Businesses in danger of new strategies failing, says new Qikker research
Only 29% of organisations use people measures when making operational decisions.
24% say that laying off low performers is a high priority.
Businesses are not calling on HR to provide a sound basis of metrics and measures regarding business decisions, says new research commissioned by Qikker called ‘The Role of HR in Turbulent Times’. Nearly a quarter of businesses (23%) never use people measurements and metrics when making decisions and a further 48% only use them occasionally. This is despite over 83% of respondents stating that the setting and alignment behind clear organisational goals is of the highest importance.
“Businesses must be able to change and adapt quickly to the shifting economic climate,” says Mark Barlow, Managing Director of Qikker. “It is madness if operational decisions are being made without taking into account the human element as strategies are delivered through people. When the economy is so turbulent, businesses need to be guaranteed that a new strategy has every chance to succeed. This is no time to be taking risks and making potentially business damaging decisions.”
Measures that are important to business decisions
The research was conducted by VMH Associates and interviewed 121 senior-level HR professionals. The most important measurement when making business decisions is succession planning, with 42% saying this is a high priority. This is closely followed with development needs (37%), goal alignment (32%) and employee engagement (32%). Yet, establishing Talent Profiles was only seen as important for 21%. This is a potential contradiction, given that Talent Profiles provide the greatest ability to objectively measure the depth of organisational capability and potential.
Changing priorities for HR
The research shows that there are also changing priorities for HR driven by events around the world. 83% say that establishing clarity of goals and aligning the workforce to execute a new strategy has increased in priority. 62% also state that communicating and engaging with employees is a high priority. 40% are focussing on core talent and investing where it counts.
Driving organisational efficiency
An interesting observation is recognition of the need to improve organisational efficiency around HR processes. Nearly 70% of respondents have identified that taking measures to avoid double entry of information is key, with two thirds stating that the related replacement of 'paper based' admin tasks, such as absence recording, and performance / development functions is high on the agenda. However, initial analysis confirms that paper, or no formal process, still represents the norm for more than 60% of organisations surveyed.
Impact of the economic climate
Over a third of HR professionals (35%) believe that the economic climate is having a high impact on their organisation. 64% also say that now is the time to consolidate and minimise risk.
HR efficiency in meeting business needs
HR does believe that it has value to add to strategic decisions made within the business. 30% say they are very efficient at meeting business needs with over half (55%0 believing they are quite efficient.
"There is an obvious disconnect between what HR is achieving for the organisation and the true value placed on measurement," says Mark Barlow. "If you don't know the right way to go, any way seems like a good idea. This is what happens when measurements and metrics are not applied when making operational decisions. The business needs to recognise the value of people measures. HR needs to be more forceful in demonstrating how metrics can deliver value to business decisions."
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