Every organization’s asset is its human resource; this is something HR knows very well. Strategizing on how to effectively cater for its assets is what HR seeks to do daily. This means shedding of old ideas that are no longer working, and bringing on board fresh models for HR optimization.
Mercer, an American global human resource and related financial services consulting firm, has come up with new HR models which they believe will enhance the role of HR in dealing with the next generation of workforce.
- HR leaders need a new perspective for transformation to work this time: In order to establish the next generation HR service delivery model, the HR leader must see transformation of the function as both a personal mission and the most important means for contributing to business success.
- HR Centers of Expertise (COEs) must shed transactional services to drive new thinking: In next generation HR functions, transactional work will be shifted out of the COEs to Shared Services or to external partners.
- HR needs fewer Business Partners and they must fully embrace their new role: Business Partners will work on an equal footing with senior management, directly advising and supporting these leaders as they make strategic people decisions. In fact, many Business Partners will have direct experience in the business itself, rather than only in HR.
- A new role – the People Development Manager – will be created with responsibility for coaching line managers to help them refine their people management skills.
- Shared Services and outsourcing are keys to achieving the strategic model: In the HR function of the future, most of HR’s resources and the bulk of its administrative, transactional and operational work will be located in Shared Services. Transactions that cannot be resolved in the service center will be addressed via face-to-face interaction with the HR Case Manager.