The Top HR Articles of 2024: Building the Future Strategic HR Function

In the past two weeks, I’ve published the first four instalments of my retrospective of the best articles of 2024, which were themed, Part 1: Creating value through people analytics, Part 2: Orchestrating the future of work, Part 3: Enhancing employee experience and wellbeing, and Part 4: Developing leaders, culture and inclusion. Thanks to all those who has shared, commented on and reposted the series to date, which have collectively had over 150,000 reads between them. It is very much appreciated.

The fifth and final instalment, herein, has the theme: Building the strategic HR function, and assembles my favourite resources on this topic from the last 12 months.

This is an exciting - and challenging - juncture for the HR function. With AI reshaping industries, companies and how we work, coupled with the 'perfect storm' of economic volatility, geopolitical uncertainty, and shifts in demographics, the role of HR has never been so important. This set of articles and resources examines the role of HR, how it is set to transform, discusses operating models, and analyses the skills HR professionals will need to flourish

To recap, my 2024 retrospective has been published in five parts, and is organised into the following five themes:

Part 1: Creating value through people analytics

Part 2: Orchestrating the future of work

Part 3: Enhancing employee experience and wellbeing

Part 4: Developing leaders, culture and inclusion

Part 5: Building the strategic HR function

I hope you enjoy reading the selections for 2024. If you do, please subscribe to my Data Driven HR newsletter, and tune in to the Digital HR Leaders podcast.

Join me for an Insight222 webinar on February 5 to discover they key themes shaping People Analytics in 2025.

If you want to learn how AI, close alignment with people strategy, and data democratisation, are enabling Leading Companies to drive business value with people analytics, register for the Insight222 People Analytics Trends Webinar. The webinar, which will take place on February 5, will be hosted by me and feature Naomi Verghese and Madhura Chakrabarti, PhD unpack the findings from the recently published 5th annual People Analytics Trend study. You can register for the webinar here – or by clicking the image below.

5. BUILDING THE STRATEGIC HR FUNCTION

DAVE ULRICH, NORM SMALLWOOD, AND JOE GROCHOWSKI - Why and How to Move HR to an Outside-In Approach

When asked the question, “What is the biggest challenge in your job today?” HR professionals will typically provide answers such as: “Build a skills-based organisation” or “Help our employees have a better experience”. As Dave Ulrich , Norm Smallwood and Joe Grochowski write, these answers would be far more powerful when a “so that” is applied e.g. “Help employees have a better experience so that customer experience improves.” The article demonstrates that greater value is created with an outside-in approach that starts with the needs of external stakeholders (customers, investors, community) and then figuring out the implications inside the company for meeting those needs. Dave, Norm, and Joe also present their Human Capability Framework and a tool that provides an assessment of an organisation’s outside-in performance (see FIG 60).

FIG 60: Human capability from the outside-in diagnostic questions (Source: Ulrich et al)

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HEIN KNAPPEN - How HR Adds to Enterprise Value

Value creation should be the focus. Nothing else. And only four people priorities connect to value: performance management, succession management, leadership development and capability building.

Hein J.M. Knaapen , a former chief people officer himself, shares his perspectives on the crucial role HR plays in driving business value, and offers practical advice to CHROs on how to make this a reality. Hein highlights the four people priorities that connect to value: (1) Performance management, (2) Succession management, (3) Leadership development, and (4) Capability building, providing guidance on each.

VINCENT BéRUBé, BEN FOGARTY, NEEL GANDHI, RAHUL MATHEW, MARINO MUGYAR-BALDOCCHI, AND CHARLOTTE SEILEROUTLINE - Increasing your return on talent: The moves and metrics that matter

An organization that views its employees as its most important resource can maximize its return on talent by following a holistic strategy—with HR in the driver’s seat.

Drawing on McKinsey research that finds companies that put talent at the centre of their business strategy realise higher total shareholder returns than their competitors, Vincent Bérubé , Ben Fogarty , Neel Gandhi , Rahul Mathew , Marino Mugayar-Baldocchi , and Charlotte Seiler outline five actions organisations - and HR functions - can take to maximise their return on talent. The five actions are: (1) Build a skills-based strategic workforce planning capability. (2) Create a hiring engine that brings in the right talent to fill critical roles. (3) Invest in learning and development. ((4) Establish a stellar performance-oriented culture. (5) Elevate HR’s operating model to become a true talent steward.

