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Most CEOs see HR as 'least strategically important' function

A high proportion of CEOs and board-level executives see HR as adding less strategic value than any other major function, according to DDI general manager Simon Mitchell.

Mitchell was commenting on the DDI Global Leadership Forecast. The report is based on a survey of more than 13,000 global leaders and 1,500 HR executives.

It suggests that the majority (60%) of HR leaders see their departments as "partners" with the business. This is defined as exchanging information with the company about current issues. Almost one-quarter (22%) define themselves as "reactors" – ensuring compliance and responding to the needs of the business.

Only 18% of HR professionals see themselves as "anticipators". This involves using data effectively to anticipate talent challenges within the business and providing insight into the way talent relates to business goals.

The paper suggests that companies are more likely to see anticipators as involved in their strategic planning process. Almost half (43%) see them as such, compared to 26% of partners and just 5% of reactors.

Mitchell told HR magazine the business sometimes sees HR "focusing on the wrong things" in their day-to-day activities.

"From talking to a large number of board-level business people and CEOs I've seen that many see HR as the least strategically important department," he said. "The two parties can sometimes be pulling in opposite directions. HR needs to spend less time in its own environment and get closer to the business, looking at what it wants and spending more time together."

Mitchell added that HR departments need to become more "sophisticated" in the way they develop and monitor projects such as talent programmes to better demonstrate their value.

"With all these things it's about starting with the business need and working backwards," he said. "This is the best way to demonstrate return on investment and the ways you are adding value to the business."