SYDNEY —The 2009 Global HR Study surveyed organisations in Asia-Pacific, Europe and North America across a range of company sizes and industries to explore how HR organisations are evolving to support a more global business model and workforce.

At the top of the HR agenda for most participants are talent attraction, development and engagement, as building and managing a global workforce becomes increasingly pivotal to business success.

Given the complexities of globalisation, Andrew Bell, Global Leader of Talent and Organisation Consulting at Hewitt, says it comes as no surprise that many organisations struggle with developing a global HR strategy that meets their diverse business and geographic needs.

"While 93% of organisations reported having a clearly defined strategy, in many cases this strategy applies to their primary operating region only. Fewer than half of respondents indicated their strategy spans all of their regions," he said.

While many organisations manage a core set of programs on a global basis (e.g. executive compensation, leadership), there is still a predominance of activities occurring at the local level, but this is changing.

"The data reveal an obvious trend towards shifting program strategy and design from the local country level to regional or global levels—with the dual goals of driving more consistency in mission critical practices and processes and taking advantage of economies of scale to lower costs," said Andrew.

Service Delivery and Technology: Driving Efficiencies on a Broader Scale
While maximising efficiency has always been a goal in leading HR organisations, the current economic crisis is prompting many organisations to drive for further cost savings. Up to this point, consolidation of service delivery and self service has been primarily limited to companies' main operating regions. Fewer organisations have achieved service delivery efficiencies at the regional or global level, as illustrated below.

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Governance and Metrics: Pushing Beyond the Basics
Effectively managing the complexities of a global HR organisation requires a concerted focus on governance. While the vast majority of respondents (83%) have a clearly defined HR governance model, only 39% have solutions that span all their regions.

"As the HR function becomes more global, the need for clarity on how decisions are made looms larger. For leading companies, governance goes beyond HR councils and leadership meetings. Effective governance focuses on critical issues such as fiscal discipline, risk management, and policy creation," said Andrew.

Metrics: More Focus Required on Effective Use of Data
Leading companies are maintaining their human capital edge by using workforce analytics to drive decision-making. Yet among many organisations, there is a continued struggle to track consistent, meaningful measures. While 88% of respondents track key workforce-related metrics, only half are doing this on a global basis.

Furthermore, whilst 83% of participants said they report key workforce metrics to senior management on a regular basis, only 24% actually help leaders use those metrics to make decisions on a global basis.

"To be effective, HR professionals need to shift from data dissemination to interpretation and consultation; this is how they will add value and contribute to effective human capital decisions," said Andrew.

"While it's clear that companies are well along the journey toward HR globalisation, this study reinforces the notion that 'going global' is not the panacea for all of HR's challenges. Ultimately, each company's approach to managing global HR will be unique, driven in large part by the business strategy, global reach, and company history. Leading organisations are those that take a strategic look to determine the best portfolio of HR approaches for the business and the workforce," Andrew concluded.

About Hewitt Associates
For more than 65 years, Hewitt Associates (NYSE: HEW) has provided clients with best-in-class human resources consulting and outsourcing services. Hewitt consults with more than 3,000 large and mid-size companies around the globe to develop and implement HR business strategies covering retirement, financial and health management; compensation and total rewards; and performance, talent and change management. As a market leader in benefits administration, Hewitt delivers
health care and retirement programs to millions of participants and retirees, on behalf of more than 300 organisations worldwide. In addition, more than 30 clients rely on Hewitt to provide a broader range of human resources business process outsourcing services to nearly a million client employees. Located in 33 countries, Hewitt employs approximately 23,000 associates. For more information, please visit www.hewitt.com.