How is the evolving role of HR Professionals influencing Enterprise Success? | HR Tech News
“As the pace of change increases in every aspect of our lives, HR professionals have become change champions in many companies around the world, and this has generally been much to their employers’ advantage”.
-David Ulrich, Professor and Author of ‘HR from the Outside In: Six Competencies for the Future of Human Resources’.
As early as the 1990s, the idea behind the evolving role of HR Managers (HRMs) began taking shape as most HRMs began to shed the ‘Manager’ title in their hierarchy and adopt the titular ‘Personnel’ nomenclature. This suggested that as organisations became more agile in functioning, complemented by the advent of newer technologies and tools, HR leaders began to discard their redundant job roles and adopt a more people-oriented focus.
In a recent report by KPMG, around 39% of the HR leaders surveyed had stated that the entry of technologies like Artificial Intelligence, Machine Learning, Natural Language Processing (NLP) and Deep Learning has resulted in a role change, whilst others disagreed.
The digital transformative journey for organisations boosted automation and the entry of intelligent HR Tech platforms, freeing up time for HR personnel to drive enterprise growth. Developing competitive HR strategies, as well as cost-effective processes, has earned HR professionals their spot at the decision table, with CHROs contributing directly towards an enterprise’s success!
Beginning as mere enforcers of corporate policies and processes, HR executives are now turning into leaders that are responsible for managing human capital to become key performance drivers.
The constantly maturing role
With the creation of a C-level position for HR leaders, CHROs are now assisting the Management directly to impact revenue metrics by developing innovative strategies to address Talent Retention, Talent Acquisition, Compensation & Benefits and Performance Management.
HR professionals and CHROs can no longer focus on regular corporate activities and are now required to deliver high-level insights for guidance and leadership to usher in the future of work.
And when we address the ‘Future of work’ ideology, it eventually boils down to Human Capital Management and the overall Employee Experience (EX).
Building a strong workforce
If reports are to be believed, then Employee experience spending has increased by over 40% in 2019 alone. Organisations are investing heavily to maintain comfortable working environments, provide enviable compensation packages and create a more inclusive workforce.
Industries that rely heavily on Human Capital (for employee billable), retention of experience workers is balanced against the acquisition of skilled labour.
L&D has become a core functionality for HR leaders, ensuring that employees are regularly up-skilled/re-skilled for incoming demands. Moreover, providing clearly defined career paths for employees ensures their future goals are on-track, thereby elevating the overall employee experience.
CHROs are constantly re-inventing the Employee Experience to ensure that talent stays firmly rooted within the organisation.
Furthermore, with the entry of the GenZ-Millenial workforce and the rise of the ‘Gig Economy’, the need to keep employees comfortable, motivated and updated has increased drastically.
Technology related decisions
Just like CIOs are expected to make calculated decisions regarding the buying/upgrading of enterprise IT software, CHROs are now expected to understand whether or not specific HRM tools are beneficial and aligned with the organisation’s vision.
The HRM market cap is expected to cross the USD 30 Billion mark by 2025, with some experts expecting the industry to reach this mark within another 2 years!
Be it for Talent Acquisition, Workforce Optimization, Talent Transformation or even Payroll Management, the market for HR Tech products is heavily diluted with dozens of international juggernauts and thousands of regional competitors.
Hence, CHROs are required to understand the effectiveness of a tool, UI/UX and overall integrability (with pre-existing systems), before committing to invest millions of dollars into the product.
Hence, with the onset of the Digital Revolution, a HR’s role has transcended into a more involved and employee-centred focus. HR personnel are updating themselves with the shift in dynamics, as an enterprise’s success is now resting on their shoulders.