World-class HR organizations now spend 37 percent less - OUTSOURCING-TODAY.RO
Latest News  

World-class HR organizations now spend 37 percent less

World-class HR organizations now spend 37 percent less than their peers and operate with 31 percent fewer staff, while delivering improved effectiveness and greater agility, according to new research from The Hackett Group, Inc.

2015-10-19 15:59:09

The research also identified an array of HR capabilities that drive performance leadership, including: strategic workforce planning; technology/automation strategy; unified streamlined processes and systems; and performance measurement and analysis.

"In the face of unprecedented competition, extreme market volatility, and disruptive change from new technologies, the need for agility is greater than ever before," said Global HR Solutions Practice Leader Harry Osle. "Most HR organizations are challenged by flat budgets and FTE counts. But some are succeeding, largely through a focus on operational excellence, leveraging specific capabilities which are correlated with high performance. This is what we′re calling the HR ′Step up to World-Class′ framework."

The 2015 analysis of The Hackett Group benchmarking database uses detailed HR metrics to quantify the performance advantage of world-class companies compared to typical HR organizations. Among the results: world-class HR organizations excel at cost reduction, and spend 37 percent less than typical HR organizations - saving up to $17 million annually (for the typical company with $10 billion in revenue), while relying on 31 percent fewer FTEs. World-class HR organizations are those that achieve top-quartile performance in both efficiency and effectiveness across an array of weighted metrics in The Hackett Group′s comprehensive HR benchmark.

World-class HR organizations are distinguished by four characteristics, according to the research: operational excellence; strategic talent management capabilities; close alignment to business needs; and the ability to deliver analytic-driven insights that drive performance. The research also identified several areas of HR strategy where companies can strive to excel in order to drive towards world-class performance.

Superior Strategic Workforce Planning (SWP) - World-class HR organizations are much more advanced in their implementation of SWP capabilities, enabling them to better translate business strategy into its implications for current and future talent needs, according to the research. They are more likely to have automated workforce-related data, and make greater use of tools and platforms for analysis of this information. To improve in this area, typical HR organizations can take steps that include: benchmarks to set baselines for employee cost and staffing levels; a total cost of workforce analysis; and development of standardized data elements to enable uniform analysis and reporting.

Technology/Automation Strategy - Technology is another area where world-class HR organizations excel. The Hackett Group′s research found that they actually spend 34 percent more on technology per FTE than typical companies. In some transactional areas, world-class HR organizations rely on automation up to 80 percent more often. This enables more efficient and effective HR processes and service delivery, and allows world-class HR organizations to devote more time to talent and business performance-related activities. To improve, typical HR organizations can take steps such as: working with IT to design a technology strategy; and implementation of a road map and data architecture to deliver a comprehensive set of HR services.

Unified, Streamlined Processes - Processes and systems that are both unified and streamlined make it possible for HR to operate in a cohesive and productive fashion. This takes explicit design and methodical implementation, along with a relentless focus on process improvement. World-class HR organizations are three times more likely to assign formal process-ownership roles than peers. Their processes are designed to be more efficient, as are their organization structures, with 39 percent greater spans of control and 58 percent higher usage of integrated HR applications.

Performance Measurement and Analysis - World-class HR organizations are more advanced in their development of performance measurement and analytics capabilities. Their reports on performance are more meaningful and their insights more applicable to decision-making. Most important, world-class HR organizations use key metrics to strategically align the HR and business leadership teams around the aspects of human capital that influence performance or have the potential to do so, for better or worse. Some popular metrics tracked via scorecard by more than 50 percent of all top performers include: high performer turnover; workforce cost; performance-based pay differential; and manager turnover.

The Hackett Group′s World-Class HR Performance Advantage Research is based on an analysis of results from recent benchmarks, performance studies, and advisory and transformation engagements at hundreds of large global companies.


0 COMMENTS ^ Go back to Top
WRITE A COMMENT ^ Go back to Top
 
Your email address will not be published.
Nickname
Email
Comment
Validation Code
   
 
 
NEWS
Ness Digital Development center in Iasi expands activity, creates new jobs

Ness Digital Engineering, one of the leading global providers of IT services, is consolidating the activities of its center based in Palas Iași, adding two major companies in the field of telecom, media & ente

 Read Full article »
BearingPoint expands its Security Advisory Center of Excellence in Romania

Technology consultancy company BearingPoint announced that it is expanding its Security Advisory Center of Excellence (CoE) in Romania.

