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Split HR? Rethinking HR’s Role Within Larger Organizations

We all know that HR is at a crossroads. One of the hottest topics being discussed at the C-suite level is whether HR should be split into two distinct functions – one that handles administration and one that manages leadership and organization. A recent article by business advisor Ram Charan in the Harvard Business Review took this position, igniting a debate that had long been smoldering. Charan, an advisor to CEOs, said this:

“I talk with CEOs across the globe who are disappointed in their HR people. They would like to be able to use their chief human resource officers (CHROs) the way they use their CFOs—as sounding boards and trusted partners—and rely on their skills in linking people and numbers to diagnose weaknesses and strengths in the organization, find the right fit between employees and jobs, and advise on the talent implications of the company’s strategy.”

Others have come forward and taken a different tack. Cathy Benko and Erika Volini from Deloitte Consulting offered a counterpoint in a subsequent article. They focused on the role of the CHRO, and compared it to the change that the role of CFO underwent in the 1980s, from “corporate bean counter” to a CEO’s chief partner in driving strategy. They agree that HR needs to be fixed, but argue that it needs to evolve, with extensive reskilling of HR, and a new focus for the CHRO.

One thing both viewpoints agree on: HR is mired in administrative tasks like never before.

Research by Bersin by Deloitte (The High Impact HR Organization) supports the basic dysfunction of HR when it is swamped with administrative tasks:

“When this role is implemented poorly, with more focus on administrative duties and taking orders, our research found that it can actually reduce an HR function’s ability to work effectively and efficiently.”

Other findings:

  • Less than 8 percent of HR leaders have confidence that their teams have the skills needed to meet the challenge of today’s global environment and consistently deliver innovative programs that drive business impact.
  • 47 percent of business and HR leaders surveyed said their companies are “weak” on preparing HR to deliver programs aligned with business needs.
  • 50 percent rated their companies as “weak” when it comes to providing innovative solutions and programs.

It’s no wonder there is so much talk about splitting HR – the leadership and organizational part of HR is not getting the full attention of HR, due to the crushing amount of administrative tasks.

One thing that many in the debate seem to ignore is the crucial role of technology and its role in the evolving functions of HR. Technology can scale to certain tasks in a way that humans never can – including HR’s new and complex challenges.

We’ve built our business around this proposition, with a software solution that can bring efficiencies to a complex administrative process that can’t be achieved otherwise. HR needs to leverage this ability, so it can fulfill a critical role in the organization’s business strategy. Splitting HR and retaining a branch solely devoted to administrative tasks is choosing to keep traveling by the horse and wagon when a bullet train is available. HR just needs to get on it.

Todd Owens will be a guest on the Feb. 4 #TChat Show.

About the Author: Todd Owens is the Chief Executive Officer at TalentWise and has been with the company since 2006. He has twice been recognized as a “Superstar for outsourcing innovation in support of HR organizations” by HRO Today magazine.

photo credit: Wolfgang Lonien via photopin cc

 

TalentWise is a client of TalentCulture and sponsored this post.

#TChat Preview: Should HR Be Split Into Two Branches?

The TalentCulture #TChat Show is back live on Wednesday, February 4, 2015, from 7-8 pm ET (4-5 pm PT). The #TChat radio portion runs the first 30 minutes from 7-7:30 pm ET, followed by the #TChat Twitter chat from 7:30-8 pm ET.

Last week we talked about how authentic storytelling in the workplace impacts talent strategies.

This week we’re going to talk about whether or not HR in the enterprise should be split into two branches.

One of the hottest topics being discussed at the C-suite level is whether HR should be split into two distinct functions – one that handles administration and one that manages leadership and organization.

Research by Bersin by Deloitte supports the split because HR is swamped with administrative tasks. Nearly 50 percent of business and HR leaders surveyed said their companies are “weak” on preparing HR to deliver programs aligned with business needs.

HR technology brings efficiencies to a complex administrative process. The right technology enables HR to scale certain tasks in a way that humans never can.

HR needs to leverage this ability to fulfill a critical role in the organization’s business strategy.

Join TalentCulture #TChat Show co-creators and hosts Meghan M. Biro and Kevin W. Grossman as we we learn about whether HR should be split into two distinct functions with this week’s guest: Todd Owens, Chief Executive Officer at TalentWise.

Sneak Peek:

Related Reading:

Michael Carty: HR Directors Need To Step Up Their Game On Data And Social Media

Meghan M. Biro: Left Brain, Right Brain: Does HR Have A Spilt Personality?

HR.BLR.com: 2015 Predictions: Outdated Best Practices Are Out—Flexibility And Training Are In

We hope you’ll join the #TChat conversation this week and share your questions, opinions and ideas with our guests and the TalentCulture Community.

#TChat Events: Should HR Be Split Into Two Branches?

TChatRadio_logo_020813#TChat Radio — Wed, February 4th — 7 pm ET / 4 pm PT Tune in to the #TChat Radio show with our hosts, Meghan M. Biro and Kevin W. Grossman, as they talk with our guest: Todd Owens.

Tune in LIVE online Wednesday, February 4th!

#TChat Twitter Chat — Wed, February 4th — 7:30 pm ET / 4:30 pm PT Immediately following the radio show, Meghan, Kevin and Todd will move to the #TChat Twitter stream, where we’ll continue the discussion with the entire TalentCulture community. Everyone with a Twitter account is invited to participate, as we gather for a dynamic live chat, focused on these related questions:

Q1: Should HR be split into administrative and strategic branches? #TChat (Tweet this Question)

Q2: Why have HR administrative tasks increased dramatically in the enterprise? #TChat (Tweet this Question)

Q3: What efficiencies can HR tech bring to complex business processes? #TChat (Tweet this Question)

Until the show, we’ll keep the discussion going on the #TChat Twitter feed, our TalentCulture World of Work Community LinkedIn group, and in our new TalentCulture G+ community. So feel free to drop by anytime and share your questions, ideas and opinions. See you there!!

photo credit: Martin Cathrae via photopin cc