In today’s fast-moving business landscape, constant change and transformation have become the norm. As a result, HR professionals face increasing pressure to continuously evolve their strategies and practices to keep pace with shifting organizational needs and remain competitive. From talent acquisition and retention to fostering a positive workplace culture, there’s a greater demand on HR professionals to do more than they ever have before.
Leading an effective HR transformation—a comprehensive reworking of your HR department’s function to modernize practices, streamline processes, and drive strategic growth—is no easy task. Success requires aligning leadership, engaging employees, and adopting new technologies, among many other steps.
How can HR departments transform themselves to meet these challenges head-on, while also managing to drive real value for their organizations?
Through real-world examples and expert advice, let’s dive into key strategies to ensure your changes are successful for the long haul.
Building a Case for Change
Before you can begin transforming your HR department, you must establish why the revamp is necessary.
“The need for change is an organizational change readiness driver that helps identify any type of gap between the current state and a desired or ideal state where the organization is moving toward,” said Martin Armstrong, an expert in organizational change management and advisory board member at The UKG Workforce Institute.
It’s not enough to ask what will happen when you make changes—you also need to determine the consequences of not making a change. Failure to embrace change can leave organizations lagging behind competitors, unable to meet market demands, and struggling to attract top talent. Inefficiency, low employee engagement, and heightened operational risks are common consequences that can ultimately lead to stagnation and diminished long-term success.
Importance of Buy-In and Fostering a Culture for Change
Two kinds of buy-in are critical to a successful change: leadership and employees. A strong workplace culture that embraces change, fosters trust, and encourages agility sets the stage for team members to embrace transformation rather than resist it.
Leadership buy-in is essential for driving transformation, a point Armstrong emphasized repeatedly. He talked about the importance of “principal support,” or ensuring key organizational leaders visibly back the transformation efforts.
“At the end of the day, employers are going to ask themselves, ‘Is leadership providing a personal endorsement and supporting this change event?’” said Amstrong.
While buy-in from leadership is crucial, another challenge in any HR transformation is gaining buy-in from employees, as they’re the ones often facing the biggest shift in how they work.
Establishing and ensuring understanding of the need for change lays the groundwork for employees’ acceptance. Without it, the transformation will likely be met with resistance.
Ensuring that employees feel equipped and supported during the transformation process is crucial for reducing resistance and fostering engagement. Armstrong stressed the importance of self-efficacy, or the belief in one’s ability to successfully navigate change. “It answers the question, ‘Can I do this?’” he said.
Leaders must communicate the benefits of the changes, particularly as they might align with an employee’s individual career motivations. This ties into the concept of personal valence, where employees ask themselves, “What’s in it for me?” Employees are more likely to support change when they see personal benefits, such as new opportunities for growth or improved working conditions.
From both the side of leadership and the employees, one essential aspect is necessary for buying in to the transformation: trust.
Nicole Whitehead, Ed.D, SHRM-SCP, was recently tasked with transforming HR operations at Bucknell University in Pennsylvania. When she began her role as vice president of the department, the overwhelming theme among staff was “I hate HR,” she said.
“We needed to work on our trust, being able to be deep listeners,” Whitehead said in an episode of SHRM’s All Things Work podcast. “How are we nimbler in our processes where there’s not one black-and-white way to do things when we have different segments of our population” who need different approaches?
Overcoming Resistance to Change
To overcome the lack of trust of HR within her organization, Whitehead focused on rebuilding credibility. She conducted listening tours, implemented new processes, and worked on upskilling employees.
“This was a scary process for my team,” she acknowledged. “It required a lot of hard conversations.”
It’s inevitable that change will be met with some resistance. However, organizations can manage this by addressing concerns directly.
Armstrong advised using focus groups to understand the reason for resistance. “You have to ask the source,” he explained.
Gathering employee feedback through direct communication channels, such as focus groups and one-on-one sessions, helps leaders uncover the root causes of resistance and adjust their strategies accordingly.
The Role of Technology
Technology plays an essential role in HR transformation, as it allows organizations to streamline processes and focus on strategic initiatives. By adopting technology such as AI-driven recruitment tools and cloud-based HR platforms, organizations can reduce administrative burdens and allow HR to focus on fostering employee engagement and development.
“Tech isn’t just about automating processes,” Armstrong said. “It’s about enabling HR to focus on what really matters: people.”
Nearly one in four HR professionals (24%) are concerned that AI will lead to job displacement at their organization, according to SHRM research from January 2024. Yet in practice, of those who work at organizations that use AI within HR, 29% say AI has not changed the business environment yet.
Armstrong also noted the importance of understanding and adapting to new technology. “You definitely want to make sure that [employees] understand the change, because ‘If you can’t explain it simply, you don’t understand it well enough,’” he said, citing a famous quotation.
It’s vital to recognize how technology better positions your organization not just today, but three-plus years down the road.
“We have to be ready for [answering] how do we leverage AI? How do we embrace technology to be more efficient and be more relevant as a human resources division?” Whitehead said.
Measuring Success and Continuous Improvement
HR transformation is not a one-time event. If you want long-term success, it’s critical to track the progress and impact of HR transformation.
Both Armstrong and Whitehead emphasized that successful transformation requires continuous evaluation and improvement. Organizations also need to regularly assess their progress and adapt, as necessary, to changing conditions and business needs. This involves tracking both quantitative and qualitative outcomes to ensure that changes are delivering value across the organization.
Key quantitative metrics include improvements in employee engagement, reductions in turnover, and increased efficiency in HR processes, such as recruitment and onboarding.
Qualitative measurements, such as continuous evaluation through surveys, performance benchmarks, and regular feedback, allow organizations to make strategic adjustments and ensure that the transformation remains aligned with business goals and workforce needs.
“There is value in focus groups and talking to employees via channels like roadshows or town halls or other in-person forums where leaders directly are able to talk to employees,” said Armstrong.
This is not dissimilar to the listening tours Whitehead went on at the beginning of her transformation process. By treating transformation as an ongoing journey, organizations can remain agile and responsive to new challenges.
The Road to Lasting Change
By aligning HR strategy with business goals, building a strong case for change, fostering a culture of transformation, and leveraging technology and partnerships, HR departments can position themselves as strategic drivers of organizational success.
As Whitehead put it, the goal is to move beyond people saying how great HR is and to “start naming some specific behaviors and examples that will tell us the system is working.” This is the true measure of successful HR transformation—when HR becomes an integral, value-adding part of the organization’s strategic framework.
Bryan Levine is a contributor for SHRM.org