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1、HRS ROLE IN UNLOCKING ORGANIZATIONAL GROWTH Embracing the transformative power of innovative HR capabilities.IntroductionMidsize organizations face complex threats in an increasingly unpredictable and competitive environment.HR executives have a unique perspective on how the workforce can contribute

2、 to the overall success of the organization.To better understand the opportunities and challenges facing this important sector of the global economy,Oxford Economics partnered with SAP to survey 2,100 midsize business leaders around the world and across industries.The sample included 400 HR executiv

3、es and 150 IT executiveseach of which play an important role in supporting HR initiatives.Key findings include:1.Scalability is top of mind for HR executives,who see it as a means of underpinning the financial goals of their organizations.2.Cloud adopters in HR are considerably ahead of non-adopters

4、 in implementing a business-wide technology strategy and tackling workforce planning and optimization.3.HR still relies heavily on manual,low-value tasks to work around legacy systems,which midsize organizations seek to remedy by investing in integrated technology solutions.How do you plan to stay c

5、ompetitive?“To remain competitive,we will implement more workforce solutionscreating an environment where our workers can thrive and deliver the best ideas.”A CFO at an industrial manufacturing firm in Saudi ArabiaFigure 1:What are your organizations top business objectives for the next two years?Se

6、lect the top 5;top 10 results shown.Midsize Growth:Addressing scalability and talent challenges The primary focus for midsize organizations over the next two years is growth.More than a third of midsize organizations say their top objectives are attracting new customers,increasing market share,and i

7、mproving margins/profitability.Growing revenue and improving customer experience/retaining existing customers round off their top five objectives(see Figure 1).HR managers are a bit more focused on scalability than others.Scalability efforts,however,are complicated by pressing IT infrastructure chal

8、lenges,which hinder capacity for around half of midsize organizations.HR respondents cite an inability to scale processes and systems to match organic business growth(53%),stand up new businesses,enter new geographies or deploy new business models(47%),and adjust or replan based on new information o

9、r shifting priorities,resulting in delayed ordered delivery and customer dissatisfaction(46%),as their top three challenges.Another area that could impact organizations ability to scale are the challenges around having the right talent in place.HR leaders cited these talent-related risks:Find the ri

10、ght talent to maintain operations(49%)Retain talent(42%)Reskill/upskill talent to adjust to changing requirements(41%)In a growing organization,HRs role becomes crucial in areas like talent management,workforce planning,and compliance.Attract new customersHRIncrease market shareImprove margins/profi

11、tabilityGrow revenueImprove customer experience/retain existing customersInnovate with new products,services,and business modelsAttract and retain top talentMinimize business/compliance riskIncrease organizational agilityIncrease employee productivity/efficiency45%40%38%38%36%35%33%30%30%27%Top perf

12、ormers are already in the cloud With IT infrastructures holding back growth possibilities,many midsize organizations are moving away from legacy,on-premises solutions and shifting to the cloud.Indeed,cloud solutions have earned wider acceptance because they support enhanced collaboration,enable inno

13、vation and growth,and offer greater flexibility.The vast majority of midsize organizations(73%)have adopted cloud solutions.Companies that are considered top financial performers-those with revenue growth and profit margins greater or equal to 10%and 5%respectivelyshow an even greater adoption of th

14、e cloud(78%).HR and IT respondents cited these strategic benefits:improved agility,optimized processes,improved customer experience,reduced costs and improved employee experience(see Figure 2).In addition,as midsize organizations compete against larger organizations with larger budgets,the cloud has

15、 enabled them to improve their scalability while keeping costs down.Figure 2:Which of the following benefits have been most significant as a result of your adoption of cloud solutions?Select up to three;top five responses shown.Improved our agility38%Optimized our processes37%Improved our customer e

16、xperience36.5%Reduced costs35.5%Improved our employee experience35.5%HR+ITHow do you plan to stay competitive?“We plan on moving workloads to the cloud for better operational management.”A direct report to the CTO at a Consumer Products company in the NordicsThe benefits of cloud adoption extend to

