HR Staffing Survey

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					STAFFING
AND SERVICES
2009 SURVEY
TABLE OF CONTENTS
I.     strategy + tactIcs: the evolvIng hr role    2

II.    about thIs report                           4

III.   Key FIndIngs                                 6

Iv.    worKForce overvIew                          8

v.     turnover                                    12

vI.    hr department structure                     14

vII. hr department responsIbIlItIes and servIces   23

vIII. who handles payroll?                         26

IX.    hr technology and outsourcIng               28

X.     hr staFFIng levels                          33

XI.    demographIcs                                37

XIII. survey Instrument                            39

XIv. about wIllIs                                  41

Xv. hr technology and outsourcIng                  43

XvI. use oF manager and/or employee selF-servIce   45
STRATEGY +
TACTICS:
THE EVOLVING
HR ROLE

Staffing and Services 2009 Survey
STRATEGY + TACTICS:
THE EVOLVING HR ROLE
It’s been said many times and for good reason: employees are an organization’s greatest
asset. Their skills, time and talents underpin and drive organizational success across all
areas, so the ability to attract, motivate and retain the most qualified and productive
employees is a critical factor in the survival of any organization. Successful organizations
develop a human capital strategy aligned to overall business objectives, and many HR
departments have evolved over the past couple of decades to become strategic business
partners in that effort.

At forward-thinking organizations, HR is being tasked with:

n   Leadership and organizational development
n   Developing and deploying a powerful employee value proposition that enables the
    company to better attract and retain the necessary workforce
n   Providing a clear line of sight to business goals and objectives by tying pay to
    performance
n   Being involved at the start of major organizational changes, such as mergers and
    acquisitions
n   Proactively partnering with line management

At the same time, most HR teams remain responsible for traditional transactional and
operational responsibilities, such as recruitment and selection, employee relations, training
and development, and compensation and benefits. Increasingly, much of this transactional
work is being outsourced completely, or handled in-house more effectively through technology
and shared service centers, allowing human resource professionals to focus on more strategic
initiatives. But with all this talk of delivering strategic human resource management, HR
professionals must remember their chief customers may be top management, but HR must
be an advocate for the employees as well. HR professionals face a broad challenge: effectively
playing a strategic role while ensuring tactical needs are met.

The HR role has never been more central to organizational success. It has also never been so
complicated.




                                                                       Willis North America n 3
ABOUT THIS
REPORT

Staffing and Services 2009 Survey
ABOUT THIS REPORT
HR Partner, the HR Consulting arm of Willis, conducted a survey in late 2009 about HR
staffing and how HR responsibilities and functions are handled. We contacted subscribers to
Willis’ HR Focus online newsletter. A web-based platform was utilized to collect, measure
and analyze data.

Complete responses were received from 708 organizations of varying sizes, industries and
geographic locations: 58% of survey respondents represented companies with 249 or fewer
employees; 26% represented employers with 250 to 999 employees; and 16% represented
those employers with 1,000 or more employees. The survey captured an often overlooked
group – small to mid-size organizations – as 243 respondents came from companies with
fewer than 100 employees.

The objective of this survey is to provide a better understanding of how HR is structured and
how it contributes to the organization. We examined four key issues:

n   Organizational workforce and turnover
n   HR department structure
n   HR department responsibilities and service
n   HR technology and outsourcing

We also asked how HR departments are staffed to handle these issues.

This report analyzes the survey results. In most cases percentages have been rounded to
whole numbers. The confidence interval is 95% +/- 10%.




                                                                     Willis North America n 5
KEY FINDINGS

Staffing and Services 2009 Survey
KEY FINDINGS
ORGANIZATIONAL WORKFORCE AND TURNOVER

n   The use of part-time employees was not prevalent among survey respondents, with only
    11% of the total workforce being considered part time.
n   Voluntary turnover (10.9%) remains slightly higher than involuntary turnover (9.1%),
    even though the current state of the economy would suggest otherwise.

HR DEPARTMENT STRUCTURE

n   More organizations appear to understand the strategic importance of HR and include
    HR as part of top management: 76% of all respondents stated that the top HR
    professional at their organization reports into the C-Suite, with 56% reporting directly
    to the CEO or president.
n   Organizations have shifted to a centralized HR function, with 77% of all respondents
    reporting this type of HR structure.
n   The use of HR specialists is prevalent in organizations with 500 or more employees,
    while smaller organizations are dependent on HR generalists that can handle a
    multitude of HR responsibilities.                                                              hr staFFIng
n   The majority of HR specialists work in positions that are administrative/clerical or           ratIos
    professional. They mostly specialize in benefits, recruitment or training and
    development. Generalists hold the majority of managerial and HR executive positions.           the old standard of one
                                                                                                   hr employee for every
HR DEPARTMENT RESPONSIBILITIES AND SERVICES                                                        100 total employees has
                                                                                                   long been outdated. In
n   HR still seems to play a limited role in strategic planning, with only 45% of respondents      fact, organizations with
    reporting this as an activity HR performs for the organization.                                100 or more employees
n   HR generalists spend only 3% of their time on strategic planning activities.                   report on average one
                                                                                                   hr Fte for every 144
HR TECHNOLOGY AND OUTSOURCING                                                                      employees.

n   With the exception of payroll, HRIS (basic demographic and employee information),
    time and attendance and HR reporting, many HR activities are still handled manually
    in-house.
n   The use of employee and manager self-service systems continues to be limited to larger
    organizations and even among them is not widespread.




                                                                                                Willis North America n 7
WORKFORCE
OVERVIEW

Staffing and Services 2009 Survey
WORKFORCE OVERVIEW
HR staffing levels are typically determined by several factors, including employee headcount, the propensity for
turnover at the organization, union status and the number of locations. Understanding the makeup of the workforce is
key to drawing an accurate picture of HR responsibilities and staffing needs.


 Table 1: Workforce Overview          < 50      50 to 99   100 to 249   250 to 499 500 to 999     > 1,000       All

 Average employee headcount           26           73          161         343         690         3785         777

 Average number of FTEs?              23           66          144         305         570         3120        648

 Answered Question                    144          99         170          101          83          111        708


Table 1 provides a breakdown of the 708 survey participants by size, including average number of employees and average
number of full-time equivalents (FTEs). Table 2 shows the average number of locations and states broken out by
employer size. Predictably, the larger organizations reported the broader geographic spread. Later in the survey findings
we will discuss the impact of size and geography on HR staffing.



 Table 2: States and Locations        < 50      50 to 99   100 to 249   250 to 499 500 to 999     > 1,000       All

 States                                3           3            6           5           7           11           6

 Locations                             2           2            4          13           20         124          25




                                                                                                Willis North America n 9
The use of part-time employees among respondents was nominal – 11% reported regular
part-time positions, while 89% said all staff was considered full-time. This was somewhat
surprising, given the fact that creating flexible work arrangements continues to surface as a
way for employers to address several social and economic trends impacting business today:

n   Addressing work-life balance has become increasingly important and part-time hours
    offer options in that regard.
n   Part-time work appeals to segments of our multi-generational workforce, especially
    baby boomers who may be hoping to retire, but because of financial difficulties in the
    economic downturn must stay in the workforce.
n   The recession has forced many organizations to take cost-cutting actions, such as
    layoffs. Reducing hours would seem to be a way to cut overhead while maintaining
    employee skills and knowledge.

In addition, we found little use of contingent workers (independent contractors and
seasonal employees) among survey participants; 176 respondents reported using seasonal
workers and on average hiring 141 per year. Independent contractors were used by 275
organizations, who hired on average 34 independent contractors per year. The use and
number of contingent workers increased with the size of the organization.


