Viewed in McKinsey
The role of the Chief Human Resources Officer (CHRO) is going through significant changes, driven by the evolving needs of the workforce and advancements in technology.
Instead of sticking to the traditional HR model, CHROs are now embracing five emerging HR operating models that offer more flexibility. These models include:
- Ulrich-plus model: A modernized version of the classic HR model, making centers of excellence more adaptable and assigning execution responsibilities to HR business partners.
- Agile model: Emphasizes speed to accommodate fast-paced organizational transformations, with fewer HR business partners and increased focus on counseling top management and specialized teams.
- Employee-experience-driven model: Prioritizes creating a superior employee experience journey, focusing resources on critical moments like onboarding.
- Leader-led model: Shifts HR accountability to the business side, supporting line managers with HR tools and processes, particularly in research and development-focused organizations.
- Machine-powered model: Focuses on providing counsel to employees while leveraging algorithms for tasks like talent selection, which is common in digitized organizations.
Employee Engagement
CHROs are reshaping HR by putting a strong emphasis on the “human” element. They are aligning policies with employees’ needs and creating a more personalized experience.
They are engaging directly with employees, promoting diversity and inclusion, fostering agile workforces, and adapting to a changing talent landscape by embracing temporary workers and freelancers.
Generative AI
The integration of Generative AI (gen AI) into HR functions holds great potential. It helps with talent management, facilitating training, empowering middle managers, personalizing candidate relationships, and shifting the focus from credentials to acquired skills in recruitment.
Inspirational Leadership
To effectively lead organizational change, CHROs need to be inspirational leaders who focus on the internal culture and the organization’s capacity for change. They should build leadership capabilities for agile transformations and encourage mindset shifts throughout the organization.
Take-aways
Ultimately, CHROs are at the forefront of driving HR evolution by embracing new models, leveraging technology, and putting people at the center of the workplace.