17、the organizations overall business and technology capabilities;and cloud adopters report being much more confident in their ability to overcome competitive risks.Cloud adopters are more likely to:Have a business-wide technology strategy(57%vs 50%of non-adopters)Feel comfortable with employee product

18、ivity and engagement(83%vs 68%of non-adopters)Have lower staff turnover(25%vs.15%of non-adopters)Prioritize expanding their geographic footprint(57%vs 45%of non-adopters)which may indicate that cloud is fundamental to effective scaling.Cloud adopters are also more likely to have an open standard pla

19、tform across all solutions,making it easier to take advantage of the latest in core HR and payroll innovation.For example,more cloud adopters are planning to invest in:Employee self-service(54%vs.45%of non-adopters)Chatbots and digital assistants(47%vs.34%of non-adopters)AI-powered personalization(3

20、5%vs.25%of non-adopters)Mobile capabilities(30%vs.17%of non-adopter)How do you plan to stay competitive?“Optimizing our cloud infrastructure for scalability and cost-efficiency for better data protection and easy exchange of information inside the organization so that we improve on our product and s

21、ervice quality and delivery time.”A Chief Technology Officer at an Australian professional services firmAddressing Workforce Challenges with Integrated Technology When asked about their top workforce challenges,HR respondents highlighted workforce planning(79%),regional compliance(69%),and managing

22、a dispersed workforce(64%).Many faced reliance on manual tasks due to legacy systems(44%)and struggled to scale processes and systems to match business growth(53%).To address these issues,IT and HR executives consider core HR functions essential,including time management,benefits administration,and

23、mobile accessibility(see Figure 3).These capabilities help to break down silos,enhance flexibility,and support growth.A crucial mechanism behind achieving these capabilities is the centralization and optimization of data collection,analysis,and archiving as well as investment in an integrated soluti

24、on.Integrating processes and data company-wide can help organizations create positive employee experiences,to address talent attraction and retention,and efficiency,to address scalability challenges.The respondents also see the value of integrating processes and data across their organization.More t

25、han three-quarters believe that integration supports their efforts to offer create innovative business models at scale,keep data accurate and up to date,and offer consistent employee experiences(see Figure 4).Figure 3:Which of the following core HR and payroll functionalities are considered a must-h

26、ave to compete and accelerate your organizations growth path over the next 2 year?Select up to three.Time Management49%Benefits administration40%Reporting and analytics35%Mobile accessibility32%Employee self-service31%Global payroll30%Visibility into all workers(FTE,contingent)27%Flexibility to modi

27、fy solutions based on needs19%Embedded compliance and localization18%Native ERP integration10%HR+ITHowever,in practice,some progress towards these goals may be needed.Only 45%of the HR and IT respondents see a single data repository as crucial,while 29%value a unified solution to integrate data,work

28、flows and experiences.In addition,only around half are using data management/analytics(53%)and a workforce management solution(51%).So,they may not be getting the full value from their HR technology.Integrated platforms offer greater security,simplicity,and agility.Looking ahead,there are indication

29、s that integration and unification will be a focus:31%plan to invest in a unified work experience,with smaller midsize organizations showing even more interest(37%).In addition,there is a preference for an integrated buying approach.37%prefer to start with core HR and add solutions from the same pro

30、vider 30%purchase individual solutions from the same provider 28%buy a single bundle from the same providerFigure 4:To what extent does the integration of processes and data across your organization help you achieve the following business outcomes?To a significant and moderate extentDeliver real-tim

31、e insights on key performance indicatorsHR+ITHow do you plan to stay competitive?“Our plan is to work on enabling our HR department to be more data driven and strategic.”A CHRO at a Japanese professional services firmEnable,measure,and support ongoing digital transformationOffers consistent employee

32、 experiencesKeep data accurate and up to dateCreate innovative business models at scale74%77%78%80%83%HR,Finance integration improves decision-makingAs the financial success of midsize organizations increasingly relies on HR decisions,the alignment between HR and Finance strengthens.Technology solut

