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
Recruitment, retention and professional development of employees in the context of major changes in outsourcing

The Business Service Leaders Association (ABSL) organizes on May 24, 2018, at Ramada Hotel in Iasi, the conference "How HR Practices evolve in a period of major changes in outsourcing Industry". The third editi

 Read Full article »
Comdata acquires CCA International, deal should be finalized in June

After the acquisition, mid-2017, and the successful integration of B2S (now Comdata France), the Comdata group signed, yesterday, an agreement on the acquisition of CCA International, the company says.

 Read Full article »
ABSL Romania is offering 30 scholarships every year for postgraduate studies

Business Service Leaders Association Romania (ABSL) annually offers 30 scholarships in the Business Services Master program for young people wishing to pursue a career in the outsourcing industry. As a result o

 Read Full article »
Portland Trust and Ares Management LP have sold the suburban office park, Oregon Park, to Lion's Head Investments

Lion's Head Investments makes its first steps into the Romanian real-estate market and announces the acquisition of Portland Trust's and Ares Management's Oregon Park project, which consists of three class A Of

 Read Full article »
Amazon creates more than 650 new permanent jobs in Bucharest

Amazon and Amazon Web Services (AWS) today officially opened a new Corporate Office and Technology Development Centre in Bucharest and announced the creation of more than 650 permanent, technology-focused and c

 Read Full article »
Portland Trust's Oregon Park in Bucharest wins CEEQA's "Overall Building of the Year SEE"

Portland Trust, a commercial real estate developer and asset manager headquartered in Prague, announcesd that Building B at its Oregon Park office complex in the Romanian capital of Bucharest won the 2018 CEEQA

 Read Full article »
US Kellogg's opens new division at Bucharest

The US-based multinational food producer company, Kellogg's announced that it will create 50 jobs at its Bucharest centre by the end of 2018, by opening a new division at the Bucharest centre. The new positions

 Read Full article »
Techsylvania 2018 lines up powerful tech specialists at Cluj-Napoca between June 9-12

Techsylvania is the leading technology event in Eastern Europe, built to revitalize the local tech community through high-quality information delivered by worldwide experts in the IT&C industry. Engineers, deve

 Read Full article »
Accenture names Gianrodolfo Tonielli in the position of Country Managing Director in Romania

Starting May 2018, Gianrodolfo Tonielli takes over the position Country Managing Director of Accenture Romania, the company announced.

 Read Full article »
Atos and Google Cloud form a global partnership to deliver secure hybrid Cloud, machine learning and collaboration solutions to the enterprise

Atos, a global leader in digital transformation, has entered into a global agreement with Google Cloud to address the digital transformation needs of enterprise customers. This agreement will see the creation o

 Read Full article »
 
 
MOST READ ARTICLES
» The most appreciated companies from th...
» ROMANIAN OUTSOURCING AWARDS FOR EXCELL...
» DTZ: Office demand outside Bucharest t...
» Capgemini to open new office at Suceav...
» Molson Coors started to grow its busin...
» Romania, Europe's third and world's 13...
» Committed to growth
» Romanian software group expands to Bul...
» EXCLUSIVE: ABSL Timisoara - BPO and SS...
» Genpact's COO: Staying ahead of the cu...
 
EDITOR CHOICE
We meet again at OT Learning & Development on June 7th

The Second Edition of OT Learning & Development roundtable will be held on June 7, 2018 at InterContinental Hotel Bucharest. The event brings together the business services professionals to discuss and discover

 Read Full article »
The Outsourcing industry announces its winners at Romanian Outsourcing and Shared Services Awards, 2018 edition

Last night, Outsourcing Today and the Diplomat-Bucharest awarded the performance and excellence in business at the 4th edition of Romanian Outsourcing and Shared Services Awards ceremony, organized at Radisson

 Read Full article »
Ciprian Dan, Wipro BPS: The industry needs to take a more sophisticated turn

According to Ciprian Dan, Location Head at Wipro BPS, the language skills have not ceased to remain one of the competitive advantages for our market but to relate to this advantage as the sole plus is risky on

 Read Full article »
Olga Botusan, Stefanini: There is a huge need to develop particular skills for specific areas

Stefanini is a company strongly involved in the business shared industry not only for creating the demand for workforce and hiring but also for the programs developed in order to specialize the needed professio

 Read Full article »
Romanian Outsourcing & Shared Services Summit: In the search of the best strategy to stay relevant

Currently, according to companies operating in outsourcing and business shared services in Romania, there is an intense discussion regarding the availability of prepared workforce in the industry. Even if the c

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