Most organizations attribute their success to having made a conscious effort to put the customer first. Now, some organizations are also applying the same principles to employees. Using this Consumerization of HR approach, organizations view employees as customers and serve their needs, in the same way, resulting in stronger employee engagement, loyalty, and improved resource planning. After all, it is employees who serve on the front lines of customer service and represent the company as brand ambassadors. It is employees who help meet business objectives. And it is employees who are ultimately responsible for the organization’s success.
Defining Consumerization of HR
If a company wants employees to make a meaningful contribution, it needs to invest in and treat employees as if they were customers. This customer-centric approach to human resources can be referred to as “consumerization of HR services”, to manage employee needs by coordinating points of contact across the organization to deliver a smooth and uplifting experience. Taking the employee-services approach often requires companies to not only rethink the way they interact with employees but to also re-evaluate the structure of the organization and the way they manage workforce-related tasks.
Use of Digital Technologies
Employee services approach makes a real difference in improving the employee experience, and yet research shows that only 6 percent of companies have created integrated shared services across functions. There’s a big opportunity for companies to improve in this area. Digitalization will also enable HR to drive innovation through technologies like analytics. Analytics and predictive modeling allow HR organizations to make better-informed decisions to address countless issues.
Need of New Strategies
Companies need a new kind of HR strategy to bring people management capabilities to all parts of their business and to attract and retain the next generation of talent. Only then will HR become integrated across the organization, forging new partnerships and building new capabilities along the way. And only then will employees be capable of reaching a new level of engagement, satisfaction, and performance.