Nearly 450 organisations participated in the 14th Annual Towers Watson 2011 – 2012 HR Service Delivery and Technology Survey. The results show respondents are well positioned to take advantage of enhanced talent management strategies, including integrated SaaS-based solutions, HR shared services organisations (HRSSOs) and new outsourcing opportunities.
The key findings from the survey include:
- HR is looking at new ways to address enduring talent management issues. While the top HR service delivery issues have not changed over the last five years, the approaches now available to companies are innovative and varied, as well as supported by agile and more integrated new technologies. shape up HR services
- HR organisations have shifted their primary focus from cost efficiency to once again putting strategic goals first. Taken as a group, we see the initiatives undertaken by survey respondents in the last 18 months as enabling the HR function to rethink its own role in the business.
- Technology spending is holding steady or on the rise for most organisations, and new technologies are available. One in five respondents implemented a new HRMS in the last 18 months, and another 20% cite upgrading an existing HRMS as a top service delivery goal this year.
- Software-as-a-service (SaaS) is growing in acceptance. More than half of respondents are either using or planning to implement a SaaS solution, with more still evaluating new options and yet to make a selection.
- HR shared services organisations (HRSSOs) have proven both effective and efficient. A majority of respondents now use internal or external HRSSOs. Organisations for which long-term cost was the primary driver for implementing an HRSSO most frequently reported savings between 10% and 40%, with 42% realising savings within two years of implementation.
HR facelift
The survey analysed what HR has been getting up to in the last 18 months. Out of the 450 organisations that participated in the survey, more than half were MNCs. The industries covered were wide-ranging and included financial, healthcare, manufacturing, high tech, utilities and energy, public sector, NGO and media. It appears that HR facelifts are becoming an integral part of organisational behavior, with the majority of respondents reporting they were currently reengineering key HR processes.
- 43% of respondents refocused the role of the HR business partners.
- 37% implemented and leveraged self-service.
- 21% outsourced activities previously handled internally.
- Over 60% reengineered key HR processes.
- 7% brought back services previously outsourced.
- 14% did not do any of the initiatives above.
- 19% implemented a shared services model.
- 16% developed standard global data architecture for HR data.
- 20% implemented a new HRMS.
- 17% sought to increase alignment in the delivery of HR with other selling, general and administrative functions.
Paul Arkwright
Publisher
