Directors slow to recognize the importance of good human resource practice

Citation

(1999), "Directors slow to recognize the importance of good human resource practice", Leadership & Organization Development Journal, Vol. 20 No. 7. https://doi.org/10.1108/lodj.1999.02220gab.002

Directors slow to recognize the importance of good human resource practice

Directors slow to recognize the importance of good human resource practice

Keywords: Directors, Human resource management, Commitment

A recent survey conducted by the Institute of Directors (IOD) and Development Dimensions International (DDI) highlights that despite a recognition that FIR is increasingly important, there is still a worrying lack of UK company board commitment to some of the more basic and essential human resource problems.

The survey was conducted among human resource (HR) directors in 1,000 companies, 80 per cent of which employ 1,000-plus staff. Completed questionnaires were received from 230 respondents.

Many more organizations appear to have HR representation at board level than last year - 72 per cent compared with 55 per cent in 1998. Moreover, of the HR directors surveyed, 81 per cent thought that their influence has increased. Almost half had a business qualification (48 per cent) and 46 per cent have spent some of their career outside the HR function.

However, some of the other key findings show that, in many cases, good HR practice is not actually being followed:

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  Only 31.4 per cent calculate the cost of staff turnover.

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  20.5 per cent do not believe that their workforce gives their company a competitive edge.

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  50 per cent would not retire between 61-100 per cent of their staff again - given the choice.

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  Almost 50 per cent do not have a formal succession planning strategy.

Organizational culture and problems with communication were identified as the biggest barriers to change. In the context of the FIR role "a lack of business or strategic focus" was considered to be a serious weakness in their ability to influence senior management colleagues.

A copy of the report, The National Human Resources Directors Survey 1999 is available from: Jean-Michel Beeching at Development Dimensions International. Tel: +44 (0)1628 642718.