Only 35% of organizations use a high-performing HR delivery system

Dive Brief:

A new Mercer study found that only 35% of organizations globally use high-performing HR services, reports BusinessWire. The 2017 HR Transformation Study – How HR Needs to Change also found that the slowly transforming HR function is not aligned with the C-suite’s plans for more change and support. Only 17% of organizations plan to change the models they currently use.
According to Mercer, high-performing HR systems are a combination of three components: Centers of Expertise (COEs), HR Business Partners (HRBPs), and HR Shared Services (HRSS). Successful high-performing HR functions typically include effective use of all three components.
Mercer’s study also shows that organizations with high-performing HR functions use technology with significant results in evaluating and applying analytics.

Dive Insight:

Mercer’s research in HR transformation shows that organizations whose HR functions are continuously evolving, are training the HR team and investing in technology are higher performers than those who don't. This finding ought to make employers who aren't taking these steps rethink their current strategies.

An HR Certification Institute study found that even when HR strategic initiatives are successful, less than one-in-three organizations adopt them. The study's researchers concluded that many organizations still don't view HR as a strategic contributor among C-suite executives.

HR professionals, both CHROs and managers, understand the external barriers to achieving their strategic initiatives, but they also know that better knowledge of their organization's financial side and digital transformation are the ways to align their strategies with organizational goals.

Harvard Business Review recently reported that HR leaders can have more influence over the CEO than other executives in the C-suite, given that hiring talent is a high priority for organizational leaders. This influence might go a long way towards getting total C-suite support for HR strategic initiatives. HR leaders can leverage their influence to achieve their goals.