Time Is Right to Find Efficiencies in HR Technology, Watson Wyatt Says
07 May 2009 - 3:05AM
PR Newswire (US)
Three Things HR Can Do to Manage Through the Economic Crisis
WASHINGTON, May 6 /PRNewswire-FirstCall/ -- By reviewing their
function's technology footprint and finding ways to streamline IT
processes, HR departments can help their organizations cut costs,
find efficiencies and support worker productivity in the current
economic environment, according to technology experts at Watson
Wyatt (NYSE:WWNASDAQ:WW), a leading global consulting firm. "HR
technology is ripe for review," said Steve Hitzeman, senior leader
in Watson Wyatt's technology and administration solutions practice.
"The goal is not only to find near-term efficiencies but also to
ensure the organization is positioned for growth when economic
conditions improve." Watson Wyatt experts offer three ways
employers can use HR technology to manage the economic downturn
more efficiently: 1. Optimize HR operational and service delivery
effectiveness According to Watson Wyatt's 2009 HR Technology Trends
survey, 61 percent of companies are seeking to optimize their
delivery model and vendors. Conducting a review of the current HR
service delivery model -- which includes a mix of HR technology,
call centers and vendors -- can result in dramatic cost savings.
Despite the fact that in the last 10 years many HR departments have
adopted organizational models that aim to reduce administrative
costs and enable HR to take on more strategic work, the relative
effort HR spends on administration has not changed significantly.
This is because most HR departments adopted these models but did
not follow up to effectively integrate different technologies.
"Instead of simply rearranging the HR organization, companies can
consolidate, integrate and streamline processes," said Robert Crow,
senior consultant in Watson Wyatt's technology and administration
solutions practice. "This can result in cost and time savings, and
free up resources to enable HR to become more of a business partner
to the overall organization." 2. Review and benchmark outsourced
vendor contracts Many companies are not seeing the full effect of
process efficiencies, cost savings or improved service they
expected from their human resources outsourcing and related
technology and service vendor contracts. These companies often have
a patchwork of applications and service providers that aren't fully
integrated or optimized. Watson Wyatt estimates that companies can
realize savings between 10 percent and 20 percent once the entire
vendor relationship has been assessed. According to the HR
Technology Trends survey, 33 percent of companies are reviewing or
updating vendor contracts. "By taking a step back and reviewing HR
technologies, processes and vendor relationships, companies might
be able to find hidden pockets of savings and ways to improve
efficiencies without an enormous upfront cost," said Crow. 3.
Leverage Web 2.0 technologies to create a "consumer-grade"
experience In today's climate, consistent, open communication and
collaboration are more crucial than ever. However, while employees
look to HR managers for help interpreting large quantities of
information, the HR managers are struggling to stay connected with
each other, let alone with their employee population. Leveraging
Web 2.0 technologies -- such as blogs, podcasts, wikis and shared
teamsites -- is key to managing today's information overload and
engaging employees. The generation currently entering the workforce
has learned to communicate and collaborate using these tools and
expects the same "consumer-grade" experience at work. This can be
achieved with corporate tools similar to Facebook, Twitter and
YouTube available internally, significantly improving connectivity
and employees' experience of the company intranet. "HR can take a
page from the Internet playbook and benefit from the same tools
that have driven the unexpected explosion in online productivity
and innovation globally," said Michael Rudnick, Watson Wyatt's
global intranet and portal leader. "What's more, it can enhance
communication at a time when employees need to understand where the
business stands, what their future holds and how they can
contribute to business success." About Watson Wyatt Worldwide
Watson Wyatt (NYSE:WWNASDAQ:WW) is the trusted business partner to
the world's leading organizations on people and financial issues.
The firm's global services include: managing the cost and
effectiveness of employee benefit programs; developing attraction,
retention and reward strategies; advising pension plan sponsors and
other institutions on optimal investment strategies; providing
strategic and financial advice to insurance and financial services
companies; and delivering related technology, outsourcing and data
services. Watson Wyatt has 7,700 associates in 33 countries and is
located on the Web at http://www.watsonwyatt.com/. DATASOURCE:
Watson Wyatt CONTACT: Steve Arnoff, +1-703-258-7634, ; or Ed
Emerman, +1-609-275-5162, Web Site: http://www.watsonwyatt.com/
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