Human resource functions are increasing by taking on a strategic role in regional businesses, according to professional services firm, Ernst & Young.
That is the conclusion of the latest Middle East Human Capital Survey 2008 carried out by the firm, said a report in our sister publication, the Gulf Daily News.
The survey polled 170 chief executive officers and human resources leaders from private-sector organisations in 10 countries across the region.
An encouraging 55 per cent of respondents indicated that human resources is more involved in strategy development and effective people management in their organisations. Last year, only 35 per cent of respondents agreed that human resources is a strategic partner to business.
"The Middle East Human Capital Survey allows regional organisations to compare their practices and identify areas of improvement. As we continue to accelerate towards greater economic growth, it is becoming even more explicit that an organisation's people make all the difference," said Ernst & Young Middle East managing partner, advisory services, Omar Bitar.
"To maintain competitive advantage, businesses need to invest in people and adopt strategies, policies and practices oriented towards the development of human capital," he said.
When it comes to compensation and benefits, the survey findings showed that up to 40 per cent of respondents believe that their compensation levels are not at par with market levels. A total of 33 per cent of respondents in the UAE and 26 per cent in Saudi Arabia indicated that their organisations do not consider performance as a critical criterion for variable pay.
The survey highlighted greater involvement from senior management in leadership development, with 67 per cent of respondents saying so.
However, more than half the respondents agreed that they did not have a proper succession plan for creating an effective leadership pipeline.
Findings also show that up to 41 per cent of respondents believe their organisations do not formally link performance development plans with performance assessments and 73 per cent of them say that 360 degree feedback is not used as a developmental tool.
Organisations in the Middle East have started to see real value in identifying and developing leadership, but there is clearly still room for improvement.
Evidently, almost half of the respondents in Kuwait, Saudi Arabia and the UAE agreed that they do not have a well defined training and development policy or special programs for the development of nationals.
"The changes in work life and job opportunities are among the most visible aspects of globalisation and are creating new challenges for human capital professionals around the world," Omar added.
"To stay ahead in the war for talent, businesses need to place more emphasis on training and retention which leads to intrinsic growth in the role and value of its people. This is particularly relevant for the development of national talent." - TradeArabia News Service