in

HR, new and improved: A leader’s guide

Share this email

ESSENTIALS FOR LEADERS AND THOSE THEY LEAD

Brought to you by Liz Hilton Segel, chief client officer and managing partner, global industry practices, & Homayoun Hatami, managing partner, global client capabilities

The COVID-19 pandemic brought about a profound awareness of mental- and physical-health challenges in the workplace—and effected many lasting changes in organizational functions, notably human resources. Long associated with cost efficiency and compliance, HR found itself at the center of conversations about meeting employee needs and expectations, creating inclusive environments, engaging and motivating workers, and coming up with innovative ways to reskill and upskill talent. Our research shows that in the future of work, HR is no longer a stodgy support function but a strategic business partner that is “as relevant to success as R&D, sales, or production.” This week, we explore some highlights of HR’s makeover.

AN IDEA

3D-rendering of teamwork and brainstorming, including speech bubbles

Check in on feelings

It may sound simplistic to say that listening is at the heart of good people management, but our experience at McKinsey bears this out. In March 2020, when the pandemic hit and we switched to a remote-work model, we knew that our annual employee survey alone could not address the extraordinary changes that were affecting employees during the crisis. In response, McKinsey built a continuous-listening strategy based on a short weekly pulse survey of how employees were feeling. Their responses were combined with anonymized employee data derived from advanced analytics. Using this information, leaders could intervene in a timely manner while preserving employee privacy. Postpandemic, the survey continues to collect a wealth of data on employee issues and concerns, but it “doesn’t just happen,” say McKinsey analysts. “Such an approach requires robust data management and IT systems, analytical expertise, and leaders’ time and attention.”

A BIG NUMBER

That’s the number of innovation shifts influencing the development of new HR models, according to research led by McKinsey’s Sandra Durth, Neel Gandhi, Asmus Komm, and Florian Pollner. For example, the increasing popularity of agile methodologies leads to a greater focus on speed, responsiveness, and employee engagement in the HR function; organizations’ growing commitment to improving customer and employee experiences translates into personalized HR services and more streamlined data and processes. The researchers suggest that people leaders “consciously select the most relevant of these innovation shifts to transition gradually toward their desired operating-model archetype.”

A QUOTE

“The HR function is often overburdened with transactional work and not well equipped to create value for the enterprise.”

That’s McKinsey senior partner Bill Schaninger and colleagues on why current HR models need to change. Our research on how companies can best organize for the future shows that bold actions on nine imperatives in three critical areas—purpose, operating models, and growth strategies—separate top performers from the rest. HR plays a critical role in facilitating positive change in each of these areas: for example, in the case of purpose, HR leaders can ensure that the organization lives its purpose and values and that purpose is manifested in tangible leadership and employee behaviors .

A SPOTLIGHT INTERVIEW

Annastiina Hintsa, CEO of coaching firm Hintsa Performance

“I think it’s a misconception we have—that well-being and high performance are somehow mutually exclusive, that these two things can’t coexist,” says Annastiina Hintsa, CEO of coaching firm Hintsa Performance, in an interview with McKinsey. Shaken by an early-career burnout, Hintsa cautions leaders to pay attention to their own physical and mental health as well as that of the people they lead—and to do so before a crisis occurs. “Just trying out little behavior changes can make a positive difference,” she says. For example, a CEO went from sleeping six hours a night to eight. “By changing that one little thing, he realized significant benefits. He was more aware of everything going around him, more in tune with his own emotions, more able to recognize emotions in others.” In conversations with McKinsey, the majority of human-resource leaders call for a shift to people-centric policies .

HELLO, MY NAME IS

Professionals walking into the lobby of a building.

The trend toward creative corporate job titles hasn’t bypassed the HR function. For example, you could style yourself as “head of optimistic people” or “happiness activator.” But witty titles aren’t always a good idea. A standard title allows for more consistency and equity across an organization; it’s also easily read by applicant-tracking systems and signals to recruiters exactly where you stand in terms of rank, salary, and suitability for open roles—a clear advantage at a time when talent is scarce. If your résumé says you were “director of fun” at your previous job, you may have a tough time finding a new one.

Lead with humanity.

— Edited by Rama Ramaswami, senior editor, New York

Follow our thinking

Out now: New issue of the McKinsey Quarterly

Sign up for a free membership to start reading the latest digital issue of the McKinsey Quarterly, focused on transformation in a time of disruption.

Start reading

Share these insights

Did you enjoy this newsletter? Forward it to colleagues and friends so they can subscribe too. Was this issue forwarded to you? Sign up for it and sample our 40+ other free email subscriptions here.

This email contains information about McKinsey’s research, insights, services, or events. By opening our emails or clicking on links, you agree to our use of cookies and web tracking technology. For more information on how we use and protect your information, please review our privacy policy.

You received this email because you subscribed to the Leading Off newsletter.

Manage subscriptions | Unsubscribe

by "McKinsey Leading Off" <publishing@email.mckinsey.com> - 02:39 - 15 May 2023

Archives

in

info@learn.odoo.com

Speed is key to a successful transformation. How can companies maintain momentum?

Google My Business

HR, new and improved: A leader’s guide

Check in on feelings

“The HR function is often overburdened with transactional work and not well equipped to create value for the enterprise.”

Out now: New issue of the McKinsey Quarterly