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The gap between what business leaders want and the capabilities of HR to deliver

HR professionals have important roles and responsibilities in addressing human capital issues within their organizations. They are best able to support their organizations’ business goals related to human capital initiatives when they are viewed as a strategic partner in decisions and are successful at aligning their work with the organization’s overall business strategy.

HR is being forced to redefine its role from “service provider” to an enabler and builder of talent, shifting from a group of generalists to a team of highly skilled business consultants. On top, the CEO-HR relationship is constantly evolving, and there is no doubt that the CEO will be increasingly involved in matters related to human resources management.

Understanding and increased interest for HR issuesand drive productivity gains, are forcing CEOs to question the function classification system, being considered as too complex, and the performance review tools.

Today HR executives are challenged to develop efficient and effective solutions. However it remains difficult to determine the exact contribution of the HR function to achieve these objectives. HR is not keeping up with the pace of change in business. Today, there is a gap between what business leaders want and the capabilities of HR to deliver.

Recent Deliotte research shows that only 30 percent of business leaders believe that HR has a reputation for sound business decisions; only 28 percent feel that HR is highly efficient; only 22 percent believe that HR is adapting to the changing needs of their workforce; and only 20 percent feel that HR can adequately plan for the company’s future talent needs. Meanwhile,  just 11 percent of respondents feel that their organizations provide “excellent” development for HR.

Despite increased efforts, HR leaders continue to experience misalignment with the business on priorities and objectives.
HR leaders must develop a strategic plan that enables the business to have the top-level talent and programs in place to achieve their goals.
Staying on top of key HR trends that are appropriate for your HR functions is always a challenge.

woman binocThe Future HR organization must be agile, business-integrated, data-driven, and deeply skilled in attracting, retaining, and developing talent. The newer HR technology platforms now offer integrated systems and more access to data, including analytics and assessment science. Employee self-service is now a reality, all but eliminating the need for HR generalists. Yet HR continues to struggle to optimize analytics.

  • Deliotte research reveals that CEOs and other senior executives are more worried about talent than ever before. Eighty-seven percent of our respondents are deeply concerned about culture and employee engagement, 86 percent about their leadership pipeline, and 80 percent about workforce capabilities. At the same time, 80 percent of survey respondents believe their company’s HR skills—or lack of skills—are a significant issue, forcing HR to redesign programs in the face of a much more demanding workforce.
  • Traditional HR practices such as performance management and leadership and development are undergoing radical change, forcing HR to throw away the old playbook and deliver more innovative solutions.
  • Finally, professional development and research have emerged as key HR capabilities. Companies with strong development programs and focused strategies to incorporate external data far outperform their peers.

About Dr. Ev D'aMigo; PhD

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