Study: HR function critical to talent brand and retention

SOUTHEAST ASIA: Human Resources has a measurable, positive impact on a workplace’s reputation, and having even a single point of contact with HR positively influences an employee's overall experience.

This was the result of a survey among 32,000 respondents from 25 countries including China, Singapore, Japan, India and Australia. The global study found that overall, HR interactions and the human experience have a dramatic effect on a company’s talent brand and can influence retention. When employees have a designated HR contact, they were twice as likely to value their company, and five times as likely to recommend it as a place to work, compared to those who have no direct HR contact.

Scores are generated through the lens of the employee experience and relationship with HR using the research tool, HR XPerience Score (HRXPS) - a metric to measure the impact of the HR function on a company’s reputation as an employer. It categorised the HR function as Value-Promoting, Value-Performing and Value-Detracting. These can be used as an industry benchmark of comparison to the national and global levels of a company’s HR function.

The key interactions and services provided by HR positively impact the employee experience, highlighting the importance of HR in turning employees into company ambassadors.

The more HR services used, the greater the perceived value: Employees who have experienced HR services, such as onboarding, promotion, leave of absence, performance attention, and benefits, are 11 times more likely to say HR is a valuable function.

Further, employees who have used HR services at least seven times in the past year are 7.4 times more likely to say HR is valuable.

Those who experience a formal onboarding process are 8.5 times more likely to say HR promotes value compared to those who had no formal onboarding.

Employees who receive and avail of health benefits are 3.5 times more likely to say that HR has a positive impact on their workplace experience than those without health benefits.

Employees are eight times more likely to promote their company to others if they have a positive HR experience.

Lastly, one of the key findings indicates that if an employee finds HR valuable, they are 3.7 times more likely to stay with the company.

“Our research found that the HR function is critical to the talent brand – so much that every employee interaction that takes place, the specific services used and a personalised feel with a single point of contact are what influences a higher HRXPS… this high-ranking, single point of contact upends the current industry trend of doing away with HR,” said Marcus Buckingham, head of people and performance research at the ADP Research Institute which led the study.

Sreeni Kutam, chief human resources officer of ADP added, “At the centre of driving talent, both in acquisition and retention, as well as the talent brand, sits HR. Its importance can now be measured with an industry benchmark to gauge the strength of an organisation’s HR function.”

ADP Research Institute generates data-driven discoveries about the world of work, and derive reliable economic indicators from these insights.

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