Hay Group: HR is not a strategic business partner yet

Human resource professionals are making slow strides in becoming strategic business partners within their organizations, according to the new research 'Next Generation HR' from global management consulting firm Hay Group. Only 34% of those surveyed believe HR is making a significant strategic contribution to their organization; most (60%) positioned themselves somewhere in the middle, confirming that there's still much room for improvement.

The research is based on 1,400 HR professionals and senior management from around the world.

Misalignment across HR disciplines

The Hay Group advisors also found that there still is a significant misalignment across HR disciplines. Only 40% say work measurement and talent management processes are closely aligned. Even fewer (36%) say talent management and organizational effectiveness are closely aligned. Slightly more than one-third (39%) say they have moved away from traditional silos, but this leaves 61% that haven't - or worse still, are unsure.

Building a workforce

Building a workforce for the future is according to respondents the most important priority for the coming year. "As market demands continue to change, organizational success will hinge on HR's ability to connect human capital decisions with business strategy. 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," said Phil Johnson, Hay Group's global head of work measurement.