At Human in Progress, we understand the challenges that come with scaling a business. This is why in this blog post, the considerations and steps are explored when selecting an HR operating model.

Scaling a business is the ultimate goal for many. The journey to expansion requires careful planning, strategic execution, and determination.

While there is no one-size-fits-all approach to scaling, important steps can significantly enhance the chances of success in HR.

What is an HR Operating Model?

An HR operating model is the blueprint for how HR should work to support employees and stakeholders. An effective HR operating model supports the organisation deliver HR and its services to their users in an efficient.

The HR Operating Model serves as the blueprint for unlocking the company’s full potential and is just more than just a framework. It should be the cornerstone of the organisation’s People & Culture strategy.

By selecting the right HR operating model, companies can optimise their workforce, streamline HR processes, and drive innovation, positioning the company for sustainable growth.

The choice of an HR model is a decision that can make or break the business. It is not just about ticking the boxes. It is about shaping the future of the organisation and empowering employees.

Assessment of the As-Is Situation

Before embarking on the journey of selecting an HR model, it is essential to audit the current business.

This will include the assessment of current HR processes, administration, systems, and resources.

Important factors to consider are:

1. The potential increase in number of employees in each country the business is operating.
2. The complexity there might be in finding the right candidates.
3. The existing HR ways of working related to regulatory compliance and market practise.
4. The current HR systems, including Excel files or other tools and the potential to upgrade and invest to advanced HR systems and technology.
5. The company culture, employee behaviours and values the company has set in place and aligned in the performance management cycle.

By understanding the current state, companies should be better equipped to evaluate different HR models and determine the right model.

Four Criteria When Selecting the HR Model

HR emerged as a function within modern organisations around 1900. Over time, the Evolution of the HR Operating Model significant changed.

Initially, the focus was primarily on compliance with labour laws and management of employee transactions.

As businesses grew and societal norms evolved, so too did the role of HR within organisations. There are four questions to consider in selecting the right HR model.

1. Scalability

Is the HR model scalable to accommodate growth of the business? This reasoning for this question might be different for each organisation as it depends on the projected expansion of growth of employees, and the complexity of hiring talents.

There might be a demand for increased recruitment needs and effective onboarding processes for new employees in different countries or other needs of HR support.

2. Efficiency and Effectiveness

Companies should focus on the HR model that could be efficient and effective in meeting the evolving needs of a growing organisation.

Can the model effectively manage HR processes throughout the performance management cycle, talent training and development, and employee engagement initiatives?

3. Adaptability and Flexibility

Companies should investigate how adaptable and flexible the HR model is to changes in the business environment.

The model should accommodate fluctuations in staffing requirements, or shifts in market dynamics, and changes in regulatory compliance.

4. Alignment with Company Values and Culture

The overall HR practices and policies should resonate with the company’s core beliefs, mission, and employee behaviours.

The HR operating model should support promote employee well-being, and foster a positive work environment conducive to collaboration, innovation, and growth.

Seek Expert Guidance

Scaling your business requires careful planning and strategic decision-making, especially when it comes to selecting the right HR Operating Model. Whether the company is a start-up or an established company gearing up for expansion, our experts might be able to support you on this journey.