EMPLOYEE CONTACT US WORKSITE
SALES: 1.858.300.2757 MAIN: 1.858.715.5100

IES Blog

Where does HR fit in the business model?

Posted on December 31st, 2012 Read time: 1 minutes

While some executives highly value the role of human resources professionals in the firm, others see it as a set of automated tasks that can easily be outsourced to third-party providers. As a result, many companies are partnering with outsourcing firms to take care of payroll, benefits and recruitment duties without stealing away employees from other projects.

A recent study from SourceforConsulting found 34 percent of managers outside of human resources believe the department's function should be represented at the board level. Seventy-three percent of human resources managers, on the other hand, regard HR departments at the board level as a critical component to a successful business model.

"It is clear that 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," said Simon Fowler, managing director of Advanced Business Solutions.

By outsourcing the administrative aspects of an HR department, human resources managers will be able to demonstrate the more critical components to their job that make them a key player in business strategizing. Third-party providers can cover the daily tasks of HR departments, while managers and in-house professionals can tackle more pressing projects that affect all departments.

Related Articles