BREAKOUT OF WORKFORCE BY STATUS
                                         FULL-TIME: EXEMPT
                                         (40%)

                                         FULL-TIME: NON-EXEMPT
                                         (49%)

                                         PART-TIME: NON-EXEMPT
                                         (10%)

                                         PART-TIME: EXEMPT
                                         (1%)




                                                                                               Willis North America n 10
Most of the participating organizations (85%), as indicated in Table 3, reported they did not have a union environment,
meaning one less responsibility for the HR Department.



 Table 3: Union Representation        < 50      50 to 99    100 to 249   250 to 499 500 to 999     > 1,000        All

 No employees are unionized           94%         86%         89%          80%         78%          73%          85%

 5% or less                            1%          1%          1%           1%          4%           5%          2%

 5% to 9%                             0%           0%          1%           2%          0%           2%           1%

 10% to 24%                           0%           2%          3%           4%          4%           6%          3%

 25% to 49%                            1%          3%          1%           0%          2%           5%          2%

 50% to 74%                            1%          8%          4%          10%          6%           4%          5%

 75% to 100%                          3%           0%          2%           3%          6%           5%          3%

 Answered Question                    144          99          170          101         83           111         708




                                                                                                 Willis North America n 11
TURNOVER

Staffing and Services 2009 Survey
                                            TURNOVER
                                            Turnover refers to employees' permanent separation from an
                                            organization. Involuntary separations or discharges are employer-
addressIng causes                           initiated and can occur for reasons ranging from employee misconduct or
oF turnover                                 performance to economic conditions. Voluntary separations are
                                            employee-initiated and fall into two categories: unavoidable or avoidable.
turnover rates usually decrease during      Unavoidable separations occur, for example, when an employee resigns to
times of high unemployment, but hr          retire or take care of family obligations. Avoidable separations result from
departments should be proactive in          an employee's dissatisfaction with management philosophy,
preparing for a turn in the economic        compensation, the job itself or the work environment.
climate. addressing retention issues
now will help companies maintain            Turnover can never be eliminated. In fact some degree of turnover is
valuable employees later. while it is       helpful because it opens up opportunities for new workers and internal
impossible to control all the factors       promotions. The shedding of disengaged, poor performers can be
contributing to employee turnover, hr       especially beneficial. Turnover of course can be costly, as it may mean an
can take steps to reduce it.                increase in recruitment and training costs and lost productivity and
                                            knowledge.
n   track reasons for turnover in order
    to target strategies for lowering       In part, turnover reflects economic conditions. When the economy is
    voluntary turnover.                     healthy, voluntary turnover tends to rise, as employees are enticed by an
                                            active job market. In tougher times, we see an increase in involuntary
n   conduct exit interviews following all
                                            turnover. For example 7.6 million people have lost their jobs since the
    voluntary terminations to better
                                            recession started in December 2007, according to the January 8, 2010 BLS
    understand why employees are
                                            Employment Situation Summary.
    leaving.
n   create an effective and well            Not all respondents answered our questions about annual turnover. Of the
    communicated employee value             565 that did, 34 companies reported zero turnover and the remaining
    proposition that includes               companies reported an average turnover of 20%.
    competitive compensation and
    benefits, as well as recognition        Among the respondents that noted both voluntary and involuntary
    and rewards, timely performance         turnover, 54.5% was attributable to voluntary turnover (average voluntary
    appraisals and opportunities for        rate of 10.9%) and 45.5% to involuntary (average involuntary turnover rate
    professional growth.                    of 9.1%). We expected to see a higher number of involuntary separations,
n   ensure two-way communication:           given the number of layoffs that have occurred over the last two years.
    managers should be encouraged to        However, the higher percentage of voluntary turnover could reflect the
    get to know their employees, listen     efforts of organizations taking advantage of the recession to pursue top
    to employees and encourage upward       talent at a lower cost.
    communication.
n   develop and deploy a comprehensive      Turnover cannot be eliminated entirely, but it can be controlled and to
    on-boarding process to ensure           that end, tracking turnover is critical to the early discovery of trends.
    employees understand the                Understanding “leaver” behavior is critical for organizations as they look
    organization and the value              to make adjustments in management strategies or total reward offerings.
    they bring.                             Once controllable causes are identified, more concrete steps can be taken
                                            to lower turnover and its resulting costs.




                                                                                          Willis North America n 13
HR DEPARTMENT
STRUCTURE

Staffing and Services 2009 Survey
HR DEPARTMENT STRUCTURE
No two human resource departments are structured exactly the same. They range from single personnel
administrators in small companies to teams of specialists at larger firms. Functions range from primarily
administrative work to participation in all aspects of corporate decision making.

The reporting structure and location of HR staff is greatly influenced by the size of the organization, the number of
locations and the company’s overall business strategy. Organizations should understand that no matter the number
and location of HR staff, their HR resources must be structured in a way that allows HR to deliver on actionable and
measurable HR goals that are aligned to the company’s strategy.

WHO DOES HR REPORT TO?
At top performing organizations, HR has a seat at the executive table. HR is viewed as a critical function and reports
directly into the organization’s top executive. However, reporting lines are not the only factor involved in making
sure that HR has the support needed to do its job. For HR to be effective in a strategic role, the person to whom the
HR leader reports should:

n   Support and help to drive HR initiatives
n   Partner strategically with HR by involving them in critical business decisions
n   Ensure effective two-way communication
n   See the importance of aligning HR strategies with business objectives
n   Understand the human capital practices necessary to drive superior performance

In many cases, the role of the CFO is to control and cut costs, while the role of the CEO/president is to drive initiatives
and create a vision for the organization. It appears that HR would be positioned better as a strategic partner under
the CEO/president. According to survey respondents the majority (56%) reported that the top executive in their HR
department reports to the CEO and/or president of the organization, no matter the size of the organization.


76% OF ALL RESPONDENTS STATED THAT THE TOP HR PROFESSIONAL AT
THEIR ORGANIZATION IS REPORTING TO THE C-SUITE WITH 56% REPORTING
DIRECTLY TO THE CEO/PRESIDENT.
                                           CEO/PRESIDENT (56%)
                                           CFO (16%)
                                           COO (5%)
                                           SENIOR VICE PRESIDENT OR
                                           EQUIVALENT POSITION (5%)
                                           VICE PRESIDENT OR
                                           EQUIVALENT LEVEL POSITION (5%)
                                           DIRECTOR OR EQUIVALENT
                                           LEVEL POSITION (3%)
                                           OTHER (10%)


A number of respondents (10%) selected “other” as the person the top HR executive reports to. These respondents
stated that HR reported to the controller, legal counsel, owner, area manager – or that the organization simply had
no HR department.




