HR Matters

My recent move from Corporate HR to HR Consulting has prompted much review and reflection about the profession I love. What does the future hold for HR? Are we at risk of becoming extinct? Do we need to reinvent ourselves or simply evolve our practices and capabilities? This is the first in a series of posts aimed at exploring these questions. 

As I see it there are four key disruptors that should be driving all HR professionals to re-evaluate the role we play in organisations:

1.   Volatile business environment

2.   Rise of the gig economy

3.   Changing workforce demographics

4.   The internet of things

Volatile business environment 

Marketplace disruptors such as technology and globalisation are driving a greater rate of business change than we have seen in the past 10 years. Can that even be possible? More change then before? It seems that organisations are reinventing themselves in an effort to remain relevant and profitable. Restructures, headcount reductions, closures, mergers, acquisitions, entry into new markets have all become the norm. Now more than ever businesses and leaders need to be agile and change ready.  

HR has a key role to play in supporting, maybe even driving organisational agility. But to do this, we need to move up the value chain from a focus on operational execution to strategic advice and business coaching. I know the HR as strategic partner concept is not new but I truly believe this is where we need to be. Operational excellence is now only a hygiene factor – our entry to the game. Business advice and support, strategy and coaching is how HR will truly add value in the future. The question is does HR have the will to keep moving up the value chain? If we have the will, how do we build the right capabilities within our HR functions? And what will it take to identify, develop and retain agile leaders for the future? 

Rise of the gig economy

Generally speaking, in a gig economy individuals operate as freelancers moving from organisation to organisation but ostensibly working for themselves. By 2020, more than 40% of the US workforce is expected to work in this way. This is a game changer. HR and indeed business leaders can no longer manage organisations, they need to manage individuals. How does the role of HR change throughout the employee lifecycle when the employee is in fact no longer an employee? What will leaders need to do differently? How will organisational culture need to adapt?

Addressing these questions will require HR to fundamentally shift its thinking in the area of talent management. Very few organisations currently include contingent workers in performance management or reward programs. Many contingent workers find their way into organisations through procurement not through HR. I doubt these approaches are sustainable as the mix between permanent and contingent employee continues to move. We will need to re-think our talent management frameworks to embrace both traditional and non-traditional workers - new on-boarding procedures, reward approaches that make “giggers” feel valued and development programs that move leaders from a command control approach to one of collaboration, partnership and mentoring. 

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