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HR recruitment specialists hit back at little impact' claims

Permanent Solutions Direct, the Copthorne, Gatwick-based recruitment consultancy specialising in human resources jobs, has hit back at “unfair and untrue” claims that HR has little impact on company profits.

 Lisa Jarvis, managing director of Permanent Solutions Direct, has responded to recent coverage of the appearance of top BBC bosses, including human resources director Lucy Adams, before a Commons Select Committee to justify senior executive salaries and pay-offs.

Some commentators took the opportunity to trash HR in general and Lucy Adams specifically. A particularly excoriating online article claimed: “Adams has managed to confirm our suspicions about HR all along: it is a pointless department that does little for the bottom line of a business”.

And that, says Lisa Jarvis, managing director of Permanent Solutions Direct and a board director of the Recruitment and Employment Confederation (REC), is both unfair and untrue.

 “Companies rely on HR to deliver results which impact directly on profits”, she stated, citing three examples

1.       Ensuring a proper match between vacancy and applicant: how many companies have hired an expensive senior executive without HR input, and found they have made a costly mistake?

2.       Protecting corporate reputation: the media is regularly filled with stories of employment tribunal hearings into unfair dismissal claims. Regardless of the outcome (and normally the company concerned is found culpable) mud sticks. And with it, customer perceptions about integrity and resultant loss of business.

3.       Attracting and keeping the brightest talent, particularly young people, who are now more likely to hop from job to job. Organisations with a highly qualified and loyal workforce will always deliver a better bottom line. 

Gill Whensley, HR director of Sussex-based chartered accountants Spofforths, commented, “HR professionals can provide insights and influence strategic changes that will ultimately contribute to the bottom line.

"They need to be able to & lsquo;get under the skin’ of the business, so that they understand all its facets, and know what interventions will impact on the business to make a difference&hellip.effective HR people should be courageous and curious to ask the right questions and thus influence the decisions of the senior leadership team.”

 Jarvis added, “I have just found an HR director for a major client whose business is growing rapidly, and who recognises that talent management and a proper understanding of current employment legislation are every bit as important as sales, marketing, production and other Board level posts”.

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