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The landscape of human resources (HR) is transforming today's workplace environment. As organizations evolve, the structure of HR teams has become a subject of scrutiny and adaptation. Questions about whether HR structures should be flatter, broader or hierarchical are gaining prominence.
Here, 20 Forbes Human Resources Council members discuss the current state of HR organizational structures and analyze the merits of various approaches. These experts also explore real-world examples of what's working best for different teams and why, shedding light on the evolving role of HR in supporting today's diverse workforce and organizational needs.
1. HR Structures Are Not One-Size-Fits-All
A one-size-fits-all structure doesn't exist. Optimal structure (hierarchical, flat, distributed or some other combo) trades out what has been a traditional vertically-oriented, administratively-focused function for a horizontal team of analytical problem-solvers delivering high-value people solutions across the business and in line with strategic and changing business goals improving organization agility and the employee experience. - Laci Loew, XpertHR (a division of LexisNexis Risk Solutions)
2. HR Structures Should Be Broader
Many organizations are doing more with fewer resources. The structure should be more broad where the teams are providing the same support but perhaps less focused on specific aspects of HR and more general. Going back to the true sense of HR and less area of expertise (compensation, benefits and so on). The support can still be stellar and having more in-depth knowledge will only help the organization overall. - Heather Smith, Flimp Communications
3. HR Structures Should Mirror The Organization's Talent And Growth Goals
HR structures should align with the capabilities an organization identifies as critical to building talent and growing the business. Broader structures that include people analytics, employee experience and total rewards have specific capabilities that need depth to accelerate the impact. These may be structured as centers of excellence partnering with a flatter HR structure that delivers and partners with the business. - Yvette Kennedy, Kennedy Talent Strategies
4. HR Structures Should Equally Weigh Functional HR With Other Aspects Of The Business
One consideration for HR structures is to balance the functional HR areas (rewards, talent acquisition, shared services and so on) with those supporting the different areas of the business. It may be tempting to group top-level HR business partners under one leader, but it may be more valuable to add these individual voices to top-level HR leadership discussions as top-line direct reports. - Kari Durham, Skyworks Solutions, Inc.
5. HR Structures Should Be An Integral Part Of Business Operations
HR structures need to evolve and connect to business operations. The structure should be flat with a team that supports employee engagement, recruitment and retention, business strategy and environmental, social, governance (ESG). Organizations need to transform where HR becomes an integral component of business operations, like ESG, where success is measured on retention, promotion and engagement and not just productivity. - Chandran Fernando, Matrix360 Inc.
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6. HR Structures Should Be Simple And Easy To Understand
Optimal HR structure is critical in aligning to organizational objectives and strategic priorities. It’s important to keep the structure simple with clearly articulated roles and responsibilities that both the HR team and the organization understand. As CHRO, I maintain three direct reports that function as my HR leadership team. This includes talent acquisition, employee experience and operations. - Liz Corey, Velosio
7. HR Structures Should Reflect The Needs Of The Business
The HR organization should reflect the needs of the business. For my team, a flatter and more agile structure works well. It promotes quicker decision-making, increased collaboration and a focus on employee empowerment. - Ashley Perryman, Spiceworks Ziff Davis
8. HR Structures Should Focus On Adaptability
The learnings post-Covid-19 have taught us that we have to be prepared for employees to be multiskilled just in case we have to encounter further challenges in the future. So, I would suggest the organization structure be nimble to adapt to any change so the team can be employees who are multiskilled and can manage multiple tasks in case of a need. - Prakash Raichur, Taghleef Industries
9. HR Structures Need To Reflect The Change Of Times
HR needs to look different, not reorganized. With the advent of AI-empowered technologies, a generational change in the workforce and a post-pandemic work culture, we are doing work differently. An example would be hiring a director of marketing to run your talent acquisition platforms. More than ever, an e-commerce, online mindset is needed to hire your best talent. It's time to re-think HR! - Jess Elmquist, Phenom
10. HR Structures Should Be Adaptable
HR organizational structures should be flexible depending on what the business or market wants, especially in start-ups. Our current structure is flat and hierarchical, but we have transitioned to a matrix structure based on business needs. Larger companies may want a more traditional structure but should evaluate their business strategy and goals to see if they need to adapt to changes. - Erin ImHof, CertiK
11. HR Structures Should Focus On The Needs Of The Business
There’s no right answer for this because much depends on the size and structure of the organization, so you must evaluate your needs to determine what’s right for you. At our company, we run a centralized-hybrid HR model with some specializations, such as payroll and benefits. Other areas are shared responsibility, such as employee relations and recruitment. - Lisa Shuster, iHire
12. HR Structures Should Encourage Open Communication And Personal Responsibility
A flatter organizational structure promotes a more collaborative environment, allows for quicker decision-making and leads to employees feeling a greater sense of empowerment. For our team, a flatter structure has proven effective because it encourages open communication and allows team members to take on broader responsibilities, creating a sense of ownership and engagement in their roles. - Laura Spawn, Virtual Vocations, Inc.
