Strategically Redesigning the Structure of HR Functions Is Essential for Long-Term Success, Says McLean & Company
A new resource from global HR research and advisory firm McLean & Company outlines a four-step process to help HR leaders redesign the structure of HR functions. The firm's research findings and recommended approach will help HR leaders ensure that HR structures are strategically aligned, adaptable to evolving needs, and optimized to drive efficiency, collaboration, and long-term organizational success.
TORONTO, Feb. 6, 2025 /CNW/ - New research from global HR research and advisory firm McLean & Company highlights the growing challenges faced by HR teams as they navigate rapid change and increasing complexity in the workplace. According to the firm's findings, published in a new resource, Redesign the Structure of HR Functions, organizations struggle to align HR function structures with strategic goals amid global talent shortages, technological advancements, and shifts in workforce demographics. These pressures are challenging HR leaders to rethink traditional frameworks and adopt more agile and future-focused strategies. In its newly released resource, the firm explains that structure redesign is often misunderstood or conflated with other organizational strategies, such as headcount planning or workforce planning, which serve distinct purposes. To address these misconceptions, the resource will equip HR leaders with the tools and strategies needed to design function structures that are adaptable, strategically aligned, and capable of meeting the demands of an evolving workplace.
Why Function Structure Redesign Is Critical
McLean & Company's research findings highlight that HR function structure is the foundation for enabling both HR and organizational strategies. Misaligned structures can lead to wasted resources, unclear responsibilities, and disengaged employees, ultimately reducing productivity, increasing turnover, and damaging the employee experience. Internal drivers like leadership changes, performance gaps, or reorganizations, combined with external factors such as economic developments, workforce composition shifts, and advancements in technology, underscore the need for HR structures to be adaptable and future focused.
"HR function structure redesign is not just about reorganizing reporting lines or roles; it's about ensuring the HR function is equipped to maximize its impact," says Lexi Hambides, director of HR Research & Advisory Services at McLean & Company. "Effective redesign requires strategic alignment, clear design principles, and a focus on the human impact of change."
Ineffective HR function structures create costly inefficiencies, which can lead to unclear responsibilities, wasted resources, and role confusion. Without strategic alignment, organizations struggle to adapt to change, achieve strategic goals, and maintain a supportive work environment. According to McLean & Company's HR Trends Report 2024, employees in misaligned structures are 1.4 times more likely to experience stress, compounding retention challenges. The firm's insights emphasize that proactive structure redesign ensures alignment with organizational priorities, building resilience for long-term success and equipping organizations with the tools to navigate shifting market demands.
The Redesign the Structure of HR Functions resource provides a data-backed framework for HR leaders to execute structure redesigns successfully. McLean & Company signifies key actions and considerations that are critical to success:
- Prepare for Structure Redesign. HR leaders should begin by evaluating the current state of the structure, identifying constraints, and defining success metrics. This includes gathering insights into team capacities and determining the appropriate level of transparency to ensure alignment with organizational goals.
- Determine Required Jobs and Roles. Analyzing current and future capacity is essential to ensure the structure is both adaptable and scalable. Leaders must collaborate with team members to identify gaps and determine the degree of centralization necessary to meet strategic objectives.
- Design the New Function Structure. Redesigning the reporting structure is an opportunity to clarify roles and responsibilities while eliminating redundancies. Gathering feedback from key players is crucial to ensure the new structure supports priorities while continuing to foster collaboration.
- Implement and Communicate. Effective change management is vital to implementing a new structure. This includes anticipating employee concerns and developing a targeted communication plan, with regular monitoring and iteration to help maintain alignment as organizational needs evolve.
Anticipated Benefits of a Strategically Aligned HR Structure
To help HR leaders optimize their structures, McLean & Company's new resource provides actionable guidance to drive meaningful impact and improvement across each level of the organization. The firm explains in the resource that by aligning HR function structures with broader organizational goals, leaders can ensure strategic initiatives are fully supported and positioned for success. A future-focused structure empowers HR to respond effectively to shifting strategies, workload fluctuations, and evolving business needs to ensure the organization remains resilient and ready for what's ahead.
To access the full Redesign the Structure of HR Functions resource, please contact [email protected].
To learn more about an easy, cost-effective way to accelerate HR structure redesign with McLean & Company's Redesign Your HR Structure workshop, please visit the official workshop page.
To attend upcoming free webinars on a variety of topics or explore the publicly available archive of recorded sessions, please visit McLean & Company's webinars page.
About McLean & Company
McLean & Company pairs evidence-based research and immediately applicable tools with deep HR expertise to position organizations to meet today's needs and prepare for the future. The global HR research and advisory firm's member organizations enjoy comprehensive resources, full-service diagnostics, workshops, action plans, and advisory services for all levels of HR professionals, from executive leadership to HR leaders to HR team members, that help shape workplaces where everyone thrives.
McLean & Company is a division of Info-Tech Research Group.
Media professionals can register for unrestricted access to research across IT, HR, and software and hundreds of industry analysts through the firm's Media Insiders program. To gain access, contact [email protected].
SOURCE McLean & Company
Media Contact: Katie Tame, Communications Manager, McLean & Company, [email protected] | +1 (888) 670-8889 x2138
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