Advancements in HR: The New Operating Model & its Innovation Drivers

Executive Summary

\

Human Resource (HR) practices have undergone significant transformation over the past few years. Traditional HR models, once considered the standard, are now evolving rapidly in response to changing business landscapes. This paper, based on interviews with over 100 chief human resources officers and people leaders, discusses the emerging archetypes of HR operation models and their driving innovation shifts.

\

Technical Background

\

The HR operating model has evolved from the traditional Ulrich model, introduced in 1996, characterized by HR business partners, centers of excellence, and shared service centers. This shift has been influenced by various factors including geopolitical risks, hybrid working models, and a majority-millennial workforce.

\

System Architecture

\

The new HR operating models are being shaped by eight innovation shifts, each typically based on one major and several minor shifts. These models are being used to tackle challenges such as the global COVID-19 pandemic, rapid workplace technology evolution, and the ‘Great Attrition’ of workers.

\

Implementation Details

\

The implementation of these innovation shifts requires HR to adopt agile principles, excel along the employee experience journey, re-empower frontline leaders, offer personalized HR services, and ‘productize’ HR services. These shifts collectively mark a departure from the classic Ulrich model.

\

Code Examples

\

While it might not be typical to have code examples in a HR whitepaper, it’s important to note that modern HR heavily relies on data-driven decision making. Tools and technologies such as HR Information Systems (HRIS) and HR Analytics play a key role in implementing and managing the modern HR operating models.

\

Performance Analysis

\

These emerging HR models have been instrumental in helping organizations navigate the complex business environment. They have not only facilitated alternative, hybrid working models but also address the challenges of monitoring employee conduct and performance, meeting the expectations of a majority-millennial workforce, and dealing with talent shortages.

\

Security Considerations

\

With the advent of technology in HR, data privacy and security have become paramount. HR departments need to ensure strict compliance with data protection regulations and implement robust security measures to protect sensitive employee data.

\

Troubleshooting

\

Problems can arise during the transition to these new HR models. It’s essential for HR leaders to consciously select the most relevant of these innovation shifts and make the transition gradually to mitigate potential issues.

\

Conclusion

\

The modern HR operating models backed by innovative shifts are the future of HR. Organizations that embrace these changes will be better positioned to attract, retain and engage talent, drive business value and succeed in today’s volatile business environment.