Towers Watson Finds HR Structures, Service Delivery to Change Within Two Years

 Towers Watson’s 2013 HR Service Delivery and Technology Survey has reported that corporate HR functions will experience major changes within the next two years due to the increasing pressures to improve how HR services are delivered and their level of effectiveness. The survey also showed that companies are considering new HR technologies and will continue to invest in products such as mobile applications while analyzing and changing their HR processes. The survey of over 1,000 global companies found that 36 percent of respondents will change their HR structure before the end of 2014.

Among these companies, 74 percent are changing in order to realize further operational efficiencies. An additional 53 percent are hoping to improve quality. A further 37 percent are seeking to achieve cost savings and 34 percent want to change their business strategy. Though, regardless of the reason spurring the changes, the move toward shared services is a commonly shared trait.

About half of companies changing their HR structures are moving toward a shared services environment. And while the shared services model is the most popular option, many organizations also intend to outsource functions (17 percent), or move to a single HR function (12 percent).

“Companies have been carefully examining both their HR structures and the way HR services are being delivered, and many have come to the same conclusion: The time is ripe for change,” said Mike DiClaudio, global leader of Towers Watson’s HR Service Delivery practice at Towers Watson. “Many organizations see new opportunities to increase HR’s strategic contributions to the business. What is really interesting is the continued trend toward replacing core HR systems, and a willingness to invest in new technology and partners with a growing shift toward software-as-a-service.”