Genesys, a provider of outsourcing services and software for human resources (HR), announced the results of its human capital management (HCM) trends survey for 2006.
According to respondents of the survey sponsored by Genesys, the top HCM priorities for 2006 include:
- Talent and leadership development combined with talent acquisition and retention – 45%
- Performance management – 21%
- Streamlining processes – 18%
In addition, 18% of respondents also indicated that aligning people and business goals would be an important priority in the coming year. Moreover, 38% of respondents indicated that budget expectations over the next 12 months for HR technology and outsourced solutions would increase, by as much as 9% in some cases, thereby enabling funding of the services and tools required to support these top priorities.
Of the many solutions in the human capital arena, respondents identified outsourcing the following functions as among the most predominant:
- Payroll processing – 32%
- Employee assistance programs – 29%
- Payroll tax filing – 25%
- Background screening – 24%
In addition, the following benefits of outsourcing were most appealing to respondents:
- Streamline operations – 40%
- Access to world-class capabilities and industry expertise combined – 40%
- Free-up internal staff – 32%
- Reduce labor costs – 25%
- Accurate and predictable monthly costs – 21%
With respect to self-service initiatives, when asked about adopting employee/manager self-service, 43% of respondents said it wasn’t a priority. And yet respondents saw the greatest benefits of self-service as: employee ownership of general data, online open enrollment, reduction of calls placed to HR and overall cost savings, respectively.
When asked to describe the reasons for choosing an outsourcing vendor, Genesys survey respondents indicated price was key. Other important factors in vendor selection were breadth and depth of product line, financial stability and references/reputation.
“HRO has indeed proved to be more complex than industry veterans first thought. Nonetheless, vast business benefits can be gained by organizations who embrace the HRO model,” said Ruth Ladner, Chief Operating Officer, Genesys. “We are pleased to see the results of our survey confirm that organizations are embracing the need for strategic human resources outsourcing to streamline operations, reduce administrative overhead and gain economies of scale.”