HR depts compelled to align with rest of business
Enterprise HR departments are being targeted for a shake-up as senior executives across a range of sectors align lagging HR structures with evolving business environments, according to new research.
The findings from the National Computing Centre’s Evaluation Centre, which guides IT buyers in use of business software, services, and technology, suggests that the drivers for restructuring fall into two key areas: to deliver services more cost-effectively (49 per cent) - the HR department is certainly not immune from the cost cutting affecting most businesses - and to reposition HR to more effectively address changes in line with the wider organisational model (46 per cent).
With this change of emphasis, it is imperative that HR departments have the necessary systems in place to achieve their objectives; however, a third of respondents say their current IT systems either do not meet their requirements adequately (30 per cent), or not at all (3 per cent).
“This level of dissatisfaction - and the need to re-focus the HR department - is reflected in the fact that 28 per cent of organisations plan to replace their HR systems, and 19 per cent are looking to implement upgrades,” reports NCC Evaluation Centre Managing Director Steve Fox. “The pressure is very much on HR departments to become more strategic, and to develop a structure that delivers cost-effective services to the business”.
The NCC Evaluation Centre asked over 100 companies for opinions on a number of issues relating to the development of their HR systems. Market sectors represented were: public sector (14 per cent), IT and telecoms (14 per cent), banking and finance (11 per cent), distribution and logistics (11 per cent), and chemical and pharmaceutical (10 per cent). The respondents represent a spread of different sized organisations, with 14 per cent having in excess of £5bn turnover, 5 per cent in the £1bn-to-£5bn bracket, and 15 per cent in the £500m-to-£1bn range. More IT section news.