Time to Transform the “Traditional” HR Operating Model? | Egon Zehnder

HR Effectiveness

HR leaders continue to redesign their HR operating models to deliver agile and employee-centric work that is strategically aligned with the business. As HR leaders evaluate various operating models, this article provides five models to consider. The models are alternatives and/or variations to the three-component model adopted by many HR organizations: HR Business Partnering, Centers of Expertise and HR Operations or Shared Services. The five models are determined by a 2×2 matrix: 1) The horizontal axis represents Agility—the ability to adapt and evolve people and processes in unexpected or fast-changing times. 2) The vertical axis focuses on the level of change or transformation an organization is willing to accept. Two of the five resulting models include Double-Hatting: When more speed is needed for implementing HR processes and innovation, some organizations adopt a model that integrates the HRBPs and CoEs role (e.g., HRBP might double up as the HR Lead and Head of Employee Experience). Super CoEs: Instead of embedding the CoEs into the HRBP role as in the double-hatting model, some companies opt for an HR operating model where the COE is not only accountable for building new HR processes and solutions but also for implementing them. While not mentioned specifically in the article, one critical determinant of HR model selection is “size of organization,” which influences the feasibility of implementing certain models. Other ideas are discussed.