Human Capital Management: How Top Organizations Drive Company Profits Efficiently.

SAP INSIGHT
HUMAN CAPITAL
MANAGEMENT:HOW TOP ORGANIZATIONS DRIVE COMPANY PROFITS EFFICIENTLY
2007 ASUG/SAP Benchmarking Study
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Executive Agenda 1
ASUG/SAP Human Resources Benchmarking Study 2
Balancing Efficiency and Effectiveness 4
Driving Higher Performance 6
HR Matters for Profit and Growth 9
About the Sources 11
0011aa__2200008844__AASSUUGG--HHCCMM..iinndddd 22 55//1177//22000077 44::4400::2244 PPMMHUMAN CAPITAL
MANAGEMENT
HOW TOP ORGANIZATIONS
DRIVE COMPANY PROFITS
EFFICIENTLY
by Katharina Müllers-Patel, PhD
0011aa__2200008844__AASSUUGG--HHCCMM..iinndddd 33 55//1177//22000077 44::4400::2266 PPMMEXECUTIVE AGENDA
Human resources functions and responsibilities ƒ As a first step, HR managers strive to optimize are changing and intensifying at a faster pace, and the efficiency of transactional processes through to a greater degree, than many other areas of the standardizing, automating, and integrating corporate organization. Once relegated to the back business processes, based on best-practice process office and concerned mainly or even exclusively and technology models.with transactional processes and functions, HR ƒ Optimizing transactional processes frees up organizations are taking a greater role in strategic resources that allow HR organizations to invest business activities. in more strategic functions that facilitate business Efficiency remains the foundation of HR. More growth and increase employee productivity.transactions must be completed at lower costs, ƒ Centralizing and consolidating HR operations in while processes are becoming increasingly a shared-services environment helps increase the complex to manage. A typical 10,000-employee efficiency and effectiveness of HR processes.company handles more than one million ƒ Outsourcing, while used frequently for employee-related transactions annually, each of transactional processes, does not always drive 1which costs anywhere from US$10 to US$50. top performance, either in cost or service The top 10 recruiters in the United States report quality. Organizations need to carefully evaluate they are placing 35,000 to 95,000 employees the value, performance, and cost trade-offs in annually. Managing the recruitment pipeline, the outsourced versus in-house service delivery.selection process, and the induction process is a ƒ Information technology continues to provide the complicated endeavor. basic foundation for efficiency and acts as the key At the same time, however, leading HR driver for effectiveness and future innovation. organizations are looking beyond the execution Leading organizations recognize that IT supports of HR transactions to a more value-added and the development of many best practices, and they strategic focus. These organizations are aligning continue to invest in IT to integrate systems, data, human resources and workforce planning functions and processes across the enterprise. with the overall business strategy to help increase In short, the study finds that the best human capital profit margins and support long-term goals. management organizations constantly reassess their To understand the changes and momentum processes to strike a balance in the drive to optimize in human capital management (HCM), the efficiency, cost, and service delivery in a continually Americas' SAP Users' Group (ASUG®) and SAP have changing environment. Top performers in this area established an ongoing HCM Benchmarking forum. balance the traditional demands of transactional The study analyzes several dimensions - staffing, efficiency with value-added activities that drive cost, organizational model, IT deployment, company profits and growth and help prepare for and best-practices adoption. The following key future innovations.conclusions demonstrate how companies are meeting today's human capital challenges:
1. All currencies in this SAP Insight are U.S. dollars. SAP Insight| 1
0011aa__2200008844__AASSUUGG--HHCCMM..iinndddd SSeecc22::11 55//1177//22000077 44::4400::2288 PPMMASUG/SAP HUMAN RESOURCES BENCHMARKING STUDY
Benchmarking is an important and powerful tool The study includes companies with an overall for companies to achi... [download for more]