While 70% of HR executives believe that the sector needs to be redefined through HR 3.0 – which deals with personalisaiton, skills and data-driven decision making – only 10% companies have achieved it globally, says a study by IBM along with Josh Bersin Academy.
The study was conducted amongst 1,500 global HR executives across 20 countries and 15 industries. 60% of India organisations report that data-driven decision making powered by AI is critical to the future of HR.
HR 3.0 envisages the function not as something administrative but to turn the organization more agile, practicing design thinking for innovative solutions, cognitive tools and employee skill development.
Skills have emerged as the new currency across businesses. 41% of companies in India make skills growth a key part of their performance management approach and close to 30% of Indian organizations have skills and capabilities in AI within the HR function.
Organizations are also embedding AI and digital technology throughout the entire employee lifecycle. According to IBM, 25% of organizations in India are leveraging AI and analytics to make better decisions about their talent – such as skilling programs and compensation decisions.
“The world’s best companies are taking bold steps to accelerate their HR transformation with speed and purpose. We believe that HR 3.0 is the next evolutionary step, representing a major paradigm shift for CHROs and their teams”, said Chaitanya Sreenivas, vice president and HR head, IBM India and South Asia.