Dive Brief:
- World-class HR organizations now spend 37% less than their peers and operate with 31% fewer staff, while delivering improved effectiveness and greater agility, according to new research from The Hackett Group, Inc.
- The research also identified an array of HR capabilities that drive performance leadership, including: strategic workforce planning; technology/automation strategy; unified streamlined processes and systems; and performance measurement and analysis.
- The 2015 analysis of The Hackett Group’s benchmarking database used detailed HR metrics to quantify the performance advantage of world-class companies compared to typical HR organizations.
Dive Insight:
World-class HR organizations are distinguished by four characteristics, according to the research: operational excellence; strategic talent management capabilities; close alignment to business needs; and the ability to deliver analytic-driven insights that drive performance.
“In the face of unprecedented competition, extreme market volatility, and disruptive change from new technologies, the need for agility is greater than ever before,” said Hackett Group's Global HR Solutions Practice Leader Harry Osle.
Osle said most HR organizations are challenged by flat budgets and full-time employee counts. But some are succeeding, largely through a focus on operational excellence and leveraging specific capabilities that tend to be correlated to high performance.
"This is what we’re calling the HR ‘Step up to World-Class’ framework,” he said.