Changing Strategies in HR Technology and Outsourcing

In many companies today, benefit plans and compensation are in transition. Employers are no longer providing one-size-fits-all health care and retirement benefits, and they’re increasingly linking compensation to performance goals. Employees are being asked to play a more active role in defining their reward package and in managing their benefits.

But the success of this new reward system depends on more than a change in employee mindset — it means that employers must provide the information and tools necessary for employees to make the right decisions for themselves and their families. This new focus is driving many companies to reconsider the way they deliver human resource services,with a strong emphasis on improving administration and engaging employees.

Watson Wyatt’s 2007 HR Technology Trends Survey finds that companies are turning to technology to give employees access to pertinent information and tools. From portals to software solutions to call centers, HR technologies are providing a bridge to the information that employees need to understand their changing workplace.

Key Findings :

. One in five companies expects to change its HR delivery structure in the coming year. This signals a significant shift in an area that companies have historically preferred to keep stable.
. Employee engagement and information delivery are paramount, due to the growing complexity in plans and the need for decision-support tools.
. Many companies plan to use HR portals to communicate health care and total rewards information to employees.
. HR looks to use internal or enterprise resource planning (ERP) systems whenever possible. Less than 25 percent of companies direct their HR function to outsource whenever possible.
. While companies cite internal process improvement as the primary goal for their sourcing strategy, 31 percent report missing that goal.
. Most companies are satisfied with HR delivery in the retirement and health and welfare areas but are not as satisfied with HR delivery in the talent management area.
. Many companies are looking to implement technology solutions for their talent management programs.
. Retirement plan administration is a key focus for many companies, with one in four planning to change defined benefit administration and delivery in the next two years.
. Most companies have HR call centers and strongly prefer that employee inquiries be handled in the United States.
. Satisfaction with call centers is tied to the use of case management systems.
. The majority of self-service transactions on the Web are in the health and welfare area. Most transactions related to compensation/payroll decisions and retirement plans do not take place over the Web.