The reason, in part, is that in an age of hybrid working, the range of performance between disengaged and fully committed employees is dramatically greater, the CHROs told us. The same platforms and tools that have rewired HR operating models have also changed the world in which employees live and work. These strategies include remote performance management and efforts to channel employees toward self-service. Many European CHROs discussed what they saw as an uncomfortable paradox: the opportunity to build personal relationships has been disrupted by certain strategies that HR teams have been promoting for some time. Mastering technology to improve standard HR processes and develop insights through advanced analytics will continue to give any HR leader the “right to play.” But to build organizational resilience and generate value, CHROs and their teams must connect these insights to the business in four ways (Exhibit 1).Įngage more directly and deeply with employees Here we summarize insights gleaned from our interviews in four areas where CHROs want to implement more flexible, responsive policies: engaging more directly and deeply with employees, letting them bring their whole person to work, paving the way to the “new possible,” and acting as a human capitalist. This article is the first in a CHRO series we will expand to North America and Asia. CHROs say they want to keep that momentum going, particularly as employees register concerns about the future of hybrid work. The crisis also turned talk of creating more agile HR models into reality, as the C-suite looked to HR for both day-to-day crisis management and strategic thinking about workforces. The vast majority of CHROs said they were eager to shift to a model we have come to call “back to human.” The COVID-19 pandemic-which accelerated employee demands on HR to meet physical and mental health needs, as well as intensified moral concerns about a company’s overall impact on society-lent urgency to their view that some core human element has been lost in all these technological advancements. The conversations were part of McKinsey’s research on how HR leaders can help to create a more dynamic talent and work model for the future. This desire for more people-centric policies came through loud and clear during recent interviews we conducted with more than 70 CHROs at some of Europe’s largest organizations. For chief human-resource officers (CHROs), the question has now become whether processes have replaced the creativity and innovation they need to attract and develop talent, manage and reward performance, and optimize workforce strategy. Their departments have lived by a worthy but uninspiring mandate: to optimize labor costs, reinforce compliance using standardized measures, and support the adoption of technology beyond IT.Įven in the areas of HR traditionally imbued with meaning and cultural significance-recruitment, and learning and development-the emphasis has been on productivity and how to measure it. For years now, human-resource leaders have found themselves on a cost-efficiency treadmill that applies analytics and big data to existing HR operating models.
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