A report from Talent Q shows 82% of HR staff do not measure the return on investment of their practices - which is why they struggle to be seen to provide value to their organisations.

Emma Bothwell, HR director of catering firm Thomas Franks, said: "It is a tough environment and in a sector where margins are rarely more than single digit, HR needs to add value - and then be able to prove it.

"Many companies talk about people being their most valuable asset, but we would argue if that is really the case they should be measuring it."

And Alan Bourne, director of Talent Q, added: "Organisations should have a much clearer understanding of the return gained through their investment in people. This must include accurately assessing external and internal talent to select and promote the best people.

"A wealth of empirical data shows progressive HR practice achieves higher retention, productivity and business performance. With costs coming under a high level of scrutiny, it is incumbent on HR practitioners to demonstrate their worth."