Logica research reveals HR departments lack tools to respond to potential economic upturn

• New research commissioned by Logica reveals 70% of HR directors questioned feel a lack of clear HR data leads to skills gaps in their business
• Over a third of HR departments believe their HR system is not adequate to support business change in response to the potential economic upturn
• Almost half of HR directors are unable to provide strategic data back to the business

Research commissioned by Logica, the leading IT and business services company, into the ability of HR departments to provide strategic information back to the business has found that UK companies are ill-prepared for the potential economic upturn due to a lack of data on current and future employee requirements.

The survey of HR directors has highlighted that almost a third of respondents (27%) were concerned that they did not have the appropriate plans to deal with a recovery in the economy. The research also revealed that an alarming 70% of businesses have suffered skills shortages in areas of the organisation due to a lack of foresight. The absence of usable human capital management (HCM) data means that HR leaders are unable to implement the necessary plans to meet future business requirements.

Reactive HR functions
Data released in early September by the National Institute for Economic and Social Research suggested that in the previous three months GDP had been positive and the same is expected in the next quarter. With the green shoots of recovery becoming more apparent it will be crucial for the HR function to put in place a strategy to ensure that skill requirements can be met and the business can take advantage of the improving economic situation.

Despite the fact that nationally unemployment continues to rise, the surplus in supply for certain roles and skills is not being met with the necessary planning, phasing and profiling of the rate of demand for recruitment during an upturn. This may lead to organisations recruiting reactively and in phases, leading to inefficiency and waste, rather than in a gradual and strategic manner.

Business insight – the missing link
“As we move out of the recession there will be a significant competitive advantage for those companies where HR professionals take the opportunity to become strategic business leaders,” explained Patricia Taylor, Global HRS and UK BPO Director. “Key to this transformation will be the ability to utilise the data already available within the organisation to make calculated decisions. Too frequently we have found that this sophisticated HR intelligence has proven to be the missing link that has held back HR leaders from playing business planning roles within the organisation. Access to the data is in itself not enough – HR professionals must understand how to act upon this information in order to enable the business to perform and grow.”

Unfortunately, the research showed that more than 40% of HR departments are currently unable to provide strategic data back to the business, a concern which was also identified during focus groups at the recent Human Capital Forum event hosted by Logica. While most companies have software packages designed to collect HR information, the vast majority do not have the skill sets or functionality to interpret the data. Without this knowledge they are struggling to change the focus on HR as purely an administrative function (a view held by 47% of those surveyed), and towards being viewed as a strategic partner that aligns its services to the core business objectives.

Logica also found that more than 40% of the interviewees had little or no data available to forecast accurate personnel talent requirements in the next six months. This figure correlated closely with the 35% of respondents who were not confident that they had the appropriate HR software or personnel in place to deal with an upturn.

HR adding strategic value
One of the more encouraging findings to come out of the research was that more than half of respondents (56%) believe that HR is aligned to core business objectives. This insight suggests that HR is increasingly looking to add more strategic value to the organisation, and accelerate its capability to drive positive changes.

Commenting on the research findings, Taylor said, “Most business leaders see talent as a top priority and have rightly moved far beyond thinking that good business performance directly corresponds with good talent management. Logica is ready to assist our customers by providing strategic information back to the organisation through the proper use of data to ensure the right decisions are taken.”

A report by the Human Capital Forum in association with Logica.

About Logica
Logica is a leading IT and business services company, employing 40,000 people. It provides business consulting, systems integration, and IT and business process outsourcing services. Logica works closely with its customers to release their potential - enabling change that increases their efficiency, accelerates growth and manages risk. It applies its deep industry knowledge, technical excellence and global delivery expertise to help its customers build leadership positions in their markets. Logica is listed on both the London Stock Exchange and Euronext (Amsterdam) (LSE: LOG; Euronext: LOG). More information is available at www.logica.com.

Press contacts:

Rima Awad
Head of PR and Media Relations, Logica
Email: rima.awad@logica.com
Tel: 07799 477 158

Liam Jacklin
Bite Communications
Email: liam.jacklin@bitepr.com
Tel: 07709 304 115