HR gaining importance among businesses, survey reveals

Nick Elvin

The HR sector is undergoing a radical change, becoming the forefront of business growth and transformation, according to recruitment company Michael Page, who has conducted a global study of the HR landscape in 65 countries.

Michael Page’s Global Insights HR Barometer surveyed over 2,500 HR leaders from organisations ranging from SMEs to blue-chip brands in a cross section of industries, gathering key information on their recruitment plans, strategic initiatives and key priorities.

It found that from being regarded mainly as an administrative function, HR is now becoming a strategic partner, aligned more closely with the business and focused on recruiting, developing and managing the talent on which organisational success depends.

According to the study, almost two thirds (63%) of senior HR leaders directly report to the highest levels of management (CEO, CFO, etc.), and 80% of HR senior leaders have strategically significant responsibilities. HR leaders report the top three business priorities are talent management (33%), training and development (33%), and talent acquisition/recruitment (32%), while only 4% are focused on diversity and inclusion.

Nearly half (48%) of HR leaders expect their workforce to expand over the next 12 months. This suggests recruitment will become a pressing HR concern when the global economy picks up again, particularly in the technology sector, says Rob Archer, regional director at Michael Page Human Resources.

“Strong hiring and recruitment expectations in many locations signal a new phase of economic growth and rebuild,” he said. “However, the exponential growth and evolution in technology, means that the HR industry will be at the frontline of a talent war that is set to spread to other sectors.”

The survey also brings to light regional differences: for example, only 47% of HR managers in continental Europe expect to see an increase in staffing levels over the next 12 months, as opposed to 75% in the Middle East. Similarly, looking at industry variants, HR managers in technology companies predict intense recruitment activity over the next 12 months, expecting their workforce to increase by 13%.

Yet, in contrast to the expected change in total workforce size, most organisations (70%) do not expect to change HR staffing levels within the next 12 months.

Archer said: “This crucial finding raises questions on whether HR professionals are ready to help their employers handle a growing workforce. Will HR be able to cope with the pace of growth required by the business? This is a key challenge for the foreseeable future.”