Focus on building value-driving capabilities that help to drive business strategy
According to HR Pathfinders in the KPMG The future of HR: From flux to flow report,1 each organization has a different configuration of capabilities. Some focus on delivering a steady stream of talent, others focus on skills and skill building, and others focus on culture and purpose. What is consistent and underpins all of these Pathfinders’ capabilities is a focus on evidence-based decision-making, greater integration of the sub-functions of HR, and creating a superior employee experience.
To do this requires that HR leaders work on how the HR function organizes itself to deliver even more business value. Our research suggests HR leaders recognize this, with 60 percent expecting to change their HR operating model within three years.2
In addition, improving the employee experience across enterprise processes is a key focus for 57 percent of our respondents—of which 31 percent view this as their key capability to deliver. Meanwhile, enabling a culture of organizational agility will be on the agenda for 50 percent, although this was not ranked in their top five in terms of capability to deliver.3
Of course, our Pathfinders are taking their HR organizational approach to the next level—beyond the core tasks of HR. They are ensuring that their operating model is optimized and flowing to help deliver to their organization’s strategic vision.
While HR functions recognize strategic value-add is a priority, not all are helping to drive strategy successfully. Pathfinders do this in their own specific context, demonstrating that it is about understanding the needs of the business, and integrating into the decision-making process by adding real value.
We have to create a single, human-centered, connected, tailored experience across platforms and systems, delivered ‘in the flow of work,’ which meets our employees and leaders ‘where they’re at’. Pathfinders get this and invest and organize HR accordingly—we see the potential benefits from that approach in the numbers and how HR drives success for the wider business.
principal, Human Capital Advisory, KPMG in the U.S.
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