HR staffs worldwide are taking on more strategic roles in human capital strategy, talent management and other corporate functions, a new Mercer survey shows. Despite this shift to more strategic tasks, the majority of HR leaders still find themselves immersed in recordkeeping, compliance and other traditional HR services.

At least 67% of employers said HR leaders are viewed as a strategic partner. The same percentage of HR leaders (67%) report to the CEO now, up from 54% in 2003. About 50% of employers are in the midst of transforming their HR functions, while 12% completed a transformation within the past year and another 10% plan to begin the process within the next year, Mercer reports.

The priorities for HR are gradually changing. About 40% of employers believe human capital strategy is a principal function of HR. However, that number increases to 64% when forecasting ahead two to three years. Likewise, 49% perceive talent management as a principal function of HR today, whereas 55% view it as a principal HR function within two to three years. Conversely, 46% of survey respondents listed operational excellence within the HR function as a priority today, but only 32% see it as a key function in the next few years. The top challenges cited by HR leaders are: acquiring key talent (43%), driving cultural and behavioral change (40%) and building leadership capabilities (40%), Mercer notes.

The HR function still spends almost three-fourths of its time on traditional HR activities, such as recordkeeping. Fifty-three percent of employers list skills and competencies of the HR staff as one of the most significant obstacles to enhancing the overall role of HR. The capability of line managers to supervise staff and senior management's perception of HR's value also are leading barriers holding back the development of HR, Mercer concludes.