‘Back to human’: Why HR leaders want to focus on people again
Curated from: mckinsey.com
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Processes have replaced creativity
For years human-resource leaders were tasked with optimizing labour costs, reinforcing compliance using standardised measures, and supporting the adoption of technology.
The emphasis has been on productivity and how to measure it but the growing question is whether the processes have replaced the creativity and innovation needed to attract and develop talent, manage and reward performance, and optimize workforce strategy.
Many human-resource leaders are eager to shift to the "back to human" model.
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Engage more directly and deeply with employees
The opportunity to build personal relationships has been disrupted by strategies that HR teams have been promoting, including remote performance management and encouraging employees toward self-service.
90% of CHROs find it important to take steps to foster a sense of recognition of individual capabilities and contributions across the workforce, but it is challenging if they do not know their people.
Management lever:
HR should use survey methodology to assess organisational health and then segment responses of employees with particular needs.
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Paving the way to the “new possible"
Agile principles are crucial. CHROs are now identifying hidden stars more boldly and equipping them with the resources and working environment to increase their success.
In the coming years, it will be vital to empower line managers. CHROs focus on the mindsets and skills required to help people throughout the organisation operate in new ways.
Management levers:
Faster, better decisions: HR leaders can help create a dynamic and collaborative structure that can quickly address an organisation's most pressing problems.
The right people: Identifying leaders with the right temperament and character.
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Let them bring their whole person to work
CHROs are thinking about how HR can shift from mechanistic management to addressing the employee experience more dynamically. This means taking a broader view of diversity, equity, and inclusion (DEI) and an employees' sense of purpose to increase job satisfaction and performance.
Management levers:
Inclusion: HR leaders can develop programs focused on purpose and inclusion.
Purpose: A McKinsey survey found that a company that spends time reflecting on the impact it makes in the world significantly increase employees sense of purpose.
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Acting as a 'human capitalists'
The focus of talent acquisition should spread across the entire organisation. Some CHROs talk about creating talent ecosystems ready for changes in the demand and nature of work. This cause executives to look more at independent workers and their skills.
Management levers:
Activist-investor approach: Companies seek to link talent to value by striving to reskill and upskill talent.
Team-based learning causes more successful transformations.
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Organising for the future
To lead organisational change, HR teams should transform themselves from a service function to a leadership role, with the responsibility to help influence culture, operating performance, and staffing.
HR leaders should focus on internal culture and be ready for change yet remain aware of the broader human ecosystem and the markets from which they draw talent. They should spend time observing, listening, proposing, explaining and convincing.
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