In HR, we have this conceptual lexicon in which we describe human-delivered consultation and human-managed processes as “services;” technologically driven ones as “software;” and the combination of both as “solutions.” I think we need to add one more based on trends and needs: “supermarket.”

And I don’t mean your average Kroger or Acme. When I talk to HR leaders—and I speak to about 100 CHROs/HRDs each year—they all are looking for help, advice, or insights. They need data-driven analytics; they need services performed and their workforces served. They need innovative approaches. They also know that they need partners because internal HR organization teams do not have the ability or the capital budget to develop all of the necessary tools. Typically, when working with partners, specialty providers, consultants, and tech platforms are all individually selected, and HR runs an integration and program management office (PMO) operation internally to manage them. This is exhausting, and the average CHRO/HRD is seeking more. The models must change.

For this approach, sometimes we’ll use the term “one throat to choke,” but that sounds, well, violently off-putting to say the least. HR wants a supermarket, and they want their relationship manager to be their personal or Instacart shopper. They want providers who can do multiple things and provide a broad range of solutions, and the relationship manager acts as a concierge and fellow problem-solver. They want to be able to call that company up and ask about services, technology, and consultation and say, “I have a problem. Do you provide (fill in the blank)?”

For example, millions are spent on the big-name “strategic” consulting providers and the “big 4” accounting firms for advice and analysis from a group that does not, will not, and for the most part, cannot execute anything (really, most could not execute a French aristocrat with a guillotine, but they do give a lot of advice). I think the trend is starting to move (and needs to move) toward the “one throat” model, where the advisor suggests a plan of action and provides the resources and the infrastructure to actually accomplish that plan.

This is part of the message of the merger of Korn Ferry and AMS merger, two billion-dollar-plus players who had numerous solution and product offerings but were strong in complementary areas. In spite of the breadth of their abilities, there was still a broad argument both financially and demand-wise for the combination. They added new aisles of products to the “supermarket.”

Now when a call goes out to a multinational, multi-product, and multi-service company, they will have to do the integration, and they will own multiple facets of the delivery, execution, and outcome of that service. This will make HR more streamlined and more strategic and less mired in trying to get their various partners to work together.

Of course, this trend will force HR to let go of the phrase “best of breed.” I have been in the HR service and tech industries, either as a participant or observer for many years, and I have sat through countless tech demos. The truth is that best of breed is not much “bester” than the large tech platform modules with only a handful of exceptions. What the large HR solutions providers need to focus on is the quality of service, depth of partnership, and the quality of executives who act as their client contacts (sounds a lot like how we rate service in the Baker’s Dozen, huh…?).

HRO Today has seen this coming for years, and it is time that we acknowledge that the needs of the HR infrastructure are changing, and anything that can make HR more strategic is a win. So, happy shopping and enjoy browsing the aisles without all of those individual and repetitive RFPs.

Elliot H. Clark

CEO

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