Differentiating Strategic HR Functions from Compliance-Based Approaches: Insights from Sapient’s 2023-2024 HR Systems Survey
Discover key factors that distinguish strategic HR functions from compliance-based approaches, as revealed by Sapient Insights Group’s latest HR Systems Survey. Explore findings on change management, technology ownership, and HR’s leadership role for a deeper understanding of HR’s strategic impact.
Unlocking the Secrets: Sapient’s 2023-2024 HR Systems Survey Reveals Key Differences
Sapient Insights Group’s latest HR Systems Survey sheds light on the factors that set strategic HR functions apart from compliance-based ones. With insights from nearly 6,000 respondents across 53 countries, the survey outlines crucial distinctions that redefine HR’s role in organisations.
Change Management Excellence:
Strategic HR functions stand out by embracing change management as a core practice. The study reveals a 31% increase in HR technology platform modules since 2020. However, many HR functions fall short in investing in change management practices, leaving employees overwhelmed. Strategic HR, on the other hand, excels by employing dedicated management teams, tracking change communications, involving the C-suite, fostering bottom-up planning, and supporting change initiatives with a robust business case.
HR Taking the Lead:
An eye-opening revelation from the survey is that when HR, not IT, leads HR technology, it is 60% more likely to be viewed as strategic rather than compliance-based. As IT increasingly takes the reins of HR technology, especially in larger companies, HR may lose influence over data management and people analytics. This shift poses a challenge, as HR technology is perceived merely as a tool for efficiency rather than a catalyst for strategic business outcomes.
Strategic Alignment with Business Goals:
Strategic HR functions proactively align decisions and actions with overarching business goals, positioning themselves as partners rather than support staff. In contrast, compliance-based HR functions tend to be reactive, responding to events as they unfold.
Mitigating Change Fatigue:
The study underscores the importance of HR leaders re-evaluating the frequency and intensity of change introduced through new technologies and processes. Strategic HR functions prioritize change initiatives, recognizing the potential toll of “change fatigue” on employee well-being and organizational performance. A Gartner study further emphasizes that change fatigue can lead to a decline in employee performance by up to 27%.
As organisations navigate the evolving HR landscape, understanding these distinctions is pivotal. Stay informed with Sapient’s comprehensive insights for a strategic and future-ready HR approach.