HR Process Transformation to Build an Employee-Centric Culture

The enterprise HR function has been traditionally concerned with reducing employee costs, managing employee transactions, and complying with local labor laws. However, with competition for talent and elevated employee expectations, the enterprise HR function is becoming more strategic with a focus on engaging employees. Enterprises are transforming their people, processes, and technology to meet these demands. As a result, service provider HR transformation clients grew by over 30% between September 2021 and September 2022.

These trends, and others, are covered in our Global Hire-to-Retire Business Process Transformation 2022–2023 RadarView™. The report is a comprehensive study of hire-to-retire business process transformation service providers, along with top trends, analysis, and recommendations. It takes a close look at the leaders, innovators, disruptors, and challengers in this market.

We evaluated 23 service providers across three dimensions: practice maturity, domain ecosystem, and investments and innovation. Of these, we recognized 18 providers that brought the most value to the market during the past 12 months.

The report recognizes service providers in four categories:

• • Leaders: Accenture, ADP, Alight, IBM, and TCS
  • Innovators: Capgemini, Infosys, Neeyamo, and Wipro
  • Disruptors: EY, Mercans, SD Worx, WNS, and Zalaris
  • Challengers: CGI, Conduent, OneSource Virtual, and Safeguard Global

Figure 1 from the full report illustrates these categories:

“With so much competition for talent these days, HR teams really need to focus on employee experience,” said Shabnum Grewal, partner at Avasant. “You’ve got to offer more than a paycheck. You’ve got to give employees job flexibility and a sense of well-being to build a stronger value proposition for them.”

The full report provides a number of findings and recommendations, including the following:

• • Talent acquisition and retention are becoming more difficult. Nearly four million US employees quit their jobs in October 2022. Enterprises need to develop their HR strategy centered around employee experience to meet evolving employee expectations.
  • Diversity, equity, and inclusion initiatives have become a crucial part of enterprise strategy. Nearly 20% of enterprises plan to hire a Chief Diversity Officer in 2023.
  • Employers are no longer focused on just reducing costs, managing employee transactions, and improving compliance but on building a unique employer value proposition. As a result, the HR function is becoming a crucial part of boardroom discussions.
  • The adoption of analytics in the HR function is growing. Enterprises are leveraging predictive and prescriptive analytics to analyze employee sentiment and take corrective actions.
  • To make the HR function more self-service oriented, interactive, and integrated, enterprises are adopting integrated human capital management (HCM) suites. Nearly 43% of organizations plan to expand their existing HCM systems between January 2022 and June 2023.
  • HR service providers are in a strong position to simultaneously transform HR processes, people, and technology for enterprises. As a result, service provider HR transformation revenue grew by over 20% between September 2021 and September 2022.

“To foster employee engagement and enhance employee experience, enterprises need a continuous feedback mechanism,” said Shwetank Saini, associate research director at Avasant. “Integrated HR processes, self-service and interactive HR systems, and advanced HR analytics can help meet emerging employee expectations.”

The full RadarView also features detailed profiles of 18 service providers, along with their solutions, offerings, and experience in delivering hire-to-retire business process transformation services.

This Research Byte is a brief overview of the Global Hire-to-Retire Business Process Transformation 2022–2023 RadarView™ (click for pricing).