The Future of HR
Survey of Current HR Practices
Mail survey of HR managers Responses from large companies Conducted in 2001
- Center for Effective Organizations - Human Resource Planning Society
Use of Outsourcing By Function
Benefits Employee Assistance Training & Development Legal Affairs Recruitment HRIS Compensation Affirmative Action Record Keeping Org. Development Selection Career Planning Union Relations Performance Appraisal HR Planning
0 10 20 30 40 50 60 70 80 90 100
Percent of Companies Outsourcing Partially Outsourced Completely Outsourced
HRM Outsourcing Competitive forces driving HR outsourcing
Downsizing / Restructuring Rapid growth or decline Globalization Increased competition
Operational Rationales for Outsourcing:
- Small firms lack resources and large firms gain economies of scale. - Specialized HR expertise and objectivity - Innovations and economies of scale in HRIS technology used by outside vendors that simplify transactions and reduce HR costs. - Temporary or cyclical increases in HR needs.
Role of HR Department by Structure
Large Companies
No Role
Implementation Role Input Role
2% 13%
39%
Full Partner
46%
HR Metrics
Integrate HR data across systems
- ERP systems e.g. PeopleSoft, SAP - Emphasis on measurement - Include HR metrics
Develop in-house analytic capability
Work with line management to create “HR Deliverables” based on strategic goals.
Use cost benefit analysis to examine HR interventions. Understand the detail workings of the business.
Satisfaction with Current Skills of HR Staff
Interpersonal Skills HR Functional Skills Team Skills Record Keeping Coaching & Facilitation Business Understanding Consulting Skills Leadership/Mgmt Skills Managing Contracts / Vendors Change Management Information Technology Strategic Planning Organizational Design Cross-Functional Experience Global Understanding
0 10 20 30 40 50 60 70 80 90 100
Percent of HR Leaders Who Are Satisfied with Staff Skills
Satisfied Very Satisfied