People Management

HR operating model design and HR function diagnostics

Our HR projects have a transformative element to them, shifting HR from transactional to strategic activity, a more agile and robust operation model, business driven talent and performance strategies.  

The design of the HR operating model and the HR service delivery model involves a top down approach which incorporates the strategic vision of HR and the business to develop design criteria, identify work types and delivery options, structure the high-level design, and define the enablers:

• We review how the capabilities and behaviours that HR needs to deliver the HR strategy, can be best developed and maintained. We explore ‘build’, ‘buy’, ‘borrow’ and ‘grow’ approaches to HR capability in the context of the defined operating model parameters and business needs.
• We provide diagnostics and effectiveness based reviews of the HR function as part of business case development or for internal audit purposes. This can typically includes a review of each element of the function and operating model layers along with key KPIs.
• We work with clients to review, align and develop HR functional strategies that realise the needs and intent of an organisation’s strategic business and people objectives. This sets the change agenda for the HR function of the future and works in alignment with the broader people strategy capability.
  

Design or optimization of organizational architecture

When an organization doesn’t meet its stakeholders’ needs and expectations, the cause may not be a misguided strategy or vision. Often, underperformance is a result of a misaligned strategy across a company's many complex, interacting organizational parts.

We leverage a strategy-backed operating model and organization design approach. We identify an organization’s strategic goals, assess the fit of the organization against those goals, and then identify and implement the change needed to create a fit-for-purpose business. Finally, we look to enable the change by harnessing tried and true cultural and teaming levers.

HR Shared Services

Increasingly tough competition is forcing companies to be faster and better in administrative areas such as human resources. But in order to keep up their quality level – despite static or shrinking budgets – they will need to rethink their HR structures, processes and systems. This should not, however, come at the cost of compliance, as the intensification of competition is being mirrored by a fundamental change in legal standards.

HR shared services (HRSS) are a structural, technological and cultural way of achieving scalable administrative and tier two efficiencies. PwC can provide ‘make vs buy’ assessments, as well as end to end sourcing, design and implementation support for HRSS options.

More and more, companies are opting for HR shared service centres (HR SSCs) in order to remain competitive with reducing costs and increasing efficiency as the main goals. Pooling and harmonising HR services and the associated processes in shared service structures enables efficient service provision and scalability. PwC assists with the conceptualisation, implementation, and transition of shared services, as well as with their development, internationalisation and optimisation.

Design of motivation systems

Reward represents one of the largest areas of expenditure for a business, but it can become quickly misaligned. Labour markets are more dynamic and complex than ever. Organisations are finding their approaches to reward and benefits – and the behaviours they drive – under the microscope from stakeholders, regulators, the media and prospective recruits. Understanding the impact of these evolving forces, on the competitiveness of reward, is increasingly more difficult. And while reward may be one of the reasons why people work, it is not the only reason.

This is why our approach considers reward as part of the broader management ecosystem – including: pensions, leadership, performance management, global mobility, and business strategy.

▶ findings from PwC’s Psychology of Incentives study

Design of performance management framework

Performance management is an important tool for measuring the value added by employees and defining requirements in the form of goals. This allows to identify employee performance value more efficiently. PwC helps businesses develop the right strategies, adapt their processes and systems accordingly, and select the appropriate solutions.

The continuing competition for qualified staff requires that HR use reliable and easily applicable systems and procedures. For employees, it is usually pretty important that their compensation is fair and transparent. At the same time they want to see concrete opportunities for growth. Businesses can offer both when they analyse and group all the jobs in terms of their strategic added value.

▶ PwC's Workforce of the future report

Development of grading and remuneration framework

The compensation policy of every business needs to strike the right balance between performance, cost effectiveness, attractiveness and fairness. Variable compensation instruments can motivate executives and employees to work towards business goals. Thus, these instruments contribute to the achievement of a company’s operational and strategic objectives. At the same time, such models allow for a portion of personnel costs to be structured variably depending on performance.

However, bonus or profit-sharing systems can only have an effect if the relevant performance parameters are consistently aligned with business objectives to ensure that employees are motivated. The same applies to Long Term Incentives. PwC experts help companies to develop and introduce variable compensation systems that are tailored to the specific needs of their organisations. In addition to this, they ensure that legal and tax requirements are met and model the compensation expense for various scenarios.

The bigger the company becomes the less noticeable is the contribution of an individual. Grading framework allows the company to solve this problem by setting up transparent competence matrix, build individual plans for professional development and ongoing regular assessments. It determines the worth or value of one job in relation to another regardless of the characteristics or experience of the specific individual occupying the position at any given time. Furthermore, it enables the employer to demonstrate his or her rationale for offering different levels of pay.

Design of competency and talent management framework

Despite all the talk about automation, companies who want to succeed need to focus on harnessing the talents of the workers who won’t be replaced by automation anytime soon. It’s these people who’ll play a pivotal role in how organisations develop, compete, create and innovate - and who will ultimately drive success. The people experience is as much about workloads, working conditions and how management engages with and seeks to inspire workers as it is about HR-led programmes such as training.

PwC’s practice has a demonstrable track record of delivering value to clients through the diagnosis, design and deployment of multi-competency solutions to enhance employee experience. We collaborate with our clients to recognise the multidimensional nature of the human experience within their organisation, how each element affects their interactions and the impact it has on business performance.

PwC believes that organisations must proactively manage their employee’s experience and so has embedded its framework across all of its HR consulting services to help clients seamlessly achieve a holistic approach. This includes culture and change communications, talent management and workplace design, and provides tools and accelerators that help connect an organisation’s people to its business strategy.

▶ Talent Innovation for Business Performance

Information technology in HR

The pace of technological, political and economic change makes businesses face a more unpredictable world than ever before. The pressure to reduce HR costs, while recruiting and retaining the best talent has increased significantly.

Our capabilities include:

• HR technology strategy and selection

Defining strategy for deploying HR Technology to enable organisations’ people and HR strategies, developing business cases for change and assisting with the evaluation and selection of systems.

Working with you to ensure HR Transformational elements are considered, addressed and incorporated into any HR technology plan to provide the right foundation for success.

• HR solution architecture and integrations

Defining HR systems landscape and alignment with overall solution architecture to enable organisations’ people and HR strategies.

Designing and implementing systems integration strategies to enable process and data integration

• HR technology implementation

Implementation of technology aligned with HR function service delivery model and organisations’ people needs.

▶ Leveraging HR technology to transform your organization