                                                                                                  Willis North America n 15
shared servIces

although we did not address shared
services in this survey, increasing
numbers of organizations are
establishing hr service centers.
primarily used in larger organizations     CENTRALIZATION VS. DECENTRALIZATION
or those organizations with multiple
locations, these centers consolidate       In a typical centralized HR structure, corporate headquarters sets
transactional functions such as            the HR strategic direction, establishes policies and procedures, and
benefits administration, payroll           uses the collective group for purchasing power. In a decentralized
processing and leave administration at     operation, HR reports into the local/regional management and may
a centralized location. organizations      or may not have a dotted line to a corporate HR department. Some
that have set up hr service centers        companies combine the two in a hybrid or matrix organization,
report several benefits:                   where HR has a dual rather than single chain of command, reporting
                                           into both the local/regional operations and to corporate HR. Some
n   lower transactional cost               large organizations use a shared-services unit located in the
n   Improved operating efficiency          corporate headquarters or other centralized location.
n   hr professionals have more time
    to provide more strategic support      Historically we have seen organizations shift back and forth between
                                           centralization and decentralization in regard to many functions,
n   higher comfort level than if the
                                           including HR. A centralized approach offers cost savings by reducing
    services were outsourced
                                           headcount and duplication of effort in the field. However, some HR
n   better customer service with a         leaders find they lose touch with employees when HR staff is not in
    team of professionals that are         the field, and HR cannot work as strategically with line managers
    experts in employee matters            when they are not in the mix every day.

Field hr may be resistant to the           In today’s economy, we see an expected shift toward centralization,
centralization of these functions, but     as organizations look for ways to cut headcount. In addition, with
in many cases these changes open           advancements in collaborative technology, such as instant messaging,
opportunities for hr professionals         video conferencing and application sharing, many feel that HR’s physical
to take on a more proactive role as        location matters less. Location is less of a consideration in hiring in
strategic business partners. by            general, as organizations seek out top talent regardless of address.
eliminating the transactional work,
the hr professional is better positioned
to work on strategic initiatives and
focus on talent management.




                                                                                         Willis North America n 16
Table 4 provides a breakout of the results based on structure and company size. According to survey respondents,
regardless of size, most organizations (77%) use a centralized structure while only 4% use a decentralized structure.
Hybrid structures were more prevalent in larger organizations: 25% of organizations with 1,000 or more employees
reported a mix of corporate HR and field HR staff. Organizations with less than 100 employees averaged two or fewer
HR staff members, so neither approach was applicable to their organization.



 Table 4: HR Reporting Structure      < 50      50 to 99    100 to 249   250 to 499 500 to 999     > 1,000        All

 Centralized: All report/roll-up
                                      71%         68%         86%          82%         80%          71%          77%
 into corporate HR

 Decentralized: All report into
 various business units/divisions
                                      4%           5%          4%           4%          2%           2%          4%
 and there is not Corporate HR
 function

 Mix: We have a mix of corporate
 HR and Field HR staff that report     4%           5%          4%          12%         13%          25%          10%
 into business units/divisions

 Other                                21%         22%          7%           2%          5%           2%          10%

 Answered Question                    144          99          170          101         83           111         708




                                                                                                 Willis North America n 17
HR GENERALIST AND
SPECIALIST

As organizations ask more of their HR staff,
they need to make sure their HR team has the
right competencies and capabilities to deliver
on their strategy. This begs the question: HR
generalist vs. HR specialist?

An HR specialist typically focuses on one or
two key functional HR responsibilities, such
as recruitment, benefits, compensation or
labor. A generalist may focus on the bigger
picture or juggles all HR functions.

With so many organizations moving to
centralizing and outsourcing certain HR          hr generalIst or specIalIst: who has the
functions, we have seen a reduction in the       greatest Impact and opportunIty?
number of HR specialists and a rise in the
number of generalists. The recession has also    the answer lies in whether you would rather navigate the
pushed HR departments in that direction.         battleship or build and maintain the engine turbines. both are
When HR teams are thinned in cost-cutting        vital and crucial tasks for smooth sailing.
moves, organizations tend to retain HR
employees who can handle diverse HR              my experience has revealed that hr generalists typically prefer
responsibilities. When specialized needs         to see the big picture throughout an organization, with a variety
arise, they may be more likely to hire           of touch points lending to the personalization of hr. In today’s
consultants rather than add HR specialists to    workforce, where everyone is pressured to do more with less,
the payroll.                                     generalists possess greater employability due to their
                                                 interpersonal connections and prowess to touch areas outside
The size of the organization also plays a role   of hr such as labor, policy and public relations.
in determining the number of generalists and
specialists. Smaller companies rely on smaller   hr specialists, where I have spent most of my career, are
HR staffs, creating a greater need for            thought to be more siloed in their approach and focused on
generalized knowledge of various HR              the intersecting pieces. they are valued by larger employers,
functions. Not surprisingly, in organizations    especially in a shared services environment. their career
with 250 employees or less, HR generalists       opportunities are much more limited as companies streamline
prevail. Among organizations with 500 or         or even outsource their hr processes. however, specialization
more employees, 74% report a mix of              can also be part of a natural progression in career advancement
generalists and specialist. See Table 5.         to the generalist/manager level, as specialization leads to
                                                 attainment of subject matter expertise.

                                                 Greg Lohamn
                                                 Director of Benefits and Compensation
                                                 Stein Mart




                                                                                     Willis North America n 18
 Table 5: Use of generalist, specialist
                                          < 50   50 to 99    100 to 249   250 to 499 500 to 999      > 1,000       All
 or a mix

 HR Generalist ONLY                       80%      79%          67%          46%         24%          19%         56%

 HR Specialist ONLY                       2%        6%          0%           4%          2%           7%           3%

 A mix of Generalist and Specialist       18%      15%          33%          51%         74%          74%         41%

 Answered Question                        144       99          170          101          83          111         708



JOB LEVELS

In addition, to looking at the overall use of generalists and specialists, we also asked where in the organization
generalists and specialists could be found. Specialists tend to work in the professional (18%) and administrative/clerical
(13%) positions, with very few (10% in total) working in management positions. In contrast, generalists seem to be
spread evenly at each level.



PERCENT OF TOTAL HR FTEs THAT ARE GENERALIST vs. SPECIALIST
PER JOB LEVEL
                                                                                                            29%
   ADMINISTRATIVE/
          CLERICAL                                               13%
                                                                          16%

                                                                                                                   32%
        PROFESSIONAL                                                            18%
                                                                   14%

                                                                                       21%
                MANAGER                          7%
                                                                   14%

                                                                                18%
DIRECTOR OR ABOVE                         3%
                                                                       15%
                                 0%         5%        10%          15%           20%           25%          30%          35%

                                                                                                       HR TOTAL
                                                                                                       HR SPECIALIST
                                                                                                       HR GENERALIST




                                                                                                  Willis North America n 19
WHAT DO THE SPECIALISTS
SPECIALIZE IN?

The most common specialists focus on
benefits, recruitment or training and
development. Organizations rarely hire labor
relations, EEO/diversity or wellness
specialists. Given the small number of
unionized workplaces, the low need for labor
relations expertise is no surprise. With the
increasing attention paid to wellness
programs, we expect the demand for wellness
specialists to rise.




PERCENT OF HR FTEs WORKING IN EACH SPECIALIST ROLE

                        BENEFITS                                                                     18%

                   RECRUITMENT                                                                       18%

 TRAINING AND DEVELOPMENT                                                                 15%

                          PAYROLL                                             11%
          EMPLOYEE RELATIONS                                       8%
                 (NON-UNION)
               COMPENSATION                                   6%

BENEFITS AND COMPENSATION                                     6%
              (IF COMBINED)
                       HRIS                                   6%

                           SAFETY                        4%

                        WELLNESS                    3%

          EQUAL EMPLOYMENT/                    2%
                   DIVERSITY
                                               2%
            LABOR RELATIONS
                                    0%                   5%             10%           15%                 20%




                                                                                    Willis North America n 20
                                                               HOW DO THE HR GENERALISTS
                                                               SPEND THEIR TIME?

                                                               According to Table 6, regardless of company
                                                               size, HR generalists focus mostly on benefits
                                                               administration, employee relations and
                                                               recruitment. Not surprisingly, for smaller
                                                               organizations, those with less than 100
                                                               employees, HR generalists spend the largest
                                                               amount of their time on transactional
                                                               activities, such as payroll, benefits
                                                               administration and recordkeeping. This is not
                                                               surprising, given that in small organizations,
hr as a strategIc partner                                      there is often only one HR professional
                                                               handling both HR and payroll.
For hr professionals looking to offer more as a strategic
partner, the key challenge may be making others aware of       In large organizations, where transactional
the value hr brings to the organization. they can start by     work is often outsourced, handled by
remembering how hr can affect profits, earnings and growth     specialists or by a payroll staff, generalists
by influencing employee performance. strategic hr              tend to focus more on employee relations and
professionals should be able to:                               on recruitment and selection.

n   understand and communicate their personal and              Generalists spend little time on strategic
    departmental value proposition                             planning activities – only 3% of HR generalist
n   understand the health of the company (revenues,            time is spent on this essential task. Why? The
    expenses, net income, earnings per share, etc.)            likely answers are lack of time in the day,
                                                               insufficient support from senior management
n   understand the perceptions of their constituents
                                                               and inexperience on the part of the HR staff.
n   define what success will look like and how it will         In some cases, HR generalists may need
    be measured                                                simply to explain the importance of bringing
n   design an hr business plan and obtain buy-in from          HR into strategic discussions.
    senior management
n   execute the business plan and measure results by
    reporting on key hr metrics
n   express passion, energy and excitement
n   be passionate about sales, profits and financial results
n   act as the voice of the company to their constituents




                                                                                     Willis North America n 21
 Table 6: HR Generalist Activities     < 50      50 to 99    100 to 249   250 to 499 500 to 999     > 1,000        All

 Benefits Administration                16%         18%          15%         16%          12%          13%         15%

 Employee Relations (non-union)        8%           7%          13%         14%          20%          22%         13%

 Recruitment and Selection             7%           7%          13%         13%          15%          14%         11%

 Recordkeeping                         16%         11%          9%           9%          7%           6%          10%

 Payroll Administration and
                                       17%         13%          10%          7%          5%           5%          10%
 Processing

 Employment Law/Compliance             6%           6%          7%           7%          7%           7%           7%

 Performance Management                4%           6%          6%           7%          6%           7%           6%

 Compensation Administration           5%           5%          5%           4%          4%           4%           5%

 Leave Administration                  4%           4%          4%           5%          5%           5%           4%

 Health and Wellness                   5%           5%          3%           4%          3%           2%           4%

 Training and Development              3%           4%          5%           4%          5%           5%           4%

 Strategic Planning                    2%           4%          3%           3%          4%           5%           3%

 Safety                                3%           5%          4%           3%          2%           2%           3%

 Labor Relations                       1%           2%          2%           2%          4%           4%           2%

 Facilities Management                 5%           2%          1%           1%          0%           0%           2%

 Answered Question                     119          83          144          80           68          89          584



CAREER ADVICE: SPECIALIZE OR GENERALIZE?

Which path offers better opportunities to the HR professional? As generalists become more prevalent, the specialized
skills can be hard to find. Generalists with specific needs will often turn to specialists to solve problems. However, the
generalists tend to rise to the top HR posts. Those with the highest career goals should consider the generalist path –
but keep track of their specialist friends so when they run an HR team, they can find the expertise they may need.




                                                                                                  Willis North America n 22
HR DEPARTMENT
RESPONSIBILITIES
AND SERVICES

Staffing and Services 2009 Survey
HR DEPARTMENT RESPONSIBILITIES AND SERVICES
HR departments handle an exceptionally broad range of duties. To keep track of it all, and to better align their services
and delivery to the needs of their organization, HR leaders should ask the following questions not only of themselves but
of the internal clients they serve:

n   What activities does HR perform?
n   How much time is devoted to each activity?
n   How important is each activity to the overall success of the organization?
n   How well is HR performing in each activity?
n   What percentage of time should HR spend on each activity?
n   What activities should be performed that are currently not being performed?

The ability to measure and communicate the business impact of both strategic and tactical HR activities is critical.
Proper alignment and service delivery cannot be done in a vacuum, and all activities should be evaluated from priority
and performance standpoints.

As seen in Table 7, of the 14 HR services listed in the survey, the majority of respondents perform the first 10,
underscoring the breadth of HR responsibility. The most commonly provided services include benefits administration
and leave administration, both of which are mostly transactional in nature. Interestingly, strategic planning was on the
lower end, with only 45% of all respondents providing this HR service to their organization. Yet strategic input is viewed
by many as one of the most important activities that HR performs. This disparity shows the need for HR to be more
integrated in the development of HR and business strategy.

 Table 7: HR Services                  < 50      50 to 99    100 to 249   250 to 499 500 to 999     > 1,000        All

 Benefits Administration               93%          95%         97%          98%         94%          96%          96%

 Employment Law/Compliance            76%          94%         93%          92%         92%          89%          89%

 Leave Administration                 78%          89%         91%          96%         86%          93%          88%

 Recordkeeping                        92%          92%         88%          91%         89%          78%          88%

 Employee Relations (non-union)       67%          79%         92%          94%         93%           91%         85%

 Compensation Administration          72%          77%         82%          88%         84%          89%          81%

 Health and Wellness                  65%          79%         80%          89%          81%         88%          80%

 Recruitment and Selection            51%          67%         82%          88%         80%           91%         76%

 Performance Management               40%          65%         75%          84%          81%         85%          70%

 Training and Development             35%          66%         70%          74%         75%          69%          63%

 Safety                               40%          60%         58%          53%         39%           31%         47%

 Strategic Planning                   25%          42%         51%          49%         52%          59%          45%

 Labor Relations                      18%          31%         25%          35%         36%          39%          30%

 Facilities/Office Management           56%          36%         26%          22%         10%           12%         29%

 Answered Question                     144          99          170          101         83           111         708


                                                                                                  Willis North America n 24
WHO HANDLES
PAYROLL

Staffing and Services 2009 Survey
WHO HANDLES PAYROLL?
Should payroll report into HR or Finance/Accounting? The answer to this age-old HR
question is still a blur. It is also still crucial. Payroll is usually an organization's largest
expense and it directly impacts the organization's most valuable asset, its employees.

HR professionals will argue that because HR facilitates activities such as new hires, salary
increases, terminations, leaves of absence, and benefits deductions, payroll should fall under
HR. Being on the front lines, HR has the data needed to run payroll, and keeping it under
HR’s umbrella can eliminate duplication of work.

Finance and accounting professionals may counter that due to the financial impact of
payroll on the company's books, auditing and tax situations, the payroll function should
reside with them.

Many organizations in fact employ a hybrid approach, which reflects the need for regulatory
compliance (from Sarbanes-Oxley, for example), the increased sophistication of
HRIS/HRMS systems, and the outsourcing of payroll processing. In hybrid approaches, HR
takes responsibility for the front-end input of employee data into the HRMS system, with
processing/administration of payroll going through either an in-house system or vendor
outsourcing. Once processing is complete, the responsibility is handed off to Finance so that
journal entries can be made, taxes can be paid, payroll data can be audited and information
can be uploaded and populated in the company’s financial systems for month-end reporting.

Which approach is more common? Finance/accounting wins, but not by much. The majority
(55%) of respondents stated that payroll typically reports into their finance or accounting
department. For those organizations that selected other (9%), the HR department and
payroll functions were combined or the organizations used a matrix approach.



