Putting the H back in HR
In our evaluation of HR organization structures, nearly 66% of respondents said that HR has direct control of resources either through direct reporting or through a matrix structure where there is a solid line reporting to regional or global HR. Higher staffing proportion for HR business partners (HRBP) and for centre of excellence (CoE) roles even at large organizations indicates low maturity of HR operations/shared Services. This in turn results in lower level of perceived effectiveness of both HRBP and CoE roles. HR capability gaps are holding back effectiveness of HR and need to be addressed on priority. Large organizations face this challenge more acutely because they are more advanced in their HR transformation journey. It is imperative to clearly think through HR roles and their distinct accountabilities and enable higher degree of collaboration through defined governance. Increasingly HRBPs are being seen as advisors and consultants to business leaders and get measured on business impact and outcomes. Going forward, field HR and generalists will have a vital role as the custodians of culture and employee relations.