How to overcome obstacles to achieve HR transformation

For years, human resources (HR) departments across all industries have received pressure from their companies to reduce the amount of transactional work and provide greater value and outcome-based strategic programs.

Although this request isn’t unrealistic, the path to transform and modernize HR isn’t a simple one. To achieve this, HR and the business must align and agree on the future of the HR department.

Some common questions organization leaders can use to start the process include:

• Why do we need an HR strategy?
• What does an HR strategy do?
• How do we deliver strategic HR programs?
• Where does an HR strategy add value?
• Who decides whether HR is being strategic?

The HR strategy challenge

The primary reason HR hasn’t progressed as quickly as other functions is often due to the lack of knowledge in HR to lead strategy and transformation efforts. Or, there’s a lack of support from the business. For HR transformation and modernization to occur, some critical yet fundamental alignment from both HR and the business is required.

Organizational mindset

This is the biggest challenge for most organizations. The organization must be ready to adopt a new way of working with HR, and a new way of working altogether.

When HR transforms, the organization must be open to the change, and the organization must be willing to let go of things HR stops doing.

Time

Effective transformation and modernization isn’t an overnight exercise; it can take months if the change is relatively small or years if highly complex. Regardless of the duration, properly implementing and managing change takes time. Organizations must be willing to commit to enough time needed to achieve the desired outcomes.

HR transformation budget

Depending on the size, scope, and duration, it’ll require a financial investment from the organization to transform HR. Organizations attempting to partially fund or cut corners often get what they pay for — resulting in a failed attempt.