“World-class” HR organizations are those that achieve top-quartile performance in both efficiency and effectiveness across an array of weighted metrics in The Hackett Group’s comprehensive HR benchmark. (Image: Shutterstock)

The digital revolution is changing the way world-class HR organizations conduct their business. According to findings from The Hackett Group, HR organizations now spend 28 percent less on labor, have 32 percent fewer staff and spend 29 percent less on outsourcing per employee than typical companies.

“In HR, as in other areas, digital transformation is a multi-year effort that requires a clear strategy, well-defined targets and a detailed roadmap of initiatives,” says Franco Girimonte, associate principal, The Hackett Group. “Building the digital capabilities of the HR organization requires fresh strategies and approaches in four key areas: smart technology to automate and continuously improve processes; AI-powered insights to drive decisions; new skills like the ability to analyze and interpret data for key messages and storylines to advise business decision-makers; and changes in organization roles and structures to fully leverage HR brain power.”

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