HR Professionals are Building Strategic HCM Capability Required To Drive Business
Interesting data from the respondents of ICE Cube that measures Capability and Effectiveness of people practices on our “Pentagon Model”.
The inputs by HR leaders across 10 countries on a 3 point scale ( 3 being the highest) reveals that organizations as well as individuals are investing in building their functional capability and expertise to enhance their performance aligned to business. Although there is a big head room to improve further, good progress is made over the years in recognizing the value of HR function and the contributions being made.
The respondents have evaluated the proficiency of HR on the “Capability Index” as follows:
a) Strong business acumen to drive productivity and efficiencies
b) Strategic thinking to align Human Capital capability to business strategy
c) Solutions to key People challenges impacting the Business
d) Re-design of organization structure to meet business needs
e) Consistently cascade HR policies, processes and practices
f) Lead change management interventions
g) Drive employee engagement initiatives
h) Influence business to take responsibility for key People processes
i) Be an Employee & business champion
j) Expert practitioner to advice leaders and managers
k) Lead by example in collaboration and team work
l) Strong Relationship skills to be a mentor and a coach
m) Expertise in M& A to integrate and enable desired benefits & growth
n) Create and embed best HR practices towards building an Employer Brand
o) Expertise to drive a HR Target Delivery model aligned to business
From the charts above, a few inferences emerged on the proficiency of professionals in HR:
- HR professionals in Germany are considered most evolved in capability and producing effective results. It is followed by Singapore
- Australia considers moderate capability of HR professionals however they are most effective for their businesses
- India has moderate capability and seem to produce effective results- need to invest further
- UK and USA feel that their HR professionals can do better in enhancing their functional capability although they are doing pretty well in their alignment and contributions to business performance
- Hong Kong and France claim that they could do better with the capability of their HR professionals, however they seem to be delighted with the effective results these professionals are generating for their businesses. These two can invest further in enhancing HR capability.
- Chemical/ Petro chemical industries seem to have invested consistently well to build capability of their HR professionals. They seem to be attracting, retaining and developing good talent.
- It is followed by FMCG, consumer durables, Health care industries. Again they are attracting top talent to build and sustain their capability.
- Auto, telecom and Retail seem to have at best moderate capability.
- BFSI is at moderate capability and being effective. Banks pay amongst the highest for HR professionals and one would assume that they attract the best talent and invest in sustaining their capability. Are they?
In summary, there is a firm step forward. It is a great sign for the value that HR professionals are bringing to the table over the years. Some great professional leaders across different countries have contributed to the maturity of the profession. Thought leaders, CEOs, entrepreneurs and business leaders have emerged from the HR fraternity. The parameters on which they rate themselves comes from the research and experience of ICube practitioners. Surely, this is the right direction for HR!
Views expressed here are based on the research of ICube from its world’s first automated people strategy tool that measures capability and effectiveness of people practices on 20 practice areas. Organizations gain immensely in discovering their people priorities in a short span of time and accelerate solution building. ICE Cube is a web-enabled HCM assessment tool that can be leveraged by all leaders and managers across industries. It deepens knowledge and awareness on each of the practice area and provides solutions.
Visit us at www.icubeconsortium.com to learn more, try a freemium of the tool for a customized report as well as watch the 2 minute video on the tool. We will be delighted to be support organizations on how they can leverage their HCM capability to multiply business performance.
About the Author
Chandru Pingali is the Founder and CEO of ICube Consortium, Singapore