SOURCE: Aberdeen Group, a Harte-Hanks Company

January 08, 2008 10:00 ET

Human Capital Management: THE TIME FOR INTEGRATION IS NOW!

Performance Improvements Across Thirty-Eight Metrics Prove That Integrating Human Capital Management Systems Is Overdue

BOSTON, MA--(Marketwire - January 8, 2008) - In the new benchmark report, "Integrated Human Capital Management: Over-hyped or Over-due," Aberdeen Group, a Harte-Hanks Company (NYSE: HHS), found that while 81% of all organizations surveyed prefer an integrated human capital management (HCM) system, 73% of organizations that achieved Aberdeen's Best-in-Class status associate "integrated HCM" with back-end databases rather than with front-end user interfaces. This benchmark report is a compilation of surveys and interviews from 245 organizations globally and highlights how Best-in-Class performers are integrating HCM data and processes to achieve their prowess across all the metrics measured by this survey.

"To increase the productivity of the workforce and supportive HR processes, as well as adapt quickly to market changes, Best-in-Class organizations seek to ensure that the efforts and output of human capital are aligned with the company's overall objectives," said Kevin Martin, Research Director, Human Capital Management at Aberdeen. "In support of this, Best-in-Class organizations look to add more strategic functionality to their HCM processes as well as integrate HCM systems."

To achieve Best-in-Class status in HCM systems, organizations during the previous 12 months were required to have increased employee performance, decreased cost of hire, increased revenue per employee, as well as improved their ability to determine projected growth by job category and forecast annual retirement rates. However, Best-in-Class companies were also found to improve their core HR processes such as benefit management, payroll processing, and time and attendance. The report found that a key organizational differentiator between Best-in-Class, Industry Average, and Laggard organizations was identifying key HCM performance areas within the organization (as was the case for 81% of Best-in-Class versus 47% of Industry Average and 24% of Laggards). Furthermore, in terms of technology, the report found that in addition to integrating processes and data, automation plays a vital role in improving workforce productivity in general and the productivity of the HR department in particular. "While an automated solution is not necessary for an organization to achieve Aberdeen's Best-in-Class status, those that have fully automated their succession planning efforts are nearly three and a half times more likely to achieve Best-in-Class status than companies who do not," said Jayson Saba, Research Associate, Human Capital Management at Aberdeen. "And given Best-in-Class performance achievements, it became very hard for us to argue against these findings."

This report examines how global enterprises are utilizing HCM strategies, processes, and solutions to enhance workforce productivity and HR process efficiency. In addition to providing insight into what Best-in-Class companies are doing, this report also offers recommended actions that all companies can take to become more successful at leveraging HCM technology improve performance across thirty-eight HCM metrics.

A complimentary copy of this report is made available due in part by the following underwriters: Infor, Lawson, Oracle, Saba, and Spectrum HR. To obtain a complimentary copy of the report, visit: http://www.aberdeen.com/link/sponsor.asp?cid=4196

About Aberdeen Group, a Harte-Hanks Company

Aberdeen is a leading provider of fact-based research and market intelligence that delivers demonstrable results. Having benchmarked more than 30,000 companies in the past two years, Aberdeen is uniquely positioned to educate users to action: driving market awareness, creating demand, enabling sales, and delivering meaningful return-on-investment analysis. As the trusted advisor to the global technology markets, corporations turn to Aberdeen™ for insights that drive decisions.

As a Harte-Hanks Company, Aberdeen plays a key role of putting content in context for the global direct and targeted marketing company. Aberdeen's analytical and independent view of the "customer optimization" process of Harte-Hanks (Information - Opportunity - Insight - Engagement - Interaction) extends the client value and accentuates the strategic role Harte-Hanks brings to the market. For additional information, visit Aberdeen http://www.aberdeen.com or call (617) 723-7890, or to learn more about Harte-Hanks, call (800) 456-9748 or go to http://www.harte-hanks.com.

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