HR SHIFT!!

Most companies today face declining revenues, increasing costs, shrinking market share and depleting shareholder value. What does HR do in this situation? How will HR play its role to truly bring sustainable value to the company?

In the future, the HR's role will no longer be constrained to warming seats in the back office. It will play a critical front office role to address workforce performance issues and create sustainable business value. Traditionally, HR spends as much as 90 percent of its time, effort and costs on activities such as salary administration, medical claims processing, training coordination and employee-employer issues resolution. The remaining 10 percent is typically used for strategic HR work.

In the new paradigm, HR will have to allocate as much as 60 percent its time, effort and costs to perform strategic work and create workforce capabilities for profitable growth.HR is changing its role to the following -

• Strategic Business Partner—Address workforce and organizational impacts on business challenges and contribute directly to business plan.
  
  
• Change Leader—Lead company-wide leadership and culture change program, provide change management advice to guide business results.
  
  
• HR Functional Expert—Manage service providers instead of doing operational work, to increase efficiency within the HR function.