HR must transform for business transformation to succeed

In our latest research report, in partnership with the Reward & Employee Benefits Association (REBA), we explore how an organisations purpose and their ways of doing business are changing, revealing the impact this is having on the type of talent they need and their reward and benefits strategies.

The Covid-19 pandemic demonstrated to business why the CHRO and their HR professionals are essential to the sustainability and future profitability of their operations. And given the current economic climate, acute skills shortages, sustainability commitments and the cost-of-living crisis are just some of the challenges that are on the radar for CHROs and reward professionals.

Companies are aligning their corporate purpose with both their employee value proposition (EVP) and specific business objectives. Key data at a glance:

29% of organisations EVP and purpose match ‘completely’

64% of organisations EVP and purpose match ‘to some extent’

40% changed their purpose to align with business objectives

Reward and HR professionals are addressing the challenges posed by skills shortages

Interestingly, our first report in the Transforming Engagement Series, People risk: Why the need for change is urgent, found that nearly two-thirds of companies planned to change how they did business. Some were about go through HR transformation, while others were a way off that point. Now we see that, while there has been significant change in business models, the HR transformation is yet to come.

Companies are planning on significant HR changes linked to business purpose in the near future. CHROs and their teams must have the skills, resources and time to lead this kind of transformational change.

Organisations plan to identify and meet future skills needs for their business in several ways:

10% measure workforce attrition and turnover

15% introduce flexible employment models

25% change recruitment methods

In this video interview, David Wreford, Partner and UK Sustainability Consulting Leader at Mercer, speaks with REBA’s co-founder and director, Debi O’Donovan, about the transformation of HR and the expectations around business and HR transformation.

The full findings discussed in this video can be found in our report.

This report is the fifth in our Transforming Engagement series with REBA and aims to provide the context and practical steps needed to show how an organisations purpose and their ways of doing business are changing, revealing the impact this is having on the type of talent they need and their reward and benefits strategies.

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Contact our experts

If you would like to discuss any of the issues or topics in this report, please provide your details below and one of our consultants will be in touch with your shortly.

Kerry Ghize

Partner and UK Career Leader
Mercer

https://www.uk.mercer.com/contact-us.html Get in touch with our experts

Maura Jarvis

UK Transformation Leader
Mercer

Transforming engagement series Business transformation needs HR transformation