The New Operating Model for People and Business Success

Eric Martin
1 hour ago
3 min read

From Siloed HR to Systemic HR:

For decades, Human Resources has been structured as a set of specialized, siloed functions—recruitment, learning, compensation, employee relations—each operating relatively independently. While this approach ensured depth of expertise, it also created fragmentation, inefficiency, and limited the ability to respond quickly to complex business challenges.

Today, leading organizations are reimagining HR entirely, shifting from this siloed, domain-based model to a Systemic HR Operating Model—an integrated, strategic, and agile approach that positions HR as a driver of business transformation.

What Is Systemic HR:

Systemic HR treats the HR function as an interconnected system rather than a collection of separate departments. It recognizes that every significant talent or business challenge touches multiple areas of HR, and solving these challenges requires holistic, cross-functional solutions.

Instead of working in isolation, HR teams form agile, problem-focused units that come together to address a business need and then disband or reconfigure as priorities shift. The function measures its success by the success of its “clients”—the business and its workforce.

Core Principles of Systemic HR:

Integration Over Isolation - No single HR domain can fully solve a complex problem. Recruitment, retention, learning, workforce planning, and job design must be addressed together to create lasting solutions.
Agility and Adaptability - HR operates with a flatter structure, enabling rapid team formation to tackle urgent challenges—mirroring the responsiveness of a consulting firm.
Full-Stack HR Professionals - HR professionals are expected to have broad knowledge across all HR domains (the “full stack”), combined with deep expertise in one or more areas. This includes strategic business skills, interpersonal capabilities, technology proficiency, and problem-solving expertise.
Value Creation, Not Just Cost Control - Systemic HR shifts the focus from efficiency and compliance to creating measurable business value—driving innovation, productivity, and workforce engagement.

How It Works in Practice:

Systemic HR often uses integrated frameworks—such as linking recruitment, retention, reskilling, and job redesign—to ensure all HR levers work together. For example, filling a new role is not just a hiring exercise; it’s an opportunity to evaluate job design, internal mobility, development pathways, and pay equity simultaneously.

This approach requires HR professionals to think like consultants: simplifying complex problems, engaging stakeholders across the business, and creating tailored solutions that address root causes rather than symptoms.

Skills for the Systemic HR Era:

To operate in a systemic model, HR professionals must develop a blend of capabilities:

Strategic and Business Skills – Business acumen, workforce planning, change management, and data-driven decision-making.
Human and Interpersonal Skills – Communication, empathy, relationship building, and influencing.
Technology and Data Skills – Proficiency with HR systems, people analytics, and emerging technologies like AI.
Consulting and Problem-Solving Skills – Framing problems, identifying solutions, and working collaboratively to implement change.
Cross-Functional and Systems Thinking – Understanding interdependencies across HR domains and the wider business.
Specialized Domain Expertise – Deep knowledge in areas such as talent acquisition, compensation, inclusivity, or organizational design.

This combination transforms HR practitioners into T-shaped professionals—broadly skilled across all HR areas, with deep expertise in specific disciplines, and the ability to integrate those skills into systemic solutions.

The Business Impact of Systemic HR:

Organizations that reach higher levels of systemic HR maturity see measurable improvements in:

Financial performance through better talent alignment and agility.
Customer satisfaction via a more engaged and capable workforce.
Innovation driven by diverse, well-connected teams.
Employee engagement and retention through holistic workforce strategies.

The key takeaway: You can’t solve connected problems with siloed solutions. By breaking down barriers between HR disciplines, organizations unlock new levels of agility, resilience, and strategic impact.

The Future of HR:

Systemic HR represents a fundamental evolution in how the people function operates—shifting from an administrative service provider to a strategic value creator. In this model, HR is not a back-office function—it is a central player in shaping the organization’s future, solving business-critical problems, and driving sustained growth.

The organizations that adopt this mindset will not just keep up with change—they will lead it.