In a recent survey by workplace ratings company ViewsHub, 50,000 employees across 11 different sectors found that tech companies rated HR as being the least effective in their business.

On a score out of 5, HR departments in tech companies finished bottom of the 11 sectors, with an average effectiveness rating of 2.66, well below the average of 3.45.

HR departments in Travel came top with 4.20, with food coming second with an average score of 3.70, and large companies with a market capital of more than $10bn rounded out the top three with 3.63.

The holy trinity

The effectiveness of each sector’s HR department was calculated on three criteria:

  • Their ability to get things done
  • How technically good they are at their jobs; and
  • How responsive they are to other teams

The CEO of ViewsHub, Ab Banerjee, said:

“It’s time for more managers to know what their employees think. We started collecting this data years ago. HR departments at tech companies have lagged behind other industries throughout that time.

“If managers had been looking at this data, it would have been an early warning sign. They would have had the information they needed to have acted. It is essential that managers and leadership teams have access to this type of feedback data for their organisations.

“HR departments might say they feel sidelined by tech firms. But they also have to take responsibility for this data, and act accordingly. This data shows that one of the places where HR departments fell down was responsiveness. For whatever reason, employees have developed the perception that human resources departments aren’t responding to their concerns; they weren’t responsive enough. HR departments in tech firms might want to launch engagement schemes to try to correct this.”

Age old debate

This latest data, once again, raises the debate of in-house HR departments vs external agencies. Our viewpoint is that as an external support agency we remain impartial when it comes to HR issues and act in the best interest of the employer. We aim to provide clear and consistent advice and guidance that best supports the business.

Do you agree with these figures? What are your thoughts on the effectiveness of HR? Let us know on our social media channels.