The responsibilities of the modern human resources organization are changing to develop Best-in-Class labor management strategies. The shift is prompting HR to partner with external subject-matter-experts to execute strategic improvements more efficiently. To do this, HR needs to be able to perform quick and reliable data transfers. Documents management and e-signature are providing new avenues to optimize these transfers. The role of human resources (HR) is changing as operational data is increasingly being handled by department managers amidst the push for real-time labor performance improvements. Best-in-Class companies, today, are about equally likely to All Others (69% vs. 68%) to extend data visibility for performance management to departmental managers to improve the timeliness of problem resolution. The shift away from HR for the handling of internal data is prompting senior management to reduce HR headcount and budget.
In a 2017 survey, Aberdeen found that Best-in-Class companies can optimize a combination of labor metrics, ranging from revenue per full-time equivalent (FTE) employee, to employee retention. The survey showed that Best-in-Class companies were six times more likely than All Other companies (64% vs. 11%) to experience a decrease in HR headcount from the previous year. While process automation was the number one reason cited for staff reductions, distributing operational labor data management across the management hierarchy was a close second.
Staff reductions are spreading the remaining HR staff thin as they are still responsible for managing the quality of labor information, even if they are no longer always on the front lines of managing productivity. In fact, Best-in-Class HR organizations are 16% more likely than All Others (80% vs. 69%) to consider a lack of staff and resources, to manage labor data quality and reporting, to be one of their biggest challenges.