World-class experiences don’t happen by chance
According to HR Pathfinders in the KPMG The future of HR: From flux to flow report,1 each organization has a different configuration of capabilities. Some focus on delivering a steady stream of talent, others focus on skills and skill building, and others focus on culture and purpose. What is consistent and underpins all of these Pathfinders’ capabilities is a focus on evidence-based decision-making, greater integration of the sub-functions of HR, and creating a superior employee experience.
Delivering business value
To do this requires that HR leaders work on how the HR function organizes itself to deliver even more business value. Our research suggests HR leaders recognize this, with 60 percent expecting to change their HR operating model within three years.2
More is expected from HR than ever before
“We have to create a single, human-centered, connected, tailored experience across platforms and systems, delivered ‘in the flow of work,’ which meets our employees and leaders ‘where they’re at’. Pathfinders get this and invest and organize HR accordingly—we see the potential benefits from that approach in the numbers and how HR drives success for the wider business.”
Robin Rasmussen, principal, Human Capital Advisory, KPMG in the U.S.
In addition, improving the employee experience across enterprise processes is a key focus for 57 percent of our respondents—of which 31 percent view this as their key capability to deliver. Meanwhile, enabling a culture of organizational agility will be on the agenda for 50 percent, although this was not ranked in their top five in terms of capability to deliver.3
Of course, our Pathfinders are taking their HR organizational approach to the next level—beyond the core tasks of HR. They are ensuring that their operating model is optimized and flowing to help deliver to their organization’s strategic vision.
While HR functions recognize strategic value-add is a priority, not all are helping to drive strategy successfully. Pathfinders do this in their own specific context, demonstrating that it is about understanding the needs of the business, and integrating into the decision-making process by adding real value.
Reflections to consider:
Look at how your HR operating model aligns with the organization’s wider strategic vision.
Ask whether your HR function is balancing processes with informing decision-making.
Think about where HR has a presence in your organization — do you currently provide integrated and connected support across the business?
Question what initiatives your HR function is leading on, and what it is supporting. Do these support the collective vision of the organization?
How is HR setting the example and leading best practice in the organization, and is that being promoted throughout the business?
Is HR taking a holistic view of the organization using data and analytics to inform its own priorities?
Is HR addressing some of the cultural challenges associated with your new ways of working and transformation aims of the organization, or is it reinforcing them?
Is HR listening to its stakeholders and adjusting
For further reading, download the full report: The future of HR: From flux to flow
1, 2, 3 KPMG, The future of HR: From flux to flow, November 2022