One positive side effect of the recession is that human resources is better poised to fulfill the strategic role long desired by executives, since taking care of talent and people issues is, more than ever, a key leadership issue. Human resources’ long-awaited metamorphosis from process-driven overseers to business plan enablers was born of economic necessity, but it’s gaining momentum thanks in part to renewed investments in technology and expanding self-service, according to The Towers Watson 2010 HR Service Delivery Survey, which annually examines the HR service delivery and technology plans and priorities of global companies.
The change couldn’t come at a better time, as savvy companies need holistic talent management and a real-time view of work force analytics to thrive in a rebounding economy.
“Executives can propel the evolutionary process by helping to define HR’s strategic mission and related data requirements,” says Courtnay Sotelo, senior consultant for the HR Service Delivery Practice at Towers Watson. “Once the vision is crafted, an HR task force can align priorities, technology and the service model to meet the company’s broader business objectives.”
Smart Business spoke with Sotelo about the evolution in HR service delivery and how executives can support the transition.
Why has talent management re-emerged as a priority?
HR leaders were sprinting toward holistic talent management before the recession but were forced to refocus in the short term amid layoffs and budget cuts. But the downturn only reinforced the need for better talent management, including real-time data and analytics, as companies struggled to quickly identify top performers and align reward programs and career paths to keep them from disengaging or defecting.
Also, disparate systems for performance management, compensation, training and development, and career management can occasionally impede HR’s ability to analyze bench depth and talent pipelines. Among other factors, the advent of a more integrated approach to talent management technology is contributing to a resurgence in talent management, with 20 percent of the 456 companies in our survey citing it as their No. 1 priority, while another 13 percent list it second. Cumulatively, this makes talent management HR’s top service delivery goal in 2010.
