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Hackett: Digital World Class® HR Teams Double Technology Investment and Serve 65% More Employees per HR Staff

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The Hackett Group's latest research reveals that Digital World Class® HR organizations have achieved significant efficiency improvements through strategic technology investments. These organizations report 44% lower labor costs compared to peers in 2024, up from 33% in 2023. Their technology spending per HR full-time equivalent is 200% higher than peers, a substantial increase from 85% in 2023.

These organizations have automated 85% or more of transactions across six key HR processes, leading to a 51% increase in HR staff productivity in 2024. They are 67% more likely to have senior HR leaders involved in strategic planning and provide 47% more training hours annually. Their efficiency is demonstrated by filling 68% more positions internally and reducing hiring time by 27%.

La ricerca più recente del Hackett Group rivela che le organizzazioni HR di classe mondiale digitale hanno ottenuto significativi miglioramenti di efficienza grazie a investimenti tecnologici strategici. Queste organizzazioni segnalano costi del lavoro inferiori del 44% rispetto ai concorrenti nel 2024, in aumento rispetto al 33% del 2023. La loro spesa tecnologica per ogni equivalente a tempo pieno in HR è superiore del 200% rispetto ai concorrenti, un notevole aumento rispetto all'85% del 2023.

Queste organizzazioni hanno automatizzato l'85% o più delle transazioni in sei processi chiave HR, portando a un aumento della produttività del personale HR del 51% nel 2024. Sono il 67% più propense a avere leader HR senior coinvolti nella pianificazione strategica e forniscono 47% ore di formazione in più annualmente. La loro efficienza è dimostrata dal fatto che riempiono il 68% in più di posizioni internamente e riducono i tempi di assunzione del 27%.

La última investigación del Hackett Group revela que las organizaciones de RRHH de Clase Mundial Digital han logrado importantes mejoras de eficiencia a través de inversiones tecnológicas estratégicas. Estas organizaciones informan de costos laborales un 44% más bajos en comparación con sus pares en 2024, un aumento del 33% respecto a 2023. Su gasto en tecnología por equivalente a tiempo completo en RRHH es 200% más alto que el de sus pares, un aumento significativo respecto al 85% en 2023.

Estas organizaciones han automatizado el 85% o más de las transacciones en seis procesos clave de RRHH, lo que ha llevado a un aumento del 51% en la productividad del personal de RRHH en 2024. Son 67% más propensas a tener líderes senior de RRHH involucrados en la planificación estratégica y proporcionan 47% más horas de formación anualmente. Su eficiencia se demuestra al cubrir el 68% más de posiciones internamente y reducir el tiempo de contratación en un 27%.

Hackett Group의 최신 연구에 따르면 디지털 세계적 인사(HR) 조직이 전략적 기술 투자를 통해 상당한 효율성 향상을 달성했다고 합니다. 이 조직들은 2024년에 동종 업계에 비해 44% 낮은 인건비를 보고하고 있으며, 이는 2023년의 33%에서 증가한 수치입니다. 이들의 HR 전일제 직원당 기술 지출은 동종 업계에 비해 200% 높습니다, 이는 2023년의 85%에서 크게 증가한 것입니다.

이들 조직은 6개의 핵심 HR 프로세스에서 85% 이상의 거래를 자동화하여 2024년 인사팀의 생산성을 51% 증가시켰습니다. 이들은 67% 더 높은 확률로 고위 HR 리더가 전략적 계획에 참여하고 있으며, 연간 47% 더 많은 교육 시간을 제공합니다. 그들의 효율성은 68% 더 많은 공석을 내부에서 충원하고 채용 시간을 27% 단축함으로써 입증됩니다.

La dernière recherche du Hackett Group révèle que les organisations RH de classe mondiale numérique ont réalisé des améliorations significatives de l'efficacité grâce à des investissements technologiques stratégiques. Ces organisations rapportent des coûts de main-d'œuvre 44% inférieurs par rapport aux pairs en 2024, contre 33% en 2023. Leurs dépenses en technologie par équivalent temps plein en RH sont 200% plus élevées que celles de leurs pairs, une augmentation importante par rapport à 85% en 2023.

Ces organisations ont automatisé 85% ou plus des transactions dans six processus clés des RH, conduisant à une augmentation de 51% de la productivité du personnel RH en 2024. Elles ont 67% plus de chances d’avoