HR at HQ

July 7 2003 - Human resources practices at today's corporate headquarters are focusing on leadership and competency development, global HR, talent management, and cost reduction, according to a report just released by The Conference Board.

Also, 62 percent of the 43 companies surveyed report a shift in human resources' value equation, noting, for example, HR's movement toward becoming a strategic partner with businesses.

"Common themes emerging from corporate interviews include implementing an agenda of change under the leadership of a new corporate head of HR and creating a context of collaboration between HR@HQ and HR in the business units," says Robert J. Kramer, principal researcher at The Conference Board and author of the report. "The role of HR@HQ alternates between centralization and decentralization and reflects the overall changing context of companies due to environmental and internal forces."

The most frequent reasons underlying changes in HR& HQ are meeting customer needs, reducing costs, and improving efficiency.

Executive development, performance systems, internal consulting, and recruitment are among some of the functions being centralized as human resources and headquarters restructures.

Key challenges facing HR@HQ, according to survey participants, are improving existing computer-based and communications systems, demonstrating how HR@HQ adds value, and becoming a more visible presence within the company.

Staff functions have changed significantly since the early 1990s. Prominent examples of the shifting role of functions include the development of shared services and centers of excellence and the use of external suppliers and distributed providers. Functional heads have initiated these changes in an effort to ensure their activities demonstrate value to the enterprise and continuously elevate their level of performance and professionalism. Overall, functions are moving from a position that is now part of industrial history and repositioning themselves to meet the challenges of the present and future.

While shared services operations are included within the HR@HQ of almost two-thirds of survey participants, 47 percent of them believe their shared services operate only moderately well or poorly.

Source: Human Resources at Corporate Headquarters:
A Management Update
The Conference Board, Report #1331-03-RR
The Conference Board