Who needs HR when there is IT?

For those of us who work with so-called digitization every day, the concept of HR is something that is unfortunately rarely perceived positively. More than often, the partly rhetorical question is asked whether an HR department or an HR function is still needed. But where does that attitude come from, and what do the "IT people" really mean when they question HR? Could it really be that IT doesn't like people?

The contradiction is probably based on the fact that business processes are moving at an ever faster pace from organizations of people to integrated IT systems. The HR department's mission has always been to maintain the organization's supply of skills. Many stick to their historical assignments and look for needs to fill in leadership, culture and to hire people with long leadership experience in the industry.

But how the organization then supports the business process is rarely a question that is discussed or prioritized.

Today, many HR seminars revolve around issues related to leading organizations, when the real challenge is the inability of leaders to see a new reality and be able to act towards given business goals based on business processes of integrated IT systems. Every small line on an organizational chart in Powerpoint means enormous costs for companies in the form of recruitment and development.

So why do management and HR departments continue to construct the business on the basis that the processes and the business are built by the organization, when today it is more about the organization providing support to the business and the business processes that are set up in the IT systems?

The challenge in getting the management to move towards the same goal lies in the knowledge of which hard systems the company is built on and the competence to be able to transform it into a profitable business. Employing people is about finding abilities that accept and see opportunities in the change that is taking place with digitization.

It is easy to look at the large fast-growing companies in the world and how their HR function has changed. Their entire sales department has been replaced by digital marketers. The entire customer service of the FANG companies consists of FAQs, chatbots and very hidden people who can sometimes be reached by email. Customers who know what they want to buy are prioritized, customers who are independent as well.

Clearly we still need HR departments to ensure we have the right human capital to support the business processes. And in Sweden or Europe, the largest fast-growing companies may not be the best role models. But there is no denying that the mission of HR is undergoing strong change. Many Swedish companies must immediately say goodbye to history, conservatism and man's inherent reluctance to change.

Global competition and digitization simply do not allow opposing corporate cultural forces or the cost it entails in time, energy and money. Swedish companies need HR that develops the support functions around the business, even if the thinking takes us back to the assembly line. It is still the right skills that are needed, the right culture and leadership, but it is a completely different skill set that is needed today than just 5–10 years ago.

It may be too early to say the words, but they are true nonetheless: HR is dead, long live HR!