Top 3 Barriers Influencing Performance of the Human Resources Function

March 15, 20168:18 am4976 views

A survey carried out by PwC, in collaboration with the Foundation for Human Resources Development (FHRD), has revealed what respondents chose as the top three barriers influencing the performance of their human resources function.

Respondents chose these top three barriers to their performance:

  1. Having insufficient resources within the human resources team
  2. Poor implementation of HR practices by management and
  3. A lack of analytical capability in HR staffers.

Among the other barriers cited were lack of sufficient resources and budget, poor analytics capabilities, lack of engagement by top management, little control given to local HR departments, and lack of appropriate skills in HR staff.

FHRD, a member of the European Association of Personnel Management, and PwC conducted the survey of organizations in Malta, an active member of the Eurozone. According to a press release, the survey gathered information from HR leaders from various sectors about their views on the priorities and challenges they are currently facing.

The PwC HR Pulse Survey was implemented online, and a questionnaire also was sent to a sample of HR practitioners across organizations of different sizes and sectors.

For the smaller organizations, respondents said the top barriers included problems with resources, skills, and budgets. For the larger organizations, the top barriers included the implementation of practices, getting top management on board, and a lack of analytics capability.

HR function

The survey reveals that more than three-fourths of organizations have a formal HR function, with most of the HR functions positioned at senior management level, thereby giving due strategic recognition to HR as an essential critical resource to any organization.

However, in smaller organizations, the HR function is not as well established, with more than half of organizations employing less than 50 employees having no formal HR function in place.

See: How to Bring Out “Human” in Human Resources

According to respondents, their top three priorities for the next 12 months are:

  1. Retaining key talent
  2. Creating a high-performance culture and
  3. Managing employee engagement

These results also emphasize the fact that although HR is being given more strategic recognition, it is still not enough to realize its full potential. There is a need for introduction of HR technology to help the human resources function become more efficient.

What do these results mean for human resources departments? PwC says, “The world is transforming fast; the theme is one of change led by disruptive innovation. Businesses face some pressing questions about their future talent pipelines and people-strategy fit for the digital age. New sources of skills to power tomorrow’s organizations must be found, and the way in which people work, and where they will work have to be reconceived.”

“While organizations are well aware of the extraordinary challenges ahead, there is still an enormous gulf between intention and action. HR needs to match the pace of change, and businesses need an HR function that is at the top of its game—innovative, analytical, predictive and supportive.”

Also read: Revealed, 5 Digital Challenges for Human Resources

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