HR transformation

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HR transformation describes the evolution of the HR function. It is the process of seamlessly adapting and integrating service delivery, talent, and technology into HR strategy to create greater business value—by driving both operational excellence and strategic impact. For HR leaders, it’s about evolving their own role and the HR function to better align people, strategy, processes, and technology with business goals to deliver more impact for all stakeholders.

HR has always been critical to enterprise operations as a function because the department is responsible for workforce planning and performance management, aligning talent strategies with the greater business vision. However, as we move into a more agile world of work, HR transformation is becoming the cornerstone of many business transformations. Now that talent is the greatest driver of competitive advantage—77% of business leaders believe that retaining talent is very or moderately important for the future of their organization—the right approach to HR transformation will make or break business outcomes.

Every business is facing the same crossroads. Leaders need to decide whether they will hold onto old frameworks that are quickly becoming obsolete or embrace new tools and operating models as they reimagine ways of working.

It’s becoming clear that enterprises must rapidly evolve their strategies to thrive in the new world of work. Consequently, HR transformation is a necessity for businesses that are looking to outpace the competition.

It offers several game-changing benefits:
Position HR leaders as strategic partners
HR can no longer be seen as workforce administrators. HR leaders are now key players in shaping the future of the business by building a new blueprint for successful talent management. Stakeholders across the organization must recognize the value of HR and work in tandem with HR leaders to achieve strategic priorities

Unlock capacity and drive efficiency
A core component of successful HR transformation is shifting to skills-based talent management. When organizations’ talent strategies are rooted in skills, leaders can efficiently access the capabilities they need to get key projects across the finish line and empower employees to achieve their full potential.

Enhance employee experience
Workers want more from their employers than ever before and it falls on HR to ensure that these expectations are met. Employees want to see their organizations stepping up and making a difference, taking a stance on societal issues, and providing their people with choice and agency. These asks can only be achieved through an HR transformation strategy that empowers leaders to retire obsolete rules and embrace new ways of thinking.