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How to Design the Future of HR

Guest Author

By Phil Mitchell, Partner, HR Cloud Transformation - KPMG in the UK

Faced with rising market disruptions and customer demand, enterprises are undergoing change at a rate never before witnessed. Everything from geopolitical instability to advances in technologies like AI and robotics are forcing companies to adapt with new organizational structures powered by a workforce that is more agile and digitally enabled. In this new reality, the business is counting on HR to help drive the changes it needs to stay competitive.

Keeping up with these changes will require enterprises to move beyond traditional HR operating models that focus on separate parts of the practice, such as competence, talent, and performance management. Instead they must adopt a wider workforce perspective that embraces concepts such as workforce shaping and experience design to deliver a genuine, evidence-based architecture that addresses all employees – enabling the best of everyone at work. Embracing the latest technology solutions with the scalability of the cloud are also a given to future-proof operations.

We have termed this integrated approach “Powered HR” and we believe it’s absolutely essential to achieving business success in the digital economy. 

Catching Up

Our research found that 60% of HR leaders don’t have a digital workplace strategy in place and this has left them in an ambiguous position when it comes to deciding how to best support new business demands. In addition, we also discovered that 90% of failed HR transformations didn’t include success measures, which left organizations powerless to drive toward the business results they envisioned.

What does a Powered HR organization look like? It’s one that has abandoned the old silos and has become more project-based, agile and digitally enabled. It’s one that combines cloud technologies with culture change to deliver data-driven insights, smarter decision-making, and real bottom-line value. That’s a tall order for teams dealing with a full plate of day-to-day responsibilities. But HR must rise to the occasion. 

This is where Oracle HCM Cloud provides a solid technology foundation for enabling an Enlightened HR organization and where KPMG Powered HR helps organizations drive successful change to the underlying HR operating model and culture. KPMG helps companies get the most value out of their Oracle HCM Cloud by delivering:

  • Timely and affordable Oracle HCM Cloud design and deployment
  • An intuitive user experience 
  • Better mobile accessibility
  • Smarter decision-making capabilities
  • Significantly greater workforce efficiencies

By partnering with HR leaders, we create a future-state HR operating model that defines where organizations are going and what they’ll achieve. This future vision speeds the move to HCM cloud delivery by creating clarity around changing roles and structures and optimizes business process change to drive efficiencies across organizations.

HR: Taking Higher Education to New Heights

This is exactly what happened at Durham University, one of the top universities in the United Kingdom with over 18,000 students. The university became one of the first to higher-education institutions to deploy a KPMG Powered HR solution using Oracle HCM. University officials looked at Powered HR as an opportunity to differentiate itself in the highly competitive global higher education market.

After implementing an Oracle HCM-based solution with KPMG’s help, the university has experienced a significant boost in HR operational efficiencies, including a greatly reduced dependence on spreadsheets to manage day-to-day operations. Now the institution is poised to support growth in a challenging marketplace. 

Embracing Change 

As many organizations have discovered, change is never easy for employees accustomed to longstanding ways of working. To be successful, HR transformation needs to be fully embraced by everyone from front-line workers to executive leadership. We’ve identified five drivers for HR transformation success:

  • Being open to a new mindset around HR’s role, such as embracing methods that allow new technologies and humans to work more effectively together
  • Making HR more evidence-based and providing a stronger voice across the business
  • Deepening an understanding of skill and resource utilization in an increasingly digital-led enterprise
  • Tailoring the workforce to an evolving business with effectively planned reskilling and recruitment programs
  • Treating employees like customers by driving deeper engagement initiatives, which ultimately increase workplace satisfaction and competitive differentiation within specific industry

For HR organizations determined to keep up with – or even outpace – change, it’s time to start taking the lead. That means demonstrating a strong, proactive and informed leadership that will enable HR to take on the role of a positive change agent. Having an end-state model in hand will help you build a future-ready organization even faster.

For more information about our KPMG Powered HR, visit https://home.kpmg/uk/en/home/services/advisory/management-consulting/kpmg-powered-enterprise/kpmg-powered-enterprise-hr.html

Blog created from the original KPMG Point of View Piece: HR: Under Pressure to Act

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