO's essential role as talent strategy creator

Notably, while the pandemic and hybrid work environments have not altered the model of a World-Class CHRO, the CHRO's position as a developer of talent strategy and strategic workforce planning has risen to the forefront.

CHROs must identify strategic priorities, examine emerging trends, translate priorities and trends into workforce capacity requirements, and prioritize workforce capabilities to develop a people strategy that aligns with business demands.

Building important skills and competencies was a goal for 59 percent of HR leaders heading into 2022, according to Gartner data, but the task is tough. According to Gartner TalentNeuron statistics, the overall number of skills required for a single job is increasing by 6.3 percent yearly. Many of today's new and growing abilities are also difficult to acquire.

A world-class CHRO will be able to forecast the future workforce and develop long- and short-term sourcing plans based on a comprehensive understanding of the competitive landscape for critical skills through labor market intelligence and talent analytics (also known as human resources analytics, workforce analytics, and people analytics). This enables them to serve as effective human capital board leaders.

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