Human Resources is witnessing a major transformation with skills and data technology at the core, according to a study conducted by the IBM Institute for Business Value (IBV).
According to the study, “Accelerating the Journey to HR 3.0,” 7 out of 10 human resources (HR) executives report the global HR function is ripe for disruption. Chief human resources officer (CHROs) are in agreement that HR functions must be redefined.
“Guiding principles of personalization, skills at the core, data-driven decision-making, transparency and agility are all central to the journey to HR 3.0,” the report said.
As per the report, while 41 per cent of companies in India make skills growth a key part of their performance management approach, nearly 30 per cent of organisations have skills and capabilities in AI within the HR function.
According to IBM, 25 per cent of Indian organisations are leveraging AI and analytics to make better decisions about their talents – such as skilling programs and compensation decisions.
As for the source of data, 60 per cent of HR executives are utilising data from new sources like financial data and social media data, to assist in making better decisions about talent.
“Human Resources has evolved over the past decades to meet the needs of a changing business environment. To bring forth the new era of HR and drive transformation inside organizations – HR itself must be radically redefined. The world’s best companies are taking bold steps to accelerate their HR transformation with speed and purpose. HR 3.0 is the next evolutionary step, representing a major paradigm shift for CHROs and their teams”, said Chaitanya N Sreenivas, Vice President & HR Head, IBM, India and South Asia.
The trend is likely to continue in the future as well. As per the study, 25 per cent of companies are actively investing to upskill their HR executives.
“In two years’ time, 53 per cent of organizations in India, plan to adopt a continuous approach to assessing employee performance through regular, transparent career conversations,” the report said.
The new IBV study was conducted in partnership with global independent analyst Josh Bersin of the Josh Bersin Academy.