The world has gone digital, and it’s here to stay. For businesses still operating under traditional business models, the era of digital disruption is permeating every aspect of business, including human resources and people management.
Organizational design has topped the list of most important talent trends two years in a row according to Deloitte’s latest research.
Many organizations operate on dated hierarchical business models developed for predictable supply and demand and designed to maximize efficiency. Mercer’s Global Talent Trends study found that 97% of executives are either working toward or are currently redesigning their organizations for agility to compete with the digital future, yet only 15% of HR departments include organizational and job design as elements of their people strategy. With today’s rapidly evolving advancement of technology comes a new workforce mindset and a new generation of young talent with new demands, new communication methods, and a need for new organizational strategy. This rapid advancement requires agility and adaptability.
Just as a consumer can rate a restaurant, retail experience, or product online using review services like Yelp or Google, an employee can rate an organization for interview experience, management practices, or workplace culture. Digital disruption has pushed businesses into a state of perpetual transparency.
The employee is the internal customer
As brands begin shifting focus from the products and services they provide to the consumer as an individual, many leading companies have taken notice and begun to apply the same principals to their people. From using AI to streamline the talent acquisition process to rolling out workplace apps, employee experience is a new priority. New technology allows brands to personalize marketing strategy, obtain in-depth analytics and predict behavior, all of which are being applied to define and execute employee experience strategy.
It’s not only about employee expectations of employers, they also thrive under recognition, coaching, and gratitude. In fact, Mercer’s research found that 97% of employees want to be recognized and rewarded for their work.
Top companies are working tirelessly to redefine, reshape, and restructure organizational structure and jobs to allow for agility, speed, development, and to meet the rapidly evolving needs of today’s dynamic workforce.
The HR role itself also has to evolve in order to provide the best digital experience to meet employee expectations. HR teams need to be able to work and communicate functionally across multiple departments within a business. As business professor Kevin Mulcahy said in a 2017 SHRM article, “HR needs to become much more multifunctional and, by extension, a visible agent for change.”
As organizations move toward agility, barriers between departments are being eliminated, making way for the rise of networks and teams.