Only 34 percent of human resource professionals are making a significant strategic contribution to their organization, according to a new study released Wednesday.
According to new research entitled "Next generation HR" from Hay Group, a global management consultancy, HR professionals are making slow strides in becoming strategic business partners within their organizations.
"As market demands continue to change, organizational success will hinge on HR's ability to connect human capital decisions with business strategy," said Phil Johnson, Hay Group's global head of work measurement in a statement. "HR will need to stop clinging to traditional processes and inefficient silos and move toward an integrated approach that links work and people to business results. Such change is critical if HR is to transition to its rightful place of strategic business partner."
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The study, which surveyed 1,400 HR professionals, found most (60 percent) positioned themselves somewhere in the middle when it came to contributing business strategies.
The study also found that the cost cutting and efficiency priorities – introduced to weather the economic storm of recent years – have now evolved to a focus on driving performance and growth.
For the years that lie ahead, there are emerging HR concerns over developing the work force and ensuring the right people are in the right roles and doing the right work.
The Hay Group reports that there is significant "misalignment" across HR disciplines:
- Only 40 percent say work measurement and talent management processes are closely aligned
- Even fewer (36 percent) say talent management and organizational effectiveness are closely aligned
- Slightly more than one-third (39 percent) say they have moved away from traditional silos, but this leaves 61 percent that haven't – or worse still, are unsure.
According to a press release issued by the consulting firm, "the research highlights how HR will lag behind management expectations if a holistic approach to people management – based on a framework of understanding work – is not adopted. Jobs are at the heart of HR processes, therefore it's crucial to analyze work if people resources are to be best deployed to deliver on business objectives.
"Despite 76 percent of respondents saying they use a formal work measurement system, the research suggests that many organizations are not seizing upon the full potential or making the most of their investment."
HR Priorities:
| Last 5 years | Now | Next five years | ||||
| 1. Complying with HR legislation | 1. Improving employee engagement | 1. Developing future leaders | ||||
| 2. Reducing employee turnover | 2. Enhancing individual and team performance | 2. Ensuring greater return on investment through people | ||||
| 3. Increasing productivity and 'doing more with less' | 3. Increasing productivity and 'doing more with less' | 3. Attracting talent | ||||
| 4. Reducing people-related costs | 4. Attracting talent | 4. Efficient workforce planning | ||||
| 5. Creating more effective performance management programs | 5. Developing future leaders | 5. Enhancing performance / creating more effective performance management programs |
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