Copyright©2009Bersin&Associates.Allrightsreserved.HighImpactHROrganizationsIndustryStudyFindingsStaceyHarris,PrincipalAnalystCopyright©2009Bersin&Associates.Allrightsreserved.Page2AboutUsWhatWeDoWeofferanintegratedresearchandadvisoryservicesprogramforhumanresources,training,andITprofessionals.Membersgainaccesstoproprietaryresearch,tools,benchmarking,andexecutivenetworking.AreasofExpertise•HRandLearningplatformsandsolutions•Corporatetraininganddevelopment•Talentmanagementstrategyandpractices•Leadershipdevelopment•Performanceandcompensation•Successionandcareermanagement•WorkforcePlanningWhoWeAreLeadingresearchandadvisoryservicescompanyinenterpriseHR,learningandtalentmanagementstrategiesforbusinessperformanceimprovementCopyright©2009Bersin&Associates.Allrightsreserved.Page3Today’sAgendaHigh-ImpactHRresearchTop10HIHRFindingsSummaryCopyright©2009Bersin&Associates.Allrightsreserved.Page4ResearchParticipationInterestHigh6%2%4%7%7%16%9%41%8%Greaterthan100,00075,000-99,99950,000-74,99925,000-49,99915,000-24,9995,000-14,9992,500-4,999•720ParticipatingCompanies•30+InterviewswithSeniorHRLeaders•20+InterviewswithbusinessleadersandHRClients2%0%8%11%3%2%5%2%2%3%10%2%4%0%10%5%3%2%2%3%2%3%9%2%3%2%AerospaceAgricultureBanking/FinanceBusinessServices/ConsultingConstructionConsumerproductsEducationFoodserviceorfoodrelatedGovernment(federal,includingmilitary)Government(state/local)HealthcareHospitalityInsuranceLegalManufacturing-DurableManufacturing-Non-DurableMedia/EntertainmentMedicalequipmentorproductsNonprofitCopyright©2009Bersin&Associates.Allrightsreserved.Page5ResearchApproachEffectiveness,Efficiency,andAlignmentMeasures(68Measures)HROrganizationCompetenciesHowwouldyourateyourHROrganization'sproficiencyintheseHRdisciplines?15MeasuresChangeManagementEffectivenessHowwouldyourateyourHRorganization'seffectivenessatchangemanagementandprogrammanagement?CriticalMeasureHROrganizationEffectivenessHoweffectiveisyourHRorganizationintheseareas?14MeasuresHRStakeholderAssessmentHowwelldoyoubelieveyourHRorganizationdeliverssolutionstothefollowingstakeholders?9MeasuresHRCredibilityHowwouldyouratethebusinessalignmentandcredibilityofyourHRleadershipteam?CriticalMeasureHRTechnologyRatingHowwouldyourateyourHRtechnologyenvironmenttoday?13MeasuresHRBudget&EmployeeSpendHREmployeeSpend&StaffingRatios?2MeasuresLineManagerCapabilitiesHowwouldyouratethegeneralcapabilitiesofyourlinemanagersinthefollowingareaslistedbelow?13MeasuresLineManagerEffectivenessGeneralHREffectivenessHREfficiencyHRBusinessAlignmentCopyright©2009Bersin&Associates.Allrightsreserved.Page6DimensionsandMeasuresHIHRCharacteristicsLookedatalmost100dimensionsand68measuresCalculated100companieswiththehighest(weighted)aggregatemeasures,andconductedamulti-dimensionalanalysistoidentifythemosthighlycorrelatedcharacteristics•OrganizationswerereviewedforcriticaldifferencesbetweenLarge,Medium,andSmallorganizations•OrganizationswerereviewedforcriticaldifferencesamongindustriesAnalyzedeachmeasurementcategoryofefficiency,effectiveness,alignment,andmanagercapabilityandidentifiedthemosthighlycorrelatedcharacteristicsthatwerestatisticallysignificantConductedover50interviewstovalidatefindingsandgatherqualitativedataCopyright©2009Bersin&Associates.Allrightsreserved.Page7EffectiveHRApproachCapableManagersPerformingWorkforceMeetingBusinessGoalsBusinessImpactofHRHREfficiencyWorkforceEffectivenessHRBusinessAlignmentBusinessImpactManagerEffectivenessHREffectivenessCopyright©2009Bersin&Associates.Allrightsreserved.Page8EnterpriseHumanResourcesFrameworkHRStrategy&PlanningCulture&PhilosophyBusinessMetrics/WorkforceMetricsOrganizationalStructure,Governance,&RolesHRInfrastructure/Networks/ConnectionsWorkforceTypesContract&ContingentWorkforceEmployeeLeadershipSalaryHourlyDesignDeliveryHRPrograms&ServicesCoreServicesBenefitsPayrollCompensationHRLegal/LaborRelationsOn-BoardingEmployeeRelationsHRReportingTalentManagementAcquisitionPerformanceLearningDevLeadershipDevSuccessionCareerRetentionTotalRewardsStrategicWorkforceManagementOrganizationalDesignCommunicationsEngagementDiversityHRBusinessSupportHRAnalyticsStrategicWorkforcePlanningCopyright©2009Bersin&Associates.Allrightsreserved.Page9GreatestHROpportunityMeasurement,Talent,andStrategicWorkforceManagement7%14%14%14%15%15%17%17%17%19%23%24%26%35%Selection&RecruitingofTalentRapidly&Effectivelyon-boardingnewtalentDefiningRolesbyskillsDefiningPivotalRolesPromotingHealthandWellnessAllocatingCompensationfairlytohigh…EncouragingInnovation&CollaborationPromotingHighlyEngagedWorkforceIdentifying&DevelopingFutureLeadersMotivatingaHighPerformanceCultureEnablingastrongself-learningcultureDrivingInternalMobility&CareerDevelopmentDeliveringWorkforceMetrics&AnalyticsMeasureingHRProgramsinFinancialTermsWhatisyourbiggestchallengeasanHRfunction?Copyright©2009Bersin&Associates.Allrightsreserved.Page10HRMaturityLevelsHIHROrganizationsMaturewiththeBusinessTraditionalNoHRStrategy,“Personnel”function,Mostlyseparatefromthebusiness.LineManagersperformmostHRActivitiesasthey