Finance, IT, Procurement, and other business services areas are in the midst of a growing talent crisis, and the failure of HR and business services leaders to effectively collaborate is in large part to blame, according to new research from The Hackett Group, Inc. (NASDAQ: HCKT).
According to The Hackett Group's latest HR Book of Numbers ™ research volume "Cracks in the Foundation: Closing the Critical Skills Gap Undermining Business Capabilities," business services organizations -- including finance, IT, procurement, and even HR itself -- are seeing dangerous deficits in talent and skills, and are highly dissatisfied with the level of support they receive from HR on talent issues.
In large part, this dissatisfaction is being driven by the extremely low levels of service that HR is providing, and lack of effective communication and collaboration between business services leaders and HR. The research found that business services organizations say they're getting talent management support from HR less than 35 percent of the time on average. In addition, the percentage of companies saying HR is providing a full range of services is 13 percent or less. The study looked at six key areas of talent management: workforce planning and succession; collaboration/knowledge sharing; retention; managing performance; learning and development; and recruiting and staffing.
The Hackett Group study outlines how both sides can work together to improve the situation, and address growing talent management issues being driven by increased business volatility, globalization, and insufficient investment in talent."At most companies, business services functions were badly weakened by across-the-board cuts during the recent recession," said The Hackett Group Global HR Practice Leader Harry Osle. "Underinvestment in talent has created deficits in important skills such as business acumen, strategic thinking and analysis, change management, and process improvement capabilities. Yet companies seem to be almost completely ineffective at addressing this talent challenge, in large part because HR and business services leaders are not collaborating. This is a dangerous situation with the potential to cripple companies that don't address it quickly. While these business services functions are often considered cost-centers, they provide key services that enable companies to manage and optimize assets ranging from cash, capital and talent to technology and product/service inputs."