FIG 61: Factors that drag down employee and organisational productivity (Source: McKinsey)

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NORM SMALLWOOD AND DAVE ULRICH - HR Transformation: Common Pitfalls and Tried and True Tips

Not developing the HR professionals to do strategic work is the #1 reason HR Transformation fails

Norm Smallwood , Dave Ulrich , and The RBL Group outline four common HR Transformation pitfalls and tips to overcome each: (1) HR transformation is about transforming the entire HR Department to create value for the business. (2) It requires an understanding of the work that creates value for the business and then designing the organisation and building HR leaders and professionals to enable it (see FIG 62). (3) Invest in providing HR professionals with frameworks, tools, and shared language to do strategic work – “For impact on the business, HR must invest in itself.” (4) Capabilities are the link between business strategy and HR actions.

FIG 62: Source – The RBL Group

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VOLKER JACOBS – Squaring the Circle: Why the old promise of P&O transformation –more for less – can finally be fulfilled

With effective, generative AI, P&O transformations can deliver a better, friction-free work experience for managers and employees. With a friction-free experience for managers and employees, we enable higher productivity and engagement levels. And it goes without saying that with AI taking on P&O tasks we can reduce cost of the function: More for less. Squaring the circle. Three ingredients: Data, AI, and EX.

In his thoughtful paper, Volker Jacobs , CEO at TI PEOPLE , highlights how HR transformations have historically undelivered their promise of more business value at lower cost. Instead, Volker argues, with the capabilities offered through AI and digitisation allied to rising expectations for better work experiences, the scene is now set to realise the dream of ‘more for less’. The catalyst? A shift from transformation focus on process to data as one of three ingredients to square the circle: Data, AI and Employee Experience leading to the business outcomes including improved productivity, better customer experience, and lower cost (see FIG 63).

FIG 63: Shifting HR transformation focus from process to data (Source: Volker Jacobs, TI People)

SHARI CHERNACK AND JONATHAN GORDIN | MERCER - 2024 Voice of the CHRO: Maximizing HR effectiveness in a changing landscape Article | Full Report

Build your HR team for the future. Reshape and develop your team to reflect the cross pressures of increasingly complex demands on HR, including an anticipated need for greater technology and analytical expertise on the team, and the lean HR team size in most organizations.

While much of the focus and headlines of 美世 ’s 2024 Voice of the CHRO report, authored by Shari Chernack and Jonathan Gordin , is understandably on the challenges and opportunities associated with AI (see FIG 64), what really stands out for me is the section on maximising HR’s influence with the C-suite and board. The results demonstrate that HR is increasingly a strategic partner: 56% of CHROs meet with the C-suite every week, 51% report higher levels of C-suite engagement than previous years, and 71% report high alignment on HR and people priorities. Data is increasingly key, with 76% of CHROs believing that using data to showcase HR’s impact on business performance will help drive further engagement with the C-suite and board. The report highlights six key actions for CHROs: (1) Accelerate AI for HR readiness. (2) Drive AI adoption across the enterprise. (3) Strengthen C-suite relationships and alignment. (4) Understand and plan to bolster key skills. (5) Don’t sleep on employee experience. (6) Build your HR team for the future.

FIG 64: AI’s anticipated impact (Source: Mercer)

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JOSH BERSIN - The Ever Expanding Role Of The Chief HR Officer (CHRO)

The CHRO must transform the HR team, moving from the “service delivery” model to an HR team of consultants, problem-solvers, and analysts.

Josh Bersin lays out a compelling case for the CHRO being the most important role of all in the c-suite now. He highlights factors such as the abundance of people challenges, labour shortages, organisation redesign, and globalisation. Josh also introduces his initial findings from a study of 47,000 CHROs: (1) There is a major increase in the C-level importance of the CHRO. (2) The CHRO job is multi-disciplinary, and more difficult than it looks. (3) The CHRO role is expanding. (4) Strong CHROs are now transforming the HR function. (5) The HR function is not developing itself - 80% of high-performing CHROs are external hires.

FIG 65: The two roles of the CHRO (Source: Josh Bersin)

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DAVE ULRICH - Update on HR Business Partner Model Continuing Evolution and Relevance

In the last seven years, HR’s contribution to the business has evolved and is increasing. The HR contribution comes from individual HR professionals who have the competencies to fully engage in business conversations. The HR contribution also comes from HR functions, practices, and analytics increasing stakeholder value.

There’s no one better informed to comment on the evolution of the HR business partner (HRBP) model than Dave Ulrich , given he coined and popularised the model in his seminal 1997 book, Human Resource Champions. In his article, Dave details nine evolutions that are combining to reshape and elevate the future role of the HRBP including these five: (1) People and organisation concerns have evolved to be more central to business success. (2) Talent has evolved to pay increased attention on worktask and meaning (see FIG 66). (3) Leadership has evolved to front-line leaders and emerging competencies. (4) HR delivery has evolved to AI–enabled HR (5) HR analytics has evolved from benchmarking to guidance.

