Effectiveness beats efficiency

Why a real HR transformation pays off in the long term

Most companies focus on efficiency in their HR work: optimising processes, reducing costs and maximising the use of resources. But true HR transformation requires more - it must also focus on effectiveness. Effectiveness in HR work means not only speeding up processes, but also establishing HR as a strategic partner that drives the company's success in the long term.

Why is HR effectiveness so important?

HR efficiency ensures short-term optimisation, but not necessarily long-term value. HR effectiveness, on the other hand, ensures that the HR function acts not just as a support but as an integral part of the corporate strategy. It ensures that HR delivers the right added value: through a clear focus on organisational goals, the development of talent and the creation of a working environment that increases both employee satisfaction and performance in the long term.

Companies that focus their HR function on effectiveness rather than just efficiency manage to establish their HR function as a strategic success factor and secure their competitiveness.

Sample calculation

Sporting goods manufacturer with 10,000 employees and sales of 3.7 billion euros

Influenceable basis
Effects

The success factors for HR transformation

To align your HR function for long-term effectiveness, you should focus on the following practical and actionable success factors to sustainably optimise your HR function:

1. strategic alignment of the HR function

HR should not operate in isolation, but should be closely linked to the company's objectives. The HR strategy must be aligned with the long-term goals of the organisation to ensure that the right talent is attracted, developed and retained.

2 HR as a business partner

HR must act as a business partner and proactively support the change processes in the organisation. The HR function should not only be responsible for administrative tasks, but should actively contribute to strategy development and implementation.

3. promotion of talent and leadership

Talent and leadership development is one of the central tasks of the HR department. Effective HR transformation requires a strong focus on recruiting, talent development and leadership development to ensure continuous improvement of leadership competences and employee skills.

4. technological support for HR

Digitalisation is a key driver for effective HR work. Modern HR tools and data analyses (such as people analytics) enable the right decisions to be made and processes to be designed more efficiently and effectively.

5 Change management and cultural change

Changes in the HR function must not only be implemented organisationally, but must also be culturally anchored. A transformation that is supported by all employees requires clear communication and a management culture that actively supports change.

Why HR effectiveness means more than just optimising processes

HR efficiency focuses on cost-optimised processes and quick results. However, the true impact of HR work only unfolds when it is closely linked to the corporate strategy. Effective HR work can increase employee retention, boost employee satisfaction and at the same time improve the performance of the entire organisation.

Through strategic HR development and the creation of an engaged and competent team, your organisation can achieve better long-term results and make a lasting impact on the corporate culture.

Frequently asked questions (FAQs)

What is the difference between HR efficiency and HR effectiveness?
How can I transform my HR department from an efficient to an effective function?
What role does technology play in HR transformation?
Why is cultural change important for HR transformation? frequently asked questions (FAQs)

We look forward to talking to you!

Moritz Schmidt
Moritz Schmidt
Associate Principal

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Dr. Axel Hüttmann
Dr. Axel Hüttmann
Partner

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