Do Law firm's need an HR department?
Time to do things differently.
Before we go into why we believe the need for an HR department is redundant, and why the HR as a profession needs to reinvent itself, please read this snippet of a post on X by @RobertMSterling
Robert is a prominent CFO and Investor who shares stories from Corporate America.
This is just one solitary example, of 100s that you can find online.
But for me, it’s certainly one of the most powerful.
Just let that settle for a minute.
I think we can all agree, that’s pretty disgusting.
Why HR Teams Are Doomed and Could Be Replaced by Data Analysts.
Human resources (HR) departments have long been a fixture in most organisations, tasked with managing employee relations, benefits, and compliance.
However, a growing number of critics argue that HR teams are largely ineffective and should be replaced by data analysts.
In a recent Legal Unicorns podcast episode with a prominent law firm HR professional, it was discussed that the next 10 years are the most challenging the HR sector will ever face. Will it come out intact?
A lot of (not all) HR Professionals Lack Business Acumen.
One of the biggest criticisms of HR is that most professionals lack a deep understanding and in some cases, the interest, of how businesses operate and generate revenue.
They are often more focused on being specialists in HR processes rather than aligning their work with the company's strategic objectives.
"There is a general obsession with being a specialist who has no idea about how businesses make money," says Memory Nguwi, an Occupational Psychologist and Data Scientist. "They are practicing human resources for human resources instead of human resources for business."
Connect with Memory on X - @memorynguwi
HR Reports Can Be, Largely, Useless.
Many HR reports fail to provide meaningful insights that business leaders can use to make informed decisions. They often focus on reporting raw data without providing context or analysis.
For example, HR teams may report the number of employees absent due to sick leave without explaining the implications for the business, such as productivity losses, overtime costs, or impact on customers.
These reports are largely ignored by executives because they lack relevance and actionable insights.
"The starting point is that the human resources function must understand who the consumer of the report is," Nguwi explains. "They must understand that the reports are produced for the business leaders to assist them in making business decisions and not for their own consumption."
HR Lacks Data Analytics Capabilities
Most HR departments are behind the curve when it comes to leveraging data and analytics to drive decision-making. Many still rely on manual processes and outdated systems that make it difficult to collect, analyse, and interpret employee data.
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