40% of HR programs don’t meet the needs of the business

New technologies are transforming the way we work and upsetting the traditional principles of talent management. Confronted with this new reality, companies must transform their HR department. This is one of the findings noted by the 2015 Trends in Human Capital study conducted by the Deloitte consulting firm.

The Deloitte study is based on responses from 118 Canadian executives obtained as part of a global report which interviewed over 3,300 business leaders and HR managers from 106 countries. It focuses on the problems which Canadians businesses are facing today in human resources and the challenges they must overcome if they want to remain competitive.


Corporate culture: a key issue

Like last year, foremost among these challenges is leadership: it remains very important for 90% of executives surveyed. However, only 44% of businesses have the means necessary to meet the challenge it represents. Culture and commitment take 2nd place in the ranking, making a leap from 2014. Although these two values are cited as essential by 86% of respondents, only 33% of them believe that their organization is well equipped to provide them.

Today’s companies are aware of the major challenge corporate culture represents since it has a measurable impact on performance. However, they are struggling to train leaders in a work environment that mixes baby boomers and Generations X and Y. It is difficult for them to create a leadership model and a mobilizing culture for this new workforce. 58% of those surveyed say that their company offers leadership programs that are at least adequate for leaders of new generations and higher levels. In addition, 76% of them believe that it does not offer any leadership program suited to the needs of generation Y.

Training and development as well as workforce skills are respectively the 3rd and 5th challenges evoked by Canadian leaders. 85% of them believe their organization is relatively ready to cope with the difficulties surrounding their employee’s skills. Four respondents out of five believe that their company adequately understands their current shortcomings in this area, while 35% of Canadian companies indicate that they have a poor understanding of the future skills they will need.


A necessary overhaul of HR

The study also highlights the need for human resources to be reinvented and to transform in depth the services they provide and their method of operation. As proof, 81% of Canadian respondents deem HR overhaul to be important or very important; 77% of them believe their company is quite ready to deal with this question. This need for change is crucial since only 7% describe as excellent the performance of their HR staff; worse, nearly one third find it inadequate. Finally, close to 40% reveal that their HR department is unable to offer programs appropriate to the company’s needs.

The transformation of HR services is not only necessary but urgent. It must begin with identification of their new responsibilities. Namely: the discovery of talents which can advance and grow the business. HR services will therefore be able to dispose of ancillary responsibilities such as the many transactional activities that they have traditionally assumed. This major transformation will necessitate considerable investment, which 62% of Canadian respondents are ready to increase over the next few years.


Latest articles by

Jobs.ca network