33、ions serve as catalysts,enabling HR to better support financial responsibilities,such as forecasting,planning,and risk reduction.Over 25%of HR and Finance respondents prioritize minimizing business and compliance risk.Inaccuracies in forecasting hinder scalability for 33%of HR and 22%of Finance resp

34、ondents.HR is addressing this by implementing technology solutions which support the acquisition of workforce and finance data,leading to more accurate models and insights.Currently,53%use management/analytics,and 51%use workforce management software.However,a significant share of the respondents pl

35、ans to implement them in the next 12 months(35%in HR,40%in Finance).Connecting people and finance data enables predictive insights through analytics dashboards,improving talent and financial decision-making including the benefits outlined in Figure 4.The widespread adoption of cloud within HR,genera

36、tes benefits across the organization.including for the Finance function.These benefits include reducing costs(36%),optimizing processes(39%),improving visibility(20%),and enhancing automation(25%).Such advantages align with the common goals of reducing cost,risk,and complexity.How do you plan to sta

37、y competitive?“Use data analytics to make informed decisions.”Direct report to Chief Human Resources Officer at a high-tech hardware company in the USConclusion Despite external uncertainty,IT and workforce challenges,by focusing on their employees and leveraging digital technologies effectively,the

38、 HR and IT functions within midsize organizations are presented with real opportunities for success.We recommend the following actions:1.Shift to cloud:Incorporating cloud enables the scalability required to remain competitive and growstart with core HR as the foundation and take advantage of emergi

39、ng technologies,such as AI.2.Leverage a single integrated platform solution:Adopting these technologies will improve employee experiences and increase productivity,as well as tackle workforce related and scalability challenges.3.Integrate your HR and Finance functions:Greater alignment of data and p

40、rocesses among these two functions empowers them to drive business-wide insights and improved decision-making.By implementing these strategies,midsize organizations can create a competitive and dynamic workforce that is motivated,skilled,and aligned with the companys goals.About SAP An established l

41、eader in cloud HR technology,SAP goes beyond traditional human capital management to improve the way you manage,develop,and engage with employees.SAP SuccessFactors solutions cover core HR and payroll,talent and learning management,workforce analytics and planning,employee experience management,and

42、sales performance management and are used by more than 9,900 organizations and 260 million end users across the globe.In addition to providing a comprehensive and global set of HR capabilities,SAP SuccessFactors solutions serve as the source of people data for all SAP cloud applications.This enables

43、 organizations to operate HR,finance,procurement,and more from a single,open cloud platform.Learn more about SAP SuccessFactors solutions here.About Oxford Economics Oxford Economics is the worlds foremost independent economic advisory firm.Covering over 200 countries,over 100 industrial sectors and

44、 8,000 cities and regions,we provide insights and solutions that enable clients to make intelligent and responsible business decisions faster in an increasingly complex and uncertain world.For more information,visit https:/ and key definitions Sample:400 HR executives Executive titles:Chief Financia

45、l Officer,Chief Executive Officer,Chief Data Officer,Chief Operating Officer,Chief Customer Officer,Chief Information Officer,Chief Purchasing Officer,Chief Digital Officer,and the aforementioned titles direct reports Sectors covered:Banking,high-tech software,professional services,consumer products

46、,mill products,wholesale distribution,public sector,travel and transport,high-tech hardware,industrial manufacturing,automotive Revenue(USD):Company sizes represented:To be included in this survey,organizations had to have an annual revenue of less than US$1 billion during the last fiscal year and h

47、ave between 200 and 5,000 employees.Locations covered:United States,India,Brazil,Saudi Arabia,France,China,Japan,Canada,Italy,Netherlands,United Kingdom,Australia,Germany,Singapore,South Korea,Mexico,Malaysia,Switzerland,Austria,Taiwan,New Zealand,Indonesia,Ireland,Philippines,Spain Dates fielded:October and November 2023Between 200 and 499 employeesBetween 500 and 999 employeesBetween 1,000 and 2,499 employeesBetween 2,500 and 5,000 employees33%20%28%19%Less than$100 millionBetween$100 million and$500 millionBetween$501 million and$1 billion29%41%29%