Viewing Employees as Customers

In today's evolving work environment, we are increasingly adopting a multi-sided approach that balances strategic goals with a deep commitment to employee well-being. This dual focus not only aligns people with business objectives but also treats employees as valuable customers, ensuring their individual needs and aspirations are met. Such an approach, which emphasizes both value creation for the organization and employees, can significantly enhance how we manage and organize people and work.

A Strategic and People-Centric HR Framework

A multi-sided HR strategy involves both strategic and people-centric elements. From a strategic perspective, HR aims to add value (AV) by aligning the workforce with the company's broader business goals. This includes creating additional value (CV) by leveraging employees' potential to explore new business opportunities. This approach is crucial in fostering innovation and keeping the organization competitive.

On the other hand, the people-centric aspect of HR goes beyond the traditional employee experience (EX). It focuses on adding value for employees (E-AV) by optimizing their contributions and creating new value (E-CV) for them. This means recognizing employees as customers of the organization and prioritizing their personal growth and well-being. This approach not only aids in attracting and retaining talent but also enhances overall job satisfaction and productivity.

Organizing People and Work: A Dual Focus

Strategic HR, coupled with organizational design (OD), seeks to create a better fit between people and their work. This includes moving away from generic best practices and towards customized solutions that align with the specific needs of the organization. For instance, utilizing horizontal teams—such as process, project, agile, or product teams—can enhance collaboration and align employees more closely with their work.

Creating value (VC) in this context involves empowering employees to take ownership of their roles. This can be achieved by fostering communities and networks that facilitate knowledge sharing and innovation. Rather than merely using people to execute tasks, this approach encourages creating work through people, thereby enhancing engagement and effectiveness.

From a people-centric perspective, the focus shifts to helping each employee meet their personal and professional objectives. This includes providing autonomy in job roles, enabling job crafting, and offering opportunities for innovation. Communities of interest and practice, such as employee resource groups (ERGs), can play a significant role in supporting employees' personal growth and achieving their life goals.

Managing and Rewarding Performance

Effective performance management is pivotal in aligning employees with business objectives. Strategic performance management involves setting 'SMART' goals or using frameworks like Objectives and Key Results (OKRs) to ensure clarity and focus. It also encourages employees to innovate and explore new ways to contribute to the business.

People-centric performance management, however, focuses on supporting individual employees to achieve their personal goals. This approach helps uncover new opportunities for growth and development that may not align directly with business goals but are crucial for employee satisfaction and retention.

Similarly, strategic reward systems align incentives with business performance, while people-centric rewards focus on recognizing personal achievements and contributions. While traditional rewards like merit increases and bonuses remain important, recognizing individual efforts towards personal goals can be more meaningful and fulfilling for employees.

Transforming HR for the Future

Adopting a multi-sided HR approach requires HR professionals to develop both business and human-centric skills. While business acumen is essential for adding value, understanding human behavior and psychology is crucial for creating value. Transforming HR to be more strategic and people-centric involves adopting new organizational structures and roles, such as people coaches and community managers, to better support employees at all levels.

Treating employees as customers, alongside a strategic focus, can lead to a more engaged, innovative, and satisfied workforce. As HR professionals continue to evolve in this direction, the future of work promises to be more inclusive, supportive, and aligned with both business and employee needs.