 Read Full article »
Connections signs partnership with UiPath, aims 5 mln Euro from robots in 2019

Digital transformation company Connections, operating in Romania, Bulgaria and Serbia, has signed a partnership with UiPath, the Enterprise Robotic Process Automation (RPA) platform with the fastest acquisitio

 Read Full article »
Endava marks IPO and first day of trading on New York Stock Exchange

Endava opened for trading on the New York Stock Exchange (NYSE) under the ticker symbol "DAVA" following its initial public offering.

 Read Full article »
Colliers: Co-working changes Romanian office leasing data

The end of the first semester has brought into light great achievements from regional cities in all real estate segments. Bucharest has also performed well and, according to the real estate consultancy company

 Read Full article »
Atos, closer to acquire Syntel

Atos and Syntel have entered into a definitive merger agreement under which Atos will acquire Syntel for cash consideration of c. 3.4 billion US dollars, 41.0 Us dollars per share, representing apx. 14 per cent

 Read Full article »
Turkey's TotalSoft completes acquisition of Romania's Architected Business Solutions

Turkish-owned software company TotalSoft said on Monday it has completed the acquisition and merger of Romanian business management consultancy group Architected Business Solutions (ABS). The deal was announced

 Read Full article »
SAP and Lufthansa launch world's first "Aviation Blockchain Challenge"

The Lufthansa Innovation Hub and the SAP.iO Foundries program in Berlin launched the "Aviation Blockchain Challenge" to draw attention to the potential of blockchain technology in the aviation industry, uncover

 Read Full article »
Endava specialists put 3-month work in Via Transilvanica platform

The Via Transilvanica online platform, a concept initiated by the Tăşuleasa Social Association, was developed pro-bono by an Endava team in three months. A smartphone application, interactivity and tagging fu

 Read Full article »
ABSL Romania: school as abroad – the enrollments begin at the ABSL Master Program

Association of Business Service Leaders in Romania (ABSL) gives the start of enrollments to the Business Services (MBS) Master Program, one of the few in Romania that is designed on the model of successful inte

 Read Full article »
 
 
MOST READ ARTICLES
» ROMANIAN OUTSOURCING AWARDS FOR EXCELL...
» The Outsourcing industry announces its...
» Committed to growth
» Genpact's COO: Staying ahead of the cu...
» PwC: The competitive advantages of Rom...
» Luxoft expands Asia Pacific presence w...
» Olga Botusan, Stefanini: There is a hu...
» Zitec's digital marketing division reg...
» How does leadership look today?
» EXCLUSIVE: ABSL Timisoara - BPO and SS...
 
EDITOR CHOICE
Synergy of skills

There are over 250.000 employees only in the class A and B office buildings in Bucharest and around one million employees spread around the city. How does the office market cope with the need of companies to ac

 Read Full article »
Risk management in industry 4.0. The risks are new, how is the management?

The ink is not yet dry in terms of GDPR's EU compliance regulations and the last few months have been a very useful exercise for everybody, either vendor, producer or consumer to understand that rigid concepts

 Read Full article »
In the search of the best next available resource, human or not

With the work demand expressed for the "traditional" job openings in ITO, HRO, BPO or SSC, the question formulated by the industry stakeholders points to some concerns regarding the future availability of the s

 Read Full article »
Competing in outsourcing: racing of endurance and skills

As Romania's outsourcing sector is currently estimated to employ more than 100,000 people, a constant evolution in the past years (with 15.000 employees registered in 2007), the local market is a popular nearsh

 Read Full article »
How to become people savvy?

The discussions in the panel of this summer's OT Learning and Development's roundtable underlined the necessity of providing the learning and the knowledge transfer when the necessity occurs, customized and app

 Read Full article »
Latest News  
 
about us | newsletter | contact | members area | GDPR policy
Copyright © 2015 by Diplomat Media Events Design by Diplomat Media Events