06Jun

Driven by changes wrought by the COVID-19 pandemic, human resources leaders have a full plate of priorities going into 2021. Topping their list is building the critical skills and competencies employees need to be successful at their job.

“Traditional ways of predicting skill needs aren’t working,” says the global research and consulting firm Gartner. “Employees need more skills for every job, and many of those skills are new.”

Presented in HR Leaders Priorities for 2021, an international survey of some 800 HR leaders, 36% of whom are CHROs, Gartner found reskilling the workforce was by far the most important issue for HR professionals. Almost 7-in-10 listed skills and competencies as their most important priority far exceeding the 46% who saw organizational design and change management as a top priority.

That training new skills should have emerged as such a critical issue is hardly surprising given that three-in-10 learning and development specialists said more than 40% of their workforce needs new skills because of COVID. In fact the rate at which the need for new skills just to do the same job is growing so fast that 31% of the HR leaders say they can’t create skill development solutions fast enough.

Leadership and the way the organization is structured are challenges both to the reskilling of the workforce – 36% admitted they don’t even know what skill gaps exist – and to the agility organizations need to be successful.

“Work design, focused for years on efficiency, has left many organizations with rigid structures, workflows, role design and networks that don’t meet today’s needs or flex with fast-changing conditions,” Gartner says. Citing another, smaller survey, Gartner said only 19% of HR leaders are confident their workforce can effectively shift direction to meet changing needs or priorities.

One reason: “Our managers aren’t equipped to lead change,” the Gartner survey found. A second reason: “Our leaders aren’t equipped to lead change,” 28% said.

Gartner identified three other priorities shared by the largest percentages of the HR respondents:

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  • Current and future bench strength (44%): “Our leadership bench is not diverse.”
  • Future of work (32%): “We do not have an explicit future of work strategy.”
  • Employee experience (28%): “Our employee engagement and employee experience strategies.”

Gartner says that in the post-COVID world, where remote work is common, disruption is to be expected and the expectations of employers have changed, it will be up to HR “to develop and evolve critical managerial and leadership roles and responsibilities, new organization structures and virtual HR strategies.”

HR leaders, concludes Gartner, “must navigate the new realities of the labor market to meet their talent needs and the expectation of their employers.”

Photo by Tim Gouw on Unsplash

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Jun 6, 2023

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Jun 6, 2023

The ‘Radical Reinvention’ of Human Resources

Now is the time for a “radical reinvention of human resources,” declares a report from IBM’s Institute for Business Value.

Businesses are adapting to the rapidly and dramatically changing world, says the report, prefacing the findings and recommendations from a survey of more than 1,500 HR executives from a variety of industries.

How they engage with employees must also change. “Enterprises now must become inherently humanized, build engagement with remote employees, foster trust in uncertain times and cultivate a resilient, diverse workforce capable of facing whatever the future may hold.”

This, says the report, is HR 3.0.

HR thought leader Josh Bersin, who collaborated with IBM on the report, explains what that means in his introduction:

“Traditional HR 1.0 departments focus on compliance, administration, and highly efficient service delivery.

“HR 2.0 teams move toward integrated centers of excellence, and focus on training and empowering business partners to deliver solutions at the point of need.

“HR 3.0, which only 10 percent of companies have achieved, turns HR into an agile consulting organization, one that not only delivers efficient services, but also practices design thinking to push innovative solutions, cognitive tools, and transparency into the organization.”

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The report found substantial agreement among the surveyed executives on the key ingredients of HR 3.0, but uncertainty among them about how to evolve their operation. Providing that guidance is the essence of the report.

After studying multiple HR practices, Bersin and IBM identified 10 “Action Areas” drawn from what the most successful companies are doing. “Our analysis has identified ten priority Action Areas critical to the HR 3.0 model. The Action Areas span the breadth of the human resources function, in some cases wholly reinventing traditional people practices.”

These 10 are:

  1. Measure employee performance continuously and transparently
  2. Invest in the new role of leadership
  3. Build and apply capabilities in agile and design thinking
  4. Pay for performance — and skills — in a fair and transparent way
  5. Continuously build skills in the flow of work
  6. Design intentional experiences for employees
  7. Modernize your HR technology portfolio
  8. Apply data-driven insights
  9. Reorient and reskill your HR business partners
  10. Source talent strategically

Though few companies are on the path to 3.0, those that don’t begin to evolve will be left behind.

“Even as leading companies transform their HR model, it’s clear HR 3.0 is not a destination, just a way station. The world is changing too quickly to allow even a hint of complacency,” the report concludes.

“As we continue to face unprecedented opportunities to build better businesses and a much better world, an HR 4.0 will evolve as a model to help us keep doing just that.”

Image by David Mark

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