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• September 26, 2022

Best HR Case Studies

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HR as a function has undeniable importance from a business management perspective. With the advancement in technology, 2022 saw a huge technological shift in this aspect of business management as well. Apart from digitizing all other business aspects, organizations have begun to incorporate technology and data into HR practices as well.

HR Analytics Case Studies with Business Impact and its benefits are listed below:

An american mnc reduces attrition using people analytics and forecasting.

Case: This American MNC is a client of PeopleStrong and is suffering from a high turnover of employees at five locations. The company intended to install analytics in order to evaluate the main drivers of attrition and do forecasting for their occurrence at different business locations.

Solution: An integrated tool for workforce analytics was created and implemented. This tool could capture attrition results and their drivers and do a forecasting based on trends.

Also Read:  Executive Development Program In Human Resource Management From XLRI Jamshedpur

Result: The forecasting report predicted that 500 of the 5000 employees were going to quit in the next 6 months. Better employee retention policies were designed which included rewards and incentives apart from better people strategies. Even though 250 people still left, the figure was 50% lower than the prediction.

Under Armour digitized employee recruitment and enhanced employee experience

Case: Under Armour, an American organization dealing with the manufacture of sports and casual apparel and footwear, is a global company. With more than 130 global outlets and 8500 employees, their ATS system received more than 30,000 resumes in a month. Thus, hiring was a cumbersome process for them as well as candidates applying for a job.

Solution: They engaged in a digital recruitment system called Hirevue. With Hirevue, managers could create interviews with candidates with the help of pre-recorded questions. This screening process helped managers call in only employees who met their requirements for webcam or mobile recorded interviews.

Result: Managers could now hire new employees much more quickly. There was a 35% reduction in time in the overall interview to the hiring process. Talent quality also improved.

These above case studies show the emerging trend of incorporating analytics in the HR function of business management . This can also be seen to have positive results in the recruitment and retention processes. 

Human resource management is quite a recent term. Employees are treated with a lot of respect and regard nowadays compared to earlier. There were times when workers were considered to be expendable and they had few rights. Working conditions were miserable and people had no say in how organizations are operated or in the way they were treated. The industrial revolution is what brought changes. Companies started realizing that keeping employees loyal was essential for running businesses smoothly.  

Caring For Employees During The Industrial Revolution

Courses for human resources certification online teach that before the industrial revolution there were hardly any large industries and a need for managing workers was not felt. Working conditions were dangerous for them and pay was hardly commensurate with what work they did. In the late 1900s, companies like the UK-based Cadbury and Jacob from Ireland appointed welfare officers. These firms introduced a system of payment during sick leaves and cheap housing for employees.

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It was F W Taylor during the early twentieth century who introduced a system for managing staff. He believed that people could be trained to become experts in certain jobs. The famous carmaker Ford adopted his methods. Tools in manpower management like job analysis, employee selection procedures, and training methods were introduced during this period. Certain fast food organizations also adopted Taylor’s theories. His mistake was that he did not think people can get bored with doing the same job.

Employee Management During The World Wars

Two events that changed many things for us are the first and second world wars. Employee unions had been formed during the first world war. As men went to fight wars, women came to be seen more in workplaces. In your HR training certification by IIM Raipur , you will learn how companies had to think about managing workers and form new rules. Recruitment, dismissal, bonus, and absence from work came under the scope of manpower management.

Researchers like Elton May opined that factors like motivation, job satisfaction, leadership skills, and group dynamics could influence performance. The improvement in the economy after the war saw many firms adopting a more flexible approach to staff members. Big companies used employee benefits to lure and retain people. Personnel and welfare work was in full swing during the second world war, but it was done in a bureaucratic style as government-run firms influenced law-making.

The Post-War Scenario

The 60s were not good times for industrial relations as it was found that none of the entities involved in negotiation had skills to discuss issues of employees. As the decade came to an end, employment opportunities improved, and along with this, people management techniques began to be used. When you study human resources certification online courses you will know that terms like motivation, organizational behavior, and management training were heard more commonly.

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In the seventies, much was talked about rewarding employees. The next two decades saw economies sliding and companies becoming less profitable. But it was also then that many organizations realized the importance of retaining people. They began looking at workers as an asset that must be taken care of if the firm wants to have an edge over competitors. Humans started to be regarded as resources that need to be effectively managed. Human Resource Management was born.

The Nineties To Now

It is no more only personnel management and administrative tasks for workforce heads. The HR training certification by IIM Raipur will tell you that it is more about employee engagement and development that people managers are tasked with now. Human resource departments are strengthening the culture in an organization and finding people who can fit that environment. They are also tasked with ensuring that every employee gets an opportunity to use his or her talents for the benefit of their companies.

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HR managers are more focused on workers than on processes. This department is also gaining more importance as management’s realize a need to attract and retain the best talents available in the market. HR leaders find themselves among the C-suite as their role in getting the best out of employees is increasing. They must understand the needs of a more diverse, multicultural, and multigenerational workforce and ensure to fulfill them. Retention of good hands has assumed much importance nowadays.

The Future Of HR Management

  The human resources certification online courses will teach that it is not just enough to employ and retain people, but they must also be trained and developed. The speed at which new technologies emerge, there is a need to keep employees abreast of modern developments. HR managers must continuously update themselves with modern technology and arrange training programs to empower workers with new skills. The journey of staff members in an enterprise will be that of continuous learning.

Acquiring best talents and retaining them will remain the focus of any progressive organization. People managers will have to find innovative means to attract those who are equipped with the latest skills required for a job. Engaging with prospective employees through social media platforms will be practiced by more HR heads. There will be increased use of automation for screening resumes and conducting initial interviews. This will speed up the process and reduce costs.

HR departments will be trying innovative methods to improve employee experience in the company. They will find out the requirements of the new breed of recruits. Learning opportunities will be improved. Promotions and salary hikes will no longer be based on experience or seniority. New procedures for evaluating employees will be used. Getting HR training certification by IIM Raipur will teach new methods that are used by global enterprises for appraisal and rewarding.

Looking at the evolution of human resource management can show you that there has been a shift from looking at employees as only a means to achieve company objectives, treating them as individuals, and satisfying their needs. There is a realization that it is equally important to ensure that their goals are achieved and these objectives are in line with that of the organization. HR departments will play a more important role as retaining good talent becomes crucial. Combining the human force with machines and using that synergy will be highly important in the future.

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12 Case Studies of Companies that Revised How They Compensate Employees

S HRM has partnered with ChiefExecutive.net to bring you relevant articles on key HR topics and strategies.

Higher compensation is part of the ransom for dealing with the pandemic for most American companies and industries. So salaries, wages, benefits and perks will cost them more—perhaps a lot more—in the year ahead.

The way CEOs and CHROs can make sure the Great Raise works to their companies' advantage is to be proactive, creative and equitable about it. Yet they also must weigh strategically the demands of the moment with their long-term compensation strategy.

"This is a time for real balance when it comes to how you deal with retention and attraction," said Paul Knopp, chair and CEO of KPMG US. "We all have to make sure we meet the market when it comes to base compensation, but the market has changed in a way that you also have to look at those benefits that are most attractive to employees for their careers."

While median full-time earnings of $1,001 per week in the third quarter of 2021 were nearly 9% higher than two years earlier, according to the Labor Department, expectations for 2022 remain frothy given the tight market for talent, the free-agent ethos encouraged by remote work, the geographic reshuffling of workers and decades-high inflation. U.S. wages will increase by 3.9 percent in 2022, according to the Conference Board, the highest rate since 2008.

The compensation surge is occurring at the high end, at a low end that's getting higher and everywhere in between. Goldman Sachs, for example, is offering paid leave for pregnancy loss and expanding the amount of time employees can take for bereavement leave while also boosting its retirement-fund matching contributions for U.S. employees to 6% of total compensation, or 8% for those making $125,000 a year or less.

Meanwhile, at Tyson Foods' chicken-processing plant in New Holland, Pa., the company has started offering a three-day workweek, plus pay for a fourth day that retains employees' status as full-time workers. Just for good measure, Tyson has created a $3,000 sign-on bonus for new hires.

"We're in a bidding war for talent that will go on for a long time," said Alan Beaulieu, president of ITR Economics.

For CEOs and CHROs, several new factors demand their attention along with the overall spike in compensation. They include:

• The end of retention. The "idea of a long-term commitment to one employer has been dead for a while, but it's really dead now," said Dave Roberson, CEO of the RoseRyan financial consulting firm. "You must have a stream of people. Assume you're going to be replacing people. So how do you keep the people you have, if you can, but also bring the next group in?"
• High-balling. A deal to recruit someone may not really be a deal these days. "You've made an offer and you think you've got a hire, and then they're asking for $5,000 or $10,000 more," said David Lewis, CEO of OperationsInc, an HR consulting firm. "Now you have to ask yourself what makes more sense strategically: say no and hold the line and lose the candidate and restart the process, not knowing how that will work out? Blow up your compensation structure? Or as a Band-Aid, give that person a sign-on bonus in hopes that the package will get them in the door?"
• Need for equalization. Recruiting with higher compensation also requires boosting pay and benefits for retention. "You need to be mindful of what you're paying others in the organization and understand the detrimental impact it will have when you bring someone in alongside a tenured employee," Lewis said. "Operate on the idea that everyone's salary is basically posted on the pantry door in your office."
• A focus on mental health. The pandemic, anti-contagion measures and the takeover of remote work has left many Americans isolated, confused, lonely—or at least disjointed. And they expect their employers to help them cope and adjust.

"Mental health is a real thing, regardless of how [a previous generation of leaders] feel and what we did," said Jeffrey Immelt, former CEO of General Electric. "Particularly post-Covid, it's something worth your time to try to understand."

Many Fortune 500 companies already offered mental-health benefits, but by now "mental health is just a place setter: You've got to have it in place to be competitive in the market today, across the board," said Richard Chaifetz, founder and CEO of ComPsych, a large provider of employee-assistance programs. "Companies understand the importance of keeping their people functioning at the highest level."

Codility, for example, has begun supplying all employees with 27 days of paid time off per year plus four mental-health days, which don't have to be approved. "We're offering these days in addition to personal-time-off days to recognize and bring to light the importance of mental health," said Natalia Panowicz, CEO of the platform that evaluates the skills of software engineers, with its U.S. hub in San Francisco.

