Changing the organizational design within HR may seem like a logical step to address issues and pursue a transformative HR strategy, but moving boxes on a chart rarely improves measurable outcomes. This article outlines why simply altering the HR org design won't fix underlying issues or transform anything, much less your HR strategy.
The creation of value in companies is primarily linked to intellectual capital driving cash flow, constituting over 80% of average market value. Companies like Apple, Visa, and Microsoft derive nearly all their value from intellectual assets rather than tangible ones. This intellectual capital originates from people, making talent the most critical of assets. However, many companies, lack a talent strategy that aligns with this economic reality, often hold outdated views on the availability of skilled talent despite acknowledging its importance. At its core, talent strategies for organizations across most industries need to outline a build, buy, borrow strategy in order to ensure the growth of enterprise value in the future, which is entirely dependent on talent.
In today's fast-paced business environment, HR teams are increasingly turning to data and analytics to drive informed decision-making. The concept of data-driven HR has gained significant traction, with organizations leveraging data to optimize talent acquisition and talent management, and connect HR efforts and outcomes to business results. However, despite the potential benefits, many HR teams face significant challenges when it comes to obtaining and effectively analyzing data. This column explores the underlying challenges, why data acquisition is difficult, the conflict between being "customer-focused" and data-driven, and the struggle to utilize data for outcomes that align with critical business operations.
Despite the explosive growth of talent acquisition technologies - and the vast number of problems they claim to solve - hiring isn’t getting better, faster or cheaper. Why?