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January 2019

Keeping Up With The Times: HR Structures Are Evolving

Keeping Up With The Times: HR Structures Are Evolving

Humanity is truly living in a technological era. From AIs to smartphones that can do just about everything, the impact that advancements in tech have on our perceptions of life is larger than we think, and has directly influenced the way businesses are run. Millennials have gained a reputation as the "job-hopping generation" due to their proclivity to leave a job if it doesn't meet their expectations of modern business. As a result, business structures are changing, and rapidly.

Out With The Old...
Companies are experiencing a hypercompetitive environment as startups and innovative new businesses emerge every day. To keep up with such intense competition, they are abandoning the ideals of Old; the "one-size-fits-all" model does not attract young, creative, and dedicated minds, so businesses are making the shift toward dynamic and culture-centric office and workplace environments.

One of the departments most undergoing change is human resources; businesses have been using essentially the same HR structure for more than 20 years. Now, HR executives are beginning to refocus the department's purpose around designing worker experiences and leading digital transformation -- HR structure models are being completely redesigned and geared toward the digital age we live in.

...In With The New
The biggest shift seems to be toward a fit-for-purpose model, rather than one-size-fits-all. The definition of this new wave of thinking is as follows:

"Fitting the core elements of HR models to an organization's unique purpose through a series of strategic design choices associated with business and people strategies, market dynamics, organizational culture, and HR operations."

High-impact HR structure models deliver consistent and flexible experiences, tools, and services throughout the business. This, in turn, helps the company stay ahead of emerging trends in work, the workplace, and the workforce. Although it may be trickier to implement due to the fact that each business' strategic design choices are unique to themselves, they offer a significantly greater return on investment in the form of happier workers and higher productivity.

HR will need to be restructured with relative frequency as technology continues to climb toward unimagined heights. The fit-for-purpose model works now, but there's no telling what will happen if machines and computers are able to replicate human actions and judgment at greater speed, scale, and quality.