CHRO360.com asked a dozen CEOs, CHROs and other top executives about their compensation strategies and practices for 2022. Here are some of their ideas:

Let Them Name Their Salary

Chris kovalik, ceo, rushdown revolt, a video-game maker in new york city.

We started as 12 part-timers, mostly people who were giving me their moonlight hours. That's not a lot different from now, except now we have 75 people. The magic of what we do is that we don't recruit anybody. We're just a magnet. We let people come to us.

When it comes to compensation, some say they wanted to volunteer, that they weren't expecting compensation. But we never, ever allow people to volunteer their time for us. So we say our company minimum wage is $15 an hour, and if you insist, we can pay you that per hour.

But generally people come to us with an expectation of compensation because they see that we're making money. When compensation came up, we'd say, "I don't know what your skill set is. I've never hired you before. How much do you think you're worth, and how much do you need?"

If every hour we're compensating them for the amount of money they want and need, if someone is part-time and only giving me 10 hours a week, I'd argue that they're giving me their best 10 hours. Because they're getting paid what they want and doing things that they want to be attached to and be part of.

There's no pattern to the compensation requests. If their number is too low, we'll say, "Are you sure? Are you just giving me a low-ball number I'll say yes to?" If it's high, I don't talk them down, but I ask them to justify it, and if the justification isn't adequate, what I say is, "How long do you think you'll need to prove that justification? Two to three weeks? Then let's pay you two-third to three-quarters of what you asked, and if you prove it, we'll go up to whatever you said."

Tailor Package for Youth Appeal

Ronald hall jr., ceo, bridgewater interiors, an auto-seat maker in detroit.

We enjoyed very low turnover pre-Covid, but during the last two years we have had to replace probably one-third of our workforce at our largest facility, about the same number from termination as voluntary. So we've had to work harder than ever to recruit.

Our most-tenured employees, who are the most highly trained, have had to pick up the slack, working record amounts of overtime and less-predictable production schedules.

In our upcoming negotiations with the United Auto Workers, we're trying to emphasize short-term bonuses rather than wage increases that get baked into our costs. But we have continued health insurance through the pandemic as well as our tuition-reimbursement program, and many employees have thanked me for that.

What I am hearing from new employees is that they're not as interested in benefits but rather in higher cash wages. We've long touted benefits like our generous 401(k) matching and better medical coverage versus our peers, but we're finding that doesn't resonate as readily now as it did a decade ago. So I've asked my team: Should we be looking at some kind of hybrid model of offering higher wages to people who want those and move those dollars from the benefits side to the wages side?

We've also looked at providing childcare in a partnering arrangement where there could be a center developed near our facilities, and we would arrange for some sort of company subsidy or guarantee some level of attendance. The challenge with that is the auto industry runs around the clock, and you'd need a daycare provider who'd be committed to opening around the clock and provide legal, regulated, benchmark-standard levels of care to all those children in the off hours.

Equalize as You Acquire

Diane dooley, chro, world insurance, a business and personal insurer in tinton falls, n.j..

We onboarded about 800 employees in 2021 through acquisitions of small agencies and organic growth, but there had been no compensation modeling. Now we're building out our compensation philosophy with commission plans, incentives and bonuses, centralizing components and ensuring we have the right framework.

When we do an acquisition, we might retain their compensation model for a year or two years then slowly migrate, but make sure employees aren't taking a cut in pay. We are also capitalizing commissions into base compensation—identifying what commissions would have been and what they will be, and recognizing roles that are moving away from a commission base.

Some agencies we acquire are smaller and may be below-market for total compensation. Now we're addressing those concerns. They need to be more front and center. We must do everything to retain our employee population. If they're woefully underpaid, or not at market, we risk losing people, and we don't want to do that.

Educating the owners of some of the agencies [we acquire] is a piece of this. As we partner with them, we are evaluating them and asking, "Did you give people an increase this year?" We're not telling them what to do but providing guidance about what to do.

We're also modifying and increasing our benefits, such as giving employees pet insurance. And making counteroffers is a critical piece today, usually for high-end employees. They work better than they used to because not a lot of people really want to make a move in this environment.

Innovate for the New World

Jason medley, chief people officer, codility, a provider of skill-evaluation software in london.

We really have to step back and be innovative and force ourselves to change. The companies that are going to win are going to be more progressive early and not fighting what's happening.

One thing we've done is change our outdated compensation models that give higher pay to employees living in tech hubs like San Francisco and New York and lower compensation for areas inside the coasts. Now, we've created a United States-wide salary band, so no matter where you live, the compensation is based on the role, not the location. You can go live and work wherever you want to.

We decided to approach compensation through a very human lens. People have seasonality in life, and maybe they are caregivers at different moments and want to live in different places. We want to be as flexible as possible, and this country band gives us that flexibility.

We are starting to see the same thing in Europe, where we have our headquarters in London and offices in Berlin and Warsaw, and employees all over, especially in Poland. People are wanting to live in the countryside of Spain but demanding a London salary. So we are transitioning to one European Union band and saying, "Here is your rate—live where you want to."

We are also seeing that with global warming, it's harder to get work done for people on the west coast of the U.S. and in Europe, because they didn't build homes with air conditioning. If you're sitting in a house at 90 degrees with no air conditioning, there's no way your performance is the same as someone with AC. Supplementing air conditioning isn't something we thought about before, but now we're very much having to look at those things.

Stay Ahead of Expectations

Traci tapani, ceo, wyoming machine, a sheet-metal fabricator in stacy, minn..

Our wages have gone up by about 20% for the typical worker. When I found people I could hire, I knew they were being brought in at an hourly rate that was too high for what I was paying my incumbent workers.

My strategy has been to be proactive about that and not wait for [existing] employees to say something about it or give them a reason to look for another job. We're proactively making wage adjustments to make sure our incumbent workers are in line.

Employees will leave for more money, so they're very appreciative of it. But in my shop, I also know that people like working here, and I know they don't want to leave. I don't want to give them a reason. If they can get an increase in pay that's substantial, I know that I can cut them off at the pass. Retaining my workforce is my No. 1 strategy. They're already here, and I'm going to do everything I can to keep them.

For that reason, we've also been more generous as time has gone on with paid time off, offering it sooner than we once would have, especially for new workers. We recognize that it's healthy for people to be away from work and also, in the pandemic, people need to be away from work. Knowing they have some paid time off makes it easier for them.

Leverage Benefits for DE&I

Mark newman, ceo, chemours, a chemical manufacturer in wilmington, del..

In general our company hasn't seen the Great Resignation. And in fact, we continue to believe our focus on being a great place to work is serving us well, along with appropriate benchmarking on compensation issues.

Chemours  is  a great place to work. We survey our employees every year, to improve our working environment from a compensation and benefits perspective. Also, from the [diversity, equity and inclusion] perspective, we're trying to make sure we tap into the full breadth of talent in our industry.

That means, for instance, we are helping people more with college loans. We are offering same-sex [marriage] benefits. We are providing more family leave for people who have kids. There is clearly an aspect of our benefits package that is evolving to be consistent with our strategy of making Chemours a great place to work.

Overall, we view compensation as something where we want to be either in the median or upper quartile. It's something we're very focused on from both a wage as well as benefit level. From Covid, there's been no fundamental change as it relates to us wanting to be in the median to top quartile.

We've had to make some local adjustments where the labor market is more super-charged. For example, we see a lot of that in the Gulf Coast region, especially with oil prices coming back, and petrochemicals and refining. But it's very much a regional factor. So if industries are moving to a certain region, like the South, you have to make sure you stay current with local benchmarks.

Offer Skin in the Game

Cesar herrera, ceo, yuvo health, a healthcare administrator in new york city.

We're a year-old company that provides tech-enabled administrative solutions for community health centers across the U.S. that are specifically focused on providing primary-care services for low-income individuals. We have a team of about 10 people right now, and we have a number of open roles and positions where we're likely going to be tripling the size of our team in 2022.

Google can compensate well above the market rate. We don't have that since we're an early-stage organization. What we do have as levers aren't up-front financial compensation but equity, support in your role and a relatively flat organization where you can have significant autonomy.

A lot of individuals are going to be driven by the mission; that's the case with the entire founding team. We've made sacrifices to create this organization. So you can come in at a meaningful position with a lot of decision-making.

But one of the biggest carrots we can give is, if you accept the lower pay and the risk that comes with an early-stage organization, you can have meaningful equity in the company. We have an options pool which is not to exceed 10% ownership of the organization, and as we grow and scale, we increase that options pool. For senior-level leaders, we do expect to be able to distribute up to 10% of the company to them.

Pay Extra for Continuity

Corey stowell, vice president of human resources, webasto americas, a maker of automotive sunroofs in auburn hills, mich..

We had to recruit for several hundred new openings at a brand-new facility right at the beginning of the pandemic. So we instituted an attendance bonus. For those who worked all their hours in a week, we paid an additional $3 an hour. We really had to keep it short-term, so we paid it weekly. If you wanted to pay it every month, you couldn't do it, because people needed that instant gratification.

Otherwise they could get it on unemployment. With our pay rate, they could earn more to stay at home and collect unemployment, a significant amount more than they could earn than working for us. So we also had to increase our wages, and we increased them by more than 20% in some classifications [in the summer of 2020].

We've filled all of our positions, but it's still a challenging market. We've had to increase all our wages, with the lowest for a position being $17 an hour, on up to $30 an hour.

We also have offered stay bonuses of $500 a month for three consecutive months, up to $1,500. And for hourly employees we've instituted a different attendance policy, where they can earn two hours of paid personal time for so many hours that they work consecutively with no attendance issues.

The key is the schedule—we can prepare and get someone to cover. That's easier to do than just managing whoever's going to come in today. In this environment, that really has changed with our workforce, and it's tough to rely on our current workforce.

Give Them the Keys

Elliott rodgers, chief people officer, project44, a freight-tracking software provider in chicago.

We have equipped and subsidized a van that we call Romeo, which employees can use to combine work with personal uses like family road trips. We cover the cost of the rental. It's a luxury van that comes equipped with a bed, a toilet and shower, Wi-Fi, device charging and a desktop workspace. And it's pet friendly.

We started it as a pilot project and reservations were full within 10 minutes of when we posted it internally. Then we extended it into 2022. By the end of 2021, more than 20 unique team members completed or nearly completed reservations. They've ventured out to places spanning Mount Rushmore and the Badlands; Rocky Mountain National Park; Salem, Mass.; and Pennsylvania. A pretty broad number of places.

