I think it’s fair to say that many HR organizations struggle to keep up with the fast-paced evolution in the modern work environment. Some of the reasons for that are structural in nature: from the reputation that these organizations have and the challenges that it poses on attracting innovative talent, to CEOs failing to prioritize investment in this area as their companies scale.
Many complain that HR is broken but few suggest ways to fix it. Well here’s one solution, proposed by Ram Charan:
The gist: split HR into two separate roles:
- HR-A (administrative) – your typical HR person, managing comp, benefits compliance etc. and reporting to the CFO.
- HR-LO (leadership and organization) – a high potential person from ops/finance (with real business expertise), responsible for improving the business capabilities of the company and reporting directly to the CEO.
Will this be enough to fully “fix” HR? Probably not, but it can be a pretty big step in the right direction.
What are your thoughts: is HR really “broken”? What are some of the other ways to “fix” it?