The new HR mindset
The new HR mindset is a way of thinking that favours innovation, flexibility, inclusion and a more human approach to managing employees and their talents. It shows up as an exploratory, entrepreneurial drive that has been rare in HR, a function often reluctant to change and focused on compliance.
Welcome to the era of HR transformation, where the traditional role of the department is changing shape.
HR is no longer simply a transactional service; it is becoming a genuine architect of experiences, a catalyst for organisational change and a creator of value within the business. Adopting a mindset of continuous learning, HR draws on current trends and looks ahead to the future.
It does not hesitate to innovate by trying out new approaches. From creating rewarding work experiences to using ingenious HR hacking methods, today’s HR function is a key strategic element for the business. Let’s dive into this new HR mindset together and explore how HR is redefining its role and adding a new dimension to talent management, employee engagement and organisational culture.
The new HR mindset is an answer for businesses that want an innovative approach to HR transformation.
The new HR mindset and 7 transformations
HR as experience designer
HR departments are shrinking, thanks to new technologies or because of them. Managers now deal directly with the engagement, performance, satisfaction and leave planning of their own teams. Employees are also more involved in the HR processes of the business, treating HR as a service. Transactional tasks are disappearing into outsourced providers, and HR needs to concentrate on strategic thinking. HR designers design experiences for candidates, managers and employees.
HR as an organisational reset
Yes, we know the law does not let you do whatever you like, and without constraints there is no creativity. Candidate and employee expectations have changed, the organisation of work has been transformed, HR tools have been reinvented, and even the content of jobs has been renewed. It is now or never if you want to start again from scratch with a spirit of renaissance. Rethink your workplace and start over, to offer a blue ocean work experience nobody has seen before.
Adopt a learning mindset
Creative thinking means looking at old problems from a new angle. Teams need to let go of their trust in the expert and replace it with curiosity and a learning mindset. In creative design, the end user is the expert, so the design team has to be ready to listen, ask questions and learn from the experience of its candidates and employees. HR teams that approach problems with a learning mindset will generate solutions that surprise and delight employees, and will also lift revenue, cut production costs and increase the capacity to accelerate innovation.
HR as entrepreneur
HR is no longer a support function in charge of payroll, it is an essential part of the business. HR goes beyond contributing to the success of the business to become a business creator in its own right. That means HR can make money on top of creating competitive advantage through a productive and loyal workforce. HR can make money independently of the core activity. Take, for example, the management consulting arm of Porsche, or the Disney Institute. These commercial spin-offs sell their experience in lean transformation, digitalisation and leadership to external clients.
HR as hacker
Believe it or not, HR hacking has been a real thing since 2014. Hacking means using clever shortcuts, technical knowledge and a working understanding of neuroeconomics and behavioural economics. The music streaming service Spotify, for instance, uses playlists to send job offers to programmers who listen to music at work. Having identified those programmers on Github or Stack Overflow, Spotify recruiters send them job offer playlists, where each track title is replaced by the description of the role on offer. As another example, at the trends agency Trendemic, removing the manager from performance reviews and training employees in conversational skills so they could own their work experience improved engagement by 85%.
HR as trend surfer
The new HR lives in the present and in the future, with one qualification: not the near future, and not a fantasy of the future. They do not chase the red dot like cats, they embrace the dominant trends. That means they only take on structuring trends that are gaining ground now, rather than what might possibly happen in 2050. It means HR teams stay connected to their environment so they are up to date on the latest structuring trends and avoid being caught out by a disruption.
HR as a place of experimentation
To reach a state of constant testing and implementation, as Deutsche Telekom did with its HR Innovation Lab, you will need two things: a free-thinking environment where no idea is judged good or bad until it has been tested, and a culture where failure means learning. So instead of spending months on a project before presenting it to their internal client, HR design projects are broken into small parts to test them and gather data iteratively.
Putting the new HR mindsets to work
1. HR as experience designer
As a business, adopting the experience designer mindset means going beyond traditional HR functions to create a holistic work experience covering everything from onboarding to professional growth. This can include putting wellbeing programs in place, more collaborative workspaces, and even mobile apps to make communication between employees and leadership easier. By focusing on the overall experience, you can lift employee engagement, reduce turnover and attract quality talent.
2. HR as an organisational reset
This mindset encourages you to rethink and reinvent the structure and culture of your organisation. That can mean bringing in new ways of working, such as remote work or flexible hours, or even a complete overhaul of your business model. The aim is to create a more agile and responsive organisation that can adapt quickly to market changes and to what employees need.
3. Adopt a learning mindset
Adopting a learning mindset across your business can transform the way you approach challenges and opportunities. Encourage employees to take the initiative, to experiment and to learn from their mistakes. Invest in training and development programs that line up with the career objectives of your employees and the strategic objectives of the business.
4. HR as entrepreneur
This mindset pushes you to see the HR department as a profit centre as well as a cost centre. You could monetise your HR expertise, for instance, by offering training or consulting to other businesses. It can also mean creating new product or service lines that can be sold independently.
5. HR as hacker
HR hacking means using unconventional methods to solve traditional HR problems. That can include using data science to improve the recruitment process, or applying design thinking principles to rethink training and development. This mindset encourages innovation and thinking off the beaten track.
6. HR as trend surfer
This mindset involves staying up to date with the latest HR trends and applying them proactively in your organisation. Whether that means adopting new technologies or applying new management methodologies, being a trend surfer keeps you competitive and helps you head off disruptions before they arrive.
7. HR as a place of experimentation
Adopting this mindset means creating an environment where experimentation is encouraged and failure is seen as a chance to learn. You can achieve this by setting up HR innovation labs or pilot programs that test new ideas on a small scale before rolling them out more widely.
Each of these mindsets offers a distinct route to transforming your HR department and, by extension, your business as a whole. By adopting them, you can create an organisation that is more agile, more innovative and better prepared for what is on its way.