Planned Expenditure for HR Management Solutions to Grow 7 Percent

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<p><strong>Concord, Mass. &mdash; April 24</strong><br />A new national study conducted by the Gantry Group LLC, &ldquo;HR/Workforce Management Solutions Expenditures & Trends,&rdquo; reveals that a company&rsquo;s annual budget for hr/workforce management solutions and services, on average, will grow to $1.14 million in the next 12 months. </p><p>Companies will allocate their budgets in key solution areas: 13 percent to recruitment, 11 percent to leadership and development, 12 percent to performance management, 10 percent to compensation planning and 9 percent to talent management. <br /><br />Companies show a preference for third-party, remotely hosted solutions: 67 percent of planned recruitment implementations (32 percent on-premise, 35 percent remotely hosted), 49 percent of planned performance management deployments and 44 percent of planned talent management deployments. <br /><br />According to the study, respondents prefer third-party solutions to outsourced services primarily because they want to maintain control (70 percent) and believe they will also derive greater cost savings (50 percent). <br /> <br />The study solicited feedback from C-level HR executives and vice presidents (28 percent), HR directors (32 percent) and HR managers (24 percent). More than two-thirds (67 percent) of study respondents were with companies with more than 1,000 employees, and 34 percent were with companies with more than 10,000 employees. <br /><br />The study revealed the following additional findings: <br /><br />&bull; The key metrics that companies use to determine the success of their HR solutions is reduced administrative burden on HR staff (45 percent), followed by improved HR productivity (39 percent) and lower operational costs (37 percent).<br />&bull; The majority of respondents believe that there HR solution deployments have benefited their organizations through reduced HR time expended on benefits enrollment and administration (61 percent) and reduced time allocated to payroll processing (49 percent).<br />&bull; Respondents are least satisfied with their deployed solutions for talent management, performance management and manager self-service.<br />&bull; Dissatisfaction with HR solutions arises primarily from vendors&rsquo; poor response to problems (46 percent), poor integration with the company&rsquo;s infrastructure (41 percent), poor performance (38 percent) and an increase in HR process complexity (36 percent). <br /></p>

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