CIPD research highlights the changing face of HR

CIPD Annual Conference and Exhibition, 18-20 September 2007, Harrogate International Centre

Fifty-three per cent of organisations have restructured their HR function in the last year and over 80% have done so in the last five years. The most common reason for this is to enable the HR function to become more strategic, according to new research from The Chartered Institute of Personnel and Development (CIPD) and the Institute of Employment Studies (IES).

However, the biggest challenges that HR departments face, in their bid to become more strategic include developing the necessary skills, roles and capabilities. The report is based on a survey of nearly 800 senior HR professionals. The majority of respondents say that the most common difficulties encountered in restructuring the HR function are in defining roles (42%), having insufficient resources (40%), dealing with skills gaps (38%) and having ineffective technology (35%).

Vanessa Robinson, CIPD Organisation and Resourcing Adviser, says: ìStructural change has been driven largely by a desire to make HR a more strategic contributor to business success. There has been a drive to make it more business-orientated, more accountable and to demonstrate value for money.

ìOne major obstacle preventing progress rests with the balance between what are and should be HR and line manager responsibilities for people management and development. Three- quarters of HR professionals would like to go further in the transfer of people management responsibilities to the line.î

The HR function has over the last three years, doubled the proportion of time it spends on strategic inputs. However, providing support to line managers and HR administration remain their most time-consuming tasks.

The survey findings will be launched in a report The Changing HR Function at this yearís CIPD Annual Conference and Exhibition. These survey findings are being launched in advance of the more comprehensive final report, which will pull together all of the findings from the research report including case study findings. The Changing HR Function: Transforming HR will be launched in October.

One aspect the the research has tested has been the impact of the Ulrich model of HR roles and structures on business performance and HR effectiveness.

Three out of ten respondents whose HR function has been restructured say that it now reflects the three-legged ëUlrich Modelí

A further 28% say that this is partially true.

Only 18% of HR functions actually had in place all three elements of this model (shared services, business partners and centres of expertise).

Fifty-seven per cent of organisations have introduced some form of ëUlrich Modelí

38% have introduced business partners.

Vanessa Robinson, CIPD Organisation and Resourcing Adviser says: ìTodayís HR departments are often judged on their success in meeting business targets, improving efficiency, performance and reducing costs. Changes in the HR function have created a huge shift in the way it delivers services and in its relationship with the rest of the organisation in order to increase business focus.

ìThough Ulrichís model remains an important and influential reference point for HR professionals, our research shows that in practice, those seeking to change their HR functions to meet current business needs are evolving and adapting the model to suit their specific needs. Organisations need to move beyond structural change and develop the skills and roles required to transform the HR function.

On 19 September Peter Reilly, Director HR Research and Consultancy, Institute for Employment Studies will reveal the results of the research in detail at Harrogate and will ask Maureen Robertson, Principal Consultant and Roger Leek, Group HR Director, Fujitsu Services and Sharon Ellerker, HR Leader, EMEA, Nortel about their biggest challenges in changing their HR function, where they see HRís focus going forward and their vision for the future.

The CIPD Annual Conference will take place from Tuesday 18 September to Thursday 20 September in Harrogate, North Yorkshire, with a pre-conference day, on Monday 17 September, to discuss whatís new in employment law.