WHO HANDLES PAYROLL
                                             ACCOUNTING/FINANCE
                                             (55%)

                                             HR DEPARTMENT
                                             (37%)

                                             OTHER
                                             (9%)




                                                                            Willis North America n 26
HR TECHNOLOGY
AND
OUTSOURCING

Staffing and Services 2009 Survey
HR TECHNOLOGY AND OUTSOURCING
HR TECHNOLOGY USE AND OUTSOURCING

As HR technology has become more affordable, it has become a more essential part of HR administration. Initially
designed for payroll and recordkeeping, HR technology has expanded into every aspect of human capital management,
including recruitment and selection, benefits administration, performance management, employee communication and
much more. In addition, organizations have not only looked to HR technology in order to increase efficiency and lower
costs, but they have sought to completely outsource numerous transactional activities.

                                                            Handled
                                             Handled                     Largely or
 Table 8: Use of HR Technology and                       In-House with                     Not          Response
                                            In-House                       Mostly
 Outsourcing                                              Automation                    Applicable       Count
                                            Manually                     Outsourced
                                                           /Software

 Payroll                                       8%            67%            22%            3%             648

 HRIS: Basic employee demographics
                                              27%            65%            2%             7%             658
 and employment information

 Time and Attendance                          31%            62%            4%             3%             669

 HR Reporting (e.g., EEO-1 reports,
                                              32%            56%            5%             8%             660
 metrics reports)

 Benefits Administration                       41%            48%            10%            0%             664

 Employee Communications (i.e., posting
 information for employees to access,         68%            31%            0%             1%             672
 such as policies, procedures, etc.)

 Recruitment/Applicant Tracking               62%            31%            2%             5%             664

 Performance Management                       69%            27%            0%             4%             660

 Compensation Planning/Management             66%            27%            2%             5%             667

 Training and Development
                                              58%            25%            7%             9%             648
 (e.g. Content, LMS,)

 Leave of Absence Administration              70%            24%            3%             3%             670

 On-Boarding                                  58%            13%            0%            29%             640

 COBRA                                        28%            12%            56%            3%             670

 Succession Planning                          58%            9%             1%            33%             640




                                                                                           Willis North America n 28
We asked participants to indicate how HR functions are handled in
their organization. The results, as seen in Table 8, showed that
technology or outsourcing is used for payroll processing by most
(89%) organizations. Following closely behind were HRIS, time and
attendance and HR reporting.

A surprisingly small percentage of organizations use talent
management software, which can be used for applicant tracking,
performance management, training and development, compensation
administration and succession planning. With so much talk about
talent management, and so many applications available, we expected
more usage of software designed to help ensure effective alignment of
human capital to organizational goals and objectives.

In a similar surprise, administration of leaves of absences, which is
one of the more transactional HR activities, is handled manually by
the majority (70%) of respondents. Federal and in some cases state
and local requirements for administering leave can be time-
consuming and challenging. Again, we were surprised we did not find
more organizations outsourcing or using technology to support this
activity.

In regard to total outsourcing, the most likely function to be
outsourced is COBRA administration. Next was payroll
administration. The majority of the organizations that outsource
their payroll function are on the small side – with fewer than 250
employees.




                                                                        Willis North America n 29
IN HR AUTOMATION AND OUTSOURCING, SIZE MATTERS

 Table 9: By Company Size                  < 50        50 to 99    100 to 249    250 to 499    500 to 999     > 1,000

 Payroll                                   42%          58%           73%           78%           81%          80%

 HRIS: Basic employee demographics
                                           33%          49%           67%           81%           80%          88%
 and employment information

 Time and Attendance                       41%          57%           62%           78%           71%          74%

 HR reporting (e.g., EEO-1 reports,
                                           25%          40%           61%           63%           68%          84%
 metrics reports)

 Benefits Administration                    27%          39%           50%           59%           58%          66%

 Employee Communications                   15%          26%           33%           35%           40%          46%

 Recruitment/Applicant Tracking            9%            17%          25%           36%           44%          65%

 Performance Management                    12%          20%           25%           35%           35%          39%

 Compensation Planning/
                                           17%          20%           27%           28%           32%           41%
 Management

 Training and Development
                                           12%          18%           20%           34%           32%          44%
 (e.g. Content, LMS)

 Leave of Absence Administration           17%          24%           24%           23%           31%          27%

 On-Boarding                               5%           13%            8%           11%           13%          30%

 COBRA                                     10%          13%           13%           15%           9%            15%

 Succession Planning                       6%           13%            5%           11%           11%           13%

 Answered Question                         137           93           165            95           80            106


Table 9 shows that correlation between the size of the organization and the use of technology or outsourcing. Firms with
100 or fewer employees reported much less use of technology and outsourcing services than larger companies. Of course
much of this is to be expected, given the economies of scale. The gap was especially wide in the use of talent management
(recruitment/applicant tracking) software, with 65% of companies with more than 1,000 employees using such systems.




                                                                                                Willis North America n 30
In outsourcing, as indicated in Table 10, small companies frequently use vendors to handle COBRA administration but
large companies do so more than two-thirds of the time. In payroll administration, small companies outpace large
companies by more than three to one in the use of outsourced vendors. Interestingly, in benefits administration
outsourcing, the highest uptake is with the smallest and the largest companies.


 Table 10: By Company Size, which func-
                                           < 50        50 to 99     100 to 249    250 to 499    500 to 999      > 1,000
 tions are largely or mostly outsourced

 COBRA                                     35%           53%           60%           55%           70%           71%

 Payroll                                   38%           30%           21%           15%           14%           10%

 Benefits Administration                    11%           11%           11%            6%            6%           13%

 Answered Question                          137           93           165            95            80           106


MANAGER AND EMPLOYEE SELF-SERVICE

HR departments are constantly challenged to increase efficiency and provide better employee services. One response is
an employee self-service (ESS) system. Employee self-service requires a combination of technology and organizational
change that enables employees to view their HR data, such as W-2 forms, and in some cases to enact HR transactions in
the workplace, such as requesting time off, enrolling in benefits, or making changes to their contact details. No matter
the type of self-service used, ESS takes work off the HR professional’s desk and gives employees faster turnaround.

According to our survey results, as seen in Table 11, few organizations report using ESS technology. As with the general
use of HR technology and outsourcing, the use increased with the total number of employees. For a more detailed view
of these numbers, please see the Appendix section of this report.

Of course, even the best technology is only as good as the training given to the end-users. In order to maximize the
efficiency of these systems, their use must be part of a cultural change across the organization.




                                                                                                 Willis North America n 31
                                                        Handled
                                           Handled                   Largely or
Table 11: Use of Manager and Employee                In-House with                   Not          Response
                                          In-House                     Mostly
Self-Service                                          Automation                  Applicable       Count
                                          Manually                   Outsourced
                                                       /Software

Reporting                                  44%           52%            2%           2%             658

Time reporting/approvals (hourly and
                                           47%           50%            2%           2%             660
exception)

Pay statements (paperless pay)             13%           49%           21%          17%             662

W-2 viewing                                35%           46%            15%          5%             661

Personal information changes, including
                                           54%           44%            1%           1%             667
address, marriage status

Direct deposit changes                     51%           38%            7%           5%             667

W-4 changes (e.g., tax withholdings)       57%           36%            6%           1%             668

Benefits open enrollment                    59%           31%            9%           1%             669

Benefits new hires enrollment               66%           30%            3%           1%             663

Benefits life events enrollment             63%           28%            6%           3%             667

Time-off requests/approvals
                                           70%           28%            1%           2%             671
(e.g., vacation)

Performance management                     70%           24%            0%           6%             654

Salary planning                            69%           23%            0%           8%             652

Training registration and approvals        66%           22%            1%          10%             654

Initiating compensation actions            74%           21%            1%           4%             656

Recruitment (screening applicants,
                                           75%           21%            1%           2%             664
scheduling interviews, etc.)

