HR is now in a transformative phase. The "Offensive HR" enabled by the total HR solution "HUMAnalytics" (Part 2)

Many companies are advancing HR initiatives but find they cannot cover all challenges internally alone. They often rely on support from diverse external players, including platform providers, data vendors, and consulting firms.Amidst this landscape, Dentsu International Information Services Co., Ltd . (ISID), Dentsu Digital Inc., and Ignition Point Inc. released "HUMAnalytics" in May 2023. This comprehensive HR solution seamlessly integrates strategy, infrastructure, and data analysis.

For Transformation SHOWCASE, we interviewed Mr. Yusuke Ninomiya from ISID, Mr. Ken Yamada from Dentsu Digital Inc., and Mr. Yuki Fukui from Ignition Point Inc., who were involved in the project, about the solution's features. In the second part, they discussed the challenges HR departments face and the mindset needed for the transformation to "proactive HR."

Human Capital Management is Required, and Corporate Talent Strategies are Undergoing Major Changes

Q. You all interact with corporate HR departments in various ways, such as providing integrated HCM solutions and consulting. Are there common challenges HR departments face?

Yamada: Every company faces various HR challenges, such as "productivity isn't improving," "the effectiveness of training is unclear," "personnel transfers and placements are too dependent on individual staff," and "the conversion rate of job offers isn't visible." Historically, HR departments addressed these issues through individual efforts. Recently, however, there's growing focus on data-driven HR using big data analytics and AI. Yet, merely analyzing data superficially won't lead to effective HR strategies.I feel it's necessary to delve into the consulting realm, asking questions like "Is our current HR system truly effective?" and "Is our data collection method appropriate?"

Fukui: Externally, a major challenge is the mandatory disclosure of human capital information starting in fiscal year 2023, primarily for listed companies. Simply put, this means "Align your talent strategy with your business strategy and disclose it to investors and stakeholders" and "Show a commitment to strategically improving your HR systems, not just operating them functionally." That said, companies focused on operational HR don't know what to do or how to do it."HUMAnalytics" addresses these very challenges.

Ninomiya: Visiting client companies, I sense a gradual increase in the proportion of personnel involved in HR planning and strategy compared to those handling operational tasks. This might reflect a growing recognition that HR departments need talent capable of designing systems while possessing IT expertise. However, the scarcity of such talent remains a challenge for many companies.

Q. HR is a specialized field, but does that mean "HR professionals" are hard to come by?

Fukui: More than that, I believe what is demanded of HR departments is beginning to change. While "operational HR functions" might sound like merely managing systems, HR is a highly specialized and critically important position. Recruitment interviews are a job that demands immense human skills, and labor relations require skillfully balancing interpersonal dynamics with rules. Fundamentally, the ability to handle operational areas effectively already demonstrates a very high level of expertise.

However, many companies are now pursuing a transformation toward data-driven HR. This means, in addition to traditional duties, HR professionals are increasingly expected to utilize data and propose HR initiatives. While HR has always been a highly specialized department, it is now entering a transitional phase, shifting toward "proactive HR." This shift necessitates a broader focus, including consideration of business strategy.

In our consulting work, we frequently hear concerns from clients: "We lack professional HR personnel," "We want to pursue proactive HR but have no one internally capable of doing so," and "Even when trying to recruit new talent, we find almost no suitable candidates."Despite the rising demand for professional HR talent, I believe the shortage stems from a culture that has historically prioritized operational, or "defensive HR" functions. We aim to support companies facing these challenges.

Cross-functional HR reform involving other departments is necessary

Q. If HR departments are undergoing transformation, does that mean the target audience for this solution isn't limited to HR personnel? What's your vision?

Ninomiya: ISID is no exception. I believe more companies are now advancing initiatives through collaboration between HR and business units. Decisions on recruitment, development, and talent placement can no longer be made by HR alone. Business units must be involved, and since management strategy is also tied in, the corporate planning department becomes involved too. The scope of relevant departments is definitely expanding.

Yamada: If human capital disclosure becomes mandatory, the IR department will also be involved. Depending on the phase, I think HR policies will increasingly be developed not just by HR, but by involving strategic planning and business units as well.

Q. How do you envision evolving and expanding "HUMAnalytics" going forward?

Yamada: Currently, we aim to support a wide range of HR challenges while gathering feedback from client companies that have already implemented ISID's integrated HCM solution, "POSITIVE." Looking ahead, we plan to further strengthen our consulting capabilities and explore ways to enhance the framework beyond its current state.

Ninomiya: We are currently in the process of exploring with our clients whether the challenges we encounter are common across companies or specific to each one. For common challenges, we want to explore templatization and productization. For specific challenges, we aim to expand the scope of our solutions or adapt them while responding agilely.

Fukui: As mentioned earlier, we're currently at a pivotal moment where the nature of HR is evolving. Amidst this change, our immediate goal is to pinpoint what our client companies truly need, what challenges they face, and what solutions they require. Beyond that, we hope to realize the kind of new framework Mr. Yamada discussed.

The environment surrounding HR is undergoing significant transformation: mandatory human capital disclosure for listed companies, alignment of business strategy with HR strategy, and the shift towards data-driven HR.The specific challenges companies face vary greatly—some want to "re-examine HR issues," while others seek to "utilize data across broad areas like recruitment, development, placement, and evaluation." Implementing a total HR solution like "HUMAnalytics," which connects through cycles to enhance corporate value, may help solve these challenges.