The risks inherent in doing business today apply to small, mid- and large-sized companies, across industries and location. What makes some companies more adaptable to a challenging economic environment than others? What makes some companies more vulnerable to demographic shifts or compliance issues like harassment? 

How can human resources and payroll departments reduce future risk?

The risks inherent in doing business today apply to small, mid- and large-sized companies, across industries and location. What makes some companies more adaptable to a challenging economic environment than others? What makes some companies more vulnerable to demographic shifts or compliance issues like harassment? A recent study by the Aberdeen Group looked at how 160 organizations enable their managers and decision-makers to use HR data to drive business decisions and results. The study found interesting commonalities among high-performing organizations and makes recommendations for companies it calls "laggards." 

The report, The Future of Core HR: Building the Business Case for Automation and Integration, found that top performing companies lowered error rate in payroll processing to just 0.5% while reducing manual transactions by 7% year-over-year. The report also found that, by streamlining transaction times and giving employees greater autonomy through self-service capabilities, these companies were able to achieve 18% higher engagement scores than their competitors. 

Companies that achieved top performance in Core HR also achieved better business results by including the organization through manager self-service, allowing them to make more educated workforce decisions using accurate data. Aberdeen's research has found that the integration of manager self-service tools and workforce dashboards results in nearly two-and-a-half times greater improvement in staff productivity, 180% greater improvement in revenue per employee, and 125% greater reduction in overtime costs. According to Jayson Saba, Research Analyst for Human Capital Management and author of the study, "for leaders and managers knowing where the team stands on headcount, overtime costs, key vacancies, and other factors helps improve agility and alignment with the organization." 

Improving core HR efficiency is also about knowing where automation is needed and, more importantly, which systems will need to interact. Saba adds that "automation yields great performance across qualitative and quantitative measures, but having disparate systems prohibits the organization from reaping the full potential of its technology investment." 

For more on how leading organizations enable their decision-makers to leverage core HR data to drive business results, access to this valuable report for free (a $399 value!).