A people centric HR operating model

Mercer’s people-centric approach is grounded in the target interaction model (TIM), which focuses on intentionally designing interactions between HR and employees. This model is supported by purpose-built technology that enables more seamless and effective interactions. Unlike traditional approaches that focus on the structure (or “boxes and lines”) of the HR organization, our approach places the TIM design at the forefront. By defining how interactions should occur for specific services, our approach accelerates the design of the target operating model (TOM) by clearly linking HR components with services provided and the roles required for each area of the HR function. Ultimately, we bring the TOM to life by defining how HR will structure the unit to effectively carry out its work. 

Over the past few decades, the predominant HR model was designed to maintain the smooth running of the enterprise by ensuring enough people with the right skills at the right cost. Its primary purpose was to address leaders’ unrelenting focus on driving efficiency. However, this approach prioritized economies of scale over agility and the employee experience. Focusing on boxes and lines fractured the employee experience, hindered the organization’s ability to respond to a rapidly changing world of work and didn’t achieve the intended efficiency gains. It wasn’t effective then, and it’s now more antiquated than ever.

It’s time for HR to shape the future of work by providing relevant advice and services that directly align with and support their organization’s business and people strategies. The right HR transformation drives the organizational strategy and people priorities, and it contributes to true business value. Our TIM approach grants HR greater responsibility than ever before, elevating the function to become a strategic advisor to business leaders.

Although Mercer’s TIM is based on a fundamental philosophy and common design archetypes, we customize the model for each organization based on its needs, culture and people.

With a TIM, HR can transform itself around employee experiences and evolve into a true people-centered function. TIM places a premium on delivering relevant services and exceptional interactions that are grounded in a deep understanding of the organization’s people and yield measurable employee satisfaction, engagement and commitment.

A key component for any TIM-driven HR transformation is digitalization, a sometimes underappreciated but critical way to support the business and enhance the employee experience. People expect simple, user-friendly and modern digital experiences at work, just as they do in their personal lives. Our TIM provides digital-first experiences and incorporates human support and capabilities where they count the most.

By emphasizing the employee experience and building on end users’ needs (including the C-suite’s), HR’s future-ready design can benefit the entire organization, introduce a better way of working and boost talent attraction, retention and engagement — ultimately generating greater trust in the organization and higher productivity.

The TIM reimagines the HR function. It evaluates HR roles and processes against the workforce’s needs and wants. It increases agility by reducing silos and pooling resources from across the function that can be tapped for a variety of projects. It establishes a clear, streamlined, effective roadmap to delivering services in a way that is proven to delight employees, achieve business results and ensure HR interacts with people in ways that matter.

After reorganizing around a TIM, HR can free up about 30% of its administrative load, giving professionals more time to serve the organization in an elevated role. Today’s HR leaders are taking a seat at the table with the C-suite, helping create a modern people strategy that supports both the workforce and the business. Unburdened by unnecessary administrative duties, HR business partners can focus on more meaningful work, making a difference in impactful roles such as strategic advisor, data-driven problem-solver, influential storyteller, trusted coach and independent voice.Further, HR can organize itself with an agile HR pool to cover constant innovation by bringing in the right expertise.

This full TIM is supported by a solid digital foundation, typically an HRIS platform.