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How to Build High Performing HR Delivery System

According to a report by Mercer, only 35% of organizations deploy the essential elements of a high-performing HR services delivery model.

The three key components of the highly efficient HR service model are identified as HR Shared Services, HR Business Partners, and Centers of Expertise. The successful implementation of these elements makes HR a high-performing function that helps organizations more efficient and profitable. The report further states that only 17% of the organizations are planning to make significant changes in their HR functions.

Today the organizations across the globe are facing a severe talent crunch. The demand for talent outnumbers the supply of candidates who are qualified to fill the open positions. In this scenario, the HR is expected to play as a strategic partner for the organizations. They need to work closely with CEOs to address emerging challenges. The study by Mercer has found that the organizations which build a continuously evolving HR team outperform others. Therefore, it is critical for organizations to create high-performing HR teams, especially when a whopping 93% of the executives are planning an organizational redesign. The core business and HR functions must be aligned and evolve simultaneously to build a sustainable performance culture and stay relevant in the long term.

The organizations need to do the following to ensure an evolving, high-performing HR function:

Invest in Technology

HR functions need to improve its digital presence significantly. There is a host of data analytics and Artificial Intelligence-based solutions that can empower organizations, especially the HR departments, to make sound talent-related decisions. Technological advancements can enhance HR efficiencies and improve employees’ experiences. A majority of business executives believe that investments in HR technologies alter the business outcomes such as driving innovation, dealing proactively with disruptive change, providing customer value, etc. significantly. Moreover, it also helps in employer branding and attracting the talent needed to excel.

Build Capability and Evolve the Model

According to Mercer’s study “more than two-thirds (68%) of high-performing HR functions have redesigned their HR structure within the last five years. As a result, many are utilizing a framework in which HR administration and decisions are made in a centralized manner, and processes and practices are consistent across the multiple locations.”

The framework is also designed to ensure that HR processes evolve with the business strategy. It is crucial that the HR strategy of any organization is tightly aligned with its business strategy. Since business strategy always evolved with changing time, the HR function must play a proactive role in guiding the business on dealing with external changes.

The HR needs to develop capabilities to help organizations strategically. A high-performing HR function moves the transactional role to Shared Services whereas the Center of Expertise and HR Business Partner support companies in the strategic and training issues.

To counter the disruptive changes in the external environment and stay competitive in the long run, the companies must pay attention to build an evolving HR function which is capable to coach CEOs in bringing the suitable change. It can be done by implementing the three critical components of a high-performing HR function. It is time for the two-third of organizations which has not yet have a high-performing HR service delivery model to start creating a framework for the same to stay relevant in the next few years.

Adela Belin is a private educator and a writer at Writers Per Hour. She shares her teaching experience with students, and writers. Feel free to contact Adela on G+.