Global HR research and advisory firm McLean & Company has released a new resource, Redesign the Structure of HR Functions, addressing the growing challenges HR teams face as they navigate rapid workplace changes. The resource highlights how misaligned HR structures hinder productivity, increase turnover, and reduce employee engagement. It provides HR leaders with data-backed tools and strategies to create adaptable, future-focused function structures that align with organizational goals and build long-term resilience.
1. Why HR Function Structure Redesign Is Critical
According to McLean & Company, HR function structure is the foundation for enabling both HR and organizational strategies. Misaligned structures can result in:
- Wasted resources and unclear responsibilities
- Employee disengagement and higher turnover
- Reduced productivity and performance gaps
Internal and external factors driving the need for redesign include:
- Leadership changes and reorganizations
- Technological advancements
- Shifts in workforce demographics and global talent shortages
Lexi Hambides, Director of HR Research & Advisory Services at McLean & Company, emphasizes:
“HR function structure redesign is not just about reorganizing reporting lines; it’s about ensuring the HR function is equipped to maximize its impact. Effective redesign requires strategic alignment, clear design principles, and a focus on the human impact of change.”
The HR Trends Report 2024 reveals that employees in misaligned structures are 1.4 times more likely to experience stress, further compounding retention challenges.
2. McLean & Company’s Framework for Successful Structure Redesign
The resource offers a step-by-step approach for HR leaders to execute structure redesign effectively:
Step 1: Prepare for Structure Redesign
- Evaluate the current structure and define success metrics.
- Identify constraints and team capacities.
- Ensure transparency and alignment with organizational goals.
Step 2: Determine Required Jobs and Roles
- Analyze current and future capacity needs.
- Identify gaps and define the degree of centralization required to meet objectives.
- Collaborate with team members to ensure adaptability and scalability.
Step 3: Design the New Function Structure
- Clarify roles and responsibilities while eliminating redundancies.
- Gather feedback from key stakeholders to ensure alignment with priorities.
Step 4: Implement and Communicate
- Develop a targeted change management and communication plan to address employee concerns.
- Regularly monitor and iterate to maintain alignment as business needs evolve.
3. Anticipated Benefits of a Strategically Aligned HR Structure
A well-designed HR function structure enables organizations to:
- Enhance productivity and collaboration by reducing inefficiencies.
- Improve employee experience and reduce turnover.
- Ensure HR can quickly adapt to workload fluctuations and evolving strategies.
- Align strategic initiatives with business objectives, ensuring long-term organizational success.
A future-focused structure empowers HR teams to remain agile and resilient, positioning the organization to thrive amid continuous change.
McLean & Company’s Redesign the Structure of HR Functions is a comprehensive resource that provides HR leaders with the framework and tools needed to realign their function structures for the future. By focusing on strategic alignment and adaptability, HR teams can effectively meet evolving workplace demands while ensuring sustainable growth and resilience.
