Strategic Functions Increase for HR in Organizations

For Immediate Release

Oct 17, 2006

Survey Finds HR Adding Strategic Planning Role to Help Bottom Line

(Alexandria, Va., October 17, 2006) More than one-half of human resource (HR) professionals report that strategic planning is part of their function, according to the 2006 Strategic HR Management Survey released today by the Society for Human Resource Management (SHRM). The survey reveals a transition from administrative functions to strategic planning role.

In addition to traditional organizational tasks such as employee relations, recruitment and selection processes, benefits and compensation management, responses from the 427 HR professionals at manager and executive levels surveyed state that HR departments can also contribute at the strategic level.

"In today's changing and competitive market, organizations are realizing that strategic HR functions can contribute to the bottom line and further distinguish the organization from its competitors," said SHRM President and CEO Susan Meisinger, SPHR.

HR professionals reported that HR departments to a large extent can strategically contribute to organizations through such efforts as retention programs (75 percent), work/life programs (70 percent), succession planning (69 percent), and health, safety and security programs (65 percent). Through such functions, HR departments can enable organizations to respond to such workplace issues as rising health care costs, increased demand for work/life balance and the retirement of large numbers of baby boomers.

While advances are evident, HR still faces barriers that can limit its effectiveness to influence the organization's success. More than 80 percent of the respondents felt that their department's focus on administrative duties rather than on strategy, limiting their ability to contribute at the strategic level.

The complete 2006 Strategic HR Management Survey is available to SHRM members online for free at . Non-members may purchase a survey by calling the SHRM Store at 1-800-444-5006.


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