Exploring the evolving role of HR as the demands from organisations to transform are unrelenting

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24.10.24
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As businesses continue to face an increasingly challenging economic landscape, the role of HR is evolving. No longer confined to traditional functions like managing benefits and compliance, HR professionals are being asked to drive transformations that extend far beyond the traditional function role managing the people agenda.

This October, Sullivan & Stanley hosted the second event in our series aimed at senior HR leaders, bringing together professionals from diverse industries including technology, engineering, healthcare, finance, fashion, retail, construction and manufacturing. The discussion explored how HR can effectively navigate this shift—addressing the question: ‘What role does HR play in business transformation—are they leading, enabling, or inadvertently blocking change?’

The conversation delved into the complexities of guiding organisations through transformation, balancing strategic leadership with day-to-day operations, and ensuring that HR acts as both a catalyst for change and a guardian of company culture. In this blog, we outline key insights from that lively and insightful discussion.

Redefining HR’s role in transformation

‘Transformation’ has become a buzzword in many industries, but what does it truly mean for HR? Traditionally viewed as a supportfunction, HR is now expected to take on a more strategic role, influencing how companies respond to change and driving initiatives that impact the broader business. However, with this shift comes new challenges, as HR must balance its traditional responsibilities with a greater focus on strategy. HR have become critical to bridging the gap between strategy and execution.

One participant from the healthcare sector highlighted this evolving role: “HR should be seen as a business enabler, but there are times when we need to strategically ‘block’ certain changes that could harm the company culture or employee wellbeing. It’s about finding the right balance.”

Balancing leadership and enablement

During the event, several HR leaders spoke about the need to wear multiple hats—leading change, enabling teams and occasionally acting as a safeguard against mis-steps. This dual role can create tension, especially when HR is tasked with both pushing forward strategic initiatives and maintaining core organisational functions.

A senior HR leader from the technology industry shared their experience: “The challenge is in navigating the ambiguity. While we’re leading change, we’re also ensuring the organisation’s day-to-day operations run smoothly. It’s not just about driving new projects; it’s about keeping the wheels turning while steering in a new direction.”

For HR leaders, this often means finding ways to collaborate across departments, ensuring that change initiatives align with the company’s overall goals while also being realistic about what the organisation can handle at any given time.

Building a culture of adaptability

A central theme that emerged from the conversation was the importance of building a culture that is adaptable to change. Resistance to change is a common issue, especially in organisations with established processes and long-standing ways of operating. HR’s role is to act as a change agent, helping employees understand and embrace new approaches, even when it feels uncomfortable.

“Change is messy, and there is no blueprint,” remarked one HR executive from the retail sector. “It’s about enabling people to roll with it and feel confident in the direction we’re heading. That means not just dictating change but making people feel like they’re part of the journey.”

The discussion highlighted several strategies for fostering adaptability, including open communication, creating safe spaces for feedback, and encouraging a mindset of continuous learning across the organisation.

Overcoming the ‘blocking’ perception

One of the more contentious points was the idea of HR acting as a ‘blocker’ in the transformation process. Often, when HR raises concerns or advises against certain initiatives, it can be seen as resistance. However, many HR leaders view this as an essential part of their role—ensuring that changes are sustainable and that the company’s values and the enabling aspects of the culture are supported.

As one participant from the finance industry explained, “Good blocking is about protecting the company’s integrity. If we push back, it’s because we’re looking out for both the employees and the business. Transformation isn’t just about change; it’s about making sure the change is right.”

This protective aspect of HR’s role can sometimes lead to friction, particularly when other departments are focused on rapid growth or transformation at all costs. However, the consensus was clear: HR’s interventions, when done thoughtfully, can prevent long-term issues and ensure a smoother, more sustainable transformation process.

Effective strategies for transformation

While there is no one-size-fits-all approach to driving transformation, the event shed light on several practical strategies that HR leaders can adopt:

  • Engage and communicate: Open and continuous dialogue with employees is critical. Effective communication involves not just outlining the ‘what’ and ‘how’ of transformation but also explaining the ‘why.’ As one HR leader noted, “People are more likely to buy into change when they understand the bigger picture.”
  • Leverage data: HR has access to a wealth of data that can inform decision-making. “Data-driven insights can transform how HR is viewed within an organisation—moving from a reactive to a proactive, strategic role,” shared a participant from the technology industry. Utilising data to demonstrate the benefits of change can help build a case for new initiatives and measure their impact.
  • Encourage cross-functional collaboration: Transformation cannot happen in isolation. It requires the cooperation and collaboration of multiple departments. HR must play a central role in breaking down silos and fostering partnerships across teams.
  • Focus on wellbeing: Change can be a source of stress and uncertainty. HR’s role is to support employees’ mental and emotional wellbeing during transitions, ensuring that they feel supported and engaged throughout the process.

Embracing technology as a catalyst for change

With the increasing reliance on technology and the diverse needs of a multi-generational workforce, HR must stay at the forefront of tech-driven transformation. The event emphasised the importance of choosing tools that enhance employee experiences and facilitate smoother transitions.

“Technology enables us to scale our change initiatives,” noted one attendee from the healthcare industry, “but it’s HR’s job to ensure these tools are used to enhance—not replace—the human aspect of the workplace.” This means being thoughtful about how tech solutions are integrated and ensuring they add value without undermining the personal touch that is often crucial during times of change.

HR as a strategic partner

The event concluded with a call for HR to be more integrated into the strategic planning process. For too long, HR has been seen as an operational function brought in after decisions have been made. By securing a seat at the table, HR leaders can ensure that their insights and expertise shape key decisions from the outset, leading to more successful outcomes.

“The more visible we are in strategic discussions, the more we can shape outcomes that align with both business goals and employee needs,” shared a senior HR professional from the finance sector. This strategic presence helps HR to be seen not just as a department but as a vital partner in driving the organisation’s future.

The event highlighted the evolving role of HR in business transformation, affirming that while the journey may be complex, it is one that HR leaders are uniquely equipped to navigate. Whether leading initiatives, enabling teams, or even strategically blocking ill-conceived changes, HR’s role is to ensure that transformation is thoughtful, sustainable, and human-centred.

As one participant aptly summarised, “Transformation requires HR to be both the heart and the backbone of an organisation. We lead, we enable, and when necessary, we protect. That’s how we ensure lasting change.”

Ricky Wallace
Written by Ricky Wallace
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