Identifying trends – specialised HR

first_img Previous Article Next Article Comments are closed. Identifying trends – specialised HROn 4 Dec 2001 in Personnel Today Related posts:No related photos. HR is becoming more specialised and the outsourcing of some aspects of theHR function is increasingly common among organisations. Research in the latest edition of Analysis of Personnel Activities and Costs(APAC) highlights some serious trends that are having a growing impact on thewhole nature of HR in better performing organisations. First, there is a move to quality through increasing professionalism andspecialist provision of HR services. Second, associated with this trend,outsourcing of HR in whole or part has, whether rightly or wrongly, capturedthe imagination of successful boards of directors. The first trend identified can carry substantial benefits for the astuteboard. The APAC database includes an example from a 600-strong organisationthat two years ago employed one HR manager, two personnel/training officers andfour clerical/administrative support staff at a headline cost (in base salaryterms) of £160,000. Latest data indicates that at a cost of £120,000 there are now threespecialists; training, recruitment, remuneration and one administrator. Thisreduction in HR numbers has coincided with an almost 20 per cent surge inprofitability. Assessing the HR input requirements of the organisation is central todeciding the nature, balance and intensity of service that is appropriate. Linemanagers can always provide the necessary insight into what is needed tosupport the business most effectively. An HR service and effectiveness audit is central to discovering these needs.It should be noted that such an audit emphasises the need for professionalismand underpinning legal requirements. Outcomes vary from, “We can do all that is needed ourselves” and,”We don’t have time to do any of this and need high quality, accessible HRinput” to, “We have no faith in the effectiveness of our internal HRservices and would like to buy in the necessary support.” Clearly the statistics indicate that professionalism and quality – whetherinternally or externally provided – are winning through. Benchmarking studiesshow, however, that fewer than 50 per cent of organisations are activelymeasuring their performance and effectiveness in HR delivery. All the indications are that, with increasing frequency, under-performing HRfunctions are having change forced upon them. By Derek Burn, Partner, MCG Consulting Grouplast_img