HR at the crossroads
HR at the crossroads
The HR function in large companies is now faced with a stark choice: either to evolve and make a significant, and strategic, contribution to the future prosperity of the organisation or be diminished and dissolved back into the business. In the end, virtually all HR administration could be outsourced, according to a new report from business advisory firm Deloitte.
Deloitte's report Shaping Up: Evolving the HR function for the 21st century suggests that few HR departments are equipped to adapt to the strategic role of advising business leaders on re-sizing their organisations whilst retaining its key talent. This is the challenge that will characterise the role of the HR function in the next few years due to rapidly changing economics, reduced growth and an increased numbers of redundancy programmes, the report says.
Aaron Alburey, a director in Deloitte's human capital consulting practice and one of the report authors said: "HR is at a crossroads. It needs to become capable of contributing to board level discussions and make transactional HR a secondary function. If it fails to do so its functions will be handed over to individual businesses within the organisation to manage for themselves and corporate strategy will continue to be determined without any significant input from HR.
"If these fundamental challenges are not addressed who can blame the business from wrestling control of the people agenda." Aaron Alburey said.Human Resources news brought to you by theHRDIRECTOR – the only independent strategic HR publication.
29 September 2009
Created on: 29-Sep-09 21:23
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