The Economy Will Rock, Let HRO Help You Roll With It!

The economic news continues to be as shaky and widespread as the East Coast earthquake this week in the U.S. The 5.8 quake was shaky with localized impacts, but it was not devastating. The older solid bedrock foundations under the East Coast mean that even a moderate earthquake can ring like a bell far and wide, which lessens the destructive impact overall.

The economic uncertainty will likely continue for some time and at some point we must all get on with business, even when there is some rocking and rolling. In my (non-financial expert) opinion, the economy is having an East Coast-style quake and is not facing the destructive seismic forces seen in 2008-2009. Companies able to tell the difference can gain an edge in the market while others panic and dither.

Talent management (TM) is about gaining and leveraging a competitive edge, whether it is in the form of recruiting, developing, or retaining talent. TM is a hot HRO topic and vendors large and small, software-only and full-BPO, and everyone in between are angling for a growing talent management footprint. Why? Because that is what they are hearing from surveys and directly from clients and prospects. That’s good news. Clients are once again recognizing the importance of TM and vendors are listening, investing, innovating, partnering, and acquiring more TM capabilities.

Our NelsonHall HRO analyst team just talked with several IBM Global Process HRO leaders including Mary Sue Rogers, General Manager of Global HR, Learning & Recruiting and John McGlone, Global Process Leader of Compensation and Benefits, on their TM point of view.  Part of our wide-range discussion was the infrastructure needed to support the tools and processes of TM. The underpinnings, like the impact of bedrock on earthquakes, have an integral role to play in the success of a TM program.

According to John, some look to “technology as the solve,” not understanding that it must work hand in glove with TM infrastructure, processes, and execution. TM strategy, policies, and consultation are all also important. TM is where all that is HR comes together and it is the perfect place to develop a dynamic balance of internal capabilities, a top-tier TM application (ERP module or specialty product) with HR outsourcing services that can provide and manage the talent and HR administrative infrastructure.

Another point we touched on with IBM is client maturity on the HR and TM journey. One size does not fit all. First, be sure the HRO vendor and TM products and services selected are appropriate for current use. Then, whether you have the luxury of building from scratch, or must get started with only modest changes to what you have, see that your HRO service provider has an applicable roadmap for development as business TM needs and capabilities change.

Don’t panic and dither. Rock and roll with HRO!

Linda Merritt, Research Analyst, HRO, NelsonHall

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Explore posts in the same categories: Hiring, hr outsourcing, hr outsourcing research, hro, HRO Activity, Human Capital Management, nelsonhall, outsourcing research, Talent Management

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