It's something we're really proud of. It allows our team members the opportunity to work in a lot of different places while still being connected to us. And they've appreciated the opportunities to stay connected, but also be connected in other ways with nature and other places in the world. They can maintain their perspective while also continuing to contribute to their role in a productive way.

When you place a team member at the center of what they'd want in an experience like that, the value of it answers itself. It creates a comfort level where it provides the necessities for you to be able to continue to work, and you can work from anywhere. It's the best of both worlds. It's one thing to find that on your own but another to have that accessible to you via work, but done in a way that caters to you.

Help Them Come, Go—and Stay

Aamir paul, country president - u.s., schneider electric, a maker of electrical distribution and control products in andover, mass..

With our knowledge workforce, it's been about intentional flexibility. So, for instance, we launched a "returnship" program for women who'd left the workforce but might want to come back even at reduced hours. That means 20, 30, up to 40 hours a week, and we're finding some incredibly talented people who haven't been in the workforce.

This program is available to men as well. If there's a field engineer who's been in the electrical industry for 35 years and he's now retiring, but he's five years from getting his medical benefits, we say: Don't retire. Go on the program. Work 20 hours a week. Work from home. We'll reduce your pay proportionally, but we will couple you with three university hires, and they will call you on Microsoft Teams and show you what's happening on the job site, and you're going to walk them through it. Work just three days a week. We'll cover your benefits.

We've also expanded the parental leave policy, which already was one of the best in the industrial sector. And we created a way for people to buy more time off without having to leave their positions. They apply for more unpaid time off and we allow them to retain their position and seniority and allow them to work through whatever life event it is.

We landed on six weeks for the maximum. In the most intense industries—such as a fighter pilot or a surgeon—they've found that six weeks of being out of the rotation allows them to re-set. So that's what we did. Before, the limit was two weeks.

Give Sway to Local Management

Tom salmon, ceo, berry global, a maker of plastic packaging in evansville, ind..

We've got to be competitive in all the geographies we serve. We have 295 sites around the world and manage our employees in those sites geographically. Every geography will be a different labor environment. There are different criteria that employees are looking for. It's not just about wages but taking everything into consideration.

We let local management handle things with their insight about wages and competition. They're hearing directly from employees about what they like and don't like, what they want more of and less of. It's a site-by-site discussion.

For example, at some sites, it may be important for employees to be able to access the internet at lunch; at other sites, they may not value that as much. Some want a more advanced locker facility, with different shower facilities. That includes the southwestern United States, where the temperatures are warmer; but in New England, some might not want that.

In any event, if you treat these things locally, you're going to be able to affect that local population and address the need of that geography. If you blanket something across our entire plant population, you may provide something that's not desired or needed.

We depend on our local management to respond to the different demands in terms of compensation and benefits at their sites. The better the front-line leadership is, and the more satisfied their team is, the higher our retention rate and productivity and safety performance. So these leaders participate in profit-sharing plans for those respective sites, because they have a great influence on the success of a given facility.

Focus Benefits on Flexibility

Paul knopp, chair and ceo, kpmg us, a financial consulting firm in new york.

We announced a new package of enhancements to our benefits and compensation, tied to mental, physical, social and financial well-being. These increases are the biggest in the history of the company. You have to make sure your base compensation meets the market, but you also must have attractive benefits.

For example, we cut healthcare premiums by 10% for 2022 with no change in benefit levels, and we introduced healthcare advocacy services. We are replacing our current 401(k) match and pension programs with a single, automatic company-funded contribution within the plan that's equal to 6% to 8% of eligible pay.

As part of this, we're focusing on the crucial element of ensuring that employees know you're watching out for them. They also are looking for flexibility—you don't want to under-index on how important that is. So we also are providing up to three weeks additional caregiver leave, separate and apart from PTO. And all parents will receive 12 weeks of paid parental leave, in addition to disability leave for employees who give birth, allowing some up to 22 weeks of paid leave. We also have expanded our holiday calendar to now include Juneteenth.

Dale Buss is a long-time contributor to Chief Executive, Forbes, The Wall Street Journal and other business publications. He lives in Michigan.

This article is adapted from www.ChiefExecutive.net with permission from Chief Executive. C 2022. All rights reserved.

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A Guide to Human Resources Management Case Studies

Human Resource Management case studies provide valuable insights into the challenges faced by HR professionals in diverse workplaces. In this comprehensive guide, we will explore real-life examples of HRM in action, showcasing the strategies and solutions implemented to tackle various HR challenges.

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In the rapidly evolving global business environment, Human Resources Management (HRM) is constantly adapting to new trends and challenges. From the emergence of emerging markets to the digitalization of workplaces, HR professionals have had to navigate through various obstacles to effectively manage their workforce. One of the most significant challenges in recent times has been the global COVID-19 pandemic, which has necessitated swift and innovative HR strategies.

To gain a deeper understanding of how organizations have successfully managed these changes and optimized their HR practices, we will delve into a range of case studies. These case studies provide valuable real-world examples that HR professionals can analyze and apply in their own organizations. By studying these HR case studies , professionals can learn from the experiences of others, gaining insights into successful strategies and approaches.

Utilizing HR case studies for analysis allows us to discover how organizations have leveraged HRM to overcome obstacles and adapt to new circumstances. These real-life examples showcase the diverse ways in which organizations have effectively managed HR challenges, providing valuable lessons and strategies for HR professionals across industries.

Company XYZ, a multinational technology firm, faced challenges in attracting and retaining top talent due to the fast-paced nature of the industry. To address this, they implemented a strategic HR initiative that focused on creating a flexible work environment, providing opportunities for professional development, and offering competitive compensation packages. As a result, the company experienced a significant reduction in employee turnover and an increase in employee satisfaction and productivity.

This case study highlights how HR professionals at Company XYZ were able to adapt to the changing landscape of HRM by implementing innovative strategies. By analyzing such success stories, HR professionals can gain valuable insights into the strategies and practices that drive organizational success.

• HRM is constantly evolving to respond to new trends and challenges in the business world.
• Case studies provide real-world examples of effective HR practices in managing change.
• Successful organizations leverage HRM strategies to optimize their workforce and drive organizational success.

The Importance of Effective HR Strategies

Effective HR strategies are crucial for organizations to attract, retain, and develop top talent. By implementing strategic HR practices, companies can create a positive work environment that fosters employee engagement, productivity, and overall organizational success. In this section, we will explore case studies that highlight successful HR strategies implemented by companies across different industries, providing valuable insights for research and inspiration.

Case Studies: Success Stories in HR Management

Case Study 1: Company X

“Our HR strategy of prioritizing employee well-being and work-life balance has had a significant impact on our organizational culture. Through flexible work arrangements, wellness programs, and regular communication channels, we have seen a remarkable increase in employee satisfaction and productivity.”

Case Study 2: Company Y

“By investing in employee development and career progression, we have been able to attract top talent and retain key employees. The implementation of mentorship programs, training initiatives, and performance feedback systems has led to higher employee engagement and a stronger talent pipeline.”

Case Study 3: Company Z

“Our HR strategy focuses on promoting a diverse and inclusive workforce. Through targeted recruitment efforts, diversity training programs, and inclusive policies, we have successfully created a culture that celebrates and values diversity, leading to improved employee satisfaction and innovation.”

The Impact of Strategic HR Practices

These success stories demonstrate the tangible benefits of strategic HR practices. Organizations that prioritize effective HR strategies are better equipped to attract and retain top talent, foster employee engagement and satisfaction, and drive overall organizational success. By studying these case studies, researchers and HR professionals can gain valuable insights and inspiration to enhance their own HR practices and achieve similar levels of success.

By examining these HRM case studies for research and guidance, organizations can adopt successful strategies and adapt them to their unique contexts. The implementation of effective HR strategies is key to creating a thriving workplace culture that empowers employees, maximizes productivity, and ultimately drives the success of the organization.

Fundamental Concepts of HR Management

Before diving into Human Resources Management Case Studies , it is essential to have a solid understanding of the fundamental concepts that underpin HR management. This section will explore key definitions and concepts to provide a strong foundation for in-depth analysis of the case studies.

Definitions and Clarifications

Let’s start by clarifying some key terms:

• Management : Refers to the process of coordinating and overseeing organizational resources to achieve specific goals and objectives.
• Resources : In the context of HR, resources refer to the individuals who contribute to the organization’s success, including employees, contractors, and other stakeholders.
• Role of a Manager : A manager is responsible for planning, organizing, directing, and controlling resources to achieve organizational goals and objectives. In the HR context, managers focus on effectively managing human resources.
• Difference between Management and Administration : While the terms management and administration are sometimes used interchangeably, it is important to note the subtle distinctions. Management is concerned with the implementation of strategies and the coordination of resources, whereas administration involves the overarching policies, procedures, and regulations that govern the organization.

By understanding these fundamental concepts, we can delve deeper into the case studies and gain valuable insights into the challenges and solutions faced by HR professionals.

Inspiring Quote

“Management is doing things right; leadership is doing the right things.” – Peter Drucker

Key Definitions

Management functions and responsibilities.

Effective management is essential for HR professionals in their role of overseeing an organization’s human capital. Understanding the four basic functions of management – planning, organizing, directing, and controlling – is critical for HRM success. Each function contributes to the efficient and effective management of human resources, ensuring organizational goals are met.

In addition to these management functions, HR managers have specific responsibilities that contribute to the overall success of the organization. These responsibilities include:

• Recruitment and selection of qualified candidates
• Employee onboarding, training, and development
• Creating and enforcing HR policies and procedures
• Ensuring legal compliance in all HR practices
• Managing employee relations and resolving conflicts
• Designing and administering compensation and benefits programs
• Developing and implementing employee engagement initiatives
• Overseeing performance management and evaluation processes

Furthermore, HR plays a vital role in the administrative cycle of an organization. HR professionals are responsible for managing and maintaining accurate HR records, handling payroll and benefits administration, and ensuring compliance with employment laws and regulations.

By effectively executing their management functions and fulfilling their responsibilities, HR professionals contribute to the development and success of an organization’s human resources, driving overall organizational performance and productivity.

Skills and Competencies in HR Management

The success of an HR manager relies on a combination of technical skills and personal qualities. Understanding and mastering these essential skills and competencies is crucial for effectively managing human resources in any organization. Here, we will explore the key characteristics that distinguish an effective HR manager and how they contribute to success in HR management.

