It’s often said that people are an organisations greatest asset, and a new study has found a link between more HR interactions and business growth.
New figures show that high-growth organisations have a high frequency of interactions between HR and line managers, suggesting that more regular conversations can lead to faster and better workforce decisions. In a study by IDC, sponsored by Cornerstone OnDemand, the average number of meetings between HR and line managers about recruitment is 21 per year for high growth-organisations, compared to 15 for other organisations.
More regular performance review discussions
High growth organisations also have more regular meetings for performance review discussions (14 meetings per year on average compared to six in other organisations) and training (eight versus six).
Christine Chenneour, HR and Talent Director, Cornerstone OnDemand, said:
“Many grumble about too many meetings, or meetings being unproductive, but our findings shows a correlation between a higher frequency of meetings and higher-growth organisations. For HR to be strategic, the key is to have meetings and give ‘air-time’ to subjects that matter to business success – and matters concerning the workforce are instrumental in that. The higher number of interactions means there is better understanding and collaboration between HR and managers – leading to better hires, more motivated employees, and retention of talent.”
Better alignment between HR and IT
The data also showed that high-growth organisations had better alignment between HR and IT. Among high growth organisations (growing by 11% or more per annum), 67% of respondents agree HR and IT are well aligned. Conversely, among respondents from organisations growing at less than 11% per annum, this number falls to 58% agreeing HR and IT are aligned. In response, IDC conclude that HR understands the needs and skill requirements of IT, whilst IT can support HR better when it comes to new technology and collaboration systems.
In this year’s study, Future Business: Unleashing Your Talent, IDC interviewed 1,469 HR professionals and line of business managers across 14 European countries working in organisations with more than 500 employees. The study follows 2016’s Future People: Workplace Evolution in the Age of Digital Transformation. Supporting this year’s finding, the 2016 survey found that companies with higher growth rates have a higher percentage of collaborative practices. Companies where employees were encouraged to work together sat within the 64% higher portion of high-growth organisations.