Are HR Departments to Blame for a 'Talent Crisis'? Yes, says study

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Human resources departments aren?t providing their companies enough support for employees, talent recruitment, learning and development, and succession planning ? according to a study by a global strategic-consulting firm.

The study by The Hackett Group is entitled, ??Cracks in the Foundation: Closing the Critical Skills Gap Undermining Business Capabilities.? Its 2012 study concludes that finance, information technology, procurement and HR are all suffering from a shortfall in skills and talent.

The research included six functions:

1. Workforce planning and succession
2. Collaboration/knowledge sharing
3. Retention
4. Managing performance
5. Learning and development
6. Recruiting and staffing

Management complained, on average, that HR is only providing ?talent-management support? less than 35 percent of the time.

Another complaint: HR departments only deliver a comprehensive level of needed service less than 35 percent of the time.

The Hackett Group?s research echoes other 2012 studies:

?At most companies, business services functions were badly weakened by across-the-board cuts during the recent recession,? said The Hackett Group Global HR Practice Leader Harry Osle. ?Underinvestment in talent has created deficits in important skills such as business acumen, strategic thinking and analysis, change management, and process improvement capabilities.?

He also said management and HR aren?t collaborating.

?This is a dangerous situation with the potential to cripple companies that don?t address it quickly,? he added. ?While these business services functions are often considered cost-centers, they provide key services that enable companies to manage and optimize assets ranging from cash, capital and talent to technology and product/service inputs.?

There?s additional management dissatisfaction most of the time with HR:

• Talent management service ? ?nearly 70 percent of the time
• Collaboration and knowledge sharing ? dissatisfied or very dissatisfied ? 79 percent
• Retention ? dissatisfied or very dissatisfied ? 70 percent

Eighteen percent o f the companies said HR delivered adequate proficiency in collaboration and knowledge sharing.

The bright spot: Thirty-three to 47 percent of companies expressed satisfaction in the level of HR services in workforce planning, performance

?Today?s changing business environment requires that business services organizations retool and radically change their mix of staff to improve their ability to directly impact on business performance,? said The Hackett Group Chief Research Officer Michel Janssen. ?Talent management is key, and business services can?t accomplish this without strong and effective support from HR.?

He did say management and HR must work harder to improvement their communication.

?Business services managers must take the lead in specifying their needs, and taking accountability for results for talent management,? he added. ?HR must provide comprehensive process and administrative support, methods and tools, training and guidance to function leaders.?

The study made more recommendations:

• Business services must do a better job of defining and prioritizing the skills and characteristics that are truly essential for job candidates to have.
• HR can also rely less heavily on external labor markets, and develop staff, as well as examine alternative approaches to recruiting, such as hiring less-experienced staff with development potential and permission-based recruiting.
• ?Candidate relationship management is also a powerful emerging strategy for handling company interactions with applicants, candidates and current employees.

My sense: In view of The Hackett Group research, and the other two studies, it?s obvious that many HR professionals need training in process improvement, communication and leadership.

From the Coach?s Corner, here is recommended reading:

Link between Financial Performance and Succession Planning

How You Can Eliminate Destructive Conflict for Better Teamwork

Human Resources: How to Fine-Tune Management of your Staff

How Not to Worry about Keeping Your Top Employees

?Management is efficiency in climbing the ladder of success; leadership determines whether the ladder is leaning against the right wall.??

-Stephen Covey

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Terry Corbell is also a business-performance consultant and profit professional. Click here to see his management services (many are available online). For a complimentary chat about your business situation or to schedule Terry Corbell as a speaker, why don?t you contact him today?

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Source: http://www.bizcoachinfo.com/archives/11121

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