Like many things, HR is changing fast, and the traditional ways of doing things just don’t cut it anymore—especially in fast-paced, high-growth environments like private equity-backed companies. A modern HR operating model isn’t just about updating processes; it’s about transforming HR into a strategic, technology-driven powerhouse that directly impacts business success.
Even the best HR strategy won’t work without the right people leading the charge. Today’s HR leaders must be more than administrators; they must be business strategists, digital innovators, and change agents.
Building a Successful HR Operating Model
A modern, effective HR operating model combines agility, talent/ service delivery, and innovations to maximize business value. Building this model starts with two key questions, as follows:
- How can we best structure teams to deliver value?
- How can we adapt to new ways of working that support our goals?
The onward march of technology, especially the advent of AI and similar machine-powered tools, might make it seem like it’s time to pivot toward more automation and less human interaction. The opposite is true. It’s more important than ever to build a people-centric HR operating model that fosters trust, engages employees, and gives people what they need to thrive and grow.
HR has a powerful role in the transformations defining the future of work itself. An agile, people-first operating model supports business goals while driving a positive employee experience. Any HR team should have that front of mind when redeveloping operating models. Employee experience connects directly to added value. In other words, a model that prioritizes a positive, welcoming, and supportive employee experience is also one that supports everything needed for value-added operations: increased engagement, productivity, agility, fearlessness, and innovation.
Of course, there is no “one size fits all” approach to HR operating models. Various models will work better for different organizations, depending on their industries, sizes, locations, and core values, plus plenty of other factors.
For example, McKinsey identifies five emerging HR operating models that may apply to different situations, as follows:
- Ulrich+: HR business partners (HRBPs) develop functional spikes and take over execution responsibilities from centers of excellence (CoEs). CoEs then scale down into teams of experts and selected HR business partners.
- Agile: A smaller number of HRBPs focus on advising leadership, while CoE professionals address data and analytics, strategic workforce planning, and diversity and inclusion. Freed-up resources are pooled for cross-functional projects.
- EX1-driven: Employee experience forms the bridge between functional silos and fragmented data, knowledge, and processes. Organizations lean heavily on top talent with a small set of clearly defined competencies.
- Leader-led: HR accountability transitions to the business side, giving line managers more support from HR tools and information. This model is especially effective for white-collar organizations focusing on research and development.
- Machine-powered: Algorithms handle talent selection, assessment, and analytics, leaving HR professionals to counsel and advise employees. This is an experimental model driven by “digital native” populations and the demand for reskilling.
Finding the Talent to Make Your Model a Reality
Regardless of which model your organization chooses, the right talent is the linchpin to making it happen. Identify and plan out the model first, then search for talent that aligns with your chosen priorities. These priorities might include:
- Transforming the HRBP into a more strategic leader.
- Developing COEs who can support necessary transformation.
- Rethinking and re-tailoring the employee experience.
- Building out HR operations and service delivery.
- Identifying your HR “problem solvers.”
When searching for the right talent to support your HR operating model transformation, look for people with transferable, critical soft skills, not just technically proficient ones. HR transformation is challenging, and organizations need leaders who can adapt and help others do the same. This may not be obvious simply from past job titles. Traditional HR skills still matter, but so does the expertise that makes someone an outstanding change leader, including agility, creativity, transformative thinking, excellent communication skills, leadership, and problem-solving.
Don’t overlook internal talent options while you look externally. These people already understand your culture and are loyal to your team. They already have your core values internalized, but they’re also willing to drive change and are eager to advance their careers. The particular combination of pre-existing knowledge and dedication to improvement could be a powerful mix for driving HR change.
For organizations that cast a net externally, working with an experienced HR executive recruiter like Blue Rock can be a game-changer. We bring in-depth knowledge of many industries, allowing us to advise on talent solutions that suit your niche’s needs and your most effective operating models. Our extensive network of passive talent provides a high-quality candidate pool, along with a streamlined process designed for efficiency and accuracy. We work as a true partner, learning about your perspective and operating model and tailoring the search process to find the best-fit talent for long-term success. Reach out anytime to learn more about how we can support your HR transformation and other talent needs!
By Ruben Moreno
Ruben Moreno is a Founding Member of Blue Rock Search and leads the Blue Rock Human Resources and Private Equity Executive Search practices. He specializes in Chief HR Officers, Human Capital Partners, Presidents, and other top C-suite leadership positions across a variety of industry verticals. With over 15 years of previous experience in corporate America, Ruben is a subject matter expert and national thought leader in executive recruitment.