Challenges and Opportunities

The success of a company depends on the continuous growth of its employees and the creation of competitive advantages through them. Customer companies may often encounter such challenges:

• How to maximize the productivity of employees in enterprises to improve profitability and shareholder value;
• How to manage employees in a globalized environment;
• How to build a human resources infrastructure platform to optimize human resources management processes;
• And how to make reasonable use of human resources to achieve the goals of the enterprise.

Reasonably utilizing human resources to achieve corporate strategic goals is crucial for fully unleashing the potential of the enterprise. This requires a human resources strategy to build the 4C of human capital:

• Competency: the knowledge, skills, and attitude required to face business challenges
• Commitment: The drive to improve employee productivity
• Culture: A guiding principle for ensuring lasting success
• Configuration: A personnel structure that matches people with positions and ensures that individuals fulfill their duties

The main benefits brought to customers

Baohe Consulting provides comprehensive HumPOWER™ human resources solutions to meet the strategic business needs of client companies. Through a proven system approach, our HumPOWER™ human resources consulting services will help you:

• Develop a human resources strategy to achieve business objectives;
• Establish a competitive advantage centered around employees;
• Create an efficient human resources organizational structure;
• Reduce costs, improve human resource efficiency and process performance;
• Establish a performance-based corporate culture;
• Retain talent and drive performance through a reasonable compensation strategy;
• Design a reasonable organizational structure;
• Improve the human resource management information system to ensure effective human resource decision-making;
• Manage human resource risks in mergers and acquisitions;
• The culture that drives organizational change; and
• To cultivate talents and leaders for sustained success.

human resource strategy

We are committed to aligning our clients' human resources strategies with their business strategies, and in the development of the company, human issues have become a priority agenda on the board of directors. The company has realized that the success of its business largely depends on the design and implementation of talent strategies related to its business strategy.

However, we often find that when a company's business strategy has changed significantly with changes in the market environment, its human resources strategy has not undergone corresponding changes, and personnel have not been effectively planned and corresponding human resources management supporting mechanisms have not been established according to the requirements of the business strategy.

Main issues of human resource strategy

• Is the company's human resources strategy aligned with the overall corporate strategy? If so, how close is the connection?
• What are the intrinsic value drivers of the company's human resources strategy?
• What are the important and scarce employees driving the success of the company's business in the present and future?
• What is the core competitiveness of enterprises based on human capital? How to make appropriate use of it?
• Do the employees of the company feel that their high performance is motivated and reflects differences?
• Does the company have a plan to improve employee motivation, productivity, and dedication?
• Are company employees and related personnel satisfied with the platform provided by the company to meet their value demands, such as career paths, development opportunities, etc?
• Has the company developed corresponding human resources functional strategies for its human resources strategy?
• Does the company have appropriate organization, processes, personnel, and technical means to implement human resources initiatives?

What support can we provide for you

Our human resources strategy consulting business is based on data and facts. Our evidence-based methodology can:

Provide a qualitative and quantitative analysis of the current situation of human resources to identify gaps and determine the direction and measures for future strategic human resources development. In the process of formulating human resources strategies, we can act as business partners to assist the company's human resources professionals in reaching consensus.

Management often wants to understand how other companies in the industry maximize their corporate value through their human resource practices. Our HumanCapi database and Best Practices Knowledge Base from Baohe Consulting can provide industry data and benchmark comparative analysis to help companies establish human resource strategies that are aligned with their corporate strategy.

Our methodology

Through the following solutions, Baohe Consulting can help clients build human resource strategies, improve human resource effectiveness, and add value to shareholders:

1. Analysis of Human Resource Challenges:

• Understand the company's business strategy and human capital strategic needs;
• Conduct external environmental analysis to identify key issues and development trends in human resources;
• Understand the challenges that internal and external environments pose to human resource management.

2. Understand the current status of human capital and human resources functions:

• By utilizing the HumanCapi and Global Best Practice Knowledge Base analysis frameworks from Baohe Consulting, we aim to understand the current state of human capital from dimensions such as human capital impact, employee engagement, organizational structure, and employee structure;
• By conducting a comprehensive review of human resource service models, internal customer feedback on human resource services, analysis of human resource activities, assessment of human resource skills and abilities, and analysis of human resource processes and costs, we aim to understand the current effectiveness of human resource functions.

3. Set optimization goals for human capital:

Based on the analysis results of HumanCapi, set goals for optimizing and developing human capital.

