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Only 37% of HR functions in SEA are rated “good”

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None of Southeast Asian organisations’ HR and talent programmes are rated as “excellent” this year. This low rating, combined with a widening leadership and workforce capability gap may undermine HR’s credibility in the region.

That was one of the key findings of Deloitte’s “Southeast Asia Human Capital Trends 2015: Leading in the New World of Work” report, which analysed 57 responses from companies in the region.

Despite this poor scorecard, the report noted the ratings for HR and talent programmes had actually improved in comparison to last year.

Almost four out of 10 (37%) of respondents rated HR programmes as “good” – a 4% rise from 2014.

Likewise, fewer HR programmes were reported as “underperforming” (11% in 2015 versus 13% in 2014).

More programmes were also reported as just “getting by” (23% in 2015 versus 20% in 2014).

These figures were despite the fact that were increases in HR spending in 2015,  indicating that the spending is not translating into more effective HR programmes.

“Today, business leaders are asking HR professionals to take on more strategic roles. Future spending must be focused on upskilling HR to meet the challenge and to fund strategic HR and talent programmes which will help to address business needs,” said Mark Maclean, leader of Deloitte Consulting’s HR transformation services for Southeast Asia.

“Organisations must make HR a talent magnet and invest in developing strong business and leadership skills as well as HR domain expertise.”

The report found leadership is the most important human capital challenge in Southeast Asia and has the second largest capability gap in the region.

Only 5% of Southeast Asia based respondents indicated that their organisations were “very ready” to address their leadership issues.

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