Recruitment and HR Outsourcing company, The Curve Group, has released new research showing that UK HR Directors risk neglecting long term business strategy from being so consumed with issues of talent retention and hiring.
This tallies up with ONS statistics that show UK unemployment hit an 11-year low in September, after falling by 37,000 to 1.6 million in the preceding three months.
50 leading UK HR Directors were asked about their greatest challenges and where their main focuses were in their roles.
92% of HR Directors responded that their primary focus is re-designing their organisation in response to digital disruption, new entrants and a flat economy, yet only 44% feel they are able to do so.
These grim figures could be explained by the fact that 50% reported being swamped by handling more administrative and non-strategic tasks such as recruitment and reacting to short term pressures in the organisation.
And despite that focus on talent retention and hiring, almost half of the respondents – 48% – also say they don’t have access to the Talent within their company to make the changes they need.
44% said this was not how they would ideally spend their time, and that they would prefer to be able to give more time to focusing on long term strategy, innovating and making their marks in the organisation.
This research has highlighted the rising pressure within HR departments and organisations to free-up internal resources and use smarter ways of working by investing more into talent recruitment and staff retention.
Talented staff are in higher demand, with earlier research showing that 36% of employers are unable to filled skilled positions.
This creates a battle on several fronts with HR Directors not only having to invest more time into filling vacated positions, but also needing to devote more time to reducing attrition, whilst still trying to invest time in the longer-term business strategy.
Naturally, many HR departments are starting to respond to these pressures.
We’re already seeing existing RPX2 clients maximising their investment and utilising the PI dashboards to analyse the Talent they have for the roles they need in the future, as well as an uplift in the assessment and selection of Talent externally.
The Curve Group’s research supports this smart thinking, showing 81% of organisations were either maintaining the same HR budgets in 2017, or were increasing them.
Lyndsey Simpson, Co-Owner of The Curve Group, says:
“A HR Director that is consumed by the day-to-day loses track of the long term value HR can be adding to a business. We have a shrinking, aging population, record low birth rates and by 2020, a shortage of 40m university educated workers across the western economy.
The fight to find skilled talent is only going to worsen in the coming years. For our HR Directors, improving the company culture and being a source of strategic direction to the organisation should be a priority.”
How are your team finding time to focus on long-term, strategic planning amidst the pressures within HR? Leave your comments below, we’d love to hear your thoughts.