According to a recent report from Aberdeen Research Group, 64 percent of best-in-class organizations indicate that human capital management has become more strategic in the past year. This emphasis on the strategic management of human capital will continue to be the hallmark of successful companies and is, in part, made possible by the rise of HRO 3.0.
Virtually every HR process can be made more efficient though HRO 3.0. It not only automates many HR processes, but produces actionable business analytics and frees up HR executives to focus on strategic HR activities. HRO 3.0 greatly reduces time spent on payroll, recruitment, learning programs and benefits administration, among other tasks.
The trials and tribulations of the first two generations of HRO gave rise to today’s HRO 3.0 – a significant evolution of HRO that leverages a technology-inspired view of outsourcing and places the user at the core of the HR experience. Compliments of the growing popularity and use of scalable Software-as-a-Service (SaaS) technology platforms, HRO 3.0 offers more intuitive self-service features that encourage managers, HR executives and organizations to use HR analytics to better enable strategic decisions. HRO 3.0 better addresses the realities of the global marketplace as it offers more efficient global standardization and integration with third parties, making it possible for companies to outsource and automate key HR operations, such as payroll, across a global workforce. Unlike past generations, HRO 3.0 is standardized but highly configurable, allowing companies to explore a variety of deployment options and choose which functions should be outsourced.
HRO 3.0 not only simplifies the technology necessary to support talent, but also helps strengthen the manager and employee relationship. For example, recognizing the need to better manage employee data and experiences, and looking to mitigate HR’s role as a middle man between employees and managers, Fifth Third Bank sought a “one-view” approach to talent management that allowed managers to gain a comprehensive view of all aspects of an employee (management, performance, learning, etc.) from a single system. To accomplish this, they established a core HRO 3.0 system with several best-of-breed add-ons. These efforts alone allowed the bank to outsource 165 discrete processes and move more than 40,000 manager transactions from paper to online.
The business marketplace will only become more connected and globalized, highlighting the importance of leveraging and understanding the needs and opportunities for talent throughout a company’s footprint. Thanks to the rise of HRO 3.0, organizations now have a smart, user-friendly and impactful technology platform that not only cuts costs, saves time and provides greater organizational visibility, but also leads to more informed decision making and human capital management.