HR makes its mark as strategic player in business

HR is increasingly being regarded as an essential strategic business
function, according to recent research.

A survey of 85 HR departments across all economic sectors shows that 92 per
cent believe the influence of the HR department has increased over the past
five years. Factors behind this change include more recognition of HR’s work
and increased pressure caused by employment legislation.

In two-thirds of responding organisations, the HR department is represented
at boardroom level. The study also finds that seven in 10 HR departments
operate within a documented strategy that is almost explicitly linked to the
business strategy of the organisation.

When asked to list the three most important issues that their HR departments
were working on, training and development was cited by 32 per cent, followed by
pay and reward (26 per cent) and performance management (21 per cent).

More than eight in 10 departments control their own budgets, and more than
half of the responding departments expect their budgets to be increased during
the next five years. 

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