Jason Averbook
Senior Partner | Global Leader, Digital HR Strategy, Mercer Minneapolis, MN
We’re on the cusp of a machine-augmented revolution in the future of work, fueled by workers’ evolving expectations and businesses’ changing needs. Making this transformative shift will demand a keen focus on agility and sustainability. It will also require building a smarter HR function and delivering more consumer-like experiences to keep pace.
To thrive in this age of change, HR needs to evolve from its legacy as a steward of employment to become a steward of work. HR’s legacy role was designed to ensure the silent running of the enterprise — enough people with the right skills, available at the right time and price. This often led to one-size-fits-most talent and workforce solutions that were built for efficiency. As AI and the democratization of work exponentially increase the velocity and variability, progressive HR functions are redefining their mandate to become stewards of work. They are enabling talent to connect to work as seamlessly as possible while meeting more talent on their individual terms, bending the demand and supply curves of work in a fundamentally different way.
With HR at the helm, businesses can build a more intuitive, human work experience that places people at the heart of this transformation.
Sustained transformation requires an ecosystem approach rooted in change and designed for fluidity. Transformation is successful when it creates trust in every interaction, when people and the business thrive in every experience, and when HR is empowered to transform every day.
Leaders say sustainability is the number one driver of transformation for their businesses — and when it comes to risk, it’s also their number two concern. Yet only 31% of CHROs say they’re working on sustainability initiatives.
Instead, more than half of CHROs are still focused on enhancing the employee experience and delivering a compelling employee value proposition (EVP).
But keeping promises to both the business and the workforce doesn’t have to mean juggling competing priorities. Improving the employee experience can be an integral part of building sustainable people practices and delivery models — and workforces that can go the distance.
With generative AI rapidly transforming the digital HR landscape, requiring new skillsets and specialized knowledge, there’s never been a better opportunity for the HR function to position itself as a strategic partner to the business.
One in six HR leaders says recent HR digital transformation initiatives weren’t successful. Why? Because 67% of organizations adopt new technology without transforming the way they work.
Over the past few decades, leadership’s unrelenting focus on efficiency hindered the organization’s ability to respond to a rapidly changing world of work — and the intended efficiency gains were never realized. The old model wasn’t effective then, and it’s now more antiquated than ever.
A future-proof HR function enables organizations to match their rapidly changing work with evolving workforce needs — and it starts with a digital-first culture. Changing the way we work to enable daily transformation is vital.
Traditional methods of HR transformation won’t deliver the necessary results. Achieving real workforce productivity and agility and building a culture of resilience requires a human-centered, experience-focused and outcome-driven HR function.
How can we change our approach to transformation and maximize the adoption of our HR tech to ensure we’re building a thriving function — that also helps the business and its people thrive?
Successful deployments are often digital in nature, but it’s a mistake to assume implementation is the same as deployment. Focusing solely on system implementations often results in a technology transition. A true digital transformation results in added value and new ways of working for the organization. To avoid the pitfalls of an unsuccessful digital transformation, we need to do more than just put new systems in place. To drive lasting change, considering the mindset, people, process and technology implications is crucial.
HR transformation initiatives that are designed for real change are essential for HR’s success in becoming a strategic partner to the business. These are the elements of a successful transformation initiative:
As experts on all things work and workforce, we’re with you throughout your entire transformation journey. With our breadth of services, you’ll have access to a wide range of expertise and solutions to streamline your consulting needs. We’ve led hundreds of HR transformation initiatives over the past two years by offering a tailored, personalized approach to ensure alignment with organizational goals and culture.
Our transformation leaders are pushing the industry and our clients to the forefront of trends, developments and best practices. In an era of continuous evolution, Mercer can help you stay ahead of the curve by taking proactive steps with actionable solutions to drive better business outcomes.