But findings indicate ‘a need to explore new ways of improving HR performance outcomes’
If anyone is looking for proof about the growing importance of HR, they can find it in a recent report.
McLean & Company found that more organizations have an HR department that’s considered a partner in planning and executing strategy (about 45 per cent) compared to those that ask HR for input on planning and involve them in strategy execution (about 30 per cent).
That gap has widened from about 40 per cent and 30 per cent, respectively, in 2022, and about 35 per cent and 30 per cent, in 2021.
Also, more companies have HR involved in executing organizational strategy after it is developed (over 10 per cent) than those where HR is not involved with the organizational strategy (about one per cent).
Also encouraging: More than two in five (42 per cent) non-HR workers believe that the department will be effective in 2023 — up from 33 per cent in 2022 and 26 per cent in 2021, based on the survey of over 900 workers.
“The largest increases in perceived effectiveness are in supporting change and providing a great candidate and employee experience. However, other areas remain unchanged,” according to McLean & Company. “This suggests a need to explore new ways of improving HR performance outcomes, such as expanding HR’s strategic skill set.”
Over two in five (43 per cent) of HR professionals feel the role of HR has changed because of COVID-19, according to a previous survey.
HR’s focus for 2023
In 2023, recruiting will continue to be the top priority for HR, similar to last year, according to McLean & Company.
Other focus points include providing a great employee experience (second), developing leaders (third), controlling labour costs (fourth), enabling learning and development (fifth) and diversity, equity and inclusion (sixth).
These were essentially the same HR focus points in 2022: recruiting (first), providing a great employee experience (second), developing leaders (third), controlling labour costs (fourth), diversity, equity and inclusion (fifth) and enabling learning and development (sixth).
Canada’s severe labour shortages will continue to be a problem in the long term, according to a previous report citing declining labour force participation rates, an aging population and declining fertility rates.
Challenges facing HR
However, challenges continue to plague HR.
While about 40 per cent anticipate an HR headcount growth in 2023, the current HR to full-time employee ratio among large employers (1,001 or more workers) is 1:145. This is 1:73 among companies with 251 to 1,000 employees, and 1:50 among companies with those with 250 or fewer workers.
HR employees also report the lowest proficiency in digital literacy, data literacy, branding and marketing and design thinking, says McLean & Co.
In 2023, HR’s levels of stress and burnout will continue to be a challenge. More than a third of HR professionals report experiencing long-term impacts of sustained stress.
Thirty-four per cent of HR respondents report experiencing higher levels of job-related stress compared to one year ago, and 39 per cent report experiencing burnout.
Sixty per cent experience higher levels of stress related to their job as an HR professional today compared to three years ago, up from 50 per cent in 2021 and 41 per cent in 2020.