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
Societe Generale European Business Services invests in innovative solutions made by Romanian start-ups

Societe Generale European Business Services, part of the international group Societe Generale, had ended its first corporate accelerator program dedicated to start-ups in Romania – Catalyst 2.0.

 Read Full article »
SAP launches free online courses for teens passionate about technology

SAP announced it has prepared several free online technology courses to be launched this fall for young and teens passionate about technology such as: Teens Get Coding! And Teaching Programming to Young Learner

 Read Full article »
Oracle gains cloud revenues up 51 per cent to 1.5 billion US dollars in new fiscal year's Q1

Oracle Corporation announced fiscal 2018 Q1 results, with total revenues up 7 per cent from the prior year to 9.2 billion US dollars. Cloud plus On-Premise Software Revenues were up 9 per cent to 7.4 billion US

 Read Full article »
Stefanini names Farlei Kothe as vice-president for EMEA

IT solutions developer Stefanini announced the naming of Farlei Kothe as vice-president for EMEA region. The new manager will coordinate the company's software development division from Bucharest.

 Read Full article »
Endava marks 10-year presence in Iasi and plans growth countrywide

British company Endava marks ten-year presence at Iasi, in North-Eastern Romania and also announces the opening of a new office in United Business Center of Palas Iasi compound.

 Read Full article »
Portland Trust celebrates 20-year anniversary with start of last phase of Oregon Park, Bucharest

The central European property developer Portland Trust and US based Ares Management are embarking on the final phase of Oregon Park, their new office park in Bucharest. This event coincides with the company 20

 Read Full article »
WBE: Which EU country is most at risk of cybercrime?

Computer users in South Eastern Europe may want to review their digital security after new research revealed they are the most vulnerable to cyber crime, a press release of Website Builder Expert (WBE) states.

 Read Full article »
GE opens new software center in Bucharest, looks for highly skilled IT specialists

GE announced that it speeds up growth for its software and digital resources in Romania and kicks off the recruitment campaign for GE Power's Grid Software Solutions (SWS) center in Bucharest.

 Read Full article »
DB Global Technology creates new technology hub, digital workplace floor and event venue

DB Global Technology S.R.L. (DBGT), Deutsche Bank's technology centre in Bucharest, has inau-gurated a new research and development hub, a digital workplace floor and a state-of-the-art event venue, according t

 Read Full article »
HIpark, a new office project of 21.000 sqm of 39 million Euro launches in Iasi

Ropharma announces the launch of a new mixed use project of offices and residential, with a full range of services and retail space, the estimated investment being amount to approximate-ly 39 million Euro.

 Read Full article »
 
MOST RECENT VIDEO
 
 
MOST READ ARTICLES
» GE opens new software center in Buchar...
» ROMANIAN OUTSOURCING AWARDS FOR EXCELL...
» HIpark, a new office project of 21.000...
» DB Global Technology creates new techn...
» Stay updated on People in Shared Serv...
» Molson Coors started to grow its busin...
» Endava opens fintech hub and doubles n...
» Genpact's COO: Staying ahead of the cu...
» Capgemini to develop, deploy, and main...
» TELUS International Europe: The conver...
 
EDITOR CHOICE
TELUS International Europe: How big banks and fintechs are working together to innovate the customer experience

Comparing financial technology (fintech) companies to legacy financial institutions can invoke an image of David and Goliath. Fintech firms may be small, particularly when compared to the established titans of

 Read Full article »
Wipro launches automotive center of excellence in Romania

Wipro Limited, global information technology, consulting and business process services company, announced the launch of an Automotive Center of Excellence (CoE) in Timisoara, Romania. This CoE will help Wipro d

 Read Full article »
TELUS International Europe: The convergence of customer service and digital marketing/NewGen technologies: What does it mean for businesses?

Technology shapes the way we educate, communicate, conduct business and advance science, all while maintaining significant influence on the global economy. But the way we engage with technology is changing

 Read Full article »
Stay updated on People in Shared Services and Outsourcing Forum, October 19

Outsourcing Today organizes the third edition of People in Shared Services and Outsourcing Forum, on October 19, 2017 in Bucharest at Caro Hotel.

 Read Full article »
Preparing for the new future

Business shared services in Romania is by nature a flexible, mobile and diverse community and in this context, local markets develop their own particularities to address the global changes, to adjust to new dem

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