Terminating employees                      79%           20%            0%           1%             666




                                                                                     Willis North America n 32
HR STAFFING
LEVELS

Staffing and Services 2009 Survey
HR STAFFING LEVELS
One indicator of HR service capacity or organizational efficiency is the HR ratio, or the ratio
of HR employees to all employees. The old standard of one HR employee for every 100 total
employees has long been outdated. Whether this is due to the economy, changes in HR staff
capabilities, technology or outsourcing is unclear. But this shortfall confirms for some the
impression that HR is often an understaffed and undervalued department.

Yet the HR ratio remains an important metric in understanding the relationship between
the HR department and the rest of the organization, and can be a useful indicator of overall
efficiency of HR services.

ORGANIZATIONS WITH FEWER THAN 100 EMPLOYEES
Organizations with fewer than 100 employees will often see a better HR staff-to-employee
ratio because there is a certain baseline of HR support needed for any organization. In these
organizations, HR will typically wear more than one hat, covering payroll, office management,
safety and, in smaller organizations, administrative support. In some cases the person              ImpactIng the
taking on the HR role may even be the CEO/president or CFO. This was the case for a                 sIZe oF the
handful of survey respondents.                                                                      hr department

Of the 246 respondents with less than 100 employees, 24 reported that they have no HR               the size of hr
FTEs for their employee populations, which averaged 36. Another 14 participants only had a          departments depends
part-time HR person. The larger end of this small company segment, with an average of 54            on a number of factors,
total employees, reported an average of 1.29 HR FTEs.                                               such as:

HR STAFFING FOR ORGANIZATIONS WITH 100 OR MORE                                                      n    competencies of hr
EMPLOYEES                                                                                                staff members
Once organizations reach 100 or more employees, we start to see them establishing an HR             n    responsibilities/
department, or at least designating an individual who will be solely dedicated to HR                     services delivered
functions. Table 12 shows that organizations with 100 to 249 employees reported an average
                                                                                                    n    technology
of two FTEs dedicated to HR. Once the employee population passed 250 employees the
target ratio of one to 100 became more elusive.                                                     n    outsourcing
                                                                                                    n    centralized/
In larger, high-performing organizations, we tend to find HR handling a higher number of                  decentralized hr
employees per HR FTE, because these organizations typically have the technology and or                   function
outsourcing infrastructure to handle more of the time-consuming transactional activities.
                                                                                                    n    number of locations
The larger the organization, the higher the number of employees per HR FTE.
                                                                                                    n    union presence
                                                                                                    n    workforce size
                                                                                                    n    management
                                                                                                         priorities
                                                                                                    n    employee profiles




                                                                                                Willis North America n 34
                                                                                                                All organizations
 Table 12: HR Staffing Ratios             100 to 249      250 to 499      500 to 999        > 1,000               with 100 Plus
                                                                                                                    Employees

 1 HR FTE for every XXX Employees            97               114             150             240                     144

 Answered Question                           167             100              82              109                     458


FACTORS INFLUENCING HR STAFFING
When analyzing HR staffing needs, many look solely at employee headcount. We wanted to examine other factors,
including, unionization, payroll, number of locations and HR technology.

UNION VS. NON-UNION
What if the workforce is unionized? Does that impact the overall number of HR staff needed for the employee population?
As shown in Table 13, we found no real difference in the ratio of HR staff members if the workforce was unionized. HR
FTEs in a unionized environment handled only three fewer employees than FTEs in non-unionized environments.

PAYROLL ADMINISTRATION
Surprisingly, HR taking responsibility for             Table 13: Impact of Various Factors on HR Staffing
payroll did not increase HR staffing. Logic
                                                       All locations with 100 or more employees
would seem to dictate that more staff would
be needed to handle this large task. It is             All locations with 100 or more employees                             144
unclear what impact payroll responsibility
                                                                                                                      HR FTE per
has on overall HR service, but it does require         Impact of Unionization                                          XXX EE
a substantial commitment of resources.
                                                       Union (n=87)                                                         142
NUMBER OF LOCATIONS                                    Non-Union (n=371)                                                    145
The FTE-to-employee ratio increases for
                                                                                                                      HR FTE per
organizations with a small number of                   Impact of Payroll Responsibility                                XXX EE
locations. Companies with two to five
                                                       Payroll Reporting into HR (n=178)                                    140
locations nearly approach the magic number
of 100. As the number of location rises, the           Payroll Reporting into Accounting and Finance
                                                                                                                            143
ratio slips to the point where organizations           (n=250)
with 50+ locations reported a ratio of one
                                                       Payroll Reporting into Other (n=30)                                  175
FTE for every 315 employees. Organizations
with many locations and few employees at                                                                              HR FTE per
                                                       Impact of Number of Locations                                   XXX EE
each of those locations, typically rely on the
local operations manager to handle HR                  1 Location (n=95)                                                    128
responsibilities.
                                                       2 to 5 Locations (n=140)                                             102

                                                       6 to 10 Locations (n=73)                                             109

                                                       11 to 50 Locations (n=104)                                           163

                                                       50 plus Locations (n=46)                                             315

                                                       * Represents companies with a 100 or more employees




                                                                                                            Willis North America n 35
                                        THE IMPACT OF HR TECHNOLOGY ON HR
                                        STAFFING RATIOS
                                        The impact of HR technology and outsourcing on HR staffing ratios
                                        proved to be surprisingly ambiguous.

                                        To assess the impact of HR technology and outsourcing on HR
                                        staffing, we examined the 14 activities listed in question 25 of the
                                        survey. We assigned a value of one point for anything that the
                                        organization handled through technology/automation or outscoring
                                        and a zero for anything the company handled manually or did not
                                        handle at all. A company using software or outsourcing to handle all
14 hr actIvItIes lIst                   of the listed HR activities would receive a score of 14.

1.   payroll
                                         Table 14: Impact of HR Staffing as a result of          HR FTE per XXX
2. hrIs: basic employee                  Technology and Outsourcing                                 Employee
   demographics and employment
   Information                           3 or Fewer Applications (n=64)                                  145
3. hr reporting (e.g., eeo-1 reports,    3 or Fewer Applications (n=64)                                  160
   metrics reports)
                                         3 or Fewer Applications (n=64)                                  130
4. time and attendance
5. benefits administration               10 Plus Applications (n=87)                                     138
6. employee communications (i.e.,        Table 15: Impact of HR Staffing as a result of the      HR FTE per XXX
   posting information for employees     Use of Employee and Manager Self-Service                   Employee
   to access, such as policies,
   procedures, etc.)                     4 or Fewer Applications (n=159)                                 151

7.   recruitment/applicant tracking      5 to 8 Applications (n=131)                                     143
8. performance management
                                         9 to 12 Applications (n=83)                                     141
9. compensation
   planning/management                   13 Plus Applications (n=66)                                     131
10. training and development
    (e.g. content, lms,)                We expected to find that high scoring organizations would also have a
11. leave of absence administration     higher number of employees per HR FTEs, because HR would need
                                        fewer people to handle the administrative transactions. However, the
12. on-boarding                         numbers did not bear this assumption. The results, as shown in Table
13. cobra                               14, seemed to follow no clear pattern. Organizations with low to
14. succession planning                 middle scores of four to six had the strongest staff-to-employee ratios.

