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Are HR professionals consulted on business strategy?

31 August 2012 #Employment

Not according to a recent survey.

The survey (organised by PlusHR and undertaken by market research organisation, Redshift Research) has indicated that 75% of HR professionals are not included when business strategy is formulated.

The research was conducted across 125 HR professionals, business owners, directors and line managers, from companies ranging in size from 10 to 1000+. The aim of the research was to examine how effectively individual employee objectives were set and how performance was being managed, identified and rewarded in their organisations.

Further results indicate that HR professionals are being used predominantly to communicate corporate objectives (57%), rather than being consulted with when actually setting them (25%). Only 10% felt that employees` objectives were totally aligned to those of the organisation, with over 50% stating that objectives were at best partially aligned, or not at all.

Almost a third of companies have no mechanism in place for performance-based rewards and only 14% could say confidently that "above and beyond" performance was rewarded satisfactorily.

Marc Bishop, director of PlusHR, said: "The research highlights the endemic problems within modern corporate HR functions, which despite their best endeavours over the last decade or so, aren`t actually aligned with business when creating Corporate strategy. What this means in reality is that HR continues to be the messenger of Corporate strategy, rather than part of the instigation of it. This really is a missed opportunity, as HR can play a critical role to ensure that the creation and maintenance of strong links between corporate strategy and personal objectives to deliver on-going business success."

Of course many small and medium sized businesses may wish to consult HR professionals on strategy but cannot justify the salary of employing a HR professional within their business. However, consultation with HR professionals can still be possible in these circumstances by consulting companies such as Clarkslegal`s subsidiary, Forbury People Limited.

Clarkslegal, specialist Employment lawyers in London, Reading and throughout the Thames Valley.
For further information about this or any other Employment matter please contact Clarkslegal's employment team by email at by telephone 020 7539 8000 (London office), 0118 958 5321 (Reading office) or by completing the form on this page.
This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full General Notices on our website.

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