HR departments have made steady
progress in their ability to support the shift
toward a more global business model and
workforce, according to a recent Hewitt
Yet, for many companies, questions
remain on how exactly HR should be aligned
from a strategy, organisational and delivery
perspective. This issue is even more pressing
in the current economic environment, as HR
departments are being challenged to improve
the effectiveness of their global HR programs
and reduce global HR delivery costs.
The report, based on a survey of global
companies in Latin America, North
America, the Asia-Pacific region and
Europe, found that organisations are
moving in the right direction to develop
global HR strategies that meet the diverse
needs of their workforce across
businesses and geographies.
Almost half (49 per cent) of companies
indicated that their global HR strategy applies
to all of their operating regions – not just their
primary location – with most organisations
conducting HR activities at a global, regional
and local level, depending on the process and
the business needs.
Additionally, HR is leading rather than
lagging the business when it comes to
moving to a more global focus; 30 per
cent of companies describe their HR
organisation design as global compared
with 15 per cent of companies that
describe themselves as global.
“As cost demands on HR departments
become greater, they need to be more
deliberate and focused on critical areas that
provide the greatest impact to the business –
including streamlining HR at the regional and
global levels,” said Pete Sanborn, leader of
Hewitt’s global HR effectiveness business.