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Why established HR SSCs must move beyond transactional work
9 July 2010:
During the last decade and a half, Human Resources (HR) have been undergoing a process of transformation. Yet, despite large scale transformation programs, the cost of the HR function has been rising in recent years in the increasingly competitive environment global companies have to operate. As an illustration, the total HR cost per employee for all benchmarked U.S. and European organizations rose from 1557 to 2185 U.S. Dollars (USD) between 1998 and 2009.
Time is also running out. The study conducted by The Hackett Group reveals that Global 1000 companies saw their revenues decline by 13% between the first quarter of 2008 and the first quarter of 2009, while their SG&A costs declined by only 2%. The keyword now is “agility”. Relying on existing plans to gain strategic alignment may prove to be a dangerous strategy for HR, even in the short term, at a time when the business is willing to be kept up to date with the most efficient services and competitive talent management capabilities in order to prepare the recovery.
Source: GlobalHRStudio
