As 2017 is underway, HR departments say they plan to continue improving company capabilities, but are doing so with stagnant or declining budgets.
A new report from The Hackett Group looks at the demands of HR departments for 2017 and the resources these groups have to accomplish those goals.
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Some of the main findings of this report show HR departments are behind in accomplishing certain tasks which would help business. Among the top issues are aligning talent strategies to the company's needs, addressing talent shortages, and enacting changes in the organization.
Another important takeaway from HR executives is they recognize digital tools are crucial to improve HR functions, but most do not think their companies will dedicate the resources to implement those tools.
The report also shows 25 percent of those surveyed expect HR staffs to increase, and 23 percent expect their staff to decrease. In terms of HR budgets, 39 percent of companies expect and increase and 29 percent expect a decrease.
Resources like staff or money are important as companies look to improve various parts of their business where HR support is crucial. One area important to businesses is adapting talent to their changing business needs, which 57 percent of organizations have major initiatives in place to address.
Other issues important to businesses don't have nearly as much support. For example, only 24 percent of organizations have plans to address talent shortages, 29 percent have plans to train new leaders, and 26 percent have a plan to improve customer service goals.
One thing most respondents agreed on is technology will greatly change their HR practices, and recognize they may need to develop new roles in HR and new skills in their departments. With this in mind, many of the HR executives interviewed say their companies aren't prioritizing this shift. Forty seven percent have a digital transformation strategy and 34 percent feel they have the resources to address these issues right now.
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