HR as a change agent in the organization

When we talk to HR colleagues, we often discuss the operational challenges we face in HR on a daily basis and those that employees bring to us. These are usually urgent matters — without dealing with them, employees would not be able to do their jobs effectively.

If I were to ask employees to name the first five things that come to mind when they think of HR, I’m pretty sure their answers would be something like this: salary, promotions, work-life balance, training and personal development, and internal communication.

In this blog, I want to shift the focus to challenges that rarely feel urgent in HR, but are often critical to the long-term growth of an organization. A key role that often goes unnoticed — even within HR itself — is HR’s function as a change agent, shaping the broader context for positive transformations that employees, managers and clients experience.

Perhaps we notice something in the company that has been recurring for a long time and that no single action or intervention has been able to resolve. We may find that we are having the same conversations over and over again, which ultimately do not lead to solutions, but only serve as a band-aid for the issues we have identified.

For example, an employee may not receive clear instructions, expectations or standards of success for their work. This particular case is analyzed individually and the employee is given the necessary information, but similar cases occur after some time in other teams or even in the same team.

In such moments, it is important not only to focus on solving operational challenges (which are certainly part of the picture), but also to recognize broader systemic obstacles as HR and address them holistically through planned change management.

Structural leadership change

Agitavit has been successfully developing complex, custom digital solutions for over 20 years. Our team consists of experienced experts in the fields of software development and business analysis each highly proficient in their technical fields. Traditionally, career paths to positions such as project manager or employee development leader started from specialist positions, while company management remained largely within the executive team. However, as the company grew, so did the complexity of the challenges — until eventually reaching a point where management and HR could no longer handle everything centrally.

In 2022, the HR department began to systematically look for the causes of recurring challenges in the teams, even though they had successfully resolving individual cases one by one. For example, managers were unable to evaluate employee promotions because, due to centralization, they were not sufficiently involved in the decision-making process. Changes in the team (departures, probationary periods, organizational shifts) were not communicated regularly, which led to misunderstandings. We found that leadership standards (time devoted to employees, quality of information shared, active vs. passive leadership style, etc.) varied widely across teams, resulting in very different leadership experiences for employees.

After an initial assessment, we found that our employee development leaders excelled in providing quality feedback, were open to employees and fostered high level of psychological safety. At the same time, we recognized that they lacked focus and, in some cases, the necessary skills for strategic topics, change management, internal communication and team leadership. It also became clear that leadership was too centralized and that decision-making responsibilities were not distributed among managers but rested with the executive team.

We recognized the need for a more comprehensive change that was cultural, organizational, structural and behavioral.

Designing a systemic solution

We have introduced a two-tier management structure. The first management level focuses on providing quality feedback, conducting development discussions and monitoring competencies. The second management level is responsible for strategic direction, team and communication management, change management and operational/administrative tasks.

We have ensured that both management levels are given the necessary authority to manage their respective processes and activities, which were previously the responsibility of top management or the HR department. The changes were introduced in each department based on the team maturity, motivation level and identified competencies of the potential leaders.

For managers committed to these new roles, we have developed a leadership development program to ensure that all employees experience a consistent quality of leadership. In addition, we have appointed a person in the HR department who is responsible for implementing the structural changes and who will persistently and patiently accompany the change towards the desired structure.

In HR, it is easy to be pulled in different directions by the diverse needs and priorities of employees. The changes needed to position HR as an agent of change often require significant investments that are difficult to justify to management. We may fear resistance from employees, too much responsibility or the failure of the project. There are certainly many reasons to stay in our comfort zone.

However, it is crucial to recognize that we strengthen our strategic position and influence within the organization by identifying key needs and challenges that require systemic change. By addressing these changes, we will reduce recurring challenges in the future while increasing our overall impact.

With this approach, we can increase the reputation of the HR department in the company and secure a greater say in decisions. By insisting on the desired path, we can become a successful agent of change within the company.