Survey Background

Important developments have transformed both the strategic HR agenda and its related good practice. For instance, centralized or shared services centres combined with outsourcing and more effective use of e-HR means that many of the administrative problems that soaked up valuable time in the HR function has been minimized or eliminated.

To find out what capabilities both senior HR practitioners and HR functions require to fulfill their new strategic remit, Business Intelligence conducted a detailed survey of 200 HR directors in Spring 2004, Respondents were asked various detailed questions about the status and role of the HR function in shaping corporate strategy, what priorities emerged and how these were translated into a coherent HR Strategy. Respondents were also asked how relevant HR activities were seen to be among line managers, how the HR function was structured and how their own personal time was divided up.

Overall, the implication of the findings is that HR has to earn the right to be taken seriously as a strategic partner and demonstrate that its contribution is essential for the business to succeed. On the basis of its research findings, Business Intelligence has identified the critical success factors that enable HR to establish the function as a valued and effective business partner:

Develop business skills within HR
While the department must be master of the technical and transactional aspects of developing and delivering HR services, there must be a high degree of business know-how within the department to enable HR to work effectively with line managers to develop solutions to people-related business problems.

Build HR's credibility as a business partner
Behind the formal processes and practices, the most potent factor contributing to business partnership is the credibility of HR. Trust, respect and confidence are products of the other factors above. Unless the function earns the confidence of the business by delivering tangible returns to the organization, HR is unlikely to make the transition from service provider to strategic business partner. If this is the price of entry to strategic HR, the higher level contribution can only be made through demonstrating an understanding of the bigger picture and winning board support for the proposition that HR can play a leading role in meeting the company's main goals.

For more critical success factors and to download free preliminary research findings containing further results and anlysis from this survey please click here