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      A successful human resources transformation begins with understanding what truly drives change – putting people first, knowing your "why", defining the desired outcomes and using digital technology to bring them to life.

      Yet many organizations still assume that HR transformation simply means implementing new cloud-based HR systems or tools. In reality, it goes much further. It's about rethinking how HR creates lasting impact for both people and the business. When the focus shifts from systems to people, transformation becomes more sustainable, human and effective.

      To achieve this, organizations need a clear purpose, committed leadership and carefully designed processes and experiences. Technology then becomes a catalyst – enabling better decision-making, smarter operations and richer employee experiences.

      At KPMG, we help organizations turn this vision into reality. Our HR transformation consulting combines deep functional expertise with insights into leading technology and proven delivery experience. We work with clients to define their “why,” co-design their future HR operating model and deliver transformative solutions that create measurable value for both people and the business.

      Nick Lawitzke
      Nick Lawitzke

      Director, People & Change Consulting

      KPMG Switzerland

      Julie Currie
      Julie Currie

      Senior Manager, People & Change Consulting

      KPMG Switzerland

      Why HR transformation matters now

      Every successful HR transformation strategy begins with a clear, shared understanding of why change is necessary. Today’s organizations operate in an environment of constant disruption: shifting employee expectations, new ways of working, rapid digitalization and growing pressure to deliver strategic value. As a result, HR must evolve beyond administrative tasks and become a true business partner that shapes the future workforce.

      Defining your "why" brings clarity and alignment: What's driving the need for transformation?

      • Improve retention
      • Increase agility
      • Reduce costs
      • Support a new business strategy

      Identifying these drivers ensures that every initiative is directly connected to measurable business and people outcomes.

        Once the case for change is clear, it’s time to envision the future:

        • What does great HR look like for your organization?
        • What principles will guide your design decisions?
        • How will you ensure that leaders and employees share the same vision?

        These guiding principles will act as your north star – helping you make consistent decisions about people, processes and technology.

        Finally, no transformation succeeds without genuine buy-in. Engage leadership and employees early, communicate the case for change clearly and establish shared ownership from the start.

        This alignment builds momentum and lays the groundwork for lasting impact.

        Business drivers and value levers

        HR transformation is not a back-office project – it’s a strategic driver of growth.

        Key drivers and value levers include:
         

        • Employee experience as a performance engine

          A positive, seamless employee journey boosts engagement, productivity and retention.

        • Data-driven decision-making

          HR analytics offer insights into workforce trends, skill gaps and performance, enabling leaders to act proactively.

        • Operational efficiency

          Streamlined processes and automation reduce cost-to-serve and raise service quality.

        • Strategic agility

          A future-ready HR function allows organizations to respond quickly to shifts in the market, business priorities or talent needs.

        • Culture and leadership alignment

          A purpose-driven culture ensures that transformation is embedded, not imposed.

         

        These drivers explain why HR transformation matters – but how people experience the change that truly brings it to life.

        Employee experience as a performance engine

        Strong employee engagement and experience (EX) are no longer a “nice to have” – they are key performance drivers. When employees feel valued, supported and connected to the organization’s purpose, they bring more energy, creativity and commitment to their work. The result is higher productivity, lower turnover and stronger business performance.

        HR plays a central role in designing this experience. From onboarding and learning to career development and recognition, every interaction influences how employees perceive and engage with the organization. Understanding the “moments that matter” along the employee journey helps HR focus on what genuinely drives engagement and stronger business performance.

          Modern HR functions use HR data, design thinking and co-creation to continuously improve these moments – simplifying processes, removing friction and tailoring support to diverse workforce needs. By combining human insight with digital enablement, organizations can deliver people experiences that accelerate business outcomes.

          Ultimately, a positive employee experience creates a powerful ripple effect: engaged people deliver better results, customers feel the difference and the organization builds a culture of sustainable performance.

          A people-first approach to HR transformation

          A process can be perfectly designed and advanced technology can be deployed – but it’s people who bring transformation to life.

          Putting people at the heart of your HR modernization strategy means deeply understanding their needs and involving them from the start.

          Listen to employees through surveys, focus groups and interviews. Capture their experiences – from onboarding to learning, development and recognition.

          These insights form the foundation for designing HR services that are intuitive, inclusive and effective.

            tips_and_updates

            Co-creation is key

            Involve employees and leaders in co-design sessions to test ideas and shape processes together. This creates better solutions and builds ownership and acceptance of change.

            The future HR operating model

            To deliver lasting impact, HR must evolve from a function into value network – powered by collaboration, analytics and skills.

            Modern operating models integrate service delivery, centers of excellence (CoEs) and business partnering into a cohesive ecosystem. HR business partners act as strategic advisors; CoEs build expertise in areas like learning, rewards and talent; and shared service centers deliver efficient, digital experiences at scale.

            At the same time, organizations are shifting towards skills-based workforce strategies. Instead of defining people by static roles, skills-based models enable agility, mobility and continuous development – aligning workforce capabilities more directly with business priorities.
             

              Service delivery, CoEs and business partnering


              An effective HR operating model is built on clearly defined roles and seamless collaboration between service delivery, CoEs and business partnering.

              Service delivery focuses on efficiency and consistency – providing employees with simple, digital and accessible HR services for everyday needs such as payroll, benefits or leave management. Advanced self-service platforms and automation free up capacity for higher-value work.

              CoEs bring in-depth expertise in areas such as learning and development, talent management or total rewards. They design innovative programs, define standards and ensure that HR policies reflect business priorities.

              HR business partners act as trusted advisors to leaders, translating business strategy into people strategy. By working closely with both CoEs and service delivery teams, they ensure HR solutions are practical, data-informed and aligned to business outcomes.

