Hewitt, HR, Study

Hewitt study shows HR upgrading its role while changing processes for service delivery

A study designed and carried out by Hewitt Associates, a global human resources services (HR) company, for the European Club for human resources (EChr) reveals that HR is scaling up its role in large companies while transforming the way it delivers its services to organizations.
 
The study, that involved 53 organizations, employing a total of more than three million people, explores the emerging business practices and priorities of the HR function across countries and sectors in Europe.
 
The study shows that seven out of 10 participants believe that changing the way HR delivers its services is the most compelling HR issue to be faced by their organization in 2007, while risk management policy on people issues will gain the least attention. Supporting organizational effectiveness emerges as the primary goal of the HR function, while the management of change, and talent attraction and retention continue to be the top underlying HR objectives for six out of 10 respondents. Labor cost management and personnel administration receive the least attention and are identified as a top goal in less than 10% of participant organizations. These findings appear to reflect a change in the focus of HR, with objectives increasingly linked to greater professional efficiency and strategic business concerns, - well beyond purely short term considerations of cost and administration. 

HR job satisfaction

The research also reveals a high level of satisfaction of HR directors in their job, of loyalty for their employer and of trust for their CEO. 74% of participants indicated that they like their company and their role, while only 4% would give up their HR role and move to another function. 13% said that they would remain in HR but change company.  74% of respondents gave their CEO the highest score of confidence. Employees also score high in terms of trust (63% gave them at least 7 out of 10 scores) while trade unions, policy makers and institutions rank very low in the scale of HR trust. However, another element of the profile of HR which emerges from the survey is the relatively low levels of geographical mobility and international experience gained in different countries. 38% of respondents had never spent more than one year in a country different from that of their origin, although that was balanced to some degree by the 59 % of respondents who had gained some professional experience in up to two countries. 
 
In line with last year’s edition, the study shows that talent management is the area where HR has the greatest impact on business performance. Survey respondents expect an even greater emphasis on talent management over the next three years, reflecting the growing importance for sustainable business success of employee development and retention.
 
Leonardo Sforza, head of EU affairs and research at Hewitt Associates and chairman of the committee leading the study, said:

“This year’s barometer highlights HR’s greater focus and direct contribution to facing compelling business imperatives. The high rate of trust expressed by HR executives for both their CEOs and for the workforce of their company is an ideal starting point for moving forward the process of HR transformation in Europe. The conditions are there for a definitive shift of HR from being a cost administrative center to becoming an agent to drive business performance across an organization.
 
“However, HR is still struggling to integrate the different aspects of its activities into a model that combines both financial and people needs. Respondents recognized that they have limited power to adapt to employees’ expectations, which heightens the risk of falling short in reflecting fast changing cultural patterns, attitudes and behaviors of people at work. Moreover, the low priority assigned to work-force planning could limit the capacity of HR to anticipate and align future business developments with internal and external demographic factors.”
 
For a full copy of the study please contact Aurélie Godefroy at echr@euralia.com or Nathalie Debast at nathalie.debast@hewitt.com.