Research and results: A look at current trends and data
| Published date | 01 January 2006 |
| Pages | 14-15 |
| DOI | https://doi.org/10.1108/14754390680000860 |
| Date | 01 January 2006 |
| Subject Matter | HR & organizational behaviour |
14 Volume 5 Issue 2 January/February 2006
1. Unclear vision.
2. Poor change management.
3. Inefficient HR delivery.
4. The right people doing the wrong
work.
5. Sub-optimal use of HR technology.
Slater notes: “The real innovators in HR
know how to overcome these pitfalls –
sustaining change to achieve
transformation and selling that vision
to the business and their own HR
department. They are also ensuring that
the resources and the plans are in place
so that these changes can succeed.”
Changing HR for the future
In the study, Hewitt identified the
following primary goals for HR
departments:
• streamlining their HR processes;
• providing good customer service to
employees;
• making effective use of technology;
and
• shifting more resources to performing
value-added activities.
This analysis highlighted that the key to
driving HR departments forward lies in
achieving the right balance of efficient
delivery and strategic focus. Leading
companies have significantly reduced the
time spent on program administration
and customer service from 43 percent to
30 percent, freeing up resources for more
strategic support of the business.
Slater continues: “Many problems
facing HR departments are associated
with HR delivery. An excessive amount
RESEARCH AND RESULTS
,
A look at current trends and data
,
,
R
esearch from Hewitt Associates, a
global human resources services
firm, has identified the steps
needed for HR to become a strategic
business partner.
However, while many companies are
beginning to realize the strategic
benefit of outsourcing, the Hewitt
research also shows that some HR
departments are still struggling to move
the function from being primarily
administrative to one that performs
value-added activities and provides
organizations with strategic support.
Hewitt analyzed the HR functions of
50 companies located in Europe and
North America and specifically looked at
the progress made over the past 10 years.
According to the research, HR has been
successful in starting to move towards a
more business-focused role, but has yet
to achieve its real vision.
Iain Slater, head of HR effectiveness at
Hewitt Associates says: “There is
evidence that HR is still not achieving
the ultimate vision of being recognized
as a strategic business partner, even
though it often does deliver improved
administrative services to the business.
We observed that in many cases HR gets
stuck in the middle, meaning it’s often
saddled with increasing investments in
new technology and processes but is not
yet able to gain the strategic and
financial benefits of the 21st century HR
delivery model.”
Hewitt identified from the research
the five factors that make it difficult for
HR to transform itself completely into a
strategic business partner:
Some HR departments struggle to give strategic support
Middle management is crucial to business success
Room for improvement in performance management
Hewitt Associates has been operating for
60 years and employs approximately
22,000 people in 35 countries.
www.hewitt.com
For a full copy of the research study
contact: michael.williams@hewitt.com
MORE INFORMATION
h
of time is often devoted to tasks such
as customer service, HR and benefits
delivery and general administration,
which leaves little time for effective
business consulting. HR heads need to
look at their delivery arrangements to
ensure they maximize efficiency and
consider possibilities such as shared
service centers, investing in HR
technology, employee self-service and
outsourcing various functions.”
In addition to achieving the right
balance, Hewitt Associates offers the
following advice to HR departments to
help move in the right direction:
• Assess the current state.
• Develop a vision for the future.
• Build a case for change.
• Sell the vision to business and HR staff.
• Reinvent delivery.
• Make the hard decisions about people.
• Measure progress.
Slater’s advice is: “If HR departments take
practical steps and make tough decisions
about resources, ultimately this
approach will strongly position HR to
take on the role of strategic business
partner, and ensure it’s viewed on equal
terms with other business partners, such
as finance.”
,
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