Source | LinkedIn : By Rakesh Seth
ORGANISATIONS OF FUTURE WILL FACE BIG CHALLENGE OF KEEPING THEIR SUPPORT FUNCTIONS (HRM, FINANCE, & OTHER FUNCTIONS) FULLY ENGAGED FOR 8 HOURS
In this post we will an make attempt to understand the big challenge that HR is facing in the organisations. There are an incredible number of pressures on today’s organisations. To name a few: environmental pressures such as increasing globalisation, rapid technological change, and tougher competition; organisational changes such as new organisational alliances, new structures and hierarchies, new ways of assigning work, and a very high rate of change; changes in the workforce, including employees’ priorities, capabilities, and demographic characteristics. Within these pressured organisations, there is a need for (and opportunity for) the human resource function to play a critical role in helping organisations navigate through these transitions. In order to play this role, however, HR will have to increase its real and perceived value.
NEW GENERATION ENTERING THE HR DOMAIN IS HIGHLY QUALIFIED SO UNDERSTANDING OF BUSINESS AND FINANCE NUMBERS WOULD BE EXPECTED KNOWLEDGE TO BE POSSESSED
Impact of Technology
Latest trends indicate that there are two primary drivers of change in HR: technology/Robots and talent management. Specifically continuous innovation in technology/Robots will fundamentally change the way HR work is accomplished.
The impact of technology/robots on HR work is not underestimated. The following are the important catalysts for change include a. Increasing use employees self service through web-based portals b. increasing sophisticated use of predictive data analytics and robots b. Outsourcing of HR activities/functions will increase and expanded to many organisations. robots are taking over technology driven work.
Technology has not only free HR from administration work it also provides the vehicle to leverage information about the workforce. Equipped with hard data HR can know more, do more and be better business advisors. The need for effective talent management has enormous implication for HR professionals broadly defined, talent management is a company’s ability to attract motivate and retain employees. While talent management has always been part of HR mission of demographic and market forces will bring new urgency to cultivating a workforce that offers the competitive advantage.
How relationship will be evolved
The relationship between employees (their capability, commitment and satisfaction with employer) and a company;’s ability to gain market share has been an intriguing management topic for two decades while several highly successful companies correlate their success directly to investment in employees, few organisations focus on the drivers affecting employee performance. Some employees now believe that a more powerful link exists between their employees and their brand identity than was ever possible to achieve through an advertising campaign – thus creating new relevance for HR’s role in these organisations.
Therefore Outsourcing every product services now delivered by HR including the option to outsource the entire function. HR must genuinely determine how it can add differentiated value by keeping a product or service in house and where outsourcing offers a stronger product, delivered more efficiently. Yet outsourcing decisions must be part of a company;s overall people strategy.
From where the HR Heads will be groomed
The top HR slot is no longer reserved for the career HR professional. Increasingly business experiences coupled with highly developed consulting skills is the requisite background for senior HR roles. While there will always be a need for seasoned technical experts, in house business partner roles require real business understanding and the ability to formulate and deploy HR strategies aligned with business objectives.
Where will be the next generation HR professionals come from?Most of today’s professionals came up though the ranks of in house HR department, where the training is largely on the job. The environment provided the opportunity for professionals to specialise in specific HR disciplines to achieve a level of mastery across disciplines. This career path is likely to disappear. As in house HR departments outsource more to speciality firms the entry point for HR careers will be with vendors or consulting firms creating more specialists than generalists in the future. In view of huge outsourcing of HR functions companies will face challenge of developing HR professionals from within the organisation.