HR SERVICE DELIVERY
Talent and performance management technology are most critical HR service delivery issues
With expectations that hiring activity will increase this year and next, HR departments at a large number of employers in the U.S. say that talent and performance management technology systems will be one of the most critical HR service delivery issues they will face in 2011. That’s one of the key conclusions from an annual survey conducted by Towers Watson, a global professional services company.
The 14th annual survey on HR service delivery trends and practices also found that U.S. companies are planning to increase their spending on HR technology this year as they look for new ways to improve their efficiency and effectiveness.
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According to the Towers Watson survey, among the 441 companies surveyed:
41% indicated talent/performance systems as one of their top three HR service delivery issues for 2011.
Streamlining HR processes and systems was listed by 27% of the respondents.
25% cited greater involvement in strategic business-driven issues as the other top three HR service delivery issues for this year.
Companies are making greater investments in HR technology. More than a third of respondents (34%) said they are planning to spend more on HR technology this year, with one in eight expecting that increase to exceed 20% over last year. Only 16% plan to reduce their spending on HR technology.
Tom Keebler, global leader of Towers Watson’s HR Service Delivery and Technology practices, said: “We haven’t seen this level of increase in investment in HR technology since before the economic downturn. The fact that technology spending is up this year is a clear indication of the high level of return that companies are seeing when it comes to technology as a means for improving both HR efficiency and effectiveness,” said Keebler.
Re-engineering is top HR initiative
The survey found that re-engineering key HR processes is by far the top HR initiative that respondents are currently undertaking or planning for this year:
Nearly two-thirds (62%) cited it as their major focus.
The second most reported initiative for 2011 is refocusing the role of their HR business partners (43%).
More than a third of respondents (37%) indicated their primary focus is on implementing or leveraging self-service technologies.
What’s more, according to Towers Watson, those respondents that have recently completed these initiatives are “reporting tremendous success”, including 84% that say process re-engineering met or exceeded expectations, and 81% that say that their recent self-service initiatives have delivered on or exceeded their expectations.
“It is really heartening to see this triad of process redesign, enhanced technology and rethinking the way in which HR functions altogether,” said Keebler. “To achieve maximum success for the business - both for the individual initiatives and for the HR function overall - you really do need to address all three of these simultaneously.”
Other key findings
Other key findings from the survey include:
HR organisations are using Web 2.0 tools most frequently for recruiting (43%), HR communication (38%) and training (25%).
More than three-quarters (77%) of the surveyed companies either have or are working on implementing a global data warehouse to consolidate information fed from separate systems.
Manager and/or employee self-service (MSS/ESS) is in place at nearly eight in ten (79%) of U.S. respondents.
A final word
“As the economy continues to improve, the need for robust talent and performance management programmes and enabling technologies has never been greater. Companies view talent and performance management technologies as a critical component of their workforce attraction and retention initiatives, and also as a way to enhance HR’s role in helping the business to meet its strategic goals.” - Tom Keebler, global leader of Towers Watson’s HR Service Delivery and Technology practices.
Want to know more?
Title: HR Service Delivery Survey, Towers Watson, June 2011.
Survey details: The survey polled HR and HRIT executives from 441 organisations for their "insight on topics and trends impacting the year ahead". More than two-fifths (42%) consider themselves multinational/global companies. As many as 57% of respondents have more than 5,000 employees.
Availability: To contact Towers Watson, visit www.towerswatson.com/united-states/contact/
Towers Watson is a “leading global professional services company that helps organisations improve performance through effective people, risk and financial management”. The company offers solutions in the areas of employee benefits, talent management, rewards, and risk and capital management. Towers Watson has 14,000 associates around the world. It’s located on the web at www.towerswatson.com.