Three Things HR Can Do to Manage Through the Economic Crisis WASHINGTON, May 6 /PRNewswire-FirstCall/ -- By reviewing their function's technology footprint and finding ways to streamline IT processes, HR departments can help their organizations cut costs, find efficiencies and support worker productivity in the current economic environment, according to technology experts at Watson Wyatt (NYSE:WWNASDAQ:WW), a leading global consulting firm. "HR technology is ripe for review," said Steve Hitzeman, senior leader in Watson Wyatt's technology and administration solutions practice. "The goal is not only to find near-term efficiencies but also to ensure the organization is positioned for growth when economic conditions improve." Watson Wyatt experts offer three ways employers can use HR technology to manage the economic downturn more efficiently: 1. Optimize HR operational and service delivery effectiveness According to Watson Wyatt's 2009 HR Technology Trends survey, 61 percent of companies are seeking to optimize their delivery model and vendors. Conducting a review of the current HR service delivery model -- which includes a mix of HR technology, call centers and vendors -- can result in dramatic cost savings. Despite the fact that in the last 10 years many HR departments have adopted organizational models that aim to reduce administrative costs and enable HR to take on more strategic work, the relative effort HR spends on administration has not changed significantly. This is because most HR departments adopted these models but did not follow up to effectively integrate different technologies. "Instead of simply rearranging the HR organization, companies can consolidate, integrate and streamline processes," said Robert Crow, senior consultant in Watson Wyatt's technology and administration solutions practice. "This can result in cost and time savings, and free up resources to enable HR to become more of a business partner to the overall organization." 2. Review and benchmark outsourced vendor contracts Many companies are not seeing the full effect of process efficiencies, cost savings or improved service they expected from their human resources outsourcing and related technology and service vendor contracts. These companies often have a patchwork of applications and service providers that aren't fully integrated or optimized. Watson Wyatt estimates that companies can realize savings between 10 percent and 20 percent once the entire vendor relationship has been assessed. According to the HR Technology Trends survey, 33 percent of companies are reviewing or updating vendor contracts. "By taking a step back and reviewing HR technologies, processes and vendor relationships, companies might be able to find hidden pockets of savings and ways to improve efficiencies without an enormous upfront cost," said Crow. 3. Leverage Web 2.0 technologies to create a "consumer-grade" experience In today's climate, consistent, open communication and collaboration are more crucial than ever. However, while employees look to HR managers for help interpreting large quantities of information, the HR managers are struggling to stay connected with each other, let alone with their employee population. Leveraging Web 2.0 technologies -- such as blogs, podcasts, wikis and shared teamsites -- is key to managing today's information overload and engaging employees. The generation currently entering the workforce has learned to communicate and collaborate using these tools and expects the same "consumer-grade" experience at work. This can be achieved with corporate tools similar to Facebook, Twitter and YouTube available internally, significantly improving connectivity and employees' experience of the company intranet. "HR can take a page from the Internet playbook and benefit from the same tools that have driven the unexpected explosion in online productivity and innovation globally," said Michael Rudnick, Watson Wyatt's global intranet and portal leader. "What's more, it can enhance communication at a time when employees need to understand where the business stands, what their future holds and how they can contribute to business success." About Watson Wyatt Worldwide Watson Wyatt (NYSE:WWNASDAQ:WW) is the trusted business partner to the world's leading organizations on people and financial issues. The firm's global services include: managing the cost and effectiveness of employee benefit programs; developing attraction, retention and reward strategies; advising pension plan sponsors and other institutions on optimal investment strategies; providing strategic and financial advice to insurance and financial services companies; and delivering related technology, outsourcing and data services. Watson Wyatt has 7,700 associates in 33 countries and is located on the Web at http://www.watsonwyatt.com/. DATASOURCE: Watson Wyatt CONTACT: Steve Arnoff, +1-703-258-7634, ; or Ed Emerman, +1-609-275-5162, Web Site: http://www.watsonwyatt.com/

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