Time ripe to innovate traditional HR models: KPMG survey

• Says complete transformation essential to function in new normal
• Reveals that in next 12-14 months, 3 out 10 employees need to be re-skilled and 2 in 10 likely to be redundant
• Says HR function should remove itself entirely from employee-manager relationship
• Highlights need for significant redesigning within HR 

By Shabiya Ali Ahlam
The tectonic shift across the globe due to the ongoing COVID-19 pandemic has pushed corporates to rethink the approach towards human resources management (HRM) since the health crisis has led to significant skill gaps, shifted priorities and accelerated digital transformation.

A worldwide survey by KPMG that studied nearly 1,300 HR leaders revealed that workforce would change the ’shape’ dramatically over the next two years.

“To deal with these changes, more than two-thirds of HR executives, 69 percent, believe the HR function needs to completely transform itself to respond effectively. This pivot requires new mindsets, skills and priorities,” KPMG said in its 2020 HR Pulse Survey published yesterday. The findings of the survey showed that in the next 12 to 14 months, three out of 10 employees would need to be re-skilled, and almost two in 10 are likely to be made redundant.

As priorities too have shifted in the last six months, in addition to safeguarding the experience and well being of employees, the survey found that organisational leadership recognises the need to keep people connected, engaged, and productive. 

“The seemingly overnight move to remote work has challenged leaders to rethink their traditional work models and permanently shifted the way they think about what it means to be ‘connected, engaged, and productive’,” the survey report highlighted.

With 39 percent of employees set to continue work remotely over the next two years, a hybrid model of attendance is expected moving forward. 

KPMG stated that as a result, there has been an unprecedented investment in digital technology to support remote employees and work and to ensure talent pipelines adapt to these new demands. 

“Unsurprisingly, collaboration tools are one of the biggest technology investments made as they are considered fundamental to increasing team visibility, maintaining productivity, and achieving business outcomes,” KPMG said. 
Furthermore, as fresh challenges require renewed efforts, KPMG stressed the traditional operating model of HR is ripe for innovation. 

The global advisory firm asserted that significant redesigning is required within HR at the same time as the rest of the organisation. 

While pointing out that innovation is a mutually beneficial undertaking that will result in a more productive and connected organization, the firm shared that HR needs to work with the rest of the C-suite to re-evaluate what productivity means in the new reality, and to redefine what an outstanding employee experience looks like.

“Productivity measures certainly won’t be charted by HR tracking employee time spent in remote seats, or by policing output. Instead, the HR function should remove itself entirely from the employee-manager relationship and take a macro view of the workforce,” suggested KPMG.

The recommendations highlighted that if leaders are accountable for people management, then the time and resources of HR can be better used architecting what the workforce of the future will look like. 

“This architecting, or, ‘workforce shaping’, will be anchored by predictive analytics, information flows and process automation, among other digital capabilities, to help turn workforce insight into action,” KPMG said.