The recent transition in Human Resource Management (HRM) has been largely driven by both social and economic factors, fundamentally reshaping the role of HR within organizations.
Social Drivers:
One of the primary social drivers has been the rise of a globalized workforce. As companies expand into new markets, they encounter different cultures, labor regulations, and workforce expectations. This has created the need for HR to not only manage talent locally but also facilitate global mobility, ensuring employees can adapt to new environments while maintaining organizational alignment. The growing emphasis on diversity, inclusion, and employee well-being has also transformed HR into a key player in shaping corporate culture, requiring more strategic involvement in business decisions.
Economic Drivers:
On the economic side, globalization and technology advancements have forced businesses to adapt quickly to remain competitive. The Deloitte Strategic Moves Survey 2012 highlights that global mobility and talent management have become critical to addressing competition, skills gaps, and emerging markets. Businesses now rely on HR to play a more strategic role in addressing talent shortages and ensuring the right people are in place to drive growth(Case Study- deloitte-uk…). Additionally, the rise of automation and AI has increased the demand for HR to evolve beyond administrative functions and focus on upskilling employees, leading to new roles such as HR data analysts and employee experience managers.
Evolution of HR Functions/Roles:
In the past, HR was seen as an operational function focused on payroll, hiring, and compliance. Today, the role of HR has evolved significantly. HR is now expected to act as a strategic business partner, actively contributing to decisions on talent acquisition, learning and development, and even corporate strategy. The emergence of global talent resourcing models has further expanded HR's role, where HR professionals manage not just domestic talent but also oversee global workforce deployment. HR is increasingly involved in managing global leadership programs, aligning mobility strategies with business objectives, and utilizing data analytics to inform talent decisions(Case Study- deloitte-uk…).
As HR continues to evolve, the focus will be on integrating new technologies, building agile teams, and fostering continuous learning to adapt to the changing business landscape. This transition from a process-driven to a strategy-driven HR model reflects the broader shift in the business environment where people, technology, and strategy must be aligned.