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HR grows its ‘influence’

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Most HR professionals agree that the function has become more influential over the past five years.

These are the latest findings from analysts, IRS Employment Review.

More than seven in ten respondents or 73% said that HR had grown in power.

Mark Crail IRS managing editor puts the trend down to a new direction:

“Our respondents report that HR has become increasingly influential in recent years, often because new leadership has enabled it to be taken more seriously, and because the regulatory environment has become more demanding.”

The annual Benchmarks survey also reveals the differences between HR roles in the public and private sectors.

According to their findings, public sector HR professionals have more immediate responsibilities, are more likely to take on a strategic role and land a seat on the board (63%).

The survey also reveals, however, that HR departments in this sector spend more of their time on administration that those working in the private sector.

Other findings:

  • More than half (57%) reveal that their HR budget had increased during the past five years but for just under a quarter (24%), it had decreased Almost a fifth of respondents (19%) reported that their budget had not changed.


  • Just under half (46%) expect the value of their HR budget to increase over the next five years, while 40% expect it to remain static. Just 13% of respondents expect it to fall.


  • Over two-thirds (70%) of respondents said they would expect HR managers to hold a formal qualification, while a further 24% prefer this to be the case.


  • HR has a voice at the boardroom table either through a director with sole responsibility for HR (28%), or through a director with responsibility for HR and other matters (17%).


  • Less than a third (27%) of the panel have devolved some aspects of HR work to line managers and business units over the past two years.


  • Less than two in 10 respondents (13%) had outsourced any work in the past two years, despite constant predictions that HR outsourcing is about to take off.


  • Four in 10 respondents (40%) measured the effectiveness of HR and its contribution to business success, while half (50%) did not, and 10% did not know if their organisation measured effectiveness.


  • Most manufacturers (53%) and nearly half of all private services sector companies (44%) have no documented HR strategy.

‘Typical’ HR departments employ one HR practitioner per 109 workers. The larger the organisation, however, the lower the HR: employee ratio becomes.

Reflecting on which sector offers the best opportunities, Crail concludes:

“If power and influence are important, the public sector may provide greater career opportunities.”

Responses from 128 organisations, employing 95,880 people were taken.

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Annie Hayes

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