- Only 34% of managers outside HR believe HR function should be represented at board level
- Survey by Advanced and SourceforConsulting reveals that strategic value of HR is valued little outside HR function
4 December 2012 – A survey by Advanced Business Solutions (Advanced) in partnership with SourceforConsulting (Source) reveals that only 34% of business managers that work outside the human resources (HR) function believe that it is critical to have HR representation at board level. In contrast, 73% of the HR managers surveyed regard HR at board level as critical with the remaining 27% believing that it is important. Source surveyed 100 HR, finance, IT and marketing managers from a range of mid-sized UK companies.
The survey from Advanced’s ‘Managing HR in a mid-sized company: thankless task or exciting opportunity?’ report identifies that there is a perception gap between how managers working in HR view the strategic value of HR and the views of those working outside the function.
Simon Fowler, Managing Director of Advanced Business Solutions (Commercial Division), says, “It is clear from the survey results that the strategic value of HR is not fully appreciated outside the HR function. All too often, HR is seen as an administrative role rather than one that adds real value to a business and so it is important for this perception to change if HR is to achieve its rightful place at the top table.”
Grahame Russell, Managing Director of Change Associates, who was interviewed for the report, suggests that HR is often viewed as a costly expense. He states, “Many senior business leaders in small to mid-sized organisations see HR as an unjustifiable overhead. Often, it takes something like preparation for an IPO or trade sale for organisations to look at broader people issues.”
Rachel Ainsworth, Senior Research Manager from SourceforConsulting adds, “It is bizarre that discussions and decisions around recruitment, staff development and redundancies are made at board meetings – rarely with a HR representative present. HR can bring significant strategic value to the boardroom, from identifying the staff costs associated with decision making through to explaining the people implications of forthcoming changes such as acquisitions, mergers and downsizing. This value needs to be fully appreciated by today’s business leaders.”
Notes to Editor
To receive a copy of the research report ‘Managing HR in a mid-sized company: thankless task or exciting opportunity?’ please email firstname.lastname@example.org
Sourceforconsulting.com is a leading provider of information about the market for management consulting. Set up in 2007 and based in London, Source serves both consulting firms and their clients with expert analysis, research and reporting. We draw not only on our extensive in-house experience, but also on the breadth of our relationships with both suppliers and buyers. All of our work is underpinned by our core values of intelligence, integrity, efficiency and transparency.
Sourceforconsulting.com is owned by Source Information Services Ltd, an independent company, which was founded by Fiona Czerniawska and Joy Burnford. Fiona is one of the world's leading experts on the consulting industry. She has written numerous books on the industry including: The Intelligent Client and The Economist books, Business Consulting: A Guide to How it Works and How to Make it Work and Buying Professional Services. Joy Burnford was Marketing and Operations Director at the UK Management Consultancies Association between 2003 and 2010, and prior to that worked for PA Consulting Group and has extensive experience of marketing consulting services.
About Advanced Business Solutions www.advancedcomputersoftware.com/abs
Advanced Business Solutions (Advanced) provides leading integrated business applications and services that enable public, private and third sector organisations to retain control, improve visibility and gain efficiencies whilst continually improving corporate performance. Advanced prides itself on getting close to its customers by understanding their businesses and responding to their evolving needs.
Advanced’s software systems comprise core accounting/financial management, procurement, human resource and payroll systems, integrated with a range of collaborative, document management and business intelligence solutions to extend the value and effectiveness of the finance, human resource and payroll departments. These can be delivered as a managed or bureau service.
Customers are from both the public and private sectors and include Companies House, Newcastle City Council, WH Smith, Royal Bank of Scotland, Aer Lingus, National Express Group, DFS, RSPB and Great Ormond Street Hospital for Children NHS Trust.
Advanced Business Solutions is a division of Advanced Computer Software Group plc, a leading supplier of software and IT services to the health, care and business services sectors.
Liz Ebbrell and Angela Mycock
Advanced Computer Software Group