Around the world, the Human Resources function currently faces a number of pressing, interconnected challenges - operating in a global, virtual working environment and the need for HR to deliver strategic tangible value. According to a new study from KPMG International, the recruitment and retention of employees is understood to be crucial to the success of any business. However, business leaders believe the role of HR to be non-essential, and in some cases, ineffective. In an increasingly complex environment , the HR function has both some new challenges to tackle and some old perceptions to shed.
The survey, Rethinking Human Resources in a Changing World, conducted by the Economist Intelligent Unit, investigates the forces influencing the HR function within business today. More than 400 senior executives from Asia, Europe, North America and Latin America and across major industry sectors expressed mixed messages.
According to the findings, 81 percent of respondents say that an effective talent management strategy will be crucial to competitive success. Consequently, 59 percent believe that HR will grow in strategic importance in the coming years. But just 17 percent of respondents maintain that HR does a good job of demonstrating its value to the business.
Commenting on the survey, Robert Bolton, Global and Europe Lead, KPMG HR Transformation Center of Excellence said, “At the very least, HR has a perception problem, though in many cases, it may have actually failed to deliver real value. While the globalization and the virtualization of employees presents new challenges, advances in technology are providing tremendous opportunity for HR to better meet the needs of a dynamic and changing workforce.”
The survey’s main findings focus on the need to understand and anticipate the requirements of a global, flexible workforce. While technology has had a profound change on the HR function, greater opportunity lies in the effective use of data analytics to better manage the workforce.
is a key concern for survey respondents. The advent of a new mobile workforce has made retention of key talent and building workforces in new markets a top priority for HR over the last 3 years and into the next. However, only 1 in 4 respondents said that HR excels at sourcing and retaining key talent globally, supporting a virtual workforce and supporting the greater globalization of business.
Results from the report point toward improved employee engagement as the ultimate solution. Consequently, creative thinking must be applied to the development of new policies that will meaningfully engage a workforce that is less committed to the organization. If companies are to be successful, they will have to find ways to apply new policies globally while at the same time, accommodating for local market conditions and varying cultures.
The adoption of new web-based and/or mobile HR platforms has enabled HR to provide employees with more flexible and customized training opportunities while creating a positive culture for communication. Interviewees were most excited however by the opportunities presented by data analytics. If properly implemented, analytics will provide a more robust understanding of employee-related needs and help to identify future talent gaps. This will put HR in a position to anticipate and respond to future business requirements – this will be a gamechanger for any business.
Without a doubt, the survey shows that as trends continue to move towards globalization and virtualization there are a number of initiatives that executives can employ to improve the HR function and its contribution to the overall business. “Things are changing. The HR function is moving forward and shedding the perceptions of the past by fundamentally changing the HR role to one that provides greater value. Engaging with the new virtual, temporary workforce is paramount. Technology is revolutionizing the function.” said Paulette Welsing, Global and Americas Lead, KPMG HR Transformation Center of Excellence.
Read the complete report: Rethinking Human Resources in a Changing World now.
For further information, please contact:
+1 416 777 3460
About KPMG International:
KPMG is a global network of professional firms providing Audit, Tax and Advisory services. We operate in 152 countries and have 145,000 people working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.
KPMG International performs no professional services for clients nor, concomitantly, generates any revenue.