It’s time that HR became part of the overall business strategy. In 2009 an Aberdeen study found that 60% of executives believed that the current state of the economy would increase the importance their organizations placed on Human Capital Management. In a time when business results are of utmost importance, and companies are increasingly seeking efficiencies, human resources can be the difference between success and failure.
Many companies are willing to admit that their most important resource is their people, but few are willing to put this belief in practice and fully integrate their Human Resources strategy with their business strategy. Aberdeen found that 54% of Best-in-Class organizations had aligned employee goals and development activities with business priorities in 2008. This amounts to only a small percentage of all companies; however it displays that aligning the human element with business goals results in overall success.
The good news is that this is changing. The 2009 Aberdeen HR Executive’s agenda report found that 75% of executives surveyed indicated that HR had become more or significantly more strategic over a two year period.
By the same study, Aberdeen found that that economic instability and uncertainty posed by the economic downturn were their biggest pressures for best in class HR executives. In order to overcome these pressures, HR executives need to align their Human capital management priorities with the overall business goals. The study found that Best-in-Class organizations implemented programs that aligned the workforce with organizational objectives. In order to do this, they must collaborate with business managers to understand business success criteria.
HR needs to integrate with business managers in order to determine the best HR strategy in order to have the necessary resources for strong business results. This includes full time hires, and contract and temporary workers. Contract and temporary workers are often highly skilled and can be useful to an organization when specific skills are needed for a particular project, but these skills will not be needed in the long term. During difficult economic times, this is one of the most effective ways for an organization to gain the necessary skills without compromising costs.
HR is one of the most important departments in the organization, because HR provides the human capital that the business rests upon. HR needs to be integrated into the overall business strategy so that businesses can acquire the full time and contract staff that they need.
For more information about how to implement an MSP as part of your Human Resources strategy, click here or contact:Christina Fabugais
Contingent Workforce Solutions Inc.
Direct Phone: 416-642-9077
Toll Free: 1-866-837-8630 x9077