Global business-driven HR Transformation: The journey continues in financial services | Deloitte | Human Capital consulting has been added to your bookmarks.
Global business-driven HR Transformation
The journey continues in financial services
The global business environment is experiencing unprecedented change and there is arguably no other industry affected more than financial services. As a result, the financial services industry (FSI) and the human resources (HR) organizations that serve them will need to develop new capabilities if they want to remain relevant. As FSI organizations engage in HR transformation efforts, many are primarily focused on making existing HR services more efficient, effective, and compliant. However, the rules are changing. Basic HR capabilities such as efficient and effective service delivery, integrated HR systems, employee self-service, and timely access to relevant workforce data are as important as ever. But they’re seen as foundational necessities — not strategic change.
Deloitte’s global HR FSI benchmark study, has gathered information from 35 participating banks and insurance companies across North America, Western Europe, and the Asia-Pacific regions. The benchmark addresses global HR process costs within each company —labor, outsourcing, technology, overhead, staffing levels, productivity, and cycle times. The study reveals critical benchmark information about process categories such as transaction processing, rewards administration, talent management administration, and strategy and program design. The study also examines different roles in FSI HR, including business partners, centers of specialization, shared service centers, site representatives, and third-party providers.
This study reveals that FSI HR executives should consider HR capabilities that do not just support an efficient and effective HR organization, but can allow for the development of a truly “business-driven” HR partnership that supports the organization strategy. A key first step is to make data-driven decisions based on understanding your organization’s strengths and opportunities, then compare and contrast with peers inside and outside the industry.
Deloitte's benchmark reveals that there is an opportunity to reduce the total annual HR cost by an average of 45 percent for many insurance companies.
Human Resources benchmark for banks
Deloitte's benchmark reveals that there is an estimated $10 to $40 million annual HR operational savings for most banking organizations.
Building on the ideas featured in Global business driven HR Transformation: The journey continues, HR leaders should broaden their benchmarking horizons to help chief officers (CXOs) see the beneficial impact of their activities on the business as a whole, not just the table-stakes categories of cost and headcount often derived sought in benchmarks.