Genesys, Human Capital, Trends, Survey

Genesys Survey on Human Management Capital Trends

Methuen, Mass. - May 15, 2007

Genesys, a provider of Human Resource services and application software including Payroll (US and Canadian), HR and an array of Employee Benefit solutions and tax filing services to the mid-to-large market, today announced the results of its Human Capital Management (HCM) trends survey for 2007.

As in previous years, of the many solutions in the human capital arena, respondents of the Genesys sponsored survey identified outsourcing the following functions as among the most predominant:

• Payroll processing – 30%
• Employee assistance programs – 28%
• Background screening – 27%
• Payroll tax filing – 21%

In addition, and consistent with the findings of The Outsourcing Institute's Annual Survey of Outsourcing End Users, were the results of the Genesys study which demonstrated the following benefits of outsourcing were most appealing to respondents:

• Free-up internal staff – 18%
• Streamline operations – 17%
• Access to world-class capabilities and industry expertise – 14%
• Accurate and predictable monthly costs – 14%

These results are similar to the results of EquaTerra’s recent HR Outsourcing (HRO) Buyer Pulse Survey which had the following as top-ranking benefits sought by HRO buyers: cost reduction, (ranked highest), followed closely by access to external skills and knowledge, process improvements, and ability to internally focus on more strategic activities.

When asked to describe the reasons for choosing an outsourcing vendor, Genesys 2007 survey respondents once again ranked price highest. As in previous years, other important factors in vendor selection were breadth and depth of product line, financial stability and references/reputation. The top HCM priorities according to respondents of this year’s survey include:

• Talent and leadership development combined with talent acquisition and retention – 37%
• Aligning people and business goals – 21%
• Performance management – 18%

In addition, 17% of respondents also indicated that streamlining processes would be an important priority in the coming year.

When asked about budget expectations over the next 12 months and HR technology and outsourced solutions, 43% of respondents indicated a status quo, while 31% expected an increase in budget. However, in 2005, 50% of respondents expected an increase in budget; and in 2006, 38% indicated that budget expectations for HR technology and outsourced solutions would increase, by as much as 9% in some cases.

With respect to self-service initiatives, when asked about adopting employee/manager self-service, 36% of respondents claimed to have implemented employee/manager self-service, while 39% said it was still not a priority. Respondents saw the greatest benefits of self-service as: employee ownership of general data, online open enrollment, and the reduction of calls placed to HR, respectively. These findings remain consistent with the results of Genesys’ 2005 and 2006 surveys.

“Outsourcing is highly effective for transforming processes and procedures and for providing access to best-in-class solutions while lowering operational costs,” said Ruth Ladner, Chief Operating Officer, Genesys. “We are pleased to see from the results of our survey that more and more organizations are embracing outsourcing as a vehicle to enable HR leadership to move away from transactional activities in order to focus on strategic planning, process improvements and innovation to drive business results.”

Source: Business Week