What Does an HR Transformation Consultant Do?
What Does an HR Transformation Consultant Do?
The HR transformation consultant helps companies make substantial changes to their general HR strategy and HR processes through change management.
Human resources is a dynamic industry, but companies often implement strategies that become stale over time. To ensure that the HR transformation strategy doesn’t harm daily work, organizations hire transformation consultants.
The HR transformation consultant needs to stay current on the latest changes in HR services, technology, practices, and general understanding.
HR modification is a much more substantial change than an incremental improvement, such as updating HRIS. The transformation often follows other significant organizational design changes aiming for high company performance.
The modern HR transformation journey revolves around technology and has four main segments:
- Digitize data and information
- Automation
- People analytics
- Digital interactions and communications
The article will provide everything modern HR change consultants do and the requirements to become one. Let’s start.
What Exactly Does an HR Transformation Consultant Do?
In the 1990s and early 2000s, HR transformations focused on high efficiency and low costs. Modern HR business transformation aims to achieve the same thing. Instead of using different HR functions, today, professionals achieve it by maximizing employee contribution.
To deliver measurable improvements, the HR transformation program needs to possess thorough information regarding the timeline, budget, and possible issues that can appear.
A broad range redesign of human capital must precede for a new payroll or workforce strategy to impact. Learning the consultant’s role is helpful to seasoned HR professionals and those aspiring to become one. So, let’s cover what transformation consultants do.
Minimize Manual & Administrative Work
According to American Psychological Association, 79% of employees experience work-related stress. Transformation consultants don’t just advise about improving workforce strategy inside the HR department but across the company.
To improve efficiency, the advisor will advise and help implement technology that minimizes manual and administrative work. By doing so, a business aims to reduce costs and the time to finish a job.
The HR consultant does so by analyzing the current workforce status and the primary business needs. They can also perform performance benchmarking to better understand employees’ performance.
After assessing the situation, the advisor often suggests solutions to reduce the burden of manual and administrative work.
People Analytics as a Key HR Strategy
For a long time, the HR department relied on experience and instinct to make critical business and employee decisions. With the technological spurt in HR, more departments started using analytics to support their decision-making.
However, since many departments lack analytical knowledge, an organization often needs consulting and support to benefit from the information. Some might not even be aware of the innovation. The HR consultant helps by implementing the HR process and HR technology into the existing operating model.
People analytics is an innovative HR tool that requires an understanding of tools outside the usual HR toolset. The consultant can also help with coaching so that employees master the needed skills.
That doesn’t mean the consultant necessarily does the training. Their main goal is change management. In other words, they provide innovative and strategic ideas alongside the means of achieving these ideas.
The professional will suggest services to help achieve the transformation as part of the consulting services. The same goes for other consulting jobs.
Increase Data Security
With digitalization comes the risk of a data breach. To ensure the HR modification doesn’t hurt the business, the consultant advises clients on securing their information.
Some of the common tactics to increase digital security that the consultant might advise are:
- Partner IT & Legal Team—Digital security becomes more efficient by developing a steady flow of information between the IT and legal teams.
- Permission Administration—Instead of giving everyone unrestricted access, the consultant might advise giving only the necessary permissions.
- Encryption—While most HR technology encrypts files, that’s not the case for files your HR department exports from Excel. As part of digital security, the consultant can advise encrypting such files.
- Security Training—Compromise might happen due to an employee becoming a phishing victim. Coaching sessions prevent that from happening.
Unlike a management consultant, who works strictly with team managers and employees higher in the hierarchy, the consultant works with the entire staff if necessary for the company’s HR modification.
Legal & Regulatory Compliance
According to PWC, 60% of executives see digital transformation as the leading growth factor. As companies rush to digitalize every HR function, they can forget that digital changes are immune to regulations.
While growth is necessary, staying on top of any current and future legal changes is essential. Before progressing with any significant shift, the HR transformation consultant should inform the client about any possible compliance steps and support during the process.
Although not the most active job, it should be essential for consulting services.
Analyze Talent & Employee Requirements
A company’s talent pool might function according to the same rules for years. As the work approach becomes stale and inefficient, so can the employee management. In cases like that, the consultant can advise changing the current roaster.
Some parts of business transformation aren’t pleasant. Realizing that you must transform how you manage employees or even the top management can be harsh.
Replacing the old operating model with a new one can also mean creating a more competitive salary system to attract new talent and other similar processes.
Since clients might disagree with such a change, the HR transformation consultant must include thorough planning in their change management.
Presenting issues, benefits, costs, and strategies is essential for delicate processes and shifts.
Incentivize Collaboration
A significant shift impacts the business and the employees. Although it can seem the consultant’s job is over, once the transformation is over, this can leave the company in shambles.
Every team inside the company needs to adjust to the transformation, which requires stellar team management and support. The consultant advises clients on transformation development and post-transformation collaborations.
