Magazine article HRMagazine

High-Performing HR Organizations Have More-Efficient HR Staff Members

Magazine article HRMagazine

High-Performing HR Organizations Have More-Efficient HR Staff Members

Article excerpt

The most efficient and effective HR organizations operate at 27 percent lower cost per employee and use 24 percent fewer staffmembers than average companies, according to research released in January by The Hackett Group Inc.

In the study of benchmark data from 200 companies worldwide, analysts found that corporate revenues overall have increased by almost 19 percent in the past three years while HR budgets and staffs have declined slightly.

"This has created a tremendous productivity gap that must be overcome," says Harry Osle, the consulting company's global HR transformation and advisory practice leader.

The report, The Profile of a World- Class HR Organization, identifies three HR strategies commonly found at what analysts call "world-class" companies:

Operational excellence. Worldclass companies make greater use of self-service for payroll, training, total rewards administration and staffing services. They also simplify other aspects of HR jobs: They use almost 70 percent fewer job grades, almost 40 percent fewer health and welfare plans, and more than 40 percent fewer compensation plans.

An integrated approach to talent management. HR professionals in world-class companies spend more than average companies on development and performance of employees, particularly strategic workforce planning. …

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