Benefits March 22, 2002

HR Tech Investment Needs Company Buy-In

March 22, 2002 (PLANSPONSOR.com) - Many companies that sunk large sums into human resources technology haven't yet seen the move pay off because of inefficiencies in their ongoing programs, according to a study by consultant Watson Wyatt.
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In order to realize the cost savings they hoped to attain by moving into technology-based service delivery, Wyatt said companies should adopt three “best eHR practices”:

  • having a documented eHR strategy supported by senior management and key stakeholders
  • requiring a sound business case for eHR investments
  • selecting and integrating a mix of HR systems, applications, and sourcing strategies that best fit the organization.

eHR Strategy Pays Off

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Only two out of 10 survey respondents reported having a formal eHR strategy, although six out of 10 required a business case for new investments.

The minority of companies with a documented eHR strategy had 28% better HR cost efficiency than companies without a documented strategy. That translated into lower HR costs as a percentage of company revenue. 

Those companies also had a superior staffing ratio (the number of employees each HR staff member supports) – 8% higher than their counterparts.

In addition, high-performing HR organizations reported a 30% increase in time devoted to direct support of company goals.  They noted a 15% decrease in administrative time spent providing information and conducting transactions for employees and managers.

Overall, the survey found that the Web continues to be the dominant platform for employee HR self service.

New Tool

Using the data from the 2002 eHR Survey, Watson Wyatt built a Web-based tool to identify the eHR practices that the company says should benefit HR performance and boost employee satisfaction levels. The free tool is at: http://www.watsonwyatt.com/services/ehr

Watson Wyatt’s 2002 eHR survey was based on responses from 649 companies. 

To read more about the study, go to: http://www.watsonwyatt.com/research

Investing March 21, 2002

Initial Unemployment Claims Dip

March 21, 2002 (PLANSPONSOR.com) - The labor market showed further signs of strengthening this week with the number of people filing for unemployment insurance benefits for the first time falling further than anticipated, according to new data from the Department of Labor.
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The number of initial jobless claims dropped by 12,000 in the week of March 16, to a seasonally adjusted 371,000. One year ago, initial claims stood at 382,000.

The four-week moving average, considered by many economists to be a better measure of employment conditions since it eliminates weekly fluctuations, inched up to 379,000 from 376,500. Last year at this time, the four-week moving average came in at 377,750.

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The states with the largest fall in jobless claims were New York, New Jersey and Washington, while those with the largest increases were South Carolina, Alaska and Tennessee.

In other economic news, the February’s Consumer Price Index (CPI), the US’s key inflation gauge, increased by 0.2%, matching the previous month’s gains.

Core CPI, which excludes volatile food and energy prices, rose by 0.3% after a 0.2% increase in January.

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