The function of the human resources (HR) department in a company
is transforming globally from providing service support to becoming
a strategic partner, while recognition of the need for a change in
approach is growing in China.
According to a recent survey by Mercer Human Resources
Consulting, 69 percent of 129 Chinese corporate respondents said
that HR transformation was underway or planned in their
enterprises.
But the percentage of companies that have no plan for HR
transformation was 31 percent, showing the need has been identified
by most respondents, yet one-third have not recognized
it.?
HR transformation is the process of recreating the function of
HR to enhance its contribution to a business.
Business' human resources departments were long seen mostly as a
cost, yet more and more global corporations now realize that HR is
a source of value. From Mercer's survey, about 53 percent of
Chinese company leaders surveyed view HR as a mix of cost and
value.
Only 28 percent regarded HR as a source of value, "which may
indicates that HR functions in Chinese enterprises should keep
improving effectiveness by providing real value-added services
according to their organizations' needs," said Cindy Yi, a senior
consultant of Mercer HR Consulting China.
When were asked whether HR is a strategic partner in China, a
total of 63 percent respondents answered "yes", while about 25
percent thought HR has decision-making power.
The results also revealed that over 50 percent thought HR should
spend less time on administrative tasks and more on strategic
activities.
Attracting top talent and succession planning appear to be key
functions in which HR has a strategic impact.
Skill improvement of HR talent, redesign of work processes and
evaluation and implementation of new technology will promote the
transformation in China.
The report showed that 69 percent of HR leaders of participating
companies said that business executives and board members are
addressing right issues about employees and are planning to
implement talent development strategies in the next 12 months.
"HR transformation has become a trend and the opportunities are
turning up in every direction," Yi said. "However, there are also
barriers that make it less easy to realize strategic HR in
China."
According to the study, the three biggest barriers were found to
be HR functional leadership, business perception of HR value and
skills and competency of HR staff.
From the perspective of human resources departments themselves,
whether HR is seen as a strategic department critical to HR
effectiveness, and whether it focuses on administrative work or on
strategic discussions is very important to its effectiveness.
"If we want to make an effective HR department, we should make
it a strategic partner and if we have a strategic HR, it is easier
to be effective," Yi added.
(China Daily July 6, 2007)
