In the last several years, there has been a preoccupation with cost optimization, cost reduction, sustainable cost management - all things ‘cost’. This has required HR to play its part, largely through making the HR function more efficient, but not necessarily more effective.
With this relentless focus on costs, the problem has been that many HR functions have lost sight of how they can generate value in the wider business. This is a significant issue given that the people agenda in most organizations contains some truly business-critical issues and challenges, such as:
- the war for recruitment and retention of “top talent”
- the engagement of a global workforce operating within a much more fluid environment
- ensuring the people profile matches the value drivers of the business
- the smart use of technology to support both the business and its employees
- drawing predictive insights from complex sources of data to ensure the agility of the organization
To probe more deeply into these challenges, as well as the opportunities for the HR function to change the dynamics of its relationship with the business, KPMG International commissioned the Economist Intelligence Unit to conduct a study of executives across the globe.
Rethinking Human Resources in a Changing World has provided us with a fresh view of the path forward for leaders of the HR function. We believe there are some things on the horizon that will really shake up HR and make the people agenda as important to the CEO as the balance sheet and P&L statement.