Weighing resources: technology can streamline workforce planning and cost analysis - HR Technology

HR Magazine, Oct, 2003 by Beth Patterson, Steve Lindsey

This company did no analysis of its incentive distribution. Top executives received pools of funds to distribute at their discretion. As part of an overall engagement to redefine the compensation structure, consultants performed an analysis of incentive distribution. Based on this analysis, the consultants concluded that incentives were inconsistently distributed, ranging from 0.5 percent to 26 percent of base salary.

Analyzing the information for plant managers only and then comparing the incentives distribution with plant performance data was extremely enlightening for the company executives. No correlation existed between plant performance and incentive distribution. Obviously, this organization was not achieving the desired impact from its incentive investment. With this cost analysis, the company restructured its incentive plan to drive performance throughout the organization.

This is a prime example of how the right technology in the right hands can have the maximum impact on workforce performance. Fiscal controls and assurance that funds are providing maximum benefit for the organization and its employees can save significant capital that can then be redirected within the organization. Controlling costs and maximizing the use of each dollar invested is a key element in achieving competitive advantage.

* Online Resources

For more information about data analysis, see the online version of this article at www.shrm.org/hrmagazine.> RELATED ARTICLE

Mining the Data

Here are some typical advantages of HR data systems:

* Transactional data processing. HR can automate processes with high volume, complex and frequently accessed data.

* Business data analysis. HR can manipulate information to allow managers to make timely decisions.

* Employee access. HR can enable workers to better manage information relating to their job function and personal data.

BETH PATTERSON IS A SENIOR MANAGER AND STEVE LINDSEY IS A SENIOR CONSULTANT WITH THE HUMAN CAPITAL ADVISORY SERVICES PRACTICE OF DELOITTE & TOUCHE IN DALLAS.

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