Research reveals more than half of global companies are transforming their HR functions

More than half of global companies are currently transforming their HR functions, research has revealed.

A global HR transformation study by Mercer Human Resource Consulting, questioning 1,400 organisations, found that 12% of respondents have completed a transformation within the past year, while 10% plan to do so within the next year.

Four in 10 respondents listed human capital strategy as a principal function of HR, while two-thirds expect it to become a key function within two to three years. Leadership development and talent management are other areas expected to become more important.

Mercer found that changing demands on HR have created new challenges, top of which is the acquisition of key talent by 43% of respondents, followed by driving cultural and behavioural change in the organisation (40%) and building leadership capabilities (40%).

Mike Theaker, principal in Mercer’s HR effectiveness business, said: “What is immediately evident from the survey is that HR transformation is a continuous process rather than a one-off event. Technology and service delivery improvements were the focus of the first wave of transformation activity, five to 10 years ago, coupled with an expectation that this would enable HR to move into a more strategic role.”

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