                                        In attempting to measure the impact of self-service applications, we
                                        did see what we expected: a small decline in HR FTEs per employee
                                        when companies used more employee and manager self-service
                                        applications.




                                                                                              Willis North America n 36
DEMOGRAPHICS

Staffing and Services 2009 Survey
DEMOGRAPHICS

Organization by Number of Employees         Industry

Less than 50                          144   Aerospace                                                  1.1%

50 to 99                              99    Agriculture                                                1.1%

100 to 249                            130   Automotive                                                 1.0%

250 to 499                            101   Banking/Finance                                            4.7%

500 to 999                            83    Business Services/Consulting                               4.4%

More than 1000                        111   Construction                                              9.2%

(n=708)                                     Consumer Products                                          1.1%

                                            Education                                                  3.7%
HR Department Size
                                            Food Service or Food Related                               1.1%
Less than 1 HR FTE                    42
                                            Government                                                 3.1%
1 to 4 HR FTEs                        474
                                            Healthcare                                                 9.9%
4.1 to 10 HR FTEs                     108
                                            Hospitality                                                0.6%
10.1 HR FTEs and above                83
                                            Insurance                                                  2.5%
(n=707)                                     Legal                                                      2.0%

                                            Manufacturing – Durable                                   13.0%
Organization Sector
                                            Manufacturing – Non-Durable                                4.8%
Privately owned for-profit
                                      66%
organization                                Media/Entertainment                                        1.7%
Publicly owned for-profit                    Medical Equipment or Products                              0.4%
                                      11%
organization
                                            Nonprofit                                                  8.5%
Nonprofit                              18%
                                            Oil and Gas/Mining/Energy                                  1.6%
Government agency                     5%
                                            Pharmaceuticals                                            0.4%
(n=708)
                                            Retail                                                     3.7%

Number of Locations                         Technology (computers, software, ISP, etc.)                3.4%

1 Location                            36%   Telecommunications                                         1.6%

2 to 5 Locations                      30%   Transportation                                             2.3%

6 to 10 Locations                     12%   Utilities                                                  0.6%

11 to 50 Locations                    15%   Other (please specify)                                    12.3%

50 Plus Locations                     7%    (n=708)

(n=708)


                                                                                          Willis North America n 38
SURVEY
INSTRUMENT

Staffing and Services 2009 Survey
SURVEY INSTRUMENT
1.   Which of the following most closely represents your industry?      19. How many FTEs in TOTAL, does the
2. Which of the following most closely represents your sector?              organization have working in an HR
                                                                            capacity?
3.   Please provide the estimated total annual revenue for your
                                                                        20. Of the people working in a HR
     organization.
                                                                            Capacity, how many FTEs are a:
4. Please provide the estimated total expenses for your
                                                                        21. Of the people working in an HR
   organization.
                                                                            Capacity, how many FTEs work at the
5.   How many states does your organization operate in?                     n Corporate Level
6. How many total locations does your organization have?                    n Division, Region, Group or Unit
7.   What is your organization's (Please do not count Contractors or            Level
     Seasonal Workers in these numbers)                                     n Local, Facility, or Plat Level
     n Total employee headcount?                                        22. Does your organization have
     n Total number of FTEs (Full Time Equivalent)?                         n HR Generalist Only
8. Based on your total headcount above, please tell us what                 n HR Specialist Only
   percentage is full time or part time based on each employee              n A mix of Generalist and Specialist
   group. (Rounding to the nearest whole number the sum of all          23. Of the people working in an HR
   boxes should equal 100%, but do not include the % sign in your           Capacity, how many work in any of
   response.)                                                               the following “Specialist” roles,
9.   If used, on average per year how many of the following positions       please provide the total FTEs per
     does the organization have:                                            specialty.
     n Seasonal Workers                                                 24. In total, what percent of time do you
     n Independent Contractors                                              HR Generalist spend in each of the
10. What percentage of total employees is represented by a union?           following activities.
    (Check One)                                                         25. For each of the following areas of HR
11. For the last rolling 12 months how many total new hires has the         technology/outsourcing, please
    organization made?                                                      indicate which approach BEST
                                                                            describes how this function is handled.
12. What is the annual turnover percentage rate for the follow
    categories? (Please use whole numbers without % sign)               26. For each of the following areas of
                                                                            manager/employee self-service,
13. If known, please provide the following information about the
                                                                            please indicate which approach
    organization's total annual spend for salaries and benefits.
                                                                            BEST describes how this function is
14. To whom does the top executive in your HR department directly           handled.
    report?
                                                                        27. If you would like to receive a copy of
15. Which best describes the HR Staff members for your                       this survey results, please provide
    organization?                                                           your contact information below. Your
16. Which of the following functions are primarily handled by the           responses will remain completely
    HR Department at your organization. (Check all that apply)              anonymous and your name will not
                                                                            be given to any external parties.
17. Which department is responsible for payroll administration and
    processing?                                                         28. Is there any feedback or comments
                                                                            you would like to provide us on this
18. What is your total compensation and benefits spend for ALL HR
                                                                            survey? We appreciate your input.
    Staff?




                                                                                              Willis North America n 40
ABOUT WILLIS

Staffing and Services 2009 Survey
ABOUT WILLIS
The Willis Human Capital Practice offers a comprehensive suite of brokerage and consulting services to proactively
work with your organization to design and deploy human resources initiatives. We have decades of experience working
with companies of every type and size, customizing solutions for each organization’s unique challenges. Below are areas
where we offer especially strong expertise:

n   Employee communications
n   Compliance
n   Employee engagement
n   Managing the rising cost of health care
n   Engaging employees in healthy behavior
n   Recruitment and retention
n   Vendor management
n   Benefits administration
n   Reducing absenteeism/presenteeism
n   Increasing productivity
n   Adjusting to changing workforce demographics

Our approach is unique: Willis combines the best qualities of a true broker with the tools and resources of a pure
consulting firm to offer a full array of services at competitive prices.




                                                                                                 Willis North America n 42
HR TECHNOLOGY
AND
OUTSOURCING

Staffing and Services 2009 Survey
HR TECHNOLOGY AND OUTSOURCING

                                    Handled In-House manually                  Handled In-House with Automation/Software               Largely or Mostly Outsourced                             Not Applicable

                                  50 to   100 to   250 to   500 to                  50 to   100 to   250 to   500 to                  50 to   100 to   250 to   500 to                  50 to   100 to    250 to   500 to
By Company Size             50                                       > 1000   50                                       > 1000   50                                       > 1000   50                                        > 1000
                                   99      249      499      999                     99      249      499      999                     99      249      499      999                     99      249       499      999
Recruitment / Applicant
                            75%   74%     69%      63%      49%      33%      9%    17%      25%     36%      44%      65%      5%    0%       2%       1%       1%       1%      10%   9%       4%        0%       5%       1%
Tracking
HRIS: Basic employee
demographics and            53%   40%     25%      16%      14%       9%      33%   49%      67%     81%      80%      88%      0%    2%       1%       2%       1%       3%      14%   9%       6%        1%       5%       1%
employment information

Payroll                     18%   11%      5%       3%       4%       3%      42%   58%      73%     78%      81%      80%      38%   30%     21%      15%      14%      10%      2%    0%       1%        4%       1%       7%

HR reporting (e.g., EEO-1
                            40%   44%     35%      31%      27%      12%      25%   40%      61%     63%      68%      84%      9%    5%       3%       4%       5%       2%      26%   11%      1%        2%       0%       2%
reports, metrics reports)