1. Integrity

Integrity is the foundation of trust in any HR department. HR managers must demonstrate honesty, transparency, and ethical behavior in all aspects of their work. By upholding high ethical standards, HR managers cultivate a culture of integrity, ensuring fair and unbiased treatment of employees and fostering a positive work environment.

2. Flexibility

Flexibility is essential in an ever-changing business landscape. HR managers must adapt to evolving workplace dynamics, industry trends, and technological advancements. This includes being open to new ideas, embracing change, and continuously updating HR strategies to align with organizational goals and employee needs.

3. Resilience

HR managers often face challenging situations that require resilience and the ability to navigate complex issues. They must stay composed in difficult times, effectively manage conflicts, and find creative solutions to address HR challenges. Resilient HR managers are invaluable assets to organizations, as they can lead teams through change and uncertainty, ensuring continuity and stability.

4. Proactivity

Successful HR managers are proactive in identifying potential issues before they escalate. They anticipate future needs and create proactive strategies to address them. By staying ahead of the curve, HR managers can plan and implement initiatives that support employees’ growth, well-being, and overall job satisfaction.

“Proactive HR managers take a proactive approach to identify potential pitfalls early on, allowing organizations to prevent problems rather than just managing them when they arise.”

In addition to these personal qualities, HR managers must possess a range of technical skills to effectively manage human resources. Some of these skills include:

• Recruitment and selection
• Training and development
• Performance management
• Employee relations
• Compensation and benefits
• HR data analysis

To exemplify these skills and competencies, let’s take a look at a real-life HR case study:

By analyzing such HR case studies , aspiring HR professionals and organizations can gain valuable insights into the practical application of skills and competencies in HR management.

Now that we have explored the essential skills and competencies in HR management, it is clear that successful HR managers possess a unique blend of personal qualities and technical skills. These individuals play a vital role in driving organizational success by effectively managing human resources and fostering a positive work environment.

Employee Motivation and Engagement

Motivated and engaged employees are essential for organizational success. In this section, we will explore the crucial role of HR in motivating employees and fostering a culture of engagement. By examining real-life case studies, we will identify effective strategies and initiatives implemented by organizations to boost employee motivation and engagement.

Motivation through Recognition

Employee recognition is a powerful tool for motivating and engaging employees. Organizations that prioritize recognition programs create a culture of appreciation and reinforce desired behaviors. Case studies highlight the impact of tailored recognition programs on employee satisfaction, morale, and performance.

Professional Development and Growth

Providing opportunities for professional development and growth is another key driver of employee motivation and engagement. Organizations that invest in training, mentorship programs, and career advancement opportunities empower employees to enhance their skills and fulfill their potential. Real-life examples demonstrate how these initiatives contribute to higher employee satisfaction and loyalty.

Well-being Initiatives

Employee well-being initiatives play a vital role in nurturing a positive work environment and enhancing motivation. By offering wellness programs, flexible work arrangements, and promoting work-life balance, organizations prioritize the holistic well-being of their employees. Case studies highlight the positive impact of these initiatives on employee engagement, productivity, and overall satisfaction.

Effective Communication

Open and transparent communication is integral to fostering motivation and engagement among employees. Organizations that prioritize effective communication channels, including regular feedback, town hall meetings, and collaborative platforms, create an environment of trust and inclusion. Real-life examples demonstrate how improved communication positively influences employee engagement and overall organizational performance.

“Effective employee motivation and engagement are the cornerstones of a thriving organization. By examining real-life case studies, HR professionals and organizations can gain valuable insights into successful strategies and initiatives that fuel motivation and foster meaningful employee engagement.”

The case studies above demonstrate how organizations have successfully implemented strategies to motivate and engage their employees. By leveraging recognition, professional development, well-being initiatives, and effective communication, these organizations have created a positive work environment that drives employee satisfaction, productivity, and loyalty.

Strategies for Effective HR Management

HR professionals play a critical role in developing and implementing effective HR strategies. By analyzing real-life case studies, we can gain valuable insights into HR best practices. These case studies highlight successful strategies in key areas such as:

Recruitment and Selection

Training and development, performance management, compensation and benefits, labor relations.

Let’s explore how organizations have utilized these strategies to optimize their HR practices and achieve their business objectives.

“The key to effective HR management lies in understanding the unique needs and challenges of your organization. By analyzing case studies, we can gain valuable insights and tailor our strategies to drive employee engagement, productivity, and organizational success.”

Effective recruitment and selection processes are crucial for attracting and hiring top talent. Case studies in this area often showcase innovative methods used to identify and attract qualified candidates. From leveraging technology platforms for applicant screening to implementing targeted recruitment campaigns, organizations have successfully optimized their hiring processes.

Investing in employee training and development is essential for enhancing skills and fostering long-term growth. By examining case studies in this domain, we can learn from organizations that have successfully implemented comprehensive training programs, mentorship initiatives, and continuous learning platforms. These strategies contribute to a skilled and motivated workforce.

Effective performance management systems align individual and team goals with organizational objectives. Case studies in this area often highlight organizations that have implemented performance measurement frameworks, regular feedback systems, and performance-based incentives. This data-driven approach ensures transparency, fairness, and continuous improvement.

Strategic compensation and benefits programs attract, retain, and motivate talented employees. Case studies demonstrate how organizations have designed competitive salary structures, employee recognition programs, and comprehensive benefits packages. These initiatives contribute to higher employee satisfaction, engagement, and overall organizational performance.

Managing labor relations requires effective communication, negotiation, and conflict resolution skills. Case studies in this area offer insights into organizations that have successfully fostered positive relationships with unions, implemented fair labor practices, and resolved labor disputes amicably. These examples highlight the importance of proactive labor management strategies.

By learning from these case studies and applying the demonstrated strategies, HR professionals can optimize their HR management practices and create a positive impact on organizational success.

These case studies showcase the application of effective HR management strategies in different organizations. They provide practical examples of how organizations have achieved success by implementing various strategies tailored to their unique needs and challenges.

Leveraging HR Technology

HR technology has revolutionized HRM processes, enabling organizations to streamline operations and enhance efficiency. By leveraging the power of technology, HR professionals can optimize their strategic decision-making and ensure a seamless employee experience.

Let’s examine some insightful case studies that illustrate the successful implementation and utilization of HR technology. These examples demonstrate how organizations have harnessed the potential of HRIS (Human Resource Information System), talent management software, and data analytics tools to drive meaningful outcomes and achieve their HR objectives.

Case Study 1: Enhancing Recruitment with HRIS

In this case study, Company ABC implemented an HRIS software to streamline their recruitment process. The software automated job posting, applicant tracking, and resume screening, significantly reducing the time and effort spent on manual tasks. With the implementation of HRIS, the HR team at Company ABC experienced a 40% reduction in time-to-hire and an improvement in the quality of hires.

“The HRIS software has transformed our recruitment process, allowing us to focus on strategic talent acquisition. The automation and advanced analytics capabilities have enabled us to make data-driven decisions and hire top talent efficiently.” – Sarah Thompson, HR Manager, Company ABC

Case Study 2: Optimizing Performance Management with Talent Management Software

In this case study, Company XYZ adopted a talent management software platform to streamline their performance management process. The software offered features such as goal setting, continuous feedback, and performance analysis, empowering managers and employees to take a more proactive approach to performance improvement. As a result, Company XYZ experienced a significant increase in employee engagement and aligned performance goals across the organization.

“The talent management software has revolutionized our performance management process. It has fostered a culture of continuous feedback and empowered our employees to take ownership of their professional growth. The transparent performance analytics have enabled us to identify and reward top performers effectively.” – John Davis, HR Director, Company XYZ

Case Study 3: Leveraging Data Analytics for Strategic Decision-Making

In this case study, Company DEF implemented advanced data analytics tools to gain insights into their HR processes. By analyzing data related to employee engagement, turnover rates, and performance metrics, the HR team at Company DEF could identify trends, patterns, and areas for improvement. This strategic use of data analytics enabled Company DEF to make informed decisions and implement targeted HR interventions, resulting in improved retention rates and increased productivity.

“Data analytics has been a game-changer for our HR department. By leveraging actionable insights from our HR data, we have been able to proactively address employee concerns, enhance our talent acquisition strategies, and design targeted training programs. Our data-driven approach has significantly contributed to our overall organizational success.” – Lisa Johnson, HR Manager, Company DEF

These case studies demonstrate how organizations can harness the potential of HR technology to drive efficiency, improve decision-making, and enhance the employee experience. By leveraging the right combination of HRIS, talent management software, and data analytics tools, HR professionals can transform their HR practices and contribute to the strategic objectives of the organization.

Leveraging HR technology is essential in today’s digital era, where technology continues to shape the future of work. By staying informed about the latest HR technology trends and exploring case studies, HR professionals can identify opportunities for innovation and drive impactful HR initiatives.

Now, let’s explore another critical aspect of HR management – diversity and inclusion.

Diversity and Inclusion in HR Management

In today’s diverse workforce, creating an inclusive environment is essential for effective human resources management. Organizations that prioritize diversity and inclusion benefit from improved employee satisfaction, increased productivity, and enhanced innovation. Let’s explore some real-life examples of HRM case studies that highlight the successful efforts of organizations to foster diversity and inclusion within their workforce.

Case Study 1: XYZ Company

XYZ Company, a global technology firm, recognized the value of diversity and inclusion in driving organizational success. They implemented a comprehensive diversity program that focused on recruiting and retaining employees from diverse backgrounds. By promoting a culture of inclusion through training, mentorship, and employee resource groups, XYZ Company witnessed a significant increase in employee engagement and creativity. This case study demonstrates the positive impact of diversity and inclusion initiatives on overall organizational performance.

Case Study 2: ABC Corporation

ABC Corporation, a leading retail company, recognized the importance of diversity and inclusion in meeting the needs of their diverse customer base. They implemented unconscious bias training for their hiring managers and implemented policies to ensure equal opportunities for all employees. As a result, ABC Corporation experienced improved employee satisfaction, reduced turnover rates, and a boost in customer loyalty. This case study exemplifies the positive outcomes that can be achieved through a commitment to diversity and inclusion in HR management.

By analyzing these HRM case studies , organizations can gain valuable insights into successful diversity and inclusion initiatives. Implementing similar strategies, such as targeted recruitment efforts, inclusive policies, and diversity training programs, can help companies create a more inclusive and diverse workforce, fostering a culture of innovation and success.

