According to recent research from The Hackett Group, an IT service management firm, “World-class HR organizations” achieve more than other HR operations by spending 26% less, relying on 32% fewer staff and embracing digital transformation. The adoption of digital technology could help HR departments reach world-class status in fewer than five years and see progress in less than two years. To be honest, HR departments who fully embrace the use of tech and analytics can see progress in as little as 6 months.
The study went on to find that top tier HR organizations are better at developing people and moving them into new roles; two-thirds of open managerial positions at these organizations were filled by internal candidates. The Hackett Group said world-class HR departments contain an estimated 33% fewer transactional employees and 34% fewer staff dedicated to employee lifecycle activities. The old rule of thumb of having 1 HR person per 100 employees is falling by the wayside with the introduction of technology. Technology not only makes the bottom line look better, but offers opportunities to employees, previously solely devoted to administrative work, an option to focus on more meaningful activities and the opportunity for real growth and career path.
Among the study’s takeaways, authors found that world-class organizations use digital technology to improve the customer experience, develop analytics capabilities, transfer resources from low- to high-value initiatives, and provide expertise and insights to business leaders. Use cases include recruiting, compliance, staffing services and outsourcing.
- Being able to predict turnover down to the individual level
- Having zero errors in your administration because all of it is automated
- Guiding each of your employees through their own personal benefit enrollment process focusing on only the items important to them
- Creating a flawless candidate experience where each candidate gets a “red carpet” treatment
World-class HR leaders understand the need to provide other business leaders with HR data and insight affecting their individual operations. This technology-based capability demonstrates HR executives’ knowledge of the business and financial sides of an organization, which can seat them alongside other C-suite executives and shore up employee trust in HR program. Top HR departments around the globe are moving to not only use but embrace these tools. Have you started?