While 60 percent of senior business executives consider people issues to be a significant factor in corporate strategy, relatively few of them look to their human resources teams for help on those issues, according to a study released Tuesday, May 29, by consulting firm Deloitte Touche Tohmatsu and The Economist Intelligence Unit.
The study found that 52 percent of companies don’t have a chief human resources officer or equivalent executive assigned to such people issues as developing a high-performance culture or meeting talent needs.
Deloitte and The Economist surveyed executives from 468 companies on several continents, including 104 HR leaders and 155 senior business executives.
Only 23 percent of corporate leaders see their HR departments as currently playing a crucial role in coming up with corporate strategy and having a significant impact on operating results. And although business experts increasingly recognize people as a key intangible portion of a company’s market value, 63 percent of executives rarely or never consult their HR team on mergers and acquisitions. Even when it comes to regulatory compliance, a traditional HR domain, 26 percent rarely or never check in with HR.
From Workforce magazine.
It is not the first time I’ve read this sort of study, but it concerns me a lot. Yes, the sample isn’t huge, but the numbers are similar to stuff I’ve read before. It doesn’t seem to be getting any better. A couple of years ago there was a big huff about the “why we hate HR article”, but has much changed? Should HR care? At the end of last year I had the opportunity to listen to Dave Ulrich, a leading HR academic. Strong, inspiring stuff, but the Deloittes survey points to a more depressing reality.
I’ll be a little forward here and tag several HR-HCM related bloggers out there and see if we can’t get a series of posts going on this. I’m asking Donald. Jim, Max, Laurie, Jason, SystematicHR, Michael, Alice, Systematic, Karen, Michael, Debra, Gautam, Tom and the evilhrlady to get the ball rolling, but feel free to add more to the list.
Fancy a podcast anyone?