Realigning the HR function to manage talent

Although McKinsey surveys show that business leaders around the world are deeply concerned about the intensifying competition for talent, few companies make it an integral part of a long-term business strategy, and many even try to raise their short-term earnings by cutting talent-development expenditures. Other factors compound the difficulties of recruiting enough appropriate talent: minimal collaboration and talent sharing among business units, ineffective line management, and confusion about the role of HR, not to mention challenges such as Generation Y employees seeking greater work/life balance, expansion into global markets, and the specific needs of the fast-growing category of knowledge workers.

The exhibit below focuses on another problem: the declining influence of the human-resources function. Yet only HR can translate a company’s business strategy into a detailed talent strategy. HR professionals should assert their influence and provide credible and proactive business counsel and support for individual business units.

 
To find out more about how companies can bolster the HR function and successfully recruit and manage employees, read “Making talent a strategic priority” (January 2008).