The way that companies manage their employees is changing due to changes in business and the world, such as hybrid working models and majority-millennial workforces. HR departments are adopting new approaches, known as HR operating models, to better handle these changes and support their organizations. In this blog post, we will explore five emerging HR operating models and how they can be applied in digital marketing agencies.
Dave Ulrich, a well-known management professor and consultant, introduced a widely-used HR operating model in 1996 that combined HR business partners, centers of excellence, and shared service centers. This model is called the “Ulrich” model. However, this model is changing rapidly as the business environment becomes more unstable, uncertain, complex, and ambiguous. HR departments are adopting new models that are better suited to today’s challenges, including agile principles, employee experience-driven models, leader-led models, and machine-powered models.
The “Ulrich+” Model
The “Ulrich+” model updates Dave Ulrich’s original HR operating model, which combines HR business partners, centers of excellence, and shared service centers. This model is based on the innovation of adopting agile principles. In a digital marketing agency, the “Ulrich+” model could involve using agile principles to prioritize HR’s existing capacity and quickly reallocate resources when needed to enable a faster rate of change in the business and how people work. It could also involve using HR business partners to work closely with department heads to understand their needs and align HR strategies with business goals. Centers of excellence could provide specialized expertise in areas such as talent management or employee engagement. Shared service centers could streamline HR processes, such as payroll or benefits administration, to reduce workload and improve efficiency.
The “Talent Accelerator” Model (EX-Driven)
The “talent accelerator” model focuses on developing employees’ skills and expertise. This model is based on the innovation of focusing on the employee experience (EX). In a digital marketing agency, the “talent accelerator” model could involve offering training and development opportunities, such as workshops or online courses, to help employees build new skills. For example, a digital marketing agency might offer courses on social media advertising or data analysis to help employees stay current on industry trends. The “talent accelerator” model could also involve creating a mentorship program to connect employees with more experienced colleagues, which can provide valuable guidance and support for employees looking to advance their careers. The “talent accelerator” model might also involve encouraging employees to participate in industry events and conferences to stay current on trends, which can help employees network with peers and learn from industry experts. By focusing on employee experience and development, the “talent accelerator” model helps digital marketing agencies win the race for talent in the time of the “Great Attrition,” which refers to the mass exit of workers from the workforce due to demographic developments and other factors.
The “Service Provider” Model (Employee Experience-Driven)
The “service provider” model offers personalized HR services to address varied employee expectations. This model is based on the innovation of offering individualized HR services. In a digital marketing agency, the “service provider” model could involve offering personalized benefits and perks, such as flexible work arrangements or customized development plans, to meet the diverse needs of employees. For example, a digital marketing agency might offer telecommuting options for employees with young children, or provide opportunities for employees to pursue additional education or certifications. The “service provider” model could also involve using HR technology, such as HR portals or chatbots, to provide personalized support to employees and streamline HR processes. By offering personalized HR services, the “service provider” model helps digital marketing agencies meet the varied expectations of their employees and improve the employee experience.
The “Product Owner” Model (Productized HR Services)
The “product owner” model involves building fit-for-purpose HR offerings with the needs of the business in mind. This model is based on the innovation of “productizing” HR services. In a digital marketing agency, the “product owner” model could involve creating HR offerings, such as employee engagement programs or career development plans, that are tailored to the specific needs of the business. For example, a digital marketing agency might create an employee engagement program that focuses on helping employees build their social media skills, or a career development plan that helps employees gain experience in new areas of the business. The “product owner” model could also involve using cross-functional product owner teams in HR to take end-to-end responsibility for HR services and ensure that they are aligned with the needs of the business. By “productizing” HR services, the “product owner” model helps digital marketing agencies build HR offerings that are fit-for-purpose and tailored to the needs of the business.
The “Design Integrator” Model (Design and Delivery Integrated)
The “design integrator” model involves integrating design and delivery in HR to effectively address strategic priorities and reduce back-and-forth. This model is based on the innovation of integrating design and delivery with end-to-end accountability. In a digital marketing agency, the “design integrator” model could involve using HR design thinking techniques to develop creative solutions to HR challenges. For example, a digital marketing agency might use design thinking to create a new onboarding process that helps new employees feel welcomed and supported. The “design integrator” model could also involve using agile project management techniques to deliver HR initiatives in a timely and efficient manner. By integrating design and delivery in HR, the “design integrator” model helps digital marketing agencies effectively address strategic HR priorities and reduce the complexity of HR processes.
The “Data Master” Model (Data Excellence)
The “data master” model involves moving from process excellence to data excellence in HR to tap into novel sources of decision making using artificial intelligence and machine learning. This model is based on the innovation of moving from process excellence to data excellence. In a digital marketing agency, the “data master” model could involve using HR analytics to make data-driven decisions about HR strategies and policies. For example, a digital marketing agency might use HR analytics to identify patterns in employee turnover and develop retention strategies accordingly. The “data master” model could also involve using machine learning algorithms to automate HR processes, such as talent acquisition or performance evaluation. By moving from process excellence to data excellence in HR, the “data master” model helps digital marketing agencies use data and technology to make more informed HR decisions and drive efficiency.
The “Robot” Model (Automated HR Solutions)
The “robot” model involves automating HR solutions to drive efficiency and capitalize on the power of digitalization in HR. This model is based on the innovation of automating HR solutions. In a digital marketing agency, the “robot” model could involve using HR chatbots to provide support and answer employee questions, or using machine learning algorithms to automate HR processes, such as performance evaluations or benefits enrollment. By automating HR solutions, the “robot” model helps digital marketing agencies drive efficiency and take advantage of the power of digitalization in HR.
Choosing the Right HR Operating Model for Your Digital Marketing Agency
Ultimately, the right HR operating model for your digital marketing agency will depend on your specific business needs and goals. Some digital marketing agencies might benefit from an Ulrich+ model, which focuses on agility and rapid change. Others might benefit from a talent accelerator model, which emphasizes employee development and experience. Still others might benefit from a service provider model, which offers personalized HR services. By considering the five emerging HR operating models outlined in this blog post, digital marketing agencies can choose the model that is best suited to their needs and goals.
As the business landscape becomes more volatile, uncertain, complex, and ambiguous, HR operating models are evolving to meet the changing needs of organizations. By considering the eight innovation shifts that are driving the emergence of new HR operating models, digital marketing agencies can choose the model that is best suited to their needs and goals. Whether your agency is looking for an Ulrich+ model that focuses on agility and rapid change, a talent accelerator model that emphasizes employee development and experience, a service provider model that offers personalized HR services, a product owner model that builds fit-for-purpose offerings, a design integrator model that integrates design and delivery, a data master model that uses data excellence to make informed HR decisions, or a robot model that automates HR solutions, there is an HR operating model that can help your agency navigate the changing business environment and support the needs of your employees.