CIPD survey reveals HR function is changing shape

from fire fighter to strategic partner

A survey of 1,180 HR professionals, launched today by people management experts the Chartered Institute of Personnel and Development (CIPD), shows that the HR function is in a state of flux. The survey presents a picture of a function with a clear sense of direction, confident of its role and committed to demonstrating its contribution to the business. But while the numbers in the function are growing its shape is changing.

HR Survey: Where we are, where we’re heading shows that HR professionals believe that their influence with senior colleagues has increased (72%).

However they are still inclined to see the function as more operational than strategic (35%), with just under half seeing the HR function as being more reactive than proactive.

Senior HR practitioners say that the profession is making progress and they are looking to shift their focus further towards becoming strategic business partners. Many HR professionals have responsibility for other business
areas, including organisational design (29%), internal communications (36%), health and safety (44%) and corporate social responsibility (19%).

The survey shows a clear shift in aspiration from a function concerned with reactive HR (fire-fighting) to one focused on adding business value. On the flip side however, while two thirds of respondents say that business
strategy is one of the three most important activities in which they personally engage, it currently accounts for a relatively small proportion of their time.

The single activity on which HR practitioners currently spend most of their time is providing consultancy support for line management. But paradoxically, delivery of line practices by the line is seen as a key area of weakness in organisations.

More than half of the respondents believe that line managers receive appropriate training and support. However, three in five believe line managers have not accepted full responsibility for making decisions and taking action with their own staff.

Mike Emmott, Head of Employee Relations at the CIPD and author of the survey said: The HR community has internalised the message that it needs to spend
less time on administration and operational issues and more on business strategy and adding value.

HR professionals also accept that there is still some way to go in this direction - but it is clear that the movement is well under way. The challenge is to move even more quickly and adapt to the dramatic changes that are now affecting the HR role.

HR is now being asked to get up to speed and add value on a wide range of business issues from corporate social responsibility to organisational design. Those who work in it need to be prepared to get involved in activities that have not historically been seen as part of the HR role. It’s
an exciting time to be in the profession.

Key findings

* Most respondents do not agree that the traditional HR function will cease to exist but 72 % agree that it will be increasingly difficult to define the boundaries of the HR function.

* Thirty-five per cent of respondents believe the HR function in their organisation is currently too focused on operational issues, compared with 27% who describe it as heavily strategic. Almost half see the HR function as
being more reactive than proactive.

* Seventy-two per cent of respondents say they have more influence in relation to senior colleagues compared with three years ago.

* More than two in five say the HR function in their organisation employs more people in total than it did three years ago, one in four says it now employs fewer.

* Seven in ten respondents say their CEO believes HR has a key role to play in achieving business outcomes. A similar proportion report that the executive board frequently discusses HR issues and that HR managers are comfortable discussing business issues.

* One in three respondents sees their current role as that of a strategic partner: more than one in four see themselves as change agents. More than half would like to become strategic partners in the future.

* Eighty-eight per cent of respondents say that business strategy and goals will be a very important driver of change in people management policies. This compares with 63% who see cost pressures as a very important driver.

* More than half of respondents believe that line managers receive appropriate training and support. However, three in five believe line managers have not accepted full responsibility for making decisions and taking action with respect to their staff.

* Delivery of HR practices by the line is seen as an area requiring substantial improvement.

* Most organisations have not significantly increased or reduced their use of external providers of HR services in the last three years.

* Almost half are making increased use of outsourcing for their training and development activities, while one in three are outsourcing more recruitment.

* The use of e-HR has had limited effects - 38% of respondents report that costs have not been cut al all.