Incorporating diversity and inclusion into HR management practices is not only a legal and moral imperative, but it also leads to tangible business benefits. Organizations that embrace diversity and create an inclusive workplace are better equipped to attract top talent, retain employees, and drive innovation. By learning from these HRM case studies , organizations can develop effective strategies to foster diversity and inclusion, ultimately contributing to their long-term success.

Adapting HR Practices in Times of Crisis

In times of crisis, such as economic downturns or natural disasters, HR professionals face unique challenges that require them to adapt their practices quickly and effectively. By analyzing HRM case studies that showcase organizations’ responses to crises, we can gain valuable insights into the strategies and approaches they employed to navigate through turbulent times and emerge stronger.

The Importance of Flexibility

One key lesson we can learn from HR case studies in times of crisis is the importance of flexibility. Organizations need to be agile and responsive to rapidly changing circumstances. HR professionals play a vital role in proactively adjusting HR practices, policies, and procedures to meet the immediate needs of employees and the organization as a whole.

“During the global financial crisis of 2008, XYZ Corporation faced severe economic challenges that threatened its survival. The HR team swiftly implemented cost-cutting measures, including a freeze on hiring and salary reductions, while carefully balancing employee morale and engagement. Through open communication and transparent decision-making, XYZ Corporation managed to weather the storm and emerge with a more resilient workforce.”

By adopting a flexible approach, HR professionals can help organizations navigate through turbulent times, mitigate the impact on employees, and position the company for recovery and future growth.

The Power of Resilience

Resilience is another critical factor in adapting HR practices during a crisis. HR professionals need to demonstrate resilience in the face of uncertainty and guide employees through challenging times. By instilling confidence, providing support systems, and fostering a sense of unity, HR managers can help organizations withstand the pressures of a crisis and emerge stronger.

Resilience can be seen in action through the implementation of employee assistance programs, mental health initiatives, and crisis communication plans. These measures help employees navigate the emotional and psychological challenges brought on by the crisis, ensuring their well-being and enabling them to contribute effectively to the organization’s recovery efforts.

Proactive Planning for Future Crises

The best HR case studies in times of crisis highlight the importance of proactive planning. While crises may be unexpected, organizations can anticipate potential challenges and develop contingency plans to address them swiftly and efficiently. By anticipating various scenarios and regularly reviewing and updating crisis response strategies, HR professionals can position their organizations for success even in the face of uncertainty.

In addition to crisis preparedness, proactive planning involves identifying key skills and competencies that will be crucial in future crises. By integrating training programs, succession planning, and talent management initiatives into their HR practices, organizations can ensure they have the capabilities necessary to navigate through any crisis that may arise.

Table: Strategies for Adapting HR Practices in Times of Crisis

Adapting HR practices in times of crisis requires a combination of flexibility, resilience, and proactive planning to ensure the well-being of employees, maintain productivity, and secure the organization’s long-term success.

Human Resources Management Case Studies provide HR professionals with valuable insights into real-world challenges and innovative solutions. By analyzing these examples, organizations can learn from best practices and optimize their own HR strategies. The showcased case studies highlight the diverse scenarios that HR professionals face and the creative approaches they employ to overcome obstacles.

Continuous learning from these experiences enables HR professionals to enhance their skills and contribute to the overall success of their organizations. These case studies serve as a source of inspiration, demonstrating the importance of adaptability, strategic thinking, and effective HR management.

By embracing the lessons learned from Human Resources Management Case Studies, HR professionals can strengthen their expertise, foster employee engagement, and drive organizational growth. These real-life examples reaffirm the significance of HRM for businesses in today’s dynamic and ever-evolving corporate landscape.

Source Links

• https://www.shrm.org/credentials/certification/educators/teaching-resources
• https://www.e-elgar.com/shop/usd/case-studies-in-work-employment-and-human-resource-management-9781788975582.html
• https://gfoundry.com/everything-you-need-to-know-about-human-resources-a-manual-for-managers-and-professionals/

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HR’s new operating model

The way in which organizations manage people used to be relatively straightforward. For more than two decades, multinational companies generally adopted a combination of HR business partners, centers of excellence, and shared service centers, adjusting these three elements to fit each organization’s unique nature and needs.

Today, this approach—introduced by Dave Ulrich in 1996 1 David Ulrich, Human Resources Champions: The Next Agenda for Adding Value and Delivering Results , first edition, Boston, MA: Harvard Business Review Press, 1996. —is rapidly evolving. In interviews with more than 100 chief human resources officers (CHROs) and senior people leaders from global multinational businesses, we identified five HR operating-model archetypes that are emerging in response to dramatic changes in business and in the world—including heightened geopolitical risks, hybrid working models, and the rise of majority-millennial workforces.

These emerging operating models have been facilitated by eight innovation shifts, with each archetype typically based on one major innovation shift and supported by a few minor ones. The key for leaders is to consciously select the most relevant of these innovation shifts to help them transition gradually toward their desired operating model.

Eight innovation shifts driving HR’s new operating models

Today’s increasingly volatile, uncertain, complex, and often ambiguous business environment is forcing companies to transform at an unprecedented pace. The global COVID-19 pandemic and rapid evolution of workplace technology have accelerated the adoption of various alternative, hybrid working models—as well as new challenges in monitoring employee conduct and performance. The emergence of majority-millennial workforces has led to a profound shift in employee preferences. And the “Great Attrition” of workers , 2 Aaron De Smet, Bonnie Dowling, Marino Mugayar-Baldocchi, and Bill Schaninger, “‘ Great Attrition’ or ‘Great Attraction’? The choice is yours ,” McKinsey Quarterly , September 8, 2021. exacerbated by demographic developments in many parts of the world, has intensified existing talent shortages.

HR plays a central role in navigating this upheaval, creating a need for the function to rise to a new level of adaptability and responsibility . 3 Laura Blumenfeld, Neel Gandhi, Asmus Komm, and Florian Pollner, “ Reimagining HR: Insights from people leaders ,” McKinsey, March 1, 2022. While every organization has its own trajectory and HR operating model, our interviews with senior leaders revealed that organizations are innovating in ways that are collectively changing the HR function from the “classic Ulrich model”:

• Adopt agile principles to ensure both strict prioritization of HR’s existing capacity and swift reallocation of resources when needed, enabling a fundamentally faster rate of change in the business and with people and how they work.
• Excel along the employee experience (EX) journey to win the race for talent in the time of the Great Attrition , 4 Aaron De Smet, Bonnie Dowling, Marino Mugayar-Baldocchi, and Bill Schaninger, “‘ Great Attrition’ or ‘Great Attraction’? The choice is yours ,” McKinsey Quarterly , September 8, 2021. enabling both employee health and resilience.
• Re-empower frontline leaders in the business to create human-centric interactions, reduce complexity, and put decision rights (back) where they belong.
• Offer individualized HR services to address increasingly varied expectations of personalization.
• ‘Productize’ HR services to build fit-for-purpose offerings with the needs of the business in mind, and to enable end-to-end responsibility for those services through cross-functional product owner teams in HR.
• Integrate design and delivery with end-to-end accountability to effectively address strategic HR priorities, reduce back-and-forth, and clarify ownership.
• Move from process excellence to data excellence to tap into novel sources of decision making using artificial intelligence and machine learning.
• Automate HR solutions to drive efficiency and capitalize on the power of digitalization in HR.

These innovation shifts are driving the emergence of new HR operating models, albeit with different degrees of influence depending on the nature of individual organizations (Exhibit 1). In analyzing the drivers, we identified five HR operating archetypes.

Five emerging HR operating models

These eight innovation shifts have enabled companies to rethink how they manage their people and the best way to do so. Exhibit 2 shows the five emerging HR operating models we identified, which are all enabled by two core elements: a strong, consistent data backbone and a user-friendly, highly reliable service backbone. When asked which two archetypes best fit their HR operating model, 48 percent of people leaders attending a recent webinar selected Ulrich+, 47 percent EX-driven, 36 percent leader-led, 31 percent agile, and 6 percent machine-powered. 5 Reimagining HR Webinar Survey, McKinsey, November 2022, n = 140 senior people leaders. Figures do not sum to 100%, because of the possible selection of multiple answers.

This model is an adaptation of the classic Ulrich model, with HR business partners developing functional spikes and taking over execution responsibilities from centers of excellence (CoEs). In turn, CoEs are scaled down to become teams of experts and selected HR business partners. They are supported by global business services and have a digital operations backbone. Many CHROs believe the classic Ulrich model is not up to solving today’s HR challenges, with HR business partners lacking the skills and time to keep up with the latest HR developments. Inflexible CoEs limit agile reactions, while other organizational boundaries have steadily become more permeable. Multinational businesses with mature and stable business models are often the ones that experience these pain points.

An agile transformation

A global financial institution underwent an agile transformation with a focus on IT delivery, supported by an agile HR operating model with 2,000 staff members. It first structured its HR function along the employee life cycle, aligning resources to the employee experience (EX) journey: when they join, work, develop, perform, and exit. The evolution to an agile model was supported by three HR innovation shifts:

• reducing the number of handovers by integrating run (servicing and operations) and change (product delivery) activities into “workstreams”
• setting up workstreams with end-to-end service responsibility (for example, design and delivery of recruiting), common goals, and steering
• allocating resources to agile pods with product crews for each workstream and agile ways of working

Projects that cut across multiple product crews were supported with a center-of-excellence initiative manager at the divisional level, and the stream-by-stream transition plan was phased over two years.

This model calls for a smaller number of HR business partners, with an emphasis on counseling top management, while CoE professionals focus on topics such as data and analytics, strategic workforce planning, and diversity and inclusion. The freed-up resources are pooled to implement cross-functional projects. CHROs who favor this operating model believe that HR needs to accelerate to keep up with the increased focus on execution exhibited on the business side and to prevent HR from hindering rapid transformation. Companies are applying this and other agile methodologies when experiencing rapid growth or discontinuity. (For an example of this model, see sidebar “An agile transformation.”)

Optimizing the employee experience

A global software company adopted a new business strategy to maximize the customer and employee experience, committing to a two-year transformation journey. Its first step was to mirror the customer experience for employees by identifying and revamping “moments that matter” along the employee life cycle. Three HR innovation shifts facilitated this: persona-driven HR services began following a customized approach; product owners took on end-to-end responsibility over HR concept, design, and delivery to deliver moments that matter; and HR, IT, and business operations combined into a comprehensive data function.

