Workforce Management has partnered with IBM and APQC in a data collection effort that highlights how few organizations have a fully developed, documented HR strategy. Apparently, 25% of companies reviewed for this study had no strategic HR plan at all. Only 1 in 2 businesses had a documented strategy for human capital management. How much does this really matter from a cost and efficiency standpoint?
Lack of Planning Leads to Overspending
According to the findings of this research initiative, businesses that plan and strategize but fail to appropriately document these processes spend twice as much as businesses that engage in good documentation practices. Even worse, companies that don’t have an overarching HR strategy in place at all are spending as much as 9 times more than their more organized competitors.
These frazzled HR departments have to do planning and strategizing on the fly as they go along. The researchers for this study believe that the resulting inefficiency is one of the factors driving costs up. After all, if you don’t write things down, you have to work through them again every time a similar situation arises in the future. This redundancy in HR processes can only be corrected by investing the time and resources in strategic planning. The APQC cautions against under-investing in this process. Doing it right is the only way to really capture cost savings and position HR as a true business partner within an organization.
Strategic Planning Impacts Every Area of HCM
One interesting point from this study is that businesses with formal plans and policies for achieving HR objectives are more likely to target recruitment processes based on job function. They are also more likely to have retention and learning strategies in place. Do you want to bet that these companies have a formal onboarding strategy as well?
Such a strategy would include:
- Minimizing costs and labor hours for forms completion
- Reducing time to new hire productivity
- Limiting compliance risks by using an error and omission free process
- Ensuring that the onboarding system can be updated to keep up with the latest changes in best practices and legal requirements for HR year after year
That certainly sounds like a job for Universal Onboarding software!