8 minute read
strategic hr
richArD hANSoN
No matter how any organization might evolve in the future, it is difficult to envisage an evolution that is not, at least in part, driven by both its people and its technology. Furthermore, the HR function will be the driving force for many of these initiatives.
The COVID-19 pandemic has shown in numerous ways how technology and the HR function can enjoy an extremely positive relationship. Virtual meeting platforms and the capability of collaboration tools have enabled us to shift to remote working arrangements while minimizing lost productivity.
Perhaps even more so post-pandemic, we will be looking towards technology to support organizations in changing and adapting to the fabled “new normal”. Trends such as moving to the cloud and wider digitization of processes are generally accepted to be inevitable. However, the impact of technology will stretch well beyond specific HR technologies when it comes to building safer workplaces and adopting new working models. Technology presents opportunities for efficient and accurate health screening at work, the sanitization of workstations, not to mention the management of all the additional data generated by these new processes.
Whilst COVID-19 has showcased the relationship between technology and the HR function at its best, it’s only fair to observe that this positive interaction started a long time ago. The use of artificial intelligence (AI) for sourcing and screening talent, as well as video platforms for conducting interviews, are recognized examples that promote the benefits of adopting technology within the HR function.
A complicated relationship
With all that said, it would be tempting to consider the relationship between technology and the HR function as somewhat of a love affair. For certain, during the pandemic, technology has been a major catalyst
in empowering CHROs and their teams to accelerate the shift of the HR function from a service to a strategic function. However, the truth is that things can be a little more complicated.
For instance, the application of technology (often in the form of AI or Robotics) in automating tasks previously undertaken by humans will undoubtedly eventuate in job losses within certain organizations. This drives the need for reskilling or upskilling programs even more. complex new challenges for the HR function.
Having outlined scenarios where technology is directly solving a critical challenge for HR, and also instances where technology is directly causing new challenges, do we have to accept that technology drives binary outcomes for human capital - either positive or negative change?
On the one hand, if we recognize technology as the driving force behind the impact of automation on the workforce, we must programs. These paradoxes do not reside within the HR function alone. The highest levels of business management, as well as the boardroom, are also grappling with the similar paradox of technology putting pressure on certain business models and revenue streams, whilst at the same time creating new ones.
We are left with somewhat of a virtuous circle then. Technology is either creating positive or negative outcomes for human capital, yet is noble enough to provide the HR function and business leaders with opportunities to successfully adapt to change. The key thing to understand here is exactly how noble technology really is.
Technology not only facilitates a reactive approach to change but can also drive a proactive response if leveraged in the correct manner. Consider the opportunities to leverage analytics in predicting the success of new hires; predicting and preventing turnover; modeling future demographic shifts, as well as the impact of automation on the workforce.
With the foresight of potential changes, the HR function can engage with key stakeholders well in advance, armed with new data-driven visibility on incoming challenges. This will lead to more compre-
During the pandemic, technology has been a major catalyst in empowering CHROs to accelerate the shift of the HR function from a service to a strategic function. However, the truth is that things can be a little more complicated
These programs are likely to sit largely within the HR function. Given the scale and strategic efforts required for the transformation to succeed, this would certainly present multifaceted logistical, financial, and people issues. Here then, technology is directly creating a change, which may not be understood immediately as a positive one as far as human capital is concerned. At the same time, this change generates also recognize its role in enabling organizations to implement the different types of reskilling and upskilling programs that are needed to adapt to the changes caused by automation. Paradoxically, the same machine learning technology powering software to augment or substitute human tasks can also be found in powering algorithms which help to personalize the most effective learning and development
hensive strategic planning and optimized execution blueprints for the response to change. This benefits not only the organization’s human capital but the HR function itself.
Advanced knowledge of future challenges enables HR to transform itself accordingly. This could mean upskilling the HR function with more agile and tech-savvy capabilities, or transforming the work done by the HR function in testing new working models. There would be advanced planning capacity for developing reskilling and upskilling programs and deploying new HR technologies, or creating a better employee experience as the expectation for purposeful work increases. The latter should not be underestimated given that companies demonstrating a strong employee experience (EX) consistently beat their sector on average by a clear margin of two to four percentage points across key performance metrics, including return on assets and equity, one-year change in profitability, and threeyear changes in revenue and profitability.
Ultimately, if the relationship between technology and the HR function truly flourishes to its maximum potential, we may no longer even be looking for technology to empower “change” at all. We might instead be pursuing a state of “consistency”, in which best-in-class EX is delivered in each and every moment that matters between an employer and employee. The HR function will play a major role in creating a compelling and meaningful EX and we should expect technology to be a critical ally in its delivery. Even now, EX platforms are emerging as a key component of the HR technology ecosystem.
Technology can create positive and negative situations, drive solutions, provide opportunities and inspire entirely new ways of thinking and doing. While technology can empower change, it can also support consistency. The best outcome is likely to be one where HR leverages technology for both reactive and proactive solutioning.
Appreciating the nuanced relationship between technology and the HR function is an important step for HR professionals and business leaders in crafting the organizations of the future. This will deliver meaningful outcomes not only for the bottom line but for their people and society as a whole.
RicHARD HAnSon is the Global Head of Data Science, Talent & Rewards, Willis Towers Watson
The COVID-19 pandemic changed numerous aspects of how we live and work. The pandemic has been a significant catalyst that has transformed our outlook about “people” and “work”. The new world of work warrants agility, adaptability, innovation, and customer-centricity as the key components of work culture. Remote and hybrid mode of work has shifted how leaders and coworkers connect. With uncertainty still abound — and hybrid work set to be planned by the majority of employers over the coming months, a new culture-building approach is imminent to uphold more inclusive ways of communicating with remote workers. Employees are no longer anchored to their desks; they are increasingly mobile, locationagnostic, and demand more flexible work arrangements. For leaders, all this calls for a whole lot of rethinking as the needs of employees are getting complicated.
So, how do you create a vibrant culture where the best minds are connected and driven to perform at their optimum? Organizations are betting on digital innovations — HR tech tools, collaboration tools, engagement, and productivity monitoring platforms, digital whiteboards, smartphone chat groups, to reach out to employees and build meaningful relationships. Top organizations solicit feedback and drive purposeful dialogue with their workers in a way that builds trust and makes employees feel heard.
The path forward is to build a culture of engagement, ownership, and accountability among the workforce. Leaders need to be intentional about reinforcing critical aspects of their culture for their dispersed workforce through innovative use of technology to create more productive workplaces, aligned teams, deeper connections, and drive better business outcomes. After all, a strong company culture is developed when each employee’s job is essential to the whole. Hence organizations need to embed trust and transparency in the virtual working environment. Some organizations try to monitor workers ceaselessly and put them on a tight leash more than they did in prepandemic times. However, employees crave transparency as a crucial cultural factor and COVID-19 has offered organizations, hitherto not transparent, the opportunity to spruce up their policies and reset aspects of culture by sustaining trust and openness. Remember, holding onto the best talent is about relationships, not perks.
The onus of creating a remote culture should not land straight on the shoulders of technology leaders. Building a robust culture is a leadership challenge. As a matter of fact, the onset of the pandemic has tightened the partnership of chief tech officers and people leaders and this will only mature in the coming days.
As companies pick themselves up and start trudging on in the COVIDstricken world with new working arrangements, how are organizations revamping their work culture in line with their core values? How are leaders (including HR) making sure their cultures are adaptable now that it’s harder to solidify shared beliefs with distributed workforce? How are organizations integrating technology in a way that strengthens culture? The July 2021 issue of our magazine delves deep into all this questions to find answers.
