In the latest episode of Transform Your Workplace, host Brandon Laws delves into the evolving world of HR with Kathi Enderes, the Senior Vice President of Research and Global Industry Analyst at the Josh Bersin Company. Enderes, coauthor of The Definitive Guide to Human Resources, discusses the transformative model of Systemic HR, highlighting its pivotal role in modern business strategy. She calls today’s HR “the most important function,” especially as organizations navigate challenges like hybrid work, AI integration, and leadership development. The episode is a must-listen for anyone interested in the strategic evolution of HR and its impact on business success.
GUEST AT A GLANCE
Kathi Enderes is the Senior Vice President of Research and Global Industry Analyst at the Josh Bersin Company and the coauthor of The Definitive Guide to Human Resources — Systemic HR.
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🎙️ Host: Brandon Laws
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HR: AN EVOLVING ROLE
The HR function has undergone a significant transformation from its early days as a back-office, compliance-oriented role to a crucial part of modern business strategy. Historically, HR’s responsibilities were limited to hiring, paying employees, and ensuring compliance with regulations. This traditional role wasn’t seen as integral to the business’s overall success or direction.
However, today’s HR is vastly different, addressing complex issues like hybrid work, company culture, health and well-being, and leadership development. Additionally, HR now plays a pivotal role in adapting organizations to new technologies such as AI, reflecting a shift from merely “keeping the company out of trouble” to driving its future success. This evolution signifies HR’s growing importance as companies navigate the dynamic landscape of modern business.
PODCAST EPISODE HIGHLIGHTS
Staying Above Water
“Most of the HR organizations are actually not good at supporting HR in developing their own capabilities. In our study, we saw that only 7% actually have a professional development program for their HR people. And they also spend much less money on HR development than they spend overall on their employees. We were talking with a very large consulting company and they told us they are spending, I think, 5,000 a year on their client-facing consultants. Guess how much they spend on HR’s development. […] Yeah, it’s like less than 500. […] Well, how can HR actually support the organization to move into this new world?”
Maximizing AI
Maybe just one and a half years ago when Generative AI, Chat GPT, came into the market with the big bang, I heard a lot of angst, and we talked a lot with HR leaders and HR teams. Everybody was so confused. Everybody was so concerned. Everybody said, ‘What’s happening? Is it going to come for my job? Is it going to replace learning and development? Is it going to replace recruiting? How do I deal with all of these issues of data privacy and all of that?’ And now, I think the sentiment has changed because people have realized that the genie is out of the bottle, right? […] We better work with it rather than try to push it away. I see, now, a lot more positive excitement about it. How can we use AI both on the HR side and then on the organizational side? So I think the function is coming up to speed with that.”
A New Model for HR
“[Systemic HR] is about adding value to the business itself. […] So we talked about the problems of developing skills in HR: the HR people in Systemic HR need to not just understand one domain but also have a good understanding of all of the domains of HR, in addition to understanding the business. […] Every problem that we have is just a symptom, but we need to address it. From all different perspectives of HR, any kind of problem that we have in HR or that comes to us is not a single domain problem, right?”
The Most Important Business Function
“It’s all about the people, right? And more and more […] now, today — rather than 50 years ago, even 30 years ago — people can move around very quickly. So, if you’re not working on the culture, if you’re not creating a great work environment, people will just go somewhere else, and they’re going to take all of their skills with them. […] HR is actually now the most important function. In maybe the ‘70s to maybe 2020, what used to be the CIO was really important because it was all about tech, but now we see the tech is getting more and more table stakes. It’s getting more and more commoditized. And HR [helps] the CEO and the board nurture a great company, and the company’s success is really kind of dependent on that.”
Taking the Leap
“I know sometimes it can sound scary or it can sound intimidating because you might think you’re so far away from Systemic HR […]. My advice would be don’t be intimidated because if you don’t get started, obviously, you’ll never get anywhere. […] Almost 40% of companies are actually at the lowest level of Systemic HR maturity. So don’t feel like, ‘Oh, everybody else has jumped ahead already.’ Just get started.”
LEARN MORE
Take a deep dive into Systemic HR by checking out Josh Bersin Company’s website here.