The shortage of skilled workers continues to intensify. Across all industries, companies are desperately searching for new employees, and it has never been more important for them to retain their existing staff. At the same time, numerous transformation processes are changing the requirements for employees, work models, and corporate processes.
It is well known how difficult the current framework conditions are for the HR sector.
Those in charge are responding to these hurdles by rethinking and reinventing personnel management. An appreciative work culture and positive collaboration are crucial to success and are the top priority for modern HR leaders. Only companies that stand out from the competition with particularly attractive working conditions and a positive employer image, successfully implement key transformation processes, and establish future-proof HR models and new ways of working have a chance of attracting good talent.
People & Organisation: The new identity of HR
People are at the center as a valuable part of the organization – and this should be clearly communicated externally. That is why more and more companies are choosing to rename their Human Resources department to "People and Organisation" or "People and Culture."
This new identity and focus on employee satisfaction are accompanied by a series of processes that change the reality of work within the company and make the organization future-ready. HR is always part of the overall strategy and, as such, is indispensable when it comes to organizational change. This is where strategic workforce planning, closely linked to corporate goals and strategic decisions, plays a central role. Only with the right team can goals be achieved. But how do you attract the right employees? How can personnel management be positioned for the future? Several trends and focus areas are emerging here:
HR takes the lead
Even though the results of the Human Resources (HR) function are difficult to measure, successful HR work significantly influences business success. This insight is not new. Yet, in many companies, the HR department is still not closely enough or is only inadequately integrated with the executive level. However, personnel management should be anchored at the very top of the management level and fully exercise its governance function in order to push through the necessary changes that make an organization effective and future-proof. In some places, this requires a new understanding of leadership to broaden the leadership base and expand responsibilities.
Employee experience is gaining importance
It is no longer just the customer experience that matters; the employee experience is becoming increasingly important. It influences employee satisfaction and encompasses every touchpoint an employee has with their employer, from reading a job advertisement to offboarding. Building an attractive employer brand and professional employee experience management requires agile strategies and processes to react quickly to the changing expectations of potential applicants and current employees. The goal is to position oneself as an attractive employer and stay ahead of the competition – for the long term.
Redesigning work environments
An important aspect of the employee experience is how attractive the work environment is – which is currently being shaped primarily by Millennials. In addition to monetary aspects, this can be implemented through high-quality catering in the company canteen and various tools that allow employees to design their workspace flexibly. Whether this redesign is called "New Work" or "Better Work," it ultimately comes down to employees feeling comfortable in the workplace, experiencing an appreciative environment, finding meaning in their work, balancing family and career, having enough freedom for self-realization, being able to work independently and creatively, identifying with the company, and ideally feeling like part of a family. There is a wide spectrum of excellent working conditions and starting points here for successful recruiting, onboarding, high satisfaction, and thus long-term employee retention.
The digitalization of HR processes
One of the most important tasks of personnel management is to create ideal conditions so that people can work together in the best possible way. Digitalization plays an important role here. What can the digitalization of HR processes achieve? For one, it gives HR managers more time and space for the employees themselves by automating many administrative processes. They can focus more intensively on the team, individual concerns, and employee development. And the right digital tools contribute significantly to enabling people in a team to work together effectively. Digitalized processes enable work that is independent of time and place, vertical communication, and interdisciplinary knowledge exchange.
The development from "Human Resources" to "People and Organisation" is therefore about more than just changing titles. It is about fundamental changes in the entire organization. Changing an organization as a whole is, of course, not a routine task, but the ultimate challenge. To successfully implement all these changes, it is primarily about the right approach to these change processes. This requires active leadership and structured processes. Whether it is designing attractive work environments in the context of organizational models or the digitalization of HR processes: THE MAK'ED TEAM has extensive experience in all relevant HR areas and develops successful HR strategies and practice-oriented approaches for medium-sized companies.
Further information on our portfolio in the area of HR Management: HR Management
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