This model is meant to help CHROs gain a competitive advantage by creating a world-class EX journey. Putting EX first means allocating disproportionate resources toward “moments that matter.” For example, HR, IT, and operations experts could be granted full responsibility to jointly plan, develop, and roll out a critical onboarding process. By creating a world-class EX, HR becomes the driving force in bridging cross-functional silos and in overcoming the patchwork of fragmented data and processes that many organizations suffer from today. The companies employing this model are highly dependent on their top talent, with a small set of clearly defined competencies. (For more on this model, see sidebar “Optimizing the employee experience.”)

In this model, CHROs transition HR accountability to the business side, including for hiring, onboarding, and development budgets, thereby enabling line managers with HR tools and back-office support. This archetype also requires difficult choices about rigorously discontinuing HR policies that are not legally required. Too much oversight, slow response times, and a lack of business acumen in HR have led some companies to give line managers more autonomy in people decisions. Companies exploring this choice typically have a high share of white-collar workers, with a strong focus on research and development.

Machine-powered

With this model, algorithms are used to select talent, assess individual development needs, and analyze the root causes of absenteeism and attrition—leaving HR professionals free to provide employees with counsel and advice. As digitalization redefines every facet of business, including HR, CHROs are looking for ways to harness the power of deep analytics, AI, and machine learning for better decision outcomes. Organizations that are experimenting with this are primarily those employing a large population of digital natives, but HR functions at all companies are challenged to build analytics expertise and reskill their workforce.

Innovation shifts shaping HR model archetypes

While innovation shifts have shaped the traditional HR operating model and led to the emergence of new archetypes, not all innovation shifts are equal. Each archetype is typically based on one major innovation shift and supported by a few minor ones (Exhibit 3).

For example, a leader-led archetype is mainly shaped by the shift of empowering the leaders and the front line. At the same time, it gives more flexibility to the needs of the individual (the “cafeteria approach”) because leaders have more freedom; it also builds on digital support so leaders are optimally equipped to play their HR role. Alternatively, an agile archetype is strongly focused on adapting agile principles in HR, but it typically also aims to move toward a productized HR service offering and strives for end-to-end accountability.

The critical decision for senior people leaders is to consciously select the most relevant of these innovation shifts to transition gradually toward their desired operating-model archetype. For example, the leader-led model puts business leaders, rather than HR, in the driver’s seat, allowing line managers to choose the right HR offerings for their individual teams. And for companies that decide to deploy machine-powered HR, the key is building and relying on deep analytics skills. This model uses integrated people data to make targeted, automated HR decisions.

In large, diversified organizations, CHROs may find that different archetypes fit the differentiated needs of specific businesses better and may adopt a combination of HR operating models.

Transitioning to a target operating model

Transitioning to a future-oriented archetype is typically a three-step journey. First, CHROs and their leadership teams align on the right operating-model archetype for their organization based on the most pressing business needs, expectations of the workforce, the wider organizational context, and the company’s dominant core operating model. In large, diversified organizations, CHROs may find that different archetypes fit the differentiated needs of specific businesses better and may adopt a combination of HR operating models.

Second, HR leadership teams prioritize the three or four most relevant innovation shifts that will move their function toward their chosen operating-model archetype. When doing this, people leaders need to reflect on strategic HR priorities and, even more important, the shifts required to establish the operating model given its feasibility, the potential limits to the speed of implementation, and the magnitude of change. (Today, we find that the capacity to change the HR information system is often the most limiting factor.) For example, if a company is operating in a traditional hierarchical “command and control” way, the sole shift of HR into an agile archetype requires profound and demanding changes to ways of working, likely beyond only HR. Similarly, a business accustomed to a “high touch, concierge service” HR approach will find that a shift to a leader-led archetype is challenging and requires significant effort to implement.

Finally, teams think comprehensively about the transition journey, working toward core milestones for each of the prioritized innovation shifts individually and ensuring a systemic, integrated transformation perspective at the same time. This requires mobilizing for selected shifts, building new capabilities, and acting on an integrated change agenda in concert across business and HR.

Sandra Durth is a senior expert and associate partner in McKinsey’s Cologne office, Neel Gandhi is a partner in the New York office, Asmus Komm is a partner in the Hamburg office, and Florian Pollner is a partner in the Zurich office.

The authors wish to thank Fabian Schmid-Grosse and Christian Winnewisser for their contributions to this article.

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Agile talent: How to revamp your people model to enable value through agility

This time it’s personal: Shaping the ‘new possible’ through employee experience

Dr John Sullivan Talent Management Thought Leadership

Making a business case in hr: an illustrated example.

December 3, 2001

The following is an actual example illustrating how to successfully make a business case in HR. It follows the format outlined in Parts One and Two of this article series. Space limitations prevent me from going into too much detail, but this outline should give you some idea of the basic approach taken in this example.

Making the Case

A business case is a logical step-by-step approach for selling a program or project to senior management. Unfortunately, HR people have a long but weak history in making business cases. The following is a narrative example with numbers designed to show you how it should be done. Beneath each question from the previous article are the details of the strategy taken in this illustrated example.

Identify the Decision Makers You Are Trying To Influence

1. Who is the target audience?  The CFO’s office processes and approves budget requests for additional staff during our hiring freeze.

2. What are their decision criteria?  After reviewing the minutes of the budget committee meetings, we found that the CFO’s office only approves 45% of the proposals that come before her. After reviewing the trend analysis of the last 100 previous decisions over the last year, we identified the differences in the projects that were approved and projects that were rejected. It is obvious that successful programs are approved based on the following criteria:

• 50% of the decision is based on the calculated financial impact of the proposed project (where the minimum passing score is a 15% ROI and a revenue impact of at least $1 million).
• 25% of the decision is based on a promise of immediate return or payback period (where the minimum passing score is at least 25% of the promised results being achieved within six months).
• 25% of the decision is based on the risk of failure associated with the project (where the minimum passing score is that the project has less than a 25% chance of failure during its first two years).

3. Who is likely to resist it, and who is likely to support it (and why)?

• The CEO consistently vetoes high-risk proposals where the chance of failure is over 25%.
• The CIO and the VP of marketing consistently support (95% of the time) new revenue-increasing programs that increase revenue by at least $1 million.
• The CFO rejects 90% of all HR proposals. The CFO consistently complains that their proposals are heavy on emotion but weak on data. The CFO has rejected 50% of all requests for new staff during the hiring freeze because they lacked a significant financial impact.

Demonstrate That the Individuals Proposing This Program Are Credible

It’s unfortunate but true that programs supported and presented by people without a track record or knowledge of the industry get funded at a rate of 10%. If this project is to be funded, you must make a strong case that you are “experts” in our industry, in our business and in the area of recruiting.

1. Prove you are an expert in your industry, firm, problems, and solutions.  The project director is a recognized national expert in the field of HR. He has been at XYZ corporation for eleven years and he completes 95% of his projects under deadline and under budget.

2. Forecast trends and patterns.  The project director (Joe Boxer) has recently demonstrated a correlation of 0.92 between a decrease in the unemployment rate and the need for increased HR staffing personnel.

With the lower unemployment rate, there is a correspondingly lower quality of candidates and longer time to recruit them both of which dramatically decrease departmental productivity (especially in high-growth areas like marketing and IT). As a result of the projected drop in the unemployment rate of 1%, there is a need to increase HR recruiting personnel by hiring an additional recruiter. HR has successfully demonstrated in the past that the return to the firm (in the form of increased employee productivity) for every new hire in the HR staffing personnel office results in a minimum of a $1,000,000 increase in employee productivity during the first year. Every month of delay without hiring the recruiter will cost nearly $100,000 in lost productivity, two points on profit margin and one percent on market share.

3. Demonstrate your success rate and track record.  The last five increases in HR program staff have generated more than $10 million in increased productivity without a single failure. The average return on investment on HR projects is 62%, where the firm average for all programs is only 41%. The last three HR projects approved had an average ROI of 97%. Each of the last five increases in staff produced their results on time and under budget.

4. Show that the HR “owner” of the project is well known, trusted, and respected, and that a senior non-HR manager is “sponsoring” the project.  The CIO and the VP of marketing are the “sponsors” of this project. They have already identified the need for additional hiring to aid their departmental growth. The HR project director (Joe Boxer, who is the director of staffing) has presented six different projects to the CFO’s staff and all six were approved. He came from the CFO’s staff and maintains to this day a high level of credibility and believability with that department.

Demonstrate That the Program Helps the Firm Meet Your Goals and That the Program Fits Your Corporate Culture

1. Show that the solution helps you meet your goals and objectives. Maintaining productivity levels in the marketing department is the number two goal on the CEO’s priority list. Maintaining productivity levels in “IT” is the number three goal on the CEO’s priority list. Increasing HR’s talent capabilities is the fifth goal on the list and increasing hiring speed and quality is number twelve.

2. Clarify whether it fixes an existing problem or is a new opportunity. Hiring an additional recruiter solves an existing problem in the marketing and IT departments. These departments are understaffed by 10 percent and their productivity is down by 15 percent (because of the poor quality of their current hires). The program provides us with a positive opportunity to expand our talent capabilities while at the same time solving the existing problem of low staffing levels in marketing and IT.

3. Demonstrate how it fits our culture and our processes.  Our push to maintain our position as the low-cost provider in our industry requires us to assess new programs based on their ROI. Increasing the staff in the HR staffing department does run counter to our attempts to keep overhead costs to a minimum, but the need to act quickly as a result of the imminent decrease in the unemployment rate, the decrease in productivity in IT and marketing, and the high ROI for this project makes cost reduction a secondary concern.

4. Impact on diversity?  The HR staffing department has a 47% diversity rate compared to the firm’s overall rate of 29%. The project manager has agreed to advertise for the position in all major minority publications, and the hiring of additional recruiters with the ability to source diversity candidates will help us meet and even exceed this year’s diversity goals.

Demonstrate How It Helps Improve Your Firm’s Competitive Position

1. Show how it gives you a competitive advantage.  We are currently the industry leader in attracting talent. This additional recruiter will allow us to maintain that competitive advantage. Additional HR staff will allow us to successfully poach top talent from other area firms, thus obtaining a disproportionate share of the quality marketing and IT talent in our industry. We need to act quickly, though, because talent will soon be harder to acquire as a result of the decrease in the unemployment rate.

2. Demonstrate how it allows your company to differentiate itself. Additional speed and response time to applicants (as a result of the new HR hire) will help us build our external brand image as a great place to work. In addition, the additional recruiter will result in increased staffing levels in marketing and IT, which will directly increase our ability to develop innovative products and increase our product development speed.

