Evidence-based HR is the idea that HR should make decisions based on proven evidence and experimental studies in order to eliminate subjectivity, uncertainty, and risk. It’s a potentially powerful path for HR leaders and staff to become more effective and impactful in their roles. Data-based decision making can be the bridge between HR and business strategy.
We recently wrote about the impacts of HR outsourcing (HRO) on employees, noting that employee turnover was 10 to 14 percentage points lower for companies that used professional employer organization (PEO) services versus comparable companies that did not. That strongly suggests that the HRO relationship benefits employees, but do employees understand the value of what they’re receiving?
The Hackett Group released a fascinating report last year – “The World-Class Performance Advantage: Seven HR Capabilities that Drive Performance Leadership” – in which they found that world-class HR organizations spent 37% less on HR per employee and serviced 59% more employees per HR FTE (full-time equivalent employee)!
Here's a sobering statistic: More than 40% of employed Americans have received no skills training in the last two years! In fact, more than a quarter (26%) of HR executives say they have no training budget at all, according to ResearchNow! McKinsey and Company verifies the predictable result: only one-quarter of respondents to their survey said that their training programs measurably improved business performance.
According to the Society for Human Resources Management (SHRM), organizations continue to struggle with effective performance management: “More than one-half (53 percent) gave their organizations a grade between C+ to B, another one-fifths (21 percent) chose a C, and only 2 percent gave an A in performance management to their organizations.”
Human Resources is a tough field: it demands a substantial depth-and-breadth of expertise in areas that are constantly changing, and HR pros must contend with a lot of competition when it comes to finding and retaining talent. HR workers and leaders who don’t stay sharp and evolve along with the HR industry run the risk of falling behind. Fortunately, you can find plenty of resources for helping you stay current on trends, educate yourself on applicable laws, and find tools that can help you in your day-to-day.
You’ve probably heard of PEOs – professional employer organizations – but you might have wondered when it’s a good idea to use one. PEOs can be a terrific resource for businesses who need an expert partner to assist in HR activities like recruiting, benefits administration, compliance, risk management, etc. In many cases, a PEO even becomes the employer of record, thereby assuming all liability for burdens like payroll taxes. In short, as writer Suzanne Lucas told The New York Times, outsourcing allows companies that don’t have the means or desire to hire in-house specialists to “gain vast resources for a relatively small amount of money.” But is it right for you? Consider these five questions.