Hackett Research Alert: With Intense Focus on Strategic Workforce Planning, World-Class HR Organizations Reduce Termination Rates, Drive Other Benefits

With an intense focus on strategic workforce planning, world-classHR organizations drive down voluntary termination rates to 33% that oftypical companies, according to Book of Numbers(TM) research findingsfrom The Hackett Group, a strategic advisory firm and an Answerthinkcompany (NASDAQ:ANSR). In part as a result of these lower terminationrates, companies with world-class HR organizations require 46% fewerhires than typical companies, and fill open positions 11% faster.

Hackett's research identified Hackett-Certified(TM) Practices -those empirically correlated with the practices employed byworld-class HR organizations - to enhance their workforce planningactivities. World-class HR organizations consult with seniormanagement as they develop their strategic workforce plan, and aremore than 6 times more likely to do so than typical companies. Theyanalyze skill sets and sourcing strategies, and incorporate these intotheir plans about twice as often as typical companies. They also focusmuch more than typical companies on linking learning and developmentinitiatives to the critical skills and competencies identified throughtheir strategic workforce planning efforts.

World-class companies identify key performers and put formalretention programs in place for them, and are 12 times more likely todo so than typical companies, and twice as likely to review successionplans with senior management on a regular basis. Finally, they focuson diversity, and are nearly 4 times more likely than typicalcompanies to make it part of their strategic resource planning.

"The HR executive's primary goal in any company is to ensure thatthe business has the right talent and skills at the right time, in theright place and in the right role. So it's not surprising to find thatthe best HR leaders show a continuous focus on improving theirorganizations' human capital - their ability to attract, develop andretain high-potential staff," said Hackett HR Practice Leader StephenJoyce. "Workforce planning and overall talent management are drivingforces that enable world-class performance within all areas of anorganization, and HR has a critical role to play."

According to Hackett Senior Business Advisor Brian Siller,"Predicted labor and skills shortages have made employee selection,development and retention a top priority for both business andfunctional leaders. Getting and keeping the talent to achieve criticalbusiness objectives will require HR to be more creative than everbefore. For example, employment relationships will need to be flexibleto appeal to the various segments of an age-diverse workforce, andorganizations will take a closer look at what it takes to preventunwanted turnover."

Overall, Hackett's Book of Numbers(TM) research found thatworld-class HR organizations spend 13% less than their peers ($1,614versus $1,864 per company employee), and operate with 15% fewer staff(11.5 versus 13.5 HR staff per 1,000 employees). They also showimproved performance across a wide range of efficiency andeffectiveness metrics.

To see the full version of this research, please click on thefollowing link for the Hackett Research Insight Center:http://www.thehackettgroup.com/insights/hr0606.

More information on The Hackett Group is available: by phone at(770) 225-7300; by e-mail at info@thehackettgroup.com; or on the Webat http://www.thehackettgroup.com.

About The Hackett Group

The Hackett Group (http://www.TheHackettGroup.com), a strategicadvisory firm and an Answerthink company, is a world leader in bestpractice research, benchmarking and business transformation servicesthat empirically define and enable world-class enterprise performance.

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