Advanced Computer Software PLC : Only 34% of managers outside HR believe HR function should be represented at board level

4 December 2012 - A survey by Advanced Business Solutions (Advanced) in partnership with SourceforConsulting (Source) reveals that only 34% of business managers that work outside the human resources (HR) function believe that it is critical to have HR representation at board level. In contrast, 73% of the HR managers surveyed regard HR at board level as critical with the remaining 27% believing that it is important. Source surveyed 100 HR, finance, IT and marketing managers from a range of mid-sized UK companies.

The survey from Advanced's 'Managing HR in a mid-sized company: thankless task or exciting opportunity?' report identifies that there is a perception gap between how managers working in HR view the strategic value of HR and the views of those working outside the function.

Simon Fowler, Managing Director of Advanced Business Solutions (Commercial Division), says, It is clear from the survey results that the strategic value of HR is not fully appreciated outside the HR function. All too often, HR is seen as an administrative role rather than one that adds real value to a business and so it is important for this perception to change if HR is to achieve its rightful place at the top table.

Grahame Russell, Managing Director of Change Associates, who was interviewed for the report, suggests that HR is often viewed as a costly expense. He states, Many senior business leaders in small to mid-sized organisations see HR as an unjustifiable overhead. Often, it takes something like preparation for an IPO or trade sale for organisations to look at broader people issues.

Rachel Ainsworth, Senior Research Manager from SourceforConsulting adds, It is bizarre that discussions and decisions around recruitment, staff development and redundancies are made at board meetings - rarely with a HR representative present. HR can bring significant strategic value to the boardroom, from identifying the staff costs associated with decision making through to explaining the people implications of forthcoming changes such as acquisitions, mergers and downsizing. This value needs to be fully appreciated by today's business leaders.