Collaboration is the quickest way for a team to master new tools and systems. The consulting professional must help clients implement solutions and use the results as part of change management.
Role Requirements & Skills
HR change management is a long and delicate process. An HR transformation consultant doesn’t need expertise in every required segment of a successful transformation. However, they must possess the knowledge of how to achieve the goal.
Furthermore, every company has unique requirements, forcing the consulting professional to adjust to every client.
Experience in Redesigning HR Processes
Since change management is the core of any transformation, the consulting professional must have substantial experience managing and implementing new technology, strategies, and similar development tactics.
The requirement is a robust mix of soft skills such as leadership, communication, and experience.
Not all HR professionals participate in implementing changes, so if you hope to move to a consulting position, aim to gain as much experience as possible.
Great Consulting Skills
Consulting skills are related to soft skills. While you can have the “know-how,” it’s of little use if you don’t know how to communicate the strategy to managers and employees.
A professional consultant should possess the following soft skills:
- Proactivity & strong work ethic
- Stellar oral & written communication
- Leadership
- Team player
- Conflict resolution
- Persuasion & negotiating
- Adaptability
Although you can always add additional soft skills, these are the core ones for any consultant.
HR Department Experience
Although the focus is on consulting and transforming the business, the core is still HR. This means the HR consulting professional needs to have experience with daily HR.
The consultant must have experience with at least some primary HR segments. Segments are:
- Compensation & benefits
- Performance
- HRIS
- Recruitment & onboarding
- Training & development
Direct experience with HR is mandatory to offer proper services.
MS Office Proficiency
Since consultants spend a lot of time presenting results and development progress to clients, they need extensive knowledge of the MS Office Suite (Word, Excel, PowerPoint).
You can use other text and presentation software. Still, since the average business uses MS Office, it’s advisable to focus on it or similar ones, such as Google Slides and Google Docs.
Education Requirements
The HR transformation consultant must have a bachelor’s degree in HR, project management, or any related field.
Furthermore, clients prefer HR professionals with specialized consultant certifications such as CHRC or any general HR certification from a reputable organization like SHRM.
Finally, the consultant can benefit from a master’s degree, although the degree isn’t mandatory for the job.
To master HR skills, consider taking some of our recognized HR courses.
FAQs
Here are the most frequently asked questions about HR transformation:
What is HR transformation, and why is it important for HR leaders?
HR transformation is redesigning the human resources function to align with the organization’s strategic goals and modernize HR operations. For HR leaders, spearheading this change is essential to creating a more efficient HR organization that drives business outcomes. Successful HR transformation helps companies stay competitive by improving HR capabilities, fostering innovation, and ensuring that HR executives can meet the evolving needs of the workforce.
How does a strong HR operating model contribute to successful HR transformation?
A strong HR operating model is the backbone of any successful HR transformation. It defines how HR functions are structured and delivered within an organization, ensuring that processes are streamlined and efficient. HR leaders can enhance operations performance and deliver better value to the business. This, in turn, strengthens capabilities, ensuring that the organization is agile and able to respond to changing business needs.
What are the key steps in an HR transformation roadmap?
An HR transformation roadmap is a strategic plan that outlines the service delivery for modernizing HR operations and elevating HR capabilities. It typically includes assessing the current state of HR functions, defining a future vision, and identifying critical initiatives for change. A well-structured roadmap ensures that the HR organization transforms effectively and delivers measurable results.
How can HR executives ensure that their HR organization remains adaptable in a rapidly changing business environment?
HR executives can ensure their organization remains adaptable by continuously investing in developing HR capabilities and fostering a culture of innovation for HR teams. This includes staying informed about industry trends, leveraging data and HR tech to enhance operations, and regularly reviewing the model to make necessary adjustments. Flexibility is key, allowing for modifications as new challenges and opportunities arise. By staying proactive, HR leaders can position their organizations for long-term success.
How can HR leaders empower HR teams during a transformation process?
Empowering HR teams during a transformation process is crucial for achieving lasting success. HR leaders can empower HR by fostering an environment where teams have the autonomy to make decisions, innovate, and drive key initiatives. Providing opportunities for upskilling and encouraging collaboration across departments ensures that HR teams are well-equipped to support the overall transformation. When HR professionals feel empowered, they can contribute more effectively to the organization’s goals and play a pivotal role in the HR transformation journey.
What role does employee experience play in digital HR transformation?
Employee experience is a central element of digital HR transformation. By leveraging technology to streamline HR operations and provide more personalized, accessible HR services, organizations can significantly improve the employee experience. Digital tools can automate routine tasks, allowing HR teams to focus on more strategic initiatives, such as enhancing engagement and well-being. Ensuring a positive employee experience throughout the transformation helps retain talent, boosts productivity, and reinforces the organization’s commitment to creating a supportive workplace.