Benefits administration      61%   49%     39%      35%      36%      20%      27%   39%     50%      59%      58%      66%      11%   11%     11%       6%       6%      13%      1%    1%       0%        0%       0%       0%

COBRA                       42%   34%     26%      30%      21%      13%      10%   13%      13%     15%       9%      15%      35%   53%     60%      55%      70%      71%      14%   0%       1%        0%       0%       0%

Employee
                            83%   73%     66%      64%      60%      54%      15%   26%      33%     35%      40%      46%      1%    0%       1%       1%       0%       0%      1%    1%       1%        0%       0%       0%
communications
Compensation
                            73%   75%     66%      67%      63%      50%      17%   20%      27%     28%      32%      41%      3%    0%       2%       2%       1%       3%      7%    5%       4%        3%       4%       6%
planning/management

Performance management      83%   76%     71%      63%      58%      55%      12%   20%      25%     35%      35%      39%      1%    0%       0%       0%       0%       0%      4%    3%       4%        2%       6%       6%

Time and Attendance         54%   39%     30%      18%      18%      15%      41%   57%      62%     78%      71%      74%      1%    3%       6%       2%       6%       5%      3%    1%       2%        2%       4%       6%

Leave of Absence
                            70%   75%     73%      76%      66%      60%      17%   24%      24%     23%      31%      27%      1%    1%       1%       1%       1%      12%      12%   0%       2%        0%       1%       0%
Administration

On-Boarding                 49%   54%     63%      65%      61%      59%      5%    13%      8%      11%      13%      30%      0%    0%       1%       1%       0%       0%      45%   33%     28%       23%      25%      11%

Succession Planning         54%   47%     55%      71%      61%      63%      6%    13%      5%      11%       11%     13%      1%    2%       0%       0%       0%       1%      39%   37%     41%       18%      29%      23%

Training and Development
                            64%   68%     58%      52%      58%      48%      12%   18%     20%      34%      32%      44%      11%   5%      10%       9%       3%       3%      14%   9%      12%        5%       8%       5%
(e.g. Content, LMS,)

Answered Question           137    93     165       95       80      106      137    93      165      95       80      106      137    93     165       95       80      106      137    93     165        95       80      106



                                                                                                                                                                                                         Willis North America n 44
USE OF MANAGER
AND/OR
EMPLOYEE
SELF-SERVICE

Staffing and Services 2009 Survey
USE OF MANAGER AND / OR EMPLOYEE SELF-SERVICE

                                      Handled In-House manually                  Handled In-House with Automation/Software               Largely or Mostly Outsourced                             Not Applicable

                                    50 to   100 to   250 to   500 to                  50 to   100 to   250 to   500 to                  50 to   100 to   250 to   500 to                  50 to   100 to    250 to   500 to
By Company Size               50                                       > 1000   50                                       > 1000   50                                       > 1000   50                                        > 1000
                                     99      249      499      999                     99      249      499      999                     99      249      499      999                     99      249       499      999

Benefits open enrollment       69%   70%     65%      52%      54%      37%      17%   20%      27%     44%      38%      50%      12%   10%      7%       4%       8%      11%      2%    1%       2%        0%       1%       2%

Benefits life events
                              67%   66%     65%      57%      69%      51%      19%   22%      27%     38%      28%      39%      10%   7%       5%       1%       4%       7%      4%    5%       2%        4%       0%       3%
enrollment
Benefits new hires
                              75%   70%     69%      65%      61%      51%      19%   24%      29%     34%      35%      41%      4%    3%       1%       1%       4%       7%      2%    2%       1%        0%       0%       1%
enrollment

Direct deposit changes        51%   49%     55%      53%      54%      43%      28%   37%      33%     45%      39%      51%      12%   9%       7%       1%       4%       4%      9%    6%       6%        1%       3%       2%

Pay statements (paperless
                              19%   15%     13%      11%       9%      10%      34%   43%      48%     57%      62%      60%      27%   24%     24%      16%      14%      14%      20%   17%     15%       16%      14%      16%
pay)

Performance management        84%   76%     70%      63%      61%      62%      10%   16%      26%     32%      32%      31%      0%    0%       0%       1%       0%       1%      6%    9%       4%        3%       8%       7%

Personal information
changes, including address,   70%   60%     54%      47%      45%      41%      27%   38%      45%     51%      54%      56%      2%    1%       1%       2%       1%       2%      1%    1%       1%        0%       0%       1%
marriage status
Time-off requests/
                              83%   70%     68%      62%      60%      68%      15%   27%      28%     35%      39%      28%      0%    1%       1%       1%       0%       1%      2%    1%       2%        1%       1%       4%
approvals (e.g., vacation)
Time reporting/approvals
                              64%   53%     48%      33%      36%      36%      33%   44%      48%     64%      61%      61%      1%    2%       2%       2%       1%       1%      2%    1%       3%        1%       1%       3%
(hourly and exception)
Training registration and
                              72%   76%     70%      64%      61%      48%      10%   17%      15%     31%      32%      40%      1%    0%       2%       1%       0%       3%      17%   7%      13%        4%       7%      10%
approvals

W-2 viewing                   37%   41%     34%      31%      36%      32%      38%   33%      49%     54%      50%      50%      23%   23%     11%      11%       8%      11%      2%    3%       6%        4%       7%       6%

W-4 changes (e.g., tax
                              60%   67%     57%      54%      56%      48%      28%   26%      38%     40%      40%      45%      11%   7%       4%       4%       3%       5%      1%    0%       1%        1%       1%       3%
withholdings)
Initiating compensation
                              80%   78%     78%      73%      68%      62%      14%   18%      18%     23%      25%      36%      0%    2%       0%       2%       1%       1%      6%    1%       5%        2%       5%       1%
actions


                                                                                                                                                                                                           continued on next page >




                                                                                                                                                                                                           Willis North America n 46
USE OF MANAGER AND / OR EMPLOYEE SELF-SERVICE                                                                       continued from previous page



                                 Handled In-House manually                  Handled In-House with Automation/Software                  Largely or Mostly Outsourced                            Not Applicable

                               50 to   100 to   250 to   500 to                  50 to   100 to   250 to   500 to                    50 to   100 to   250 to   500 to                  50 to   100 to   250 to   500 to
By Company Size          50                                       > 1000   50                                        > 1000    50                                       > 1000   50                                       > 1000
                                99      249      499      999                     99      249      499      999                       99      249      499      999                     99      249      499      999
Recruitment (screening
applicants, scheduling   84%   82%     84%      76%      66%      51%      7%    13%      15%     23%      30%       48%      5%      0%      0%       1%       0%       0%      4%    4%       1%        0%      4%       1%
interviews, etc.)

Reporting                60%   55%     46%      42%      30%      21%      32%   41%      51%     54%      66%       75%      5%      2%       1%      2%       1%       2%      3%    2%       2%        2%      3%       2%

Salary planning          83%   73%     68%      68%      59%      56%      7%    22%      25%     26%      29%       37%      0%      0%       1%      0%       1%       0%      10%   6%       7%        5%      10%      7%

Terminating employees    91%   83%     79%      73%      76%      65%      7%    17%      21%     26%      23%       32%      0%      0%      0%       1%       0%       2%      1%    0%       1%        0%      1%       1%

Answered Question        137    92     164       94       80      106      137    92      164      94       80        106     137     92      164      94       80      106      137    92     164        94      80      106




                                                                                                                                                                                                        Willis North America n 47

				
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