HR’s coming of strategic age

The HR profession is gradually maturing into a strategic business role by creating and implementing business plans that mirror the goals and priorities of organisations

THE HR PROFESSION is gradually maturing into a strategic business role by creating and implementing business plans that mirror the goals and priorities of organisations, according to recent research from the Society for Human Resource Management (SHRM).

The study, which benchmarked the state of the HR profession across 23 countries, found that nearly all (99 per cent) of HR professionals agree that HR represents a unique body of knowledge and skills. More than 75 per cent agree that this body of knowledge and skills is recognised as a profession by society in general.

“The business value HR professionals contribute to their organisations is growing as more CEOs recognise the power of effective people management,” said Susan Meisinger, president and CEO of SHRM.

“HR professionals are capable of leveraging human capital, strengthening organisations and improving the bottom line. The voice of the HR professional is an important one in all organisational decisions.”

Study results released focus on the findings in the US at present. It found that more CEOs expect HR professionals to have a firm grasp of the business and overall marketplace. Eighty-nine per cent agree that HR must have business knowledge or experience, while 97 per cent agree that business knowledge or experience is necessary to advance one’s career in HR.

More than three-quarters of HR professionals hold university degrees and, of those, 39 per cent are in business administration. Individuals with a business background will be called on even more to use their business and HR backgrounds to help employees better understand how they can contribute to ororganisational goals and strategy.

The study aimed to provide an occupational snapshot of HR as its practitioners view it today, and took in a random sampling of SHRM members and explored several components of HR professionalism including body of knowledge, autonomy, ideology of service, credentialing, recognition and external control.

More than 70 per cent of HR practitioners hold a position at the supervisory level or above, while 63 per cent of HR practitioners agree that they have considerable autonomy and discretion in the course of their work. Despite this autonomy and authority, most HR professionals do not work closely with the organisation’s highest officers, as only about 40 per cent report to chief officers.

Still, HR professionals express great regard for the work they do and for the service they provide employees. Ninety-five per cent are concerned with the wellbeing of employees in their organisation and more than 60 per cent of respondents place a higher value on doing good work than on their own compensation.

In line with this value, HR professionals are committed to professional and organisational development. Nearly 30 per cent agree that credentials are needed to work in HR and more than twice as many (64 per cent) believe that credentials and HR certification are necessary for career advancement. More than 40 per cent of HR practitioners surveyed have professional certification in HR.

The study found that the most challenging obstacles for the HR profession are perceptions that HR is not held in high esteem by organisations, the lack of corporate HR strategy, the lack of HR budget and the lack of top-down implementation of HR strategy.SHRM said it is critical that more HR professionals increase their visibility within organisations if the HR profession is to continue maturing.

The full results of the global forum study will be released later this year.

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