13. HR Structures Should Focus On People, Performance And Innovation
The most efficient organizational structure promotes growth and activates human capital development, stimulates business performance, improves effective communication, retains the best talents and generates profit. With a triple emphasis on people, performance and innovation, companies gain a competitive advantage with the transformational organizational structure. - Dr. Nara Ringrose, Cyclife Aquila Nuclear
14. HR Structures Should Mirror The Size, Culture And Goals Of The Company
A common HR organizational structure includes a chief human resources officer, talent acquisition, training and development, compensation and benefits, employee relations, HR analytics, HR generalists, diversity and inclusion and HR information systems. The structure should mirror the organization's size, culture and goals. - Britton Bloch, Navy Federal
15. HR Structures Should Promote Collaboration
HR structures often lean towards a flatter design, emphasizing cross-functional collaboration. This promotes adaptability and quicker decision-making. While some companies benefit from traditional hierarchical models, many are finding success in broader, team-centric configurations—a hybrid approach, blending hierarchical clarity with the agility of a flatter structure—may be ideal. - Joseph Soares, IBPROM Corp.
16. HR Structures Should Align With The Company's Mission And Goals
In today's dynamic business landscape, HR structures are as diverse as the companies they serve. At our company, we have crafted customized HR structures that fit our unique vision and goals. We're embracing a flatter approach to foster agility and swift decision-making crucial for a startup. Flexibility is our mantra. Our aim is to create a structure that aligns with our mission and grows with us. - Smarthveer Sidana, HireQuotient
17. HR Structures Should Not Be Siloed
As the world of work continues to rapidly and continuously shift, it is critical to ensure that the HR organizational structure is not siloed. The different functional domains of HR must work in tandem and be aligned with the goals, initiatives and needs of the organization. HR team members need to be ready to support a more systemic HR function than has existed in years past. - Lindsey Garito, Westchester Country Club
18. HR Structures Should Balance Employee Authority And Responsibility Equally
What is much more important than understanding an "average" organizational structure is understanding what structure is right for your business. No matter whether that structure is vertical, hierarchical, flat or matrixed, businesses need to balance employee authority and responsibility in equal measure. Employees can feel limited otherwise and grow unhappy or disengaged. - Niki Jorgensen, Insperity
19. HR Structures Should Account For External Factors, Too
I believe the organizational structure has evolved over the years, reflecting changes in business environments, technological advancements and evolving workforce expectations. For me, I will build it based on the market, industry, business objectives and size, taking into consideration the culture and the management style of the organization. Currently, we have a matrix structure. - Hassan Choughari, Jaroudi Group
20. HR Structures Should Be Responsive And Proactive
An effective HR system needs to be responsive and proactive. To remain agile when circumstances require it, staff need to be provided the autonomy to shift and adjust as needed. I find a topic-based hierarchical system to work best. Different members of the team become experts in an area that interests them and serve as the group authority on that topic. All get opportunities to lead and follow. - Brandy Marshall, Franklin Pierce School District
