Less than 10 percent of enterprises have an integrated approach to workplace modernization that includes design, policies and culture
A new study from Information Services Group (ISG), a leading global technology research and advisory firm, finds the human resources (HR) function is largely underrepresented in strategic decision-making around workplace transformation.
The ISG study examining “workplace of the future” initiatives at 30 global enterprises found HR departments are often only tangentially involved in conversations about employee experience, when they should be front and center in the decision-making process. When asked about the role HR plays in workplace transformation, 43 percent of study respondents said HR has little to no involvement in digital workplace initiatives; 17 percent said HR is informed but separate; 30 percent said HR is informed and collaborative, and only nine percent said HR is fully integrated in partnerships that intertwine HR, IT and facilities in workplace transformation initiatives.
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“Despite the inevitable effects of workplace changes on people, only two of the enterprises we interviewed have deep strategic integration between their HR departments and the IT and facilities departments involved in workplace services decisions,” said Chris Germann, partner, ISG Enterprise Research. “The most progressive enterprises see technology as one piece of an integrated approach to workplace modernization that includes workspace design, policies and culture. When HR is intimately involved in workplace strategy discussions, enterprises are further along in providing effective workplace solutions.”
The new ISG research identified five key themes in workplace digital transformation today: The workplace is changing from hierarchical and physical to a collaborative, flexible and always-connected workspace; HR departments are underrepresented in employee experience decisions; enterprises struggle to balance high-satisfaction employee experiences with IT and other cost limitations; enterprises are struggling to quickly adapt to employee expectations of flexible technology and work environments, and organizations often don’t take advantage of robust capabilities available from managed service providers.
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ISG said the most successful enterprises use emerging technologies combined with flexible office spaces to facilitate employee collaboration. The study cited an almost-universal move by large enterprises to cloud-based office tools for email, word processing, presentations, spreadsheets and team collaboration, but the enterprises ISG interviewed said their biggest frustration is a lack of understanding among employees about how to use collaboration tools.
“When enterprise IT teams attempt to transform a workplace with little to no input from other business functions, we see integrations with existing technology systems taking precedence over end users’ real needs and preferences,” Germann said. “New customer-facing systems can demand a lot of attention, but true digital transformation comes when an organization recognizes the people affected by technology and workspace changes. We believe enterprises that actively and thoughtfully manage the human-technology connection while offering choices will gain competitive advantage over those that don’t.”
The new ISG Insights report, “Creating the Workplace of the Future,” draws on in-depth interviews with workplace leaders from 30 large enterprises around the world on their key areas of investment, drivers, enablers, challenges and workplace change roadmaps. Additional analysis was provided by ISG data and expertise.
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