3. Show how it makes your company just like “them.”  Cisco is our target firm to emulate. It currently has an HR staffing ratio of 15 recruiters per 1,000 employees. This addition to our staff will bring us up to that ration

4. Demonstrate that you have done your benchmarking. Five other “peer” firms have recently added HR recruiting staff in response to this decrease in the unemployment rate phenomenon. Cisco is the leading firm when it comes to recruiting talent. There speed and quality of hire are 15% better than ours. The other emerging firm to watch in our industry with regards to talent is Juniper Systems.

5. Forecast where your competitors “will be.”  Our competitive intelligence tells us that our competitors can add no additional staff beyond their currently planned additions due to recruiting software limitations that will take 18 months to resolve.

6. Forecast what response will they will make to your program.  We expect no response, because of their recruiting software limitations, but if they do copy our approach we would propose to give each of our recruiters’ basic sales training in order to increase their effectiveness without the need to increase our overall staff headcount.

Demonstrate That There Is a High Probability of Success

1. Prove how often these types of solutions work.  Eight-five percent of the time in our industry and 95% of the time in our firm hiring a recruiter (during times of decreasing unemployment rates) does result in an increase in hiring quality and a decrease in hiring speed.

2. List the critical success/failure factors.  The critical success factors for hiring a new recruiter were developed after studying 22 cases of recruiter hiring success and failure during the last three years. The “CSFs” include:

• Hiring within 30 days after a position is approved
• Hiring experienced recruiters away from other firms
• Paying them 10% above market

Common problems related to adding new recruiters include:

• A lack of computers and recruiter training can hamper HR recruiting efforts.
• Outdated candidate lists can reduce HR recruiting effectiveness by 5%.
• Failing to source on the Internet slows hiring speed by 50%.

3. List the environmental or economic factors that impact the likelihood of success.  If the unemployment rate should stop decreasing and instead start increasing by more than 10%, this will have the effect of mitigating the “low unemployment rate effect.” This, in turn, would cause a 20% decrease in the expected revenue gain (as a result of the increased recruiting success in IT and marketing). The probability of such a shift in the unemployment rate happening is estimated at less than 10%, and even if it did occur, the ROI for the program would still exceed the firm’s average by 10%.

4. Demonstrate that you have the talent, technology, or other competencies necessary for success.  Our current HR recruiting staff is the most effective in the region. We have demonstrated our ability to hire the best recruiters and industry in three out of the last five years. There is ample mentoring, computing capacity, and training, as well as office space, available for any new hire within HR.

Demonstrate the Possible Economic Impacts

1. Revenue.  One million dollars in the first year as a result of the faster and higher quality of the hires in marketing and IT. We expect it to increase our overall margin by one percent. We anticipate no change in the stock price as a result of this program.

2. Payback period.  We anticipate it will take only six months until the initial investment is returned.

3. Amount of upfront money needed.  $75,000.

4. List the program success measures (metrics).  Things we will measure in order to assess the program’s effectiveness include:

• Increased revenue attributed to the new hires in IT and marketing as a result of the additional recruiter
• Decrease in the time to hire attributed to the new recruiter
• Increased quality of hire (performance of new hires vs. current employees)
• Manager satisfaction rate (of those managers in IT and marketing that had new hires with the new recruiter)
• Our external image (percent of positive recognition as a great place to work) as measured by industry surveys
• The project’s overall ROI

5. Calculate the program’s ROI.  The projected ROI is 62%.

6. Calculate its impact on your products and services.  We estimate that product development time will decrease by 7% and our overall product quality will improve by 5% as a result of the new hires in marketing and IT.

7. Show that your program facilitates your company’s rapid growth.  The backlog of hiring requisitions will be eliminated in thirty days and the candidate callback waiting time will be decreased by 6 hours as a result of this new recruiter. Hires will start 60 days earlier, so product development time will decrease by 7%. The increased hiring (as a result of the new recruiter) will decrease product error rates in IT by 2%. There is no projected error rate impact in marketing. Projects in marketing and IT that are now held back due to lack of staff have an estimated value of $500 million.

8. Likelihood of external financial support.  There is no likelihood for obtaining external financial support.

Demonstrate That Your Project Plan Is Credible

1. Show that the project lead is credible.  Yes, he has a 95% success rate (met 100% of the goals) on projects, and he has in the past decreased product development time (by 7%) and hiring time (by 50%).

2. Demonstrate that your team is competent.  N/A

3. Show that you can attract any talent you might need.  We have ten top recruiter resumes currently in our applicant pool, so we anticipate no difficulty in hiring. Seventy-eight percent of the previous recruiters selected for hiring accepted our offer.

4. List the program steps.

• Update the job description.
• Place an ad.
• Search Internet chat rooms and list servers frequented by writers.
• Ask our own best talent which recruiters are best at trying to recruit them away.
• Ask other recruiters and managers for referrals.
• Make an offer.
• Provide two days of initial training.
• Measure the results and provide additional training or incentives as necessary.

5. Show that you have undertaken a pilot or beta test.  Although it was not possible to undertake a pilot, our current staff is already seeing an increased difficulty in recruiting as a result of the decrease in the unemployment rate. Similar recruiter hiring has produced positive results during the last two times the unemployment rate dropped.

6. Highlight the program monitoring system. All HR recruiting is coded so that we can identify which staff member generates which new hires. Marketing and IT productivity and product development will be measured on a monthly basis. Manager and candidate satisfaction will be measured quarterly. The CFO has approved the project metrics and monitoring system.

7. Provide best- and worst-case scenarios.  Best case is increased the revenue of $2 million per year and ten hires within a year. Worst case is $200,000 in revenue during the first year and two hires in the first year.

8. Show a plan for identifying any “unintended consequences.”  Additional recruiter hiring for marketing and IT may increase conflict between IT and marketing for attention from the recruiter. Other operating units may become jealous because they’ve received no additional recruiting help.

9. Identify any potential legal issues. There is a .02% chance of a lawsuit as a result of the increased volume and speed of hiring.

Individuals Perceive That the Program Offers Them Some Direct Personal Benefits

1. Establish a personal relationship with the decision maker.  The VP of HR and the CFO have a strong working relationship. They will serve in the executive committee, and they are golfing partners.

2. Demonstrate that the program improves “their” chance of promotion or increased income.  We estimate that the increased growth and revenue as a result of increased hiring will increase all executive bonuses by five percent this year.

3. Demonstrate that the program might build “their” image.  There is no estimated impact on the CFO’s image.

Other Factors To Consider

1. Anticipate being offered a reduced budget.  Even if only a part-time position is offered, we estimate it will generate a positive ROI of 12%.

2. Include a continuous improvement process in your plan.  Revenues will be monitored to see if additional staff, new hiring incentives, or recruiter training can lead to an increased yield. If so, additional resources will be requested to take advantage of these possible program enhancements, 3. Take into account their past experience with your department. The negative business partner image from the 1990s has been worn away by our attempts to become business leaders. We anticipate no negative political or “reputation” issues.

If All Else Fails…

1. Program promises.

• The date the program will be operational (i.e. when the recruiter will be on board and functioning) will be January 30th (60 days from today).
• Within six months of operation, the hiring backlog in marketing and IT will be zero.
• By the end of the first 12 months of operation, revenues in marketing and IT will be up two million dollars.

If the above doesn’t occur I will offer my resignation.

If this article stimulated your thinking and provided you with actionable tips, please take a minute to follow and/or connect with Dr. Sullivan on  LinkedIn

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About Dr John Sullivan

Hire The Not-Yet-Promotable… And Improve Internal Movement (Hiring for this and the next job)

The Concept In A Nutshell Recruiting can broaden its strategic impact by hiring not-yet-promotable candidates …

Differentiating Yourself as a Strategic HR Partner: A Case Study

Amalgamated Intercontinental LLP had fared rather worse than its competitors during the economic downturn. With revenue, quality and productivity down, management set several goals to reverse the company's fortune. One are in need of improvement was human resources and "Janet," the newly appointed CHRO faced a daunting challenge: to quickly re-invent the Human Resources function , reposition it a strategic partner to the business and improve employee perceptions of her department. Her predecessor retired after leading a major reduction in force and two major divestitures causing a significant exodus of key talent, some unexpected. Janet was charged with finding a way to retain top talent and develop a steady but highly-qualified stream of candidates to fill regular as well as critical positions. Amalgamated Intercontinental's CEO agreed with her that differentiating the human resources function was essential for senior management's plan to succeed. In her first two weeks on the job Janet discovered:

• Requests for information on several employee categories revealed her department did not have a comprehensive searchable repository of employee (or applicant) data; unless routine every request yielded spotty information from several systems, took days to compile and sometimes offered up conflicting data.
• Job descriptions were inconsistent, long but vague lists of high level "duties and responsibilities" and qualifications; the terms used were not defined or uniformly applied; there was little to distinguish junior from senior personnel beyond years of "relevant" experience; focused on largely technical skills, fuzzy descriptions of soft skills when offered at all were invariably "boilerplate."
• Job titles did not reflect the work people did, used instead as a framework for budgeting and compensation. For instance, Amalgamated Intercontinental employed nearly a thousand Business Analysts across the planet, in every sector wherein it did business, many doing unique work requiring different knowledge and skills.
• Aside from providing a coordinating function, human resources had outsourced recruiting to third parties who presented candidates based on their internet postings and other sources. No matter the level or criticality of the open position, human resources rarely conducted interviews or assessments before or after handing over the third party resumes to the hiring organization and would get involved again only when a candidate was selected.
• HR’s participation in the onboarding process of new employees was limited to having them attend a half-day orientation session where, between a video and a slide presentation about the company, they filled out benefits-related, payroll, ID and other paper forms. The new hires’ functional organizations were responsible for all other orientation and getting the employees to be productive.
• Learning and Development (L&D) had largely been outsourced to several companies that provided generic on-line courses; function-specific career development was left to each functional area to manage however it thought best. Everything reinforced silos.
• The recent departure of several mission-critical employees disclosed no systematic means of capturing expertise from employees; when they left, their knowledge left with them.
• The Performance Management System (PMS) did not align with anything, was viewed by managers and individual contributors alike as a burdensome annual chore that interfered with people’s "real jobs."
• Where process maps existed at all (within and beyond HR), they were scattered throughout the entire company, had no consistent format, were developed in various applications, and were unvaryingly out of date.
• Succession Planning was limited to the top ten percent of executive and senior managers.
• Fortunately, if sadly, Amalgamated Intercontinental’s cost to hire was nearly double that of comparable global businesses with vendor contracts negotiated and managed informally, assuring at least a favorable ROI from this area and provide seed money to initiate HR’s transformation.