              Together, these components create an integrated ecosystem that delivers both operational excellence and strategic impact.

                Skills-based talent acquisition and workforce strategy


                The shift toward a skills-based organization is redefining how companies think about work, talent and value creation.

                Instead of structuring around rigid job roles, leading organizations focus on the skills and capabilities needed to achieve their strategic goals.

                A skills-based approach enables greater agility – allowing for the faster redeployment of talent, more dynamic career paths and a culture of continuous learning. It helps organizations anticipate future skill needs and build the workforce of tomorrow, today.

                For HR, this means reimagining talent processes – from hiring and performance management to learning and succession planning – around skills data and insights.

                With the right analytics and technology, HR can match people’s strengths to evolving business needs, supporting both individual growth and enterprise agility.


                 

                Technology as an enabler – not a driver

                Technology plays a vital role in digital HR transformation, but it should never lead the transformation. The goal is not simply to digitize old processes, but to rethink and modernize them for today's digital workplace. Used in the right way, technology enables smarter decisions, faster operations and better employee experiences – without losing the human touch.
                 

                  • Cloud HR platforms and integrations

                    Cloud-based HR platforms such as Oracle HCM Cloud, SAP SuccessFactors and Workday give organizations the flexibility and scalability they need to support a modern HR function.

                    These platforms often form the backbone of an HR operating model redesign, connecting recruiting, payroll, learning and performance into one integrated system. This consistency improves data accuracy and provides HR leaders with a single source of truth for strategic decision-making.

                  • People analytics and data foundations

                    A strong data foundation is essential for meaningful and measurable transformation. People analytics turn employee and organizational data into insights about skills, engagement and performance.

                    Combined with thoughtful governance, these insights help HR identify workforce trends, close skill gaps and design programs that drive real business value.

                  • Automation and AI: pragmatic use cases

                    Automation and AI can take on repetitive and manual tasks – from scheduling interviews to managing payroll and answering routine employee questions. This frees HR teams to focus on more strategic and people-centered work.

                    AI tools can also personalize learning, predict turnover risks and match talent to roles based on skills and potential. The most effective organizations use these technologies pragmatically to enhance human capability rather than replacing it.
                     

                  What good looks like - HR transformation metrics

                  Strategic HR transformation delivers measurable results – for people, performance and the business.
                   

                    Employee experience KPIs

                    • Employee Net Promoter Score (eNPS): how likely are employees to recommend their organization as a great place to work? That's a strong indicator of engagement and loyalty.
                    • Onboarding satisfaction: how positive and effective is an employee's initial experience during their first weeks or months at the company?
                    • Time-to-hire: how many days does it take to fill a position from posting the job to accepting an offer?
                    • Time-to-productivity: how long does it take a new employee to reach expected performance levels after joining?
                       

                      Business KPIs

                      • Productivity and performance uplift: how much does employee output or performance improve following transformation initiatives or process changes?
                      • Cost-to-serve reduction: how much do HR costs decrease per employee or transaction as processes become more efficient or automated?
                      • Compliance and risk improvement: how effectively do HR processes meet legal, regulatory and policy requirements while reducing risk exposure?
                      • Retention and engagement rates: how well does the organization keep employees and maintain their motivation and commitment over time?


                      Tracking these indicators ensures continuous improvement and demonstrates how HR drives enterprise value through effective management, thoughtful processes and a well-designed strategy.

                        Common HR transformation challenges and how to overcome them

                        Even well-planned transformations face obstacles.

                        Common challenges include:

                        • Viewing transformation primarily as a technology initiative rather than a holistic change in people, processes and culture.
                        • Misalignment between HR objectives and overall business strategy.
                        • Insufficient focus on HR change management and effective communication.
                        • Limited employee data readiness and complex system integrations.
                        • Gaps in HR capability and insufficient upskilling for new tools and roles.

                        You can overcome these challenges by adopting a people-first approach, establishing strong governance and ensuring transformation goals are clearly linked to measurable business outcomes.

                            Our approach

                            We deliver transformation through a structured, outcome-oriented HR transformation framework built around three phases:

                                • Discovery

                                  Assess the current state, identify challenges and define the strategic “why”.

                                • Analysis & design

                                  Co-create the future HR model, processes and employee experience, guided by clear design principles.

                                • Reporting & realization

                                  Implement technology, enable people and embed change through measurable outcomes.


                                Across every phase, our HR transformation services help clients combine technology, data and human insight. We recognize that technology is an enabler of human potential, not a substitute for it.

                                The most impactful HR transformations use digital tools to empower people – creating smarter systems, stronger connections and better outcomes for everyone.

                                  FAQs

                                  Digitalization focuses on automating existing processes, while transformation reimagines the entire HR function to deliver new value through people, processes and technology.

                                  Depending on scope and maturity, the HR transformation roadmap can span from several months to multiple years – but the most effective organizations treat it as a continuous journey.

                                  A clear vision, stakeholder alignment, human-centric design, data-driven decision-making and strong HR technology enablement – all anchored in measurable outcomes.

                                  Ready to get started?

                                  Transform your HR function into a strategic, people-driven enabler of business success. Contact us to access specialized insights for HR transformation in Switzerland and beyond.

                                  Talk to our HR Transformation experts today about your HR strategy and how to align it with long-term business goals.

                                      Learn more about our HR Transformation services

                                      Meet our experts

                                      Nick Lawitzke
                                      Nick Lawitzke

                                      Director, People & Change Consulting

                                      KPMG Switzerland

                                      Julie Currie
                                      Julie Currie

                                      Senior Manager, People & Change Consulting

                                      KPMG Switzerland

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