Shopping for talent processes takes more than a grocery list.
US - Implementing a good talent-management system is fast becoming the top HR priority for organisations looking to expand operations where money is no issue.
A Towers Watson poll found 42% of more than 450 organisations considered "talent/performance systems" as one of the top three HR service delivery issues this year.
Besides a 7% increase in the number of respondents from the last poll, installing sound talent-management technology was ranked as the main concern by the biggest margin recorded in the survey's history. Additionally, more than a third (35%) reported streamlining processes as one of the most important issues.
Conversely, cost concerns, one of the top three most critical challenges polled by HR professionals last year, no longer tops the list of HR service delivery issues in 2010. Technology budgets were hardly affected by cost-saving measures taken in the recession. Only 36% of the respondents reported a decline in their budget for HR technology in 2009. More than half (54%) reported an increase in budgets for technology, while about three in 10 reported no change.
Organisations are more willing to spend on technology to achieve efficient HR processes in today's growth-focused businesses. This is a long-term plan for companies, according to Tom Keebler, global practice leader with Towers Watson's HR service delivery and technology practice.
He explained that companies believe talent-management systems "will reap substantial long-term rewards for the HR department, line managers and the broader organisation".
Talent management systems also need to be aligned with HR's functions, needs and business objectives for the technology to work effectively.
"Talent management technologies have unquestionably become one of the best ways for HR departments to propel better employee performance and business success after the financial crisis," Keebler said.
The increasing use of manager self-service (MSS) and employee self-service (ESS) in workplaces after the implementations of talent-management schemes, complements the HR function.
Keebler said the execution of "self-service options for critical career and rewards categories" created "an environment of ownership and self-reliance that employees can build upon".
Almost seven in 10 (68%) of HR practitioners said ESS programmes have resulted in less work, while less than 15% reported an increase.
Additionally, more than seven in 10 organisations have found more accurate transactions. Hence, it is believed ESS and MSS may contribute to a higher level of employee engagement and satisfaction in the workforce.
| What are some other issues organisations face in delivering good HR service? |
| Issues | Percentage of respondents (2009) | Percentage of respondents (2010) |
| Increased involvement in strategic business-driven problems | 23% | 27% |
| Defining human capital metrics and dashboards | 17% | 22% |
| Recruiting/staffing services/systems | 12% | 21% |
Source: Towers Watson's 13th Annual HR Service Delivery Survey
APAC Companies face retention issues
Asia-Pacific – In today’s changing economy, employee retention and recruitment remain the biggest stumbling blocks companies face because of the evolving HR climate in Asia Pacific (APAC).
In a survey by Human Resources Outsourcing Association (HROA), 35% of the 98 HR practitioners cited “staff retention” as the biggest HR challenge to their organisations’ development in the APAC region. In the same survey, almost the same number (37%) of HR providers agreed. Similarly, about a third (34%) of the respondents agreed that “staff recruitment” is the biggest obstacle to their organisation’s growth.
The lack of talent in the market is the most commonly cited reason for staffing issues in APAC companies. According to the survey, 73% of the respondents said one of the top three challenges to retain and recruit talent was having “too few qualified individuals”. Likewise, 85% of the HR providers agreed the limited talent pool was a serious issue.
The lack of talent was also found to be a big hurdle for HR in dealing with the changing business environment. More than six in 10 HR practitioners cited “inadequate leadership” as the key challenge for the evolving working atmosphere.
Likewise, almost half (47%) of the HR practitioners said a “small or poorly trained talent pool” was an important issue.
However, the survey findings show that companies may be responsible for the prevailing talent concerns. Almost half (47%) of the HR practitioners cited “inadequate training” as one of the biggest challenges faced by companies.
Difficulties | Percentage of HR practitioners | Percentage of HR providers |
| Inapt policies introduced by global management | 28% | 25% |
| Ineffective communication | 21% | 21% |
| Inadequate resources/funding | 20% | 24% |
| A large geography | 11% | 13% |
| Inadequate systems and automation | 11% | 7% |
| Inadequate processes | 10% | 10% |
Source: Talent Management Challenges Survey 2009, StepStone Solutions