FIG 66: From ‘Workforce’ to ‘Worktask’ (Source: Dave Ulrich)

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MARC EFFRON - It’s (Still) the Mortar not the Bricks

Some CHROs are not willing to drive significant change in reducing headcount, upgrading the capabilities of their team or holding their HRLT accountable to “wire” the business properly.

Marc Effron and his team at The Talent Strategy Group cut through the hyperbole to analyse the state of the HR operating model, critique what the consulting firms (EY, Deloitte, Gartner, Mercer and McKinsey) propose and where they fit with the Ulrich Model, and offer guidance on how to structure, upskill and wire your HR operating mode for success. Highlights include Effron’s views that: (1) Dave Ulrich’s model is the reference standard for good HR operating models. (2) That despite statements to the contrary by the consulting firms advocating why the HR operations model needs to change, the world of work remains largely the same. (3) HRBP’s should be fewer in number, stronger in capabilities and deployed against major business units and/or geographies. (4) The future HR service centre will perform a far larger percentage of overall HR work and do at least 80% of this through technology. (5) Companies should create an ‘HR Wiring Team’ to assess where the HR wiring is either not fully developed or isn’t being followed. Effron defines wiring as “Wiring means the agreement among HR team members about how vital processes will flow – the steps, the accountabilities, the technology, etc.” A compulsory read for any chief people officer considering whether to revamp their HR operating model.

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MAX BLUMBERG, ALEC LEVENSON, AND DAVE MILLNER - A Strategically Aligned HR Operating Model

In their paper, three eminent and progressive thinkers in our field – Max Blumberg (JA) ???? , Alec Levenson , and Dave Millner – set out a pivot in how HR is structured and works in order to more closely align the function to the capabilities required for successful strategy execution. They present a new HR structure (see FIG 67) designed around four key pillars, before describing each pillar in detail and providing some diagnostic steps to implement this new operating model.

FIG 67: A new HR structure (Source: Blumberg, Levenson, and Millner)

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ROB BRINER – Evidence-Based HR: A New Paradigm

Evidence-based HR (EBHR) is a process which delivers more informed and hence more accurate answers to two fundamental questions: first, which are the most important problems (or opportunities) facing the organisation which are relevant to HR? Second, which solutions (or interventions) are most likely to help?

These are the opening words to a recently published report from the Corporate Research Forum (CRF), authored by Rob Briner , on Evidence-Based HR (EBHR). The report tackles, the why, what, and how of EBHR, explains why it is not the same as people analytics, provides case studies from Thales, Uber and the Financial Conduct Authority, and provides a practical toolkit for practitioners on the EBHR process (see FIG 68). For more, have a listen to Rob speaking to me in a recent episode of the Digital HR Leaders podcast: What is evidence-based HR and why is it important?

FIG 68: The Evidence-Based HR Process (Source: Rob Briner, Corporate Research Forum)

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NAOMI VERGHESE - Investing in the Right Approach to Upskilling HR

When the CHRO and HRLT role-model the use of people data and analytics in their day-to-day job, then other HR professionals also use people data and analytics in their work.

Naomi Verghese shares the key findings from research she led at Insight222 to identify the key skills HR professionals need to consult and communicate effectively with data. The study, Upskilling the HR Profession: Building Data Literacy at Scale, identified five essential skills for HR professionals: (1) Consulting, (2) Influencing Stakeholders, (3) Data Interpretation, (4) Building Recommendations from Insights, (5) Storytelling. The study also identified the importance of role-modelling by the CHRO and HR leadership team with regards to data literacy (see FIG 69, and above quote).

FIG 69: (Source: Insight222, Upskilling the HR Profession: Building Data Literacy at Scale)

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J. PUCKETT, VINCIANE BEAUCHENE, PATRICK ERKER, AND ZHDAN SHAKIROV – Is Your Upskilling Program Paying Off

Before embarking on any upskilling program, organizations first need to establish the business impact they will measure after the program is over.

Measuring the Return on Learning Investment is arguably the Holy Grail of upskilling programs, but according to this article by BCG it is in fact possible. In their article, J. Puckett, Vinciane Beauchene, C. Patrick G. E. and ?hdan Shakirov present a three-step approach: (1) Identify the desired business impact upfront. (2) Define the metrics for holding the program accountable to that impact and measuring progress. (3) Determine whether the targeted impact has been achieved.

