People management at the forefront of business agenda
A study conducted by Lane4 has revealed that 40% of business leaders view people development as HR's most valued contribution through the current recession. They believe that their organisations will emerge stronger as a result of this focus on people.
While people development remains critical, the changes in the economic environment have created a new agenda for human resource management. The report titled Emerging Stronger: Strategic Insights for Leading in Tough Times highlighted that HR needs to be more in tune with business. Senior managers, CEOs, directors and partners from organisations ranging from small businesses to large corporations across the globe expressed the following views:
- 12% of respondents said that HR must be strategically aligned with the business (improved strategic alignment was also considered important for every other HR contribution to the business). It needed to enhance its commercial acumen, work in a more advisory role and embed work in the organisation's overall strategy.
- Ensure a pragmatic approach was paramount for 10% of the sample. Respondents urged HR to "get close to the business", "cut the jargon" and "get involved more intimately rather than behind a process". The majority of the respondents in this group were HR professionals.
- Support change management was HR's most valued contribution for 8% of respondents. This would involve helping leaders to understand the people side of change, guarding against change fatigue and monitoring the effectiveness of change communication.
- Performance management was top of the agenda for 7% of respondents with the focus on more frequent and disciplined performance management, tough conversations and alignment to organisational needs.
- Develop individual and organisational resilience was important for 7% of respondents and referred to HR's role in supporting managers through rounds of redundancies, championing integrity throughout the process and protecting the well-being of employees.
Other valued HR activities included: enhancing organisational culture to the point where growth, personal development, inclusivity and change are encouraged; supporting communication initiatives; and recruiting talented people.
Mark Wheatley, Principal Consultant at Lane4 said, "As firms experience unprecedented levels of change, managing the impact of redundancies on those who leave and those who remain and motivating employees in the absence of bonuses and pay increases is key. Motivation has always been a hot topic for HR, but the stakes are higher in the current climate. The recession has eroded engagement, levels of stress have increased and concerns about job security are now commonplace. Survivor guilt is common, as people struggle to justify why they survived the latest lay-offs."
He commented: "To address these diverse and challenging issues, HR professionals need to understand organisational needs and act as true consultants. It needs to create a motivational climate that maximises the contribution of those who remain, protects the best talent and paves the way for long-term sustainability and growth."
To find out more about the report contact kelly.walsh@lane4.co.uk
| 2010-09-30