Just 5% of employees recognise HR as being fundamental to business survival, a survey has revealed.
Research conducted by the European Leadership Programme (ELP) also found more than a quarter of employees felt HR expertise was the least important skill for their CEO to possess when leading their organisation through the tough economic climate.
But the survey of 1,000 UK-based executives also showed 42% believed their CEOs needed more HR support.
Ashley Ward, founder of ELP, said: "The core elements for business survival - people, strategy and financials - must all be equally represented. When one starts to lag behind, an organisation can enter dangerous territory.
"Organisations need to keep investing in HR. Your team may not recognise the role that HR plays within the company every day but they do realise when it's lacking and their motivation wanes."