4. Develop a human capital strategy:

• Develop sub strategies for the number, ability, and structural planning of the workforce, as well as supporting mechanisms for human resource management such as personnel selection, development, utilization, and retention;
• Develop key human resources initiatives and action plans;
• Design outcome measurement plans for human resources strategies and initiatives.

5. Develop a strategy for the transformation of human resources functions:

• On the basis of clarifying the requirements and effectiveness analysis of human capital strategy, design the functions of human resources from four aspects: process, organization, personnel, and technology;
• Establish a balanced scorecard and indicator system;
• Choose suitable technology solutions and service providers;
• Develop a change schedule and implementation plan.

Human resource effectiveness

The key to the effectiveness of human resources lies in whether they bring value to the business

Therefore, does the human resource management of the client company bring maximum value to the enterprise? Does the client company pay attention to the effectiveness of its human resources function? More importantly, is there a close connection between the company's human resource management goals and its broad business strategy?

What support can we provide for you

• Measuring the impact of human resources on business;
• Ensure that human resource management objectives are achieved and can support corporate strategy;
• Obtain maximum value from the investment of human resources;
• Ensure that human resources are focused on the right things;
• Seeking the potential to reduce human resource process costs, improve effectiveness and service levels;
• Benchmarking performance against major competitors;
• Clarify short-term and long-term management priorities and action plans.

The best time to conduct a review

• When it is necessary to confirm the effectiveness of human resources;
• When the newly appointed Vice President of Human Resources needs to quickly understand the current management priorities of human resources and business and exert corresponding influence;
• After mergers, acquisitions, reorganizations, or other corporate changes occur;
• When the priority development of human resources is unclear and not linked to business strategy;
• When the human resources department is under pressure to reduce costs and needs to display its value-added functions;
• Various feedbacks indicate a decrease in the quality of human resources services and low efficiency of human resources processes, but lack strong evidence;
• When a company considers outsourcing some or all of its human resources processes; and
• When companies consider restructuring their human resource management functions.

our method

The effectiveness of human resources clarifies the link between organizational performance and personnel activities, and focuses on the productivity, abilities, and effectiveness of human resources functions. The model of human resource effectiveness is elaborated as follows:

1. Review of Human Resources Service Model

Identify potential areas for cost reduction and service improvement

• The scope and effectiveness of human resources functional services;
• The complexity of patterns and processes;
• The applicability and scope of existing technologies;
• The total cost of providing services;
• The applicability of current performance measurement;
• Opportunities to adopt other service models; and
• Baohe Consulting's leading human resources shared service index.

2. Internal customer perspective of human resources services

Ensure that human resource goals support the management priorities of the enterprise

• Understand the views of management and employees on the importance and effectiveness of human resources services;
• Identify the difference between the importance and effectiveness of services; and
• Compare the ratings of human resources activities by different business units, identify differences, and promote good practices.

3. Comparison between the Human Capital Assessment Scorecard and Benchmarks

By comparing the HumanCapi Human Resources Index to measure the impact of human resources on business results, clarify:

• The impact of personnel, policies, and processes on business;
• The impact of human resources policies and processes on engagement and behavior; and
• The cost and efficiency of existing human resources functions and structures.

4. Management Questionnaire

Customer experience: importance and effectiveness;

• The management questionnaire clarifies the evaluation of the importance and effectiveness of various human resources programs by the management, including talent management, compensation and benefits, personnel training, and change management;
• Based on the gap analysis of internal customers' importance and effectiveness of human resources solutions, the company formulates corresponding improvement plans and implementation plans.

5. Analysis of Human Resources Activities

Ensure that human resources activities focus on the right things

• Understand the strategic, advisory, consulting, or administrative management activities carried out by human resources practitioners in different processes, roles, and business units; and
• Understand whether the level and type of human resources activities are appropriate, in line with expectations, and effectively allocate resources.

6. Assessment of Human Resource Skills and Abilities

Ensure that human resources have the corresponding competence and capability to achieve existing, transitional, and future human resource strategies

• Assess the current status of competence and capabilities to ensure that human resources are moving towards becoming more valuable 'business partners';
• Realize future oriented human resources functions through succession plans for key positions and personal development plans for employees; and
• Develop management tools based on competency models and link them with existing performance management processes.

7. Human resource processes and costs

Ensure the effectiveness and consistency of human resource processes, as well as maximize the effectiveness of human resource costs

• Conduct an analysis of existing human resource processes and costs;
• Identify process improvement plans to enhance the effectiveness of human resources within the organization; and
• Evaluate and design human resource architecture to achieve cost optimization.