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Redesign the Structure of HR Functions

Structure enables strategy. Optimize HR function structures to meet evolving needs.

  • Structure misalignment risks wasted efforts on non-value-added work, increased overhead expenses, and confusion over responsibilities.
  • Ineffective structure redesign presents risks to employee engagement, productivity, retention, and the employee experience.

Executive Summary

Critical Insight

Imitating common structure designs without contextualizing them for the organization risks doing more harm than good. Effective structure redesign is rooted in strong change management and strategic alignment with the function, HR, and organization.

Impact & Result

  • Redesign the HR function structure to enable strategy and meet evolving needs as internal and external factors shift.
  • Establish future-focused design principles to ensure the structure supports current and future needs and adapts to workload fluctuations.
  • Use change management tactics to effectively communicate the anticipated change and ensure impacted employees are equipped to succeed in the new structure.

Research & Tools

1. Prepare for structure redesign

Engage key players, gather information about the current and future state, document the function’s work, create design principles, and select metrics to track success.

2. Determine the required jobs

Identify the function’s degree of centralization, define the role of outsourcing and contingent workers, create activity groups, select jobs, and build adaptability into the structure.

3. Design the function’s new structure

Create an updated reporting structure, uncover program implications, and gather feedback.

4. Implement and communicate

Anticipate reactions to the new structure, create a communication plan, and support impacted employees through the transition.

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