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The artful management of talent is one of a handful of strategic services human resources can offer. The waning of traditional HR functions through automation, self-service and outsourcing demands a " culture change " within human resources: adopt a business focus by an organization still structured largely around benefits administration, time and attendance reporting, labor cost processing and similar transactional operations. After diligently reviewing the past four years’ budget/actual numbers (as Glenn Tobe, business transformation enabler, leadership development innovator and executive coach at the Tobe-Schnur Group put it, "show me your budgets and I’ll tell you your strategy"), individually confirming these and other observations with her colleagues on the Executive Management Team (EMT) , getting a "feel" for Amalagamated Intercontinental’s senior management culture and bouncing around some ideas, Janet drafted the plan she would "socialize" before presenting to the EMT. The elements of her plan, required to enable human resources to act as a strategic partner included:

• Human resources needed to "know" its internal customers much better if it was to provide strategic services, realign HR personnel as soon as possible from a centralized to a distributed model, relocating them to offices close to their business peers and customers. This would require re-skilling some people to function as single point of contact generalists before dedicating them to business units and gradually re-insource more of mission critical services like recruiting.
• Develop a communication plan to present HR’s transformation to first human resources personnel and immediately thereafter to all of Amalgamated Intercontinental’s employees. In addition to providing a clear, concise description of what human resources would "look like" and how it would operate in the future, the initial communication to HR personnel would stress that the initiative was not aimed at workforce reduction that, in fact, it presented several opportunities.
• Investigate turning a portion of the company’s well-regarded Customer Relationship Management (CRM) system inward to regard employees as customers and business units as clients.

• Assure recruiting data of promising candidates is reflected in the ESD so that periodic communication with them demonstrates on-going interest to generate a stream of potential pre-qualified and referred applicants.
• Explore how establishing a presence on social networks could support recruiting.
• In locations where Amalgamated Intercontinental had significant presence, explore sponsoring (or joining) a group that assured long-term supply of qualified entry-level personnel modeled perhaps on the INTERalliance.org concept.

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While fixing the broken system and processes is vital to enabling HR to act as a strategic partner, it is equally important to recognize and develop leaders. As the aforementioned Glenn Tobe put it, "every company has pockets of excellence, people who informally optimize the teachable moments. Amplify what works. Leaders need to grow leaders not HR programs, new methodologies, new models, new processes and new languages. So, when you hear ideas like ‘talent stratification, career velocity, high potential,’ remember the human resources department has too much free time..." It is leaders throughout the organization that enable a business to quickly adjust to foreseen as well as unpredictable market forces. Flexible tools and a flexible mindset , both are what human resources need to offer. Attracting, helping to manage the productivity and retaining the commitment of employees to an organization requires human resources to project a meaningful people-are-valued-here image into the company as well as out into the recruiting marketplace, especially with external recruiters if they are used. Notes of caution:

• Understand your company’s culture. What’s "right" for some organizations can yield disastrous results for others. Conduct a survey at the right time; start from where the organization "is" rather than be lulled into describing it as you or your boss would like it to be; move incrementally, iteratively in small steps at least at first if the organization is "anxious"; if complacent, see Jack Welch. In either case provide a clear vision of where you want to go, be open to advice from anyone and transparent when you need to change it.
• Understand your company’s strategic plan. What are the hoped-for and actual trends? What talent was/will be required? Does what will be needed already reside somewhere among current employees? What likely gaps can’t be developed from within the current talent pool? What are historic lead times to develop and acquire the needed KSB?
• Understand your clients and customers: A critical part beginning with the on-boarding process is getting frequent feedback from and on the new hires. Know what it costs your internal clients to hire people; what can be done to reduce these costs? How satisfied are they with the process and the candidates? How satisfied are they with the new hire or transfer? And finally, how satisfied are your customers, the new employee and his/her coworkers?

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Human Resource Management: Business Case Studies

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Business case studies outline fictitious or real-life scenarios faced by sectors and industries, managers and companies. Cases are frequently used within Business subject disciplines for teaching, research and problem solving. As a student, you may be asked to analyse a case study or produce one for an assignment.  Aston University Library provide access to business cases, with the ability to browse or search by theme, keyword and industry. Case studies can also be found in books, journals and freely online.

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1.4 Cases and Problems

Chapter summary.

• Human resource management is the process of employing people, training them, compensating them, developing policies relating to the workplace, and developing strategies to retain employees. Three certification exams, which are offered by the Human Resource Certification Institute, can be taken to show HRM skills and become more marketable.
• Human resource management involves seven main areas: (1) staffing, (2) workplace policies, (3) benefits and compensation, (4) retention, (5) training, (6) employment laws, and (7) employee protection.
• Human resource managers need many different types of skills. Being able to organize, multitask, and communicate effectively, as well as having specific job skills, such as how to run a particular computer program, and a sense of fairness and ethics, is crucial to a successful career in HRM.
• There are many contemporary challenges associated with HRM. First, it is up to everyone in the organization to contain costs. HR managers need to look at their individual departments and demonstrate the necessity and value of their functions to the organization. HR managers can also help contain costs in several ways, such as managing benefits plans and compensation and providing training.
• The fast-changing nature of technology is also a challenge in HRM. As new technologies are developed, employees may be able to implement innovative ways of working such as flextime . HR managers are also responsible for developing policies dealing with cyberloafing and other workplace time wasters revolving around technology. Employee stress and lack of work-life balance are also greatly influenced by technology.
• Awareness of the changes in the economy allows the human resource manager to adequately plan for reductions and additions to the workforce.
• The aging and changing workforce is our final factor. As baby boomers retire, there likely will not be enough people to replace them, and many of the skills the baby boomers have may be lost. In addition, having to work with multiple generations at once can create challenges as different expectations and needs arise from multigenerational workforces.

Chapter Case

Changes, Changes

Jennifer, the owner and manager of a company with ten employees, has hired you to take over the HRM function so she can focus on other areas of her business. During your first two weeks, you find out that the company has been greatly affected by the up economy and is expected to experience overall revenue growth by 10 percent over the next three years, with some quarters seeing growth as high as 30 percent. However, five of the ten workers are expected to retire within three years. These workers have been with the organization since the beginning and provide a unique historical perspective of the company. The other five workers are of diverse ages.

In addition to these changes, Jennifer believes they may be able to save costs by allowing employees to telecommute one to two days per week. She has some concerns about productivity if she allows employees to work from home. Despite these concerns, Jennifer has even considered closing down the physical office and making her company a virtual organization, but she wonders how such a major change will affect the ability to communicate and worker motivation.

Jennifer shares with you her thoughts about the costs of health care on the organization. She has considered cutting benefits entirely and having her employees work for her on a contract basis, instead of being full-time employees. She isn’t sure if this would be a good choice.

Jennifer schedules a meeting with you to discuss some of her thoughts. To prepare for the meeting, you perform research so you can impress your new boss with recommendations on the challenges presented.

• Point out which changes are occurring in the business that affect HRM.
• What are some considerations the company and HR should be aware of when making changes related to this case study?
• What would the initial steps be to start planning for these changes?
• What would your role be in implementing these changes? What would Jennifer’s role be?

Team Activities

• In a group of two to three people, research possible career paths in HRM and prepare a PowerPoint presentation to discuss your findings.
• Interview an HR manager and discuss his or her career path, skills, and daily tasks. Present your findings to your class.

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Case Study: How Aggressively Should a Bank Pursue AI?

• Thomas H. Davenport
• George Westerman

A Malaysia-based CEO weighs the risks and potential benefits of turning a traditional bank into an AI-first institution.

Siti Rahman, the CEO of Malaysia-based NVF Bank, faces a pivotal decision. Her head of AI innovation, a recent recruit from Google, has a bold plan. It requires a substantial investment but aims to transform the traditional bank into an AI-first institution, substantially reducing head count and the number of branches. The bank’s CFO worries they are chasing the next hype cycle and cautions against valuing efficiency above all else. Siti must weigh the bank’s mixed history with AI, the resistance to losing the human touch in banking services, and the risks of falling behind in technology against the need for a prudent, incremental approach to innovation.

Two experts offer advice: Noemie Ellezam-Danielo, the chief digital and AI strategy at Société Générale, and Sastry Durvasula, the chief information and client services officer at TIAA.

Siti Rahman, the CEO of Malaysia-headquartered NVF Bank, hurried through the corridors of the university’s computer engineering department. She had directed her driver to the wrong building—thinking of her usual talent-recruitment appearances in the finance department—and now she was running late. As she approached the room, she could hear her head of AI innovation, Michael Lim, who had joined NVF from Google 18 months earlier, breaking the ice with the students. “You know, NVF used to stand for Never Very Fast,” he said to a few giggles. “But the bank is crawling into the 21st century.”

• Thomas H. Davenport is the President’s Distinguished Professor of Information Technology and Management at Babson College, a visiting scholar at the MIT Initiative on the Digital Economy, and a senior adviser to Deloitte’s AI practice. He is a coauthor of All-in on AI: How Smart Companies Win Big with Artificial Intelligence (Harvard Business Review Press, 2023).
• George Westerman is a senior lecturer at MIT Sloan School of Management and a coauthor of Leading Digital (HBR Press, 2014).

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The Role of Human Capital and Lecturer Career Motivation in Career Success

• Kenechukwu Nwakego Anugwom

This quantitative study seeks to deepen understanding of the complex relationship between human resources, career motivation, and career success among lecturers in Indonesia. In order to achieve this goal, this research used a survey via the Google Form platform with a 5-point Likert scale as a data collection method. The main focus of the research is on 400 lecturers who are members of the Higher Education Service Institutions (LLDIKTI) 1-16 in Indonesia. The research results analyzed using Partial Least Squares (PLS) Structural Equation Modeling revealed a strong and significant relationship between human resources and lecturer career achievements. Career motivation proved to be an important mediator in this relationship. These findings underscore the transformative role of human resource development in motivating lecturers to progress in their academic careers. This study differentiates itself from previous research that focuses more on the context of business organizations, by focusing on academic aspects. This research also validates subjective and objective aspects in assessing career achievement, providing new insights regarding the career development of lecturers in Indonesia. The results of this research provide a strong foundation for the development of better policy strategies to improve the welfare and career advancement of lecturers in the Indonesian higher education environment.

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This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License .

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