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Latest News

Study reveals how HR adds value

by Personnel Today 23 Jun 2003
by Personnel Today 23 Jun 2003

A 15-year research project has identified five key
competencies needed by HR professionals if they are to have a positive impact
on organisational performance.

The Human Resource Competency Study, sponsored by the Executive
Education Centre at the University of Michigan Business School, finds that the
areas of: strategic contribution, personal credibility, HR delivery, business
knowledge, and HR technology are key to adding value.

The US study finds that, taking into account these five core
competencies, HR practices, contributions and activities impact business
performance by approximately 10 percent.  Business performance was defined
in the study as “financial performance of the business over the last three
years compared to major competitors.”

The Society for Human Resource Management (SHRM), University
of Michigan Business School, and the Global Consulting Alliance have used the
study to put together a toolkit designed to provide a framework for developing
the skills, knowledge, and behaviours that will allow HR professionals to add
greater value to their organisations. 

“Changes to business practice have forced HR professionals
to adjust their role and the contributions they make, as well as to obtain new
skills and competencies to meet these demands,” said SHRM Vice President of
Knowledge Development, Debra Cohen, “With this study and others, it is
extremely difficult to argue against the strategic and financial contributions
HR makes to an organisation.”

By Ben Willmott

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Personnel Today

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Personnel Today
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