HR plays increasing role in business execution, report finds

A recent report's findings reaffirm the increased role Human Resources plays in business execution, with particular emphasis on the alignment of HR activities with business priorities, the achievement of consistently higher performance, and effective cost control. The Aberdeen Group’s research report, The 2009 HR Executive's Agenda, co-sponsored by Vangent, Inc., a leading provider of results-oriented human capital and talent management solutions, cited that top workforce challenges include recruiting top talent, developing future leaders, and retaining top talent.

The 2009 HR Executive's Agenda looks at the entire suite of strategies, capabilities and enabling technologies and services that best-in-class human capital management (HCM) organizations are using to drive business performance and build employee engagement in today's uncertain economic conditions. The study surveyed more than 400 organizations regarding their human capital management programs in light of the current economic challenges. 

The following differentiating and critical success factors have emerged among best-in-class human capital management companies. These companies:

  • are 62 per cent more likely than all other organizations to use assessment and test-building software;
  • increased employee retention on average by 31 per cent;
  • improved employee performance on average by 27 per cent.
  • increased employee engagement on average by 25 per cent.
  • shortened time-to-productivity on average by 24 per cent.

"The use of assessments in employee selection and promotion, the automation of hiring processes, and the engagement and development of the workforce all contribute to improved human capital execution. Accordingly, best-in-class companies in this study continue to invest in these areas so that they cannot only weather the current economic storm, but be well-positioned for the future economic recovery," says Kevin Martin, Aberdeen VP, and principal analyst, Human Capital Management, who co-authored the report.

"Economic uncertainty has driven some organizations into a cost-cutting frenzy. But as this report shows, best-in-class companies recognize the importance of their human capital in helping manage through the crisis," states David Fabianski, senior vice president and general manager of Vangent's Human Capital business. "The quality of hire, development of talent, and reliability of the workforce matters more today than ever and we commend Aberdeen for bringing these issues to light at a time when it is far too easy to focus on cost-cutting at the expense of organizational integrity."

For more about the report and how to order, visit