BearingPoint, Oracle executive study sheds light on how HR departments can increase their value through applications

Oracle Corporation, the world`s largest enterprise software company, and BearingPoint, Inc, one of the world`s largest business consulting and systems integration firms, today announced findings from a joint executive study, titled "The Value of HR in the Corporation" at Oracle AppsWorld 2003.

The study found that the majority of companies using multiple home-grown systems to support their human resource (HR) functions tend to view their HR organisations as administrative-focused with little impact on the company`s strategy. Conversely, most companies that have implemented Internet-based human resources management systems (HRMS) view their HR organisations as strategic partners to line management.

Study findings are being announced today in conjunction with the HR Executive Summit at Oracle AppsWorld 2003 in San Diego, California. Attracting top executives, analysts and influencers from multiple industries, the HR Executive Summit will discuss the major HR challenges companies face over the next few years, how HR organisations can use applications to become more strategic in the corporation, as well as the perception of HR organisations within their own organisations.

The study surveyed more than 200 C-level executives at both large and mid-sized companies across numerous industries including government, healthcare, high technology and retail. The study also found that human resource organisations have yet to be fully recognised as a source of competitive advantage as companies try to increase productivity levels, reduce operating expenses and ensure corporate goals are met.

Surveyed executives highlighted perceived challenges that face human resource organisations today in the areas of benefits, compensation, recruiting and hiring, changing employee population, retention and loyalty, change management, workforce development, and technology. Regarding the C-level perception of the HR department, some of the feedback included the following issues:

* The desire for HR departments to become more customer-driven and more integrated with the business;

* Proving the worth of the HR department to the organization remains an issue; and

* Getting employees to see HR as an "ally" and not the "enemy".

"The study`s findings illustrate the need for organisations to further evolve their human resource departments from an administrative, task-oriented focus to a consultative partner that adds more value to the company," said Joel Summers, senior vice-president of Global HRMS product development at Oracle. "By implementing advanced human resources technology solutions, organisations are increasing productivity, saving money and freeing up their human resource staffs to focus less on administrative functions and more on strategic initiatives."

"Companies have an opportunity to rethink their approach to administrative and support functions," said Greg Hatch, managing director for BearingPoint`s Oracle HR practice. "Focusing on a self-service approach can allow enterprises to standardise and streamline the delivery of common services, which can enable HR departments to focus on activities that provide more value to the company."

Other key topics addressed in the study include:

* Key drivers for HR to add value to the organisation;

* HR as a consultative partner within the organisation;

* Self-service HR as a strategic component to operating efficiency; and

* Driving workforce development through human resources.

The HR Executive Summit is being held from 2pm to 4pm at the Hilton Gaslamp in San Diego. To obtain a full copy of the "The Value of HR in the Corporation" study, please contact Dan Race at dan.race@oracle.com.