HR Transformation

HR Transformation refers to the evolution of the human resources function in an organization. HR has evolved many times over the decades. In the industrial era, the standard HR operating model saw function focus on programs and jobs, while organizations typically outsourced payroll and administration systems. The introduction of the internet provided new opportunities for integration and globalization. Driven by this development, HR shifted to focus on process and headcount with efficiency as the primary goal. The HR function relied on an integrated HR model with formalized centers of expertise and service delivery teams.

The digital transformation of business in the early 2000s initiated another transformational trend in HR—a move to employee-centric design and radical transparency. When the global pandemic hit, HR was forced to shift again, this time focusing on an overnight switch to remote work, emergency safety protocols, and massive resource actions. 

Today, leading CHROs and their teams recognize the importance of meaningful transformation for the HR function. Companies like Walmart, Microsoft, and IBM are rethinking HR and designing a system that is highly integrated with the business, adapting and responding to micro and macro changes with speed and scale.