[AI-View Youzan] From "HRBP" to "Business BP": The Path of Human Resources Transformation

Youzan latest human resources adjustments, HRBP fully transferred and reported directly to the business, while canceling the "Organizational Growth Department", aiming to reduce costs and increase efficiency and achieve the human efficiency target.

Introduction

Recently, an internal notice from Youzan has caused quite a stir in the HR circle. The notice shows that all HRBPs will be fully transferred, reporting directly to the business, and the “Organizational Growth Department” will be canceled. What does this series of adjustments mean? This article will provide a detailed analysis of Youzan’s path of human resources transformation.

I. The Transformation and Challenges of HRBP

Youzan’s Internal Notice: HRBP Fully Transferred, Reporting to Business

Recently, Youzan issued an internal notice announcing that all HRBPs will be fully transferred within a week, reporting directly to business leaders, and formally carrying out business-related work. This adjustment means that HRBPs will no longer engage in traditional human resources work, but will go deep into the front line of business and become true business BPs.

Professor Dave Ulrich’s Perspective: “HR is Not HR”

Professor Dave Ulrich, the proponent of the HRBP theory, proposed the view “HR is not HR” in a speech in Singapore two years ago. He believes that the existence of human resources is not for itself, but to help the business succeed in the market. As the market environment changes, the company’s talent needs are also constantly changing, and the mission and value of HRBP is to help the business win battles.

The New Positioning of HRBP in the Current Market Environment

In the current context of industry downturn and adjustment, HRBPs can only reflect their true professional value by getting close to the business, helping the business to obtain more orders, win more customers, and secure more cash flow. Only when the company survives, all positions and functions are qualified to talk about “professional value”.

II. The Cancellation of the Organizational Growth Department and Cost Reduction and Efficiency Enhancement

The Background and Reasons for the Cancellation of the Organizational Growth Department

Youzan announced the cancellation of the “Organizational Growth Department” this time, mainly to reduce costs and increase efficiency. The data shows that the number of Youzan employees has decreased from more than 5,700 in 2021 to 1,750 by the end of 2023. Facing the shrinking scale of business, the existence of departments such as the Organizational Growth Department is no longer necessary.

Similar Cases in the Industry: Adjustments by Companies such as ByteDance

It is worth noting that companies such as ByteDance also dismantled similar “Talent Development Departments” in 2021 and have not rebuilt them so far. These back-office departments can help the company improve its combat effectiveness during periods of high growth, but in periods of industry downturn, their direct contribution to the business is difficult to quantify.

Youzan’s Strategy for Cost Reduction and Efficiency Enhancement

Youzan aims to reduce costs and increase efficiency by canceling the Organizational Growth Department and optimizing internal structures. This strategy not only aligns with the current market environment but is also a necessary choice for the company’s long-term development.

III. Youzan’s Human Efficiency Target

Comparison of Human Efficiency Targets for 2023 and 2024

In 2023, Youzan’s human efficiency was 800,000 yuan, and the target for 2024 is to increase it to 1 million yuan. Human efficiency = revenue/employees, Youzan hopes to further improve the company’s overall efficiency through the adjustment of this formula.

Youzan’s Revenue Structure and Challenges

Youzan’s revenue mainly includes subscription solution income, merchant solution income, and other income. In 2023, Youzan’s revenue was 1.44 billion yuan, a year-on-year decrease of 3.2%. This decline was mainly due to the disconnection of Kuaishou and the inability of many small and medium-sized enterprise customers to renew their contracts after the epidemic.

Possible Paths to Improve Human Efficiency

To achieve the human efficiency target for 2024, Youzan needs to make efforts in many aspects, such as adjusting the internal structure, optimizing resource allocation, and improving employee performance. Only by improving efficiency through internal adjustments when revenue cannot grow rapidly can this target be achieved.

IV. The Future Development of HRBP

The Profound Impact of HRBP’s Transition to Business BP

Youzan’s transition of HRBP to business BP means that HR practitioners need to have stronger business acumen and execution capabilities. This shift is not only an internal adjustment of the company but also a reflection of industry trends.

In addition to Youzan, other companies are also actively exploring the path of human resources transformation. Enhancing the integration of HR and business and improving overall efficiency has become an industry consensus.

Implications for HR Practitioners

For HR practitioners, the future development direction is not just traditional human resources work but also requires business thinking and execution capabilities. Only by continuously improving one’s abilities can one stand out in a fiercely competitive market.

Conclusion

Youzan’s path of human resources transformation reveals the profound significance of HRBP’s transition to business BP. In future development, only by continuously adapting to market changes and improving one’s abilities can one stand out in fierce competition. It is hoped that this article can provide useful references and insights for HR practitioners.


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