Dive Brief:

• The world's top HR departments, as defined by The Hackett Group, are embracing digital and improving their use of analytics, leading to a 23% reduction in spending per employee and operating with 32% fewer staff members compared to "typical companies," a new report reveals. 
• The report, released this week by The Hackett Group, summarizes what differs top departments from typical departments with "five imperatives:" Embracing "digital transformation," using analytics in decision-making, ensuring all resources are going to value projects rather than just "transactions," keeping service customer-centric and "reskilling" the HR function.
• This new research points to the importance of digital growth for HR departments that want to be seen as more strategic. For example, top organizations spent 18% more on technology, but 40% less on labor, according to the report.

Dive Insight:

In a rush to digitize their organizations, many HR departments now have access to a slew of data about their personnel. Using that data aptly, however, has been a struggle as departments grasp automation on top of other demands. Digitization is affecting all aspects of the organization, especially benefits, a top HR concern.

The research also mentions that HR must focus on "reskilling," or making sure their people have the skills that HR departments need to be successful. Those skills include an ability to think strategically about the business that goes beyond simple management of personnel. 

Proper learning programs are especially important to build pipelines of talent, and that includes talent for HR processes. Strong HR departments will include learning initiatives within their digitization programs as more is expected of HR within business spheres.