During 2009, Spencer Stuart consultants conducted a study looking at the key challenges facing the Human Resources function within the financial services industry. As well as exploring more long-standing challenges, we particularly wanted to discover how the 2008 financial crisis and ensuing economic slowdown had affected both HR strategy and the status of HR within organisations.
We interviewed HR directors and talent management directors of leading retail and investment banks as well as asset management and insurance companies. The overall picture that emerged from our discussions is one of companies in the midst of a rapid reappraisal of many of the main aspects of their HR strategy (especially relating to compensation) in the wake of the upheaval of a severe financial crisis.
In the investment banking industry in particular, this has given HR a significant opportunity for HR to become more closely involved in key strategic decision-making over compensation and talent management. It remains to be seen whether HR functions will seize the opportunity brought about by the downturn to increase their influence inside their organisations and their ability to contribute long-term benefit to the business.