FIG 70: Metrics for assessing the impact of learning programs (Source: BCG)

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ALEXIS FINK AND COLE NAPPER - The World of HR Is Changing Rapidly: I-O Psychology Can Help

In their paper for Society for Industrial and Organizational Psychology (SIOP), Alexis Fink and Cole Napper break down the role of the industrial-organisational (IO) psychologist, and how they are helping organisations to manage the transformation being driven by advancements in artificial intelligence, emerging technologies, and evolving cultural landscapes. Insight222 ’s research on Leading Companies in People Analytics, identified I/O psychology as one of three key skills these companies are focused on hiring, developing and retaining to drive success (along with data scientists, and consultants), so this paper is an important read for chief people officers looking to advance their people analytics function.

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KENNETH KUK, DONALD DELVES, AND JOHN BREMEN - A Board Outlook on Effective Human Capital Governance

Human capital governance can be an overwhelming subject for the board. They do not want to get stuck with minute detail about HR policies or programs. Best practice is for the board to focus their oversight on human capital areas most material to the business, either because they pose a significant risk or are a differentiator for competitive advantage.

Kenneth Kuk, Don Delves, and John Bremen present the findings of WTW research into board prioritisation of human capital governance. Findings include: (1) Boards do not spend enough time on long-term strategic workforce planning. (2) Leadership succession and development, talent attraction and retention, and workforce planning and skills for the future were identified as the top three priority human capital topics. (3) Only one-third of board members agree that human capital governance is effective on their boards. (4) Boards do not spend enough time, nor do they receive the right level of information, to engage in meaningful and strategic discussions about human capital governance (see FIG 71).

FIG 71: Boards do not spend enough time or receive enough information on human capital governance topics (Source: WTW, Directors & Boards)

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RAVIN JESUTHASAN, MIRIAM DAUCHER, AND ALEX ZEA - The future of human resources: Who will care for the human at work?

As the trusted link between organizations and their employees, HR can lead the charge in creating fulfilling workplaces and helping people thrive in an era of transformative technological change, ensuring that AI serves humanity, not the other way around.

Ravin Jesuthasan, CFA, FRSA , Miriam Daucher , and Alexandra Zea present a paper from Mercer on the future of human resources in the fifth industrial revolution. They paint a compelling evolution for the function to move beyond being stewards of employment to being stewards of work, and ultimate being stewards of humanity through (1) Ethical use of AI. (2) Safeguarding ESG. (3) Preserving human well-being.

FIG 72: HR’s changing role through the history of industrial revolutions (Source: Mercer)

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PETER CAPPELLI AND RANYA NEHMEH – HR’s New Role

If leaders realized that the true cost of turnover is often a multiple of an employee’s annual salary, they would immediately demand changes.

In their thoughtful article for Harvard Business Review, Peter Cappelli and Ranya Nehmeh set out the case for the HR function to return to its roots as employee advocates. They argue that in a period of low unemployment and labour supply shortages, focusing on cost-cutting and restructuring is counterproductive and the onus should instead be on retention and preventing burnout. To realise this, HR needs to change outdated policies on compensation, training and development, layoffs, vacancies, outsourcing, and restructuring. Cappelli and Nehmeh recommend the first step should be for HR to create dashboards with metrics on the true costs of turnover, absenteeism, reasons for quitting, illness rates, and employee engagement. They contend that: “If leaders realized that the true cost of turnover is often a multiple of an employee’s annual salary, they would immediately demand changes." They also outline guidance on why and how to measure employee stress – particularly with regards to AI and restructuring. The article also provides examples of companies with HR functions that are moving to an employee advocacy approach. These include the likes of Walmart and Neiman Marcus (both on compensation and reward), as well as IBM and Unilever (both internal talent mobility).

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JEANNE MEISTER – 13 HR jobs of the future

In HR, this is our Promethean moment as we navigate a complex future, one with limitless possibilities in how we work, where we work, who we work with and what we expect in our workplace.

Based on her conversations with HR leaders, Jeanne C M. presents 13 HR jobs of the future, which will emerge between now and 2030 (see FIG 73). Jeanne then explains how each of these roles “embody five core workplace themes enabling leaders to embrace reinvention as a strategy where humans and machines collaborate to deliver in which to the organization.” The five themes are: (1) Building GenAI literacy, (2) Working from anywhere, (3) Building human-machine partnerships, (4) Driving innovation and wellbeing in the workplace, (5) Creating a personalised employee experience.

FIG 73: 13 HR Jobs of the Future (Source: Jeanne Meister)

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READ THE OTHER INSTALMENTS OF THE BEST ARTICLES OF 2024

Don’t forget to check out the four other editions of Data Driven HR Monthly, where I reveal my best articles of 2024:

Part 1: Creating value through people analytics

Part 2: Orchestrating the future of work

Part 3: Enhancing employee experience and wellbeing

Part 4: Developing leaders, culture and inclusion

Part 5: Building the future strategic HR function

THANK YOU

Thanks to all the authors and contributors featured in the best articles of 2024 as well as across the monthly collections from 2024 – see January, February, March, April, May, June, July, August, September, October, November and December - your passion, knowledge and expertise continues to inspire. Thanks also to my colleagues at Insight222, the guests and sponsors of the Digital HR Leaders Podcast in 2024 and the great many of you that share and engage with the content I share. It’s much appreciated. I wish you all well for a happy, healthy, and successful 2025.

Thank you too to the many people who shared and commented on the first two instalments of this series of retrospectives including: Roshaunda Green, MBA, CDSP, Phenom Certified Recruiter , Irada Sadykhova , Nick Lynn , David Simmonds FCIPD , Malgorzata Langlois , Aravind Warrier , Catherine de la Poer , Jeff Wellstead , Danielle Farrell, MA, CSM , 加勒德刘易斯 , Jose Luis Chavez Vasquez , Prabhakar Pandey , Francisca Solano Beneitez , Paola Alfaro Alpízar , Mark North , Michael Arena , Jose Carlos Alatrista , Devika Valsaraj , Neeraj Tandon , Michelle Lee ?? , Timo Tischer , Narelle Burke , Brian Hoogheem , Tiffany L. Langellier, SHRM-CP , Wayne Tarken , Brian Heger , Darshana D. , Gal Mozes, PhD , John Golden, Ph.D. , Agnes Garaba , Graham Tollit , Dan George , Alicia Roach , Dan Lapporte , Torin Ellis , Madison Hanscom, Ph.D. , Simin Ghadrdani (CTRP) , Holly Kortright (she-her) , Meghan M. Biro , Kathleen Kruse , Sophia Huang, Ed.D. , Serena H. Huang, Ph.D. , Emanuele Magrone , Martha Curioni , Aizhan Tursunbayeva, PhD, GRP , Jaana Saramies ?? , Jacob Nielsen , Irwin N. Jankovic, Ph.D. , Anish Lalchandani , Natasha Ouslis, PhD , Dan Riley , Phil Inskip , David Balls (FCIPD) , Sophia Houziaux , Nick Hudgell , Rob Etheridge , Jaap Veldkamp , Michele Goldberg, MBA , Claire Masson , Stacy Johnston , Guillermo Rademakers (he / him) , Ronan Conlon , Shraddha Meshram , Dorota Piotrowska she/her , Robin Haag , Maria Alice Jovinski , Evan Franz, MBA , Chris Long , Chandresh Natu , Harshvardhan Maheshwari , Philippa Penfold FCIPD , Miriam Eleanor Higgins , Meghna Gupta , Marcela Mury , Dr. Akriti Chaubey (Ph.D) , Sonia Mooney , Dorothy Dalton , Alan Susi , Ludek Stehlik, Ph.D. , Preetha Ghatak Mukharjee , Patrick Coolen , Sarajit Poddar , Mike Pino , Markus Graf , Ashish Pant , Sally Dwyer , Steven Claes

ABOUT THE AUTHOR

David Green ???? is a globally respected author, speaker, conference chair, and executive consultant on people analytics, data-driven HR and the future of work.?As Managing Partner and Executive Director at Insight222, he has overall responsibility for the delivery of the Insight222 People Analytics Program, which supports the advancement of people analytics in over 100 global organisations.?Prior to co-founding Insight222, David accumulated over 20 years experience in the human resources and people analytics fields, including as Global Director of People Analytics Solutions at IBM. As such, David has extensive experience in helping organisations increase value, impact and focus from the wise and ethical use of people analytics.?David also hosts the Digital HR Leaders Podcast and is an instructor for Insight222's myHRfuture Academy. His book, co-authored with Jonathan Ferrar, Excellence in People Analytics: How to use Workforce Data to Create Business Value was published in the summer of 2021.

MEET ME AT THESE EVENTS

I'll be speaking about people analytics, the future of work, and data driven HR at a number of upcoming events in early 2025:

• February 26-27 - People Analytics World, Zürich
• March 19 - Workhuman Live Forum, London
• April 10-11 - Wharton People Analytics Conference, Philadelphia
• April 29-30 - People Analytics World, London
• May 6-8 - UNLEASH America, Las Vegas
• June 4-6 - TALREOS (Talent Analytics Leadership Roundtable Economic Mobility Summit), Chicago
• July 31 - August 1 - People Matters TechHR India 2025, Delhi
• October 21-22 - UNLEASH World, Paris

More events will be added as they are confirmed.