If you want your business to do well in this competitive environment, you’ve have to make sure your HR operations are running as efficiently as possible. HR operations are the backbone of any org, taking care of everything from recruitment to payroll and benefits. How can you make sure your HR operations are running smoothly and working well?
How can you use tech, data, and good methods to make your processes faster & give value to the people involved? We’ll check out some of the core parts of HR operational efficiency and how you can boost it for your biz in this blog post. We’ll also give you some advice and examples from top companies that have really excelled in their HR departments.
If you’re a small business owner or a big company, you’ll find some great tips and ideas on how to Boost HR Operational Efficiency For Success!
New Global Challenges Shift HR’s Top Priorities
The working world is changing at a rapid rate, so HR heads need to be ready to take on new global difficulties. HR’s essential for a successful business, from keeping remote teams organized, to making sure everyone feels included, to meeting customers’ changing demands. But how can HR work on its strategic targets while still providing efficient and effective services to its stakeholders? That’s what HR Operational efficiency is all about.
The HR function’s ability to make the most of resources, processes, and technology to give great and timely results for internal and external customers is HR operational efficiency. It’s all about cutting costs, getting rid of unnecessary stuff, boosting efficiency, and making customers happy. It means getting HR to work together with the biz plan and making something valuable for the company.
According to Gartner, achieving HR operational efficiency is the first phase on the path to the future of HR. By streamlining and automating transactional tasks, HR can free up time and resources for more strategic and proactive initiatives. For example, by shifting administrative tasks from HRBPs to shared service centers (SSCs), HR can enable HRBPs to focus on solving complex business problems. Similarly, by adopting next-generation centers of excellence (COEs), HR can provide agile support for emerging business needs.
However, achieving HR operational efficiency is not a one-time project. It requires continuous improvement and adaptation to changing business priorities. According to a survey by KPMG, only 34% of HR leaders believe their current structure allows them to adapt to changing business priorities. Moreover, 84% of HR functions have restructured in the past two years, are currently restructuring or plan to restructure in the next two years. This shows that there is a need for more flexibility and agility in the HR operating model.
One way to achieve this is by splitting the HRBP role into more specialized activities. For example, some organizations have created separate roles for talent acquisition partners (TAPs), talent management partners (TMPs), employee relations partners (ERPs), etc. This allows for more expertise and customization in each area while also enabling collaboration across different functions.
Another way to achieve this is by creating a dynamic pool of HR problem solvers. These are cross-functional teams that can be deployed quickly to address specific business challenges or opportunities. They leverage data, analytics, design thinking, and agile methodologies to deliver innovative solutions that create value for the organization.
HR operational efficiency is not an end in itself but a means to an end. It enables HR leaders to focus on what matters most: delivering strategic impact and enhancing employee experience. By adopting operational excellence tools and principles, HR can create value for its customers while also preparing for the future of work.
The HR Operating Model of the Future
The HR operating model of the future is one that is human-centered, agile, and responsive to the changing needs and expectations of employees and businesses. It is based on four key imperatives that aim to improve HR operational efficiency and effectiveness:
– Adopting agile principles to prioritize and allocate HR resources according to the most urgent and impactful business and people issues. This allows HR to adapt quickly to changing circumstances and deliver value faster.
– Excelling along the employee experience journey to attract, retain, and engage talent in a competitive market. This involves designing and delivering personalized, seamless, and meaningful interactions with employees at every touchpoint, from recruitment to retirement.
– Re-empowering frontline leaders in the business to create human-centric interactions, reduce complexity, and make decisions that align with organizational goals. This involves shifting some HR responsibilities to managers and empowering them with data, tools, and coaching.
– Offering individualized HR services to address the diverse preferences and needs of employees. This involves leveraging technology and data to provide customized solutions that enhance employee satisfaction, productivity, and well-being.
The HR operating model of the future is not a one-size-fits-all approach but rather a flexible framework that can be tailored to suit different organizational contexts. However, it requires a mindset shift from HR leaders who need to embrace innovation, collaboration, experimentation, and learning as core capabilities for their function.
Upgrading HR’s Operational Efficiency
HR operational efficiency is the ability of the HR function to deliver high-quality services and outcomes to its stakeholders with optimal use of resources. HR operational efficiency can help a company achieve its strategic goals, improve employee engagement and retention, reduce costs and risks, and enhance customer satisfaction .
Some of the ways to upgrade HR operational efficiency are:
- Splitting the HRBP role into more specialized activities that focus on specific business needs and challenges.
- Creating a dynamic pool of HR problem solvers who can collaborate across functions and regions to address complex issues.
- Providing agile support with next-generation COEs that leverage data, analytics, technology, and innovation to deliver solutions that align with business priorities.
- Building a robust HR operations and service delivery team that can automate transactions, streamline processes, ensure compliance, and enhance user experience .
- Measuring HR effectiveness using relevant metrics that capture both quantitative and qualitative aspects of HR performance.
By upgrading HR operational efficiency, a company can create a more flexible, responsive, and impactful HR function that can drive business value and growth.
Example Actions to Improve HR operational efficiency.
One of the goals of any HR department is to improve its operational efficiency, which means delivering high-quality services and solutions to employees and managers in a timely and cost-effective manner. HR operations include tasks such as payroll, benefits administration, recruitment, performance management, training and development, and compliance. To improve HR operational efficiency, here are some example actions that can be taken:
- Automate repetitive and manual processes using software tools or outsourcing services. This can reduce errors, save time and resources, and allow HR staff to focus on more strategic and value-added activities.
- Streamline workflows and policies to eliminate unnecessary steps or bottlenecks. This can improve communication, collaboration, and transparency among HR teams and stakeholders, as well as enhance employee satisfaction and engagement.
- Implement data-driven decision making using metrics and analytics. This can help HR measure its performance, identify areas for improvement, and align its goals with the organization’s objectives.
- Invest in continuous learning and development for HR staff. This can help them acquire new skills, knowledge, and competencies that are relevant to the changing needs of the workforce and the business environment.
- Solicit feedback from employees and managers on their expectations and experiences with HR services. This can help HR understand their needs better, address any issues or gaps promptly, and improve customer satisfaction.
By taking these actions, HR can improve its operational efficiency and deliver more value to the organization.
Example Actions to Maximize the Value of Your HRIS
A human resource information system (HRIS) is a software that helps HR professionals manage various aspects of their work, such as payroll, benefits, recruitment, performance appraisal and more. However, simply having an HRIS is not enough to ensure HR operational efficiency and effectiveness. You need to take some actions to maximize the value of your HRIS and optimize your HR operations.
Some of the actions you can take are:
- Choose an HRIS that suits your organization’s needs and goals. There are many types of HRIS available in the market, each with different features and functionalities. You need to do some research and compare different options before selecting an HRIS that meets your requirements and budget.
- Train your staff on how to use the HRIS properly and efficiently. An HRIS can only be useful if your staff knows how to operate it and leverage its features. You need to provide adequate training and support for your staff to help them learn how to use the HRIS effectively and troubleshoot any issues that may arise.
- Integrate your HRIS with other systems and platforms. An HRIS can be more powerful and valuable if it can communicate and exchange data with other systems and platforms that you use in your organization, such as accounting software, CRM software, learning management system (LMS), etc. This way, you can streamline your workflows and avoid data duplication or inconsistency.
- Monitor and evaluate the performance of your HRIS regularly. An HRIS is not a static tool that you can set up once and forget about it. You need to monitor and evaluate how well it is working for you and whether it is delivering the expected results. You can use various metrics and indicators to measure the performance of your HRIS, such as user satisfaction, data accuracy, cost savings, productivity gains, etc.
- Update and upgrade your HRIS as needed. An HRIS is not a one-time investment that you can ignore after purchasing it. You need to keep up with the latest trends and developments in the field of HR technology and ensure that your HRIS is up-to-date and compatible with them.
By taking these measures, you can get the most out of your HRIS for better HR operational efficiency.
Example Actions to Create a Robust HR Operations Team
Having a strong HR team is key for making sure human resources duties are running smoothly and efficiently in a company. In a nutshell, HR operations are responsible for tasks like payroll, administering employee benefits, making sure everyone is following the rules, managing employee relations, helping out with performance management, and analyzing data. To make a strong HR operations squad, here’re a few things you could do:
- Define the roles & responsibilities of each member of the team and set them with the strategic goals & objectives of the company. This will help to clarify expectations, avoid duplication of work and foster collaboration among team members.
- Invest in training & development opportunities for the HR team members to improve their skills and talents in HR operations. This will help to improve the quality & accuracy of their work, as well as increase their motivation and engagement with the work.
- Implement standardized processes & procedures for HR operations that are consistent, transparent & compliant with relevant laws & regulations. This will help to streamline workflows, minimize errors and risks, and ensure accountability and auditability.*
- Leverage technology tools & systems that can automate, simplify and optimize HR operations tasks. This will help to save great amount of time & resources, improve data quality and security, and enable data-driven decision-making efficiency.
- Establish regular communication channels & feedback mechanisms within the team and with other stakeholders such as the managers, employees and external partners. This will help to foster trust, collaboration & innovation among HR team members.
By taking these actions, an organization can create a robust HR operations team that can deliver accurate & high-quality services to its employees and contribute to its overall success.
HR can improve operational efficiency by implementing some of these strategies:
- Streamline & automate HR processes to reduce mistakes, save time & resources, and improve employee experience with the work.
- Connect HR goals and measurements to company goals, and find out how HR projects influence results.
- Give your employees constant input, coaching, training, and development opportunities to help increase their abilities, motivation, and involvement.
- Encourage teamwork, creativity, and consistently striving to do better among staff and groups.
- Encourage diversity, inclusion, and well-being in the workplace to draw in and keep talented people, and make a great work atmosphere.
By doing these things, HR can help the organization achieve its goals faster, better, and cheaper.