WATSON WYATT IDENTIFIES TOP TEN eHR TRENDS FOR 2002

WASHINGTON, DC, December 27, 2001 - Human resources technology trends in the coming year will be driven largely by the need to control costs, as companies look to optimize their eHR investments and gain greater returns, according to Watson Wyatt Worldwide.

"In identifying these ten dominant trends, we looked beyond the latest 'gee-whiz' gadgets and sought solutions that are actually able to solve business needs and produce tangible bottom-line benefits. Although ability to deliver rapid ROI was a consideration, some trends represent best practices made even more effective and accessible by technology," says Jeff Novak, a senior eHR consultant with Watson Wyatt.

The top ten HR technology trends Watson Wyatt has identified for 2002 are:

1. Enhanced workplace portals and intranets. As enterprise portals evolve into worker productivity tools, several HR domains will benefit from new online solutions, including e-health tools, defined contribution health care models, compensation systems and performance management tools.

Other personalization features will continue to expand, with a new emphasis on web services that provide data that organizations and their employees need.

2. Increased technology access to more workforce segments. Companies will continue initiatives to get more employees web-connected, allowing greater access to corporate systems and HR information from home or travel.

3. Greater reliance on ROI (return on investment) tools. Top management will exert more pressure on HR to justify investments in HR technology through ROI analysis and business case development.

4. Growing focus on optimizing current HR systems. Sensibility will be the key factor as companies seek system optimization and integration solutions. Optimization trends will include improving legacy systems and connecting existing disparate systems.

5. Increased use of virtual workplaces. With an eye toward increasing worker productivity, approaches such as online meetings, project team workspaces, web conferences and video conferencing will continue to gain popularity, with the added benefits of controlling costs, employee safety and time commitments.

6. Decision support tools. Traditionally the province of financial departments, HR departments will begin using analytical tools to measure the success of their HR practices and to predict future results.

7. Business continuance planning. The 2001 terrorist attacks spurred a new understanding of HR's critical role in helping companies get their people back to work by providing space, systems and support that employees need to be productive. Look for sharpened HR involvement in employee communications and disaster recovery plans.

8. Increased standardization of XML (extensible mark-up language) data schemes and structure. Growing cooperation between organizations will continue the trend of standards that are usable for HR domains. The HR-XML consortium (www.hr-xml.org) has already completed schemas supporting recruiting, benefits enrollment, and time and expense reporting, and plans more in 2002.

9. Attention to small cost-saving measures that add up. Following the substantial cost-cutting measures many companies implemented in 2001, HR will focus on the cumulative effect of additional process improvements and cost-saving initiatives, such as technologies that improve data accuracy and ease data access.

10. Demand for better integration and collaboration between vendors. HR will carefully select technologies to meet overall business needs and examine how vendor services can be bundled. Vendor performance measurement and ease of integration with other solutions will be critical factors.

Novak emphasizes that there will continue to be significant innovation and application of HR technology, but companies will do so sensibly. "For the near future, optimization of existing HR technology investments will take precedence over new technology purchases after the recent period of heavy technology innovation by most HR organizations," he concludes.

Watson Wyatt is a global consulting firm specializing in human capital and financial management. The firm offers services in three areas: employee benefits, eHR� and human capital strategies. Watson Wyatt has more than 6,200 associates in 87 offices around the world. For more information visit www.watsonwyatt.com

Courtesy - www.hr.com