Harnessing Big Data: The Human-Capital-Management Journey to Achieving Growth
By The ADP Research Institute
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In an effort to better understand the challenges multinational organizations face along with their focus areas for 2015, the ADP Research Institute® conducted its third annual Global Human Capital Management (HCM) Decision Makers Survey. This survey yields new insights into the current thinking of HR decision makers and, with three years of data, illuminates and clarifies trends that have been developing over the past few years.
This year's survey of 725 senior leaders at global multinational organizations with more than 5,000 global employees has been conducted across the regions of Asia Pacific and Europe as well as the Americas (with Latin America included for the first time).
The survey asked a number of key questions about a wide range of HCM topics in an effort to understand the impact they have on organizational business strategy and their ability to execute their strategy plans. Essentially, the survey attempted to discern the following for large multinational businesses:
* What are your top business goals?
* What are the challenges in achieving those goals?
* Which areas of human capital management are most likely to help you overcome the challenges and achieve those goals?
According to the ADP Research Institute's study, the outlook for global business looks positive. Companies are increasing headcount outside of their headquarter countries, demonstrating confidence about business opportunities. However, there are challenges related to HCM that are inherent in the growing process.
For example, multinational organizations are grappling with a complex set of disparate HCM systems and processes; managing an average of 33 payroll systems and 31 HR systems.
Additionally, more than two-thirds of multinational companies (69 percent) rank talent acquisition and tracking as the workforce management strategy with the greatest impact on their organization's business objectives. Yet, 49 percent of study respondents also state talent management is their top business challenge.
This disconnect directly affects global organizations' ability to achieve their top business goal of expanding into new markets. The following discussion seeks to align HCM activities with the organizations' specific goals and spotlight the situations needing attention.
Strengthening the infrastructure is clearly a critical first component. Too many HR and payroll systems hamper the efficient application of employee data transactions.
The ability to manipulate that data into organizational insight and understanding is even more complicated -- assuming the resources exist to cobble the information together after cleaning up the ongoing transactional challenges. Plus, an acquisition or new market entry typically introduces yet another divergent system.
Expectations are for HR to support global growth and expansion. In larger companies, HR needs to build and maintain the business's agility.
In all of these, HR's analytical acumen will be a key element for succeeding. HR not only has to have the skills, but the tools and the access to data as well.
So, the Recommendation is Simple -- Simplify!
Reduce the number of human resource and payroll systems. Reduce the need for maintaining and understanding the idiosyncrasies of separate systems. Reduce the resources needed to consolidate data for the purposes of reporting and analyzing.
And, reduce the complexity so that you can manage the coming challenges and expectations as the company pursues the global expansion needed for growth and success.
In this way, HR exemplifies understanding of bigger business issues as well as how HCM initiatives and resources can be strategically applied to facilitating success. HR can take on a stronger leadership role as well as boosting both its and the organization's value.