Study Shows HR Doesn’t Do Strategy (Shocker)

The other day I was reading some data (be still my heart!) and ran across something that didn’t initially surprise me. However, the more I think about it the more I am puzzled that this is still an ongoing issue. I reported on some other data  a while back that ties in pretty closely with this topic.

HR strategy chartSometimes you have to stop and wonder where common sense has gone. Companies are expecting more from their HR team than ever before, but according to data gathered by XpertHR, companies are increasing the number of employees relative to the number of HR professionals.

This leads to a number of trickle-down effects, but the major one is forcing those human resources employees into a more administrative function. There’s no hands-on, friendly interaction. There’s no face-to-face discussion of what the company has to offer to you as an individual. Read more about the HR to employee ratio.

So, in short, the more employees you have relative to HR pros, the more transactional the HR team has to be. Now let’s take a peek at the latest and greatest on HR strategy:

Only a little over one in three respondents (36.5 percent) say that their organization has a documented HR strategy.

Where such a strategy exists, nearly three in four (73 percent) say it was developed as an integral part of the overall organizational strategy, while just 18 percent say it was developed as a follow-up exercise once the overall organizational strategy was adopted. Just under one in ten (8.4 percent) said that their HR strategy was developed independently of the overall organizational strategy, suggesting a potential disconnect from, or lack of integration with, the organization. Source

Approximately 63% of organizations have no HR strategy in place. That just astounds me. The business world needs HR pros to provide business-minded, strategic leadership, but the profession as a whole can’t seem to get its act together and take charge of setting its own path.

I think the conversation around branding an HR department is applicable here. No matter what you say, your actions will always betray your true motives. Don’t just talk about being a strategic partner–live it.

What are your thoughts on this data? Is it surprising? Why or why not? 

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  • 5 thoughts on “63% of Organizations Have No HR Strategy In Place

    1. Based on the sampling I’ve worked with, 37% seems high. Fact is, there is an accountability issue. What is the purpose of strategy if the ones creating the strategy don’t have goals tied to the positive outcome of that strategy? Fix that and you’ll be on the road to improving the % and as a result the ratio of ee/hr will also stabilize.

    2. The HR strategy absolutley needs to support the goals and objectives of the business. From what I am seeing in the marketplace, in order to be successful, it is critical to have great HR leadership steering the ship and almost just as critical to have modern HR technology in place to enable HR to be more strategic. I am seeing companys with smart HR people focusing on supporting the business while their systems do most of the transactional work.

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