In a survey of 50 UK CEOs, 90% said a proportion of their key performance indicators (KPIs) are HR-related, compared with only 37.75% two years ago, in a survey of 200 UK companies carried out by the group in 2002.
In today's research, conducted by Vanson Bourne, 63% of the HR-specific KPIs were related to training and development, with headcount and retention and staff turnover equal second (59%), and performance management third (52%). The previous research showed that two years ago, the main concerns were absence, staff turnover and staff productivity. This indicates a change of focus for HR departments, moving away from number-crunching matters towards more strategic issues concerned with empowering the work force, such as training and development.
"The tide is turning for HR in UK businesses," said Sonia Warnes, business integration manager at Northgate Information Solutions. "As time passes, more and more companies are realising the strategic importance of human resources as a business function central to the successful running of the company, rather than seeing personnel departments as administrative centres."
There has also been a rise in the number of companies with formally identified KPIs over the two year period, which supports the trends observed throughout the research, indicating that HR is climbing the list of priorities for UK CEOs. Previous research from Northgate Information Solutions indicates that HR is valued highly, with 43% of companies surveyed saying that HR was the third most important role on the board, after finance and operations.
Northgate Information Solutions commissioned Vanson Bourne to survey 50 CEOs and 250 HR directors from UK companies with 200-7000 employees in January 2004. The previous research surveyed 200 companies in January/February 2002.
