The Aberdeen Group recently released a study regarding the HR processes of over 300 organizations. These companies struggle to invest in their HR to help lower costs and develop strategic processes. The results of the study found three top challenges, three common characteristics of companies who have more successful HR performance, and three actionable recommendations to achieve top HR performance and cut costs.
Top Internal Challenges in Giving HR a More Strategic Role
- 58% of the organizations reported that they spent too much time on manual day-to-day transactions that took away from time that could be spent on strategic activities.
- 35% said that data integrity for reporting was their main hurdle
- 33% cited that their top challenge was that they had disparate reporting systems that often resulted in errors and duplicate data entry.
Successful HR Characteristics of Those Considered Best-in-Class for Their HR Performance
- Standardized HR Policies and Procedures – This goes for all locations and offices across the entire company. Having consistent ways of tackling day-to-day activities means that there is a reduction in errors or redundant data entry and it is easier for managers or other traveling administrators to transition between locations. Increase fairness and reduce the risk of litigation. This can also help the organization secure decisions about hiring, firing, and promotions. Many companies facilitate their HR processes through online portals in order to secure standardization.
- Acceptance of Technology and Automated Workflows – It is critical to get everyone in your company on board to embrace any new technology to automate routine, tedious activities. The main objective here is to enable employees to be more self-sufficient in order to free up more time for HR to focus on strategic activities.
- Involved Business Leaders – In order to make a business run smoothly, it is important for the leaders to be fully involved in every step of the process especially when defining challenges, goals, and ongoing measurement of business metrics.
Actionable Recommendations to Improve Your HR Performance
Along with taking on the common characteristics above, here are some other recommendations that you can put into place.
- Self-Service Portals – In order to have the biggest impact on reducing the workload on HR, implement self-service portals for your employees and managers. Not only does it provide a platform for employees to be more independent and self-sufficient but it also directly reduces paper-related costs.
- Secure HR Data – Avoid the complications of EPA and HIPPA laws by implementing proper privacy and security systems.
- Clearly Define Your HR Process and Roles – To ensure that everyone in your company is familiar with who to contact when certain issues arise gives them more confidence when bringing important issues up. When employees understand what the exact roles are of HR, it helps them to be more engaged and satisfied.