HR transformation

why HR needs to change


In Mercer’s recent Global Talent Trends Study, only five percent of HR leaders reported that HR is seen as a strategic partner in their organization. Furthermore, over 80 percent indicated that their talent processes need an overhaul. How did the gulf between what HR intends to be (a strategic partner) and how HR is perceived (an undervalued resource) get so big? 

What’s driving the need for change?


For decades, employers and employees have had an informal contract with implied expectations. Disruption of this employer-employee model has come about quickly, and in many organizations, HR policies, practices, and systems are not keeping pace. A workforce that is more digital, mobile, and contingent brings with it new challenges. Changes in performance management, careers, and the role of the manager also shape the day-to-day employee experience.

What’s next for HR?


In order to address this new reality, Mercer believes that the HR function must be Leaner and more Innovative, and HR leaders must become Technology Drivers and Talent Strategists.

The new HR operating model needs to:

  • Embrace the new work equation
  • Develop and champion programs that support the changing needs of employees
  • Articulate a compelling employee value proposition that is globally consistent but locally relevant
  • Ensure compelling and transparent communications tailored to individuals

There are also implications in the areas of HR technology, the role of the HR Business Partner, and how Centers of Expertise and Shared Services Centers are structured.

HR is evolving at break-neck speed, and HR leaders have a unique opportunity to shape the next chapter.

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