Transforming our approach to Human Resources during a time of upheaval

A global pandemic, social unrest, and tumultuous weather are a few defining characteristics of this year. No one knew the level of uncertainty and chaos 2020 would usher in, or the impact it would have on transforming our personal lives and workplaces. What we do know is no one is experiencing these changes alone. In order to move forward leaders across disciplines have to work together and put smarter human resources practices to work. 

One of the greatest challenges facing companies right now is how to adapt to a new climate shaped by constant disruption. Focusing on employee experience and growth while maintaining business goals is a top priority for organizations around the globe. 

As a leader in technology and innovation for the past 109 years, IBM has proven that it is equipped to handle change. We welcome it. Our recent report Accelerating the journey to HR 3.0, provides insight on adapting to these unprecedented times through the transformation of Human Resource (HR) departments.  

Over the course of two years we studied HR departments at hundreds of global companies to identify areas for improvement. The resulting research found HR departments fall into three categories: HR 1.0, 2.0, and 3.0.  The original HR operating model, HR 1.0, developed during the Industrial era and focused on compliance, administration design, and jobs. The creation of the internet brought about HR 2.0, defined by process excellence, standardization, self-service, and shared services. Since HR 3.0 is relatively new, it is currently being utilized by only 10 percent of businesses. It is a people-centric model focused on personalized and transparent employee experiences. This newest category has distinct disciplines that can be adopted by leaders in many organizations.

As business environments change, HR departments evolve. Leadership evolves in parallel. 

Working from home has further blurred the lines between our personal and professional lives. With this shift in work dynamics, it is vital for leaders to learn how to coach their teams in a remote environment. Goal setting, performance assessments, and constructive feedback are several actions leaders can take to promote transparency with employees and develop skills. Employee growth creates a pipeline of new leaders who are identifiable by their performance instead of tenure. All of this progress can be measured using mobile apps and analytics.

Radically redefining how we lead and manage our team members extends beyond reskilling the workforce; it includes transforming HR technologies and tools as well. Moving HR systems to the Cloud can increase speed, scalability, and flexibility. Leveraging Artificial Intelligence offers new opportunities for leaders to redesign company workflows, better understand employee voice and deliver equitable pay practices by eliminating pay bias. 

Woodside, Australia’s largest independent energy company, sought to change the way it approached human resource processes by utilizing IBM Garage, a methodology that can be used to create a culture of agile operations and continuous skills building. With the help of Watson AI, Woodside’s employees complete less repetitive tasks and new hires are efficiently taught the company’s business model and strategy to shorten their learning curve.   

Burger King Brazil is another great example of an organization using digital transformation to meet the needs of its 16,000 employees. The company collaborated with our IBM Services team to create a new virtual assistant named TOP (Technology Orienting People), based on IBM Watson Assistant, to replace its centralized command system used by employees to submit requests for earning reports, vacations, and other HR related matters. TOP allows employees to now process their requests via a text conversation in natural language on WhatsApp. Since implementation, TOP has handled 50% of HR requests, providing leaders more time to focus on other organizational goals. 

The world is changing rapidly, and it is important for global companies to evolve and adapt with it. The HR 3.0 model outlined in our Research Insights report can be used as a template to establish an HR department and well-trained leaders capable of meeting the needs and skills of a new workforce. To get started on your organization’s transformation plan, visit: ibm.com/talent-management.