Deloitte’s latest Human Capital Trends report demonstrates that only 5% of respondents rate their HR performance as “excellent,” and that most fail to deliver on a business’ needs and goals. These departments must therefore reinvent themselves in order to attract, retain, and develop high-quality talent.
Deloitte University Press stated that today’s HR departments must be “agile, business-integrated, and data-driven” to succeed in recruiting talent and fulfilling business’ requests. Their recent survey, however, demonstrates that HR departments are actually failing to do both.
Only 28% of respondents felt that their HR department was efficient in attracting talent, and only 20% felt that future talent needs were being planned for. The retention of talent seems dangerously low, with only 11% of respondents believing that their workplace provides “excellent” development.
From the looks of it, not only are HR departments failing to recruit the talent they need and develop the talent they have, but there also seems to be a large “capability gap” between what employees expect and what HR can actually deliver.
Why We Should Reinvent HR
Talent recruitment has never been more important to companies. According to the Deloitte study, 87% of respondents showed concerns for culture and employee management, 86% were concerned about their leadership, and 80% considered HR to be definitively lacking in skills.
To combat this, many organisations are now making the proverbial “technological transition,” expanding access to data and establishing newer and more efficient ways of recruiting talent.
Because of the relatively competitive global talent market, HR departments must redesign themselves in order to become attractive to the increasing demands and geographic diversity of the workforce.
Case Study: How to Redesign HR
The India-based Aditya Birla Group set up a pilot “master class” in an attempt to revamp their HR department – the class focused on improving business skills, incorporating technology into the hiring process, reading and analyzing HR trends, and improving overall teamwork and leadership. At the end of the class, each executive and their corresponding team mapped out a “capability development plan,” which outlined how they could further develop the skills they learned in the class.
The Aditya Birla Group’s course offers a perfect example of how a company can shift its focus on training and stabilizing its HR staff and framework and garner a worthy investment in a department responsible for an entire company’s quality of work.
The Importance of the Senior HR Leader
Deloitte highlighted the need for the Chief Human Resources Officer (CHRO) to maintain a close relationship with the CEO and executive staff, to be ostensibly “business-savvy,” and to deliver innovative solutions to business problems. A CHRO must be knowledgeable of technology, willing to implement it in efficient ways, and feel comfortable leading and encouraging their HR team.
Interestingly, the Deloitte research suggests that 40% of CHROs nowadays are from the business rather than HR realm — likely because HR executives are increasingly expected to know the ins and outs of their business. In addition to just attracting talent, an HR leader must fully understand the way their company works and the talent it requires to function properly.
Your HR Department
If you’re looking to improve the efficiency of your own HR department, start by dividing it into teams based on skills and expertise to reallocate responsibility with an emphasis on doing what you do best. Regularly check up on the department’s performance, and promote the highest performers to leadership roles.
Last, but certainly not least, invest in technology to create a seamless and traceable hiring process that helps HR departments confirm that candidates align with the roles they apply for.