Human Resources Department We have made great strides in the past decade. Most organizations have established the role of HR Business Partner, and some are moving beyond the traditional Ulrich model to reconfigure the BP role into a true strategic advisor to top-level management. There is also significant investment in HR technology, with new HR services emerging such as help desks, team coaching, HR analytics, and benefits programs. All these developments have changed the way we look at HR. Now we are starting to see another paradigm shift where HR models are being reinvented once again.
Arguably, this evolution in HR is based, at least in part, on insights from colleagues in marketing. Human resources departments have benefited from specializing according to these insights. We have learned that we need to view the talent market as a competitive arena, similar to consumer and financial markets. We recognized the importance of developing and effectively promoting a competitive employee value proposition (EVP) (i.e. employer branding). We have come to see HR as a service provider with a unique service portfolio, value proposition, process management, and governance to ensure service delivery. We recognized the power of analytics as a tool to understand the needs of our customers (i.e. managers and employees) and more recently began leveraging customer experience design as a tool to improve the employee experience. .
However, there are still lessons to be learned, and two future lessons in particular stand out. 1) offering different value propositions to different customer segments, and 2) personalization.
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Offer different value propositions to different customer segments
This is my first lesson in a while. By segmenting customers, companies can identify the potential value of different segments and differentiate their investments accordingly, leading to increased profits. For example, develop and realize a “high-end value proposition” for higher-value segments and a “low-end value proposition” for lower-value segments.
Human resources departments can greatly benefit from leveraging the same approach to service delivery. By determining who, which department, which process activity, and/or which location is disproportionately driving business value, HR departments can create a “high-end value proposition” tailored to these higher-value segments. ” and promote the creation of further value.
This approach requires the human resources department to provide the same service to different internal customers in different ways. Additionally, HR is required to communicate its purpose in a way that does not create a sense of unfairness within the organization. This isn't easy, but it's not impossible.
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personalization
Personalization is the new trend in the consumer world as consumers seek more personalized products. This also applies to employees. Employees are becoming consumers of career experiences. Today, we are already seeing examples of personalization in HR, albeit on a smaller scale. One example is compensation that allows employees to choose their own benefits and perks to ensure an optimal balance between company costs and employee value.This trend has the potential to radically improve the employee experience as the value delivered to each employee explodes. Imagine a future where employees can customize their entire career experience. Manager selection, compensation package structure, team, developmental focus, work location, schedule, child care integration, exercise, etc. What's more, you can change your experience overnight with just a few clicks of a button. And just as travel and tourism companies offer a variety of vacation packages for families, couples, and those in need, employers can help employees who feel overwhelmed by too many choices. The company will present a “career package'' that you can choose from. of rest and recovery.
In the short term, this will be a huge advantage in the competition for talent. But in the long run, this will become the default expectation. HR departments must deliver personalized career experiences while ensuring cost efficiency. We believe that for this to be successful, HR departments need to leverage and follow the principles of modularity when designing HR services.
Of course, there are many other lessons to be learned, but we believe these two will significantly improve HR's contribution to value in the future. Our recommendation is to quickly reconfigure HR to deliver different value propositions to different segments and start experimenting with personalization now.
