Global business-driven HR Transformation: The journey continues in financial services
The global business environment is experiencing unprecedented change and there is arguably no other industry affected more than financial services. As a result, the financial services industry (FSI) and the human resources (HR) organizations that serve them will need to develop new capabilities if they want to remain relevant. As FSI organizations engage in HR transformation efforts, many are primarily focused on making existing HR services more efficient, effective, and compliant. However, the rules are changing. Basic HR capabilities such as efficient and effective service delivery, integrated HR systems, employee self-service, and timely access to relevant workforce data are as important as ever. But they’re seen as foundational necessities — not strategic change.
Deloitte’s global HR FSI benchmark study, Global business-driven HR Transformation: The journey continues in financial services, has gathered information from 35 participating banks and insurance companies across North America, Western Europe, and the Asia-Pacific regions. The benchmark addresses global HR process costs within each company —labor, outsourcing, technology, overhead, staffing levels, productivity, and cycle times. The study reveals critical benchmark information about process categories such as transaction processing, rewards administration, talent management administration, and strategy and program design. The study also examines different roles in FSI HR, including business partners, centers of specialization, shared service centers, site representatives, and third-party providers.
Building on the ideas featured in Global business driven HR Transformation: The journey continues, HR leaders should broaden their benchmarking horizons to help chief officers (CXOs) see the beneficial impact of their activities on the business as a whole, not just the table-stakes categories of cost and headcount often derived sought in benchmarks.
This study reveals that FSI HR executives should consider HR capabilities that do not just support an efficient and effective HR organization, but can allow for the development of a truly “business-driven” HR partnership that supports the organization strategy. A key first step is to make data-driven decisions based on understanding your organization’s strengths and opportunities, then compare and contrast with peers inside and outside the industry. Deloitte’s Global business-driven HR Transformation: The journey continues in financial services report casts a spotlight on how financial services organizations are addressing their needs for innovation, operational excellence, and the value of effective benchmarking in order to bring the “business” to business-driven HR.
Global business driven HR Transformation: The journey continues
This vision identifies 18 distinct focus areas for companies that aim to respond more quickly and effectively to changes, expand their global footprints and increase revenues and margins.
Achieve cost effectiveness: Global HR benchmark for insurance
Deloitte's benchmark reveals that many insurance companies may have an opportunity to reduce their total annual HR cost by an average of 45 percent.
Achieve cost effectiveness: Global HR benchmark for banks
Deloitte's benchmark reveals that compared to many financial services industry top performers, half of the banks spend over $10 million more per year to deliver HR services.
Human Resources benchmark for insurance
Deloitte's benchmark reveals that there is an opportunity to reduce the total annual HR cost by an average of 45 percent for many insurance companies.
Human Resources benchmark for banks
Deloitte's benchmark reveals that there is an estimated $10 to $40 million annual HR operational savings for most banking organizations.
Meet our people
- Jeff Altman, Director, Deloitte Consulting LLP
- Steve Hatfield, Prinicipal, Deloitte Consulting LLP
- Greg des Groseilliers, Specialist Leader, Deloitte Consulting LLP
- Richard Roth, Principal, Deloitte Consulting LLP
- Jason Geller, Principal, Deloitte Consulting LLP
- Brett Walsh, Partner, Deloitte Consulting LLP
- Heather Stockton, Partner, Deloitte Consulting LLP
- Richard Kleinert, Partner, Deloitte Consulting LLP
- Jamie Valenzuela, Partner, Deloitte Consulting LLP
As used in this document, "Deloitte" means Deloitte LLP and its subsidiaries. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.