New research from tax and advisory firm KPMG LLP found a heightening skepticism among C-suite executives toward the effectiveness of the current HR function. Of the 400+ senior executives surveyed for the report, just 17 percent said HR does a good job demonstrating its own value. Only 15 percent said their HR departments offered insightful and predictive workforce analytics.
“Data analytics is quickly evolving and can provide the next quantum leap for HR,” said Paulette Welsing, a KPMG managing director. “Applying data analytics will allow HR to deliver empirical evidence to reinforce their recommendations and gain much-needed credibility at the highest levels of the business.”
“Human Resources is often relegated to a transaction-based organization lacking strategic insight and contribution,” said Claudia Saran, a KPMG principal. “HR executives must determine how to adapt their organization, including both its technology and people, to connect more explicitly with their respective companies’ business strategy.”
The survey found that more than 33 percent of respondents think data analytics and cloud-based technologies will make up most of their companies’ HR-related investments over the next two years. Almost three-quarters said that over the past two years their workforces had developed to include cross-border collaboration, 59 percent said they were going beyond their home markets to source talent, and 56 percent said that they were developing HR policies addressing a global workforce.
Other key findings include:
• 69 percent of respondents expect an increase in the number of virtual workers over the next two years.
• 49 percent reported outsourcing core business activities to external vendors over the past two years.
• Over one-third of respondents said social networking sites opened up significant new sources of talent while 41 percent said social networking made it easier for their talent to be recruited away from their company.
• 63 percent said that a key tool in competing in a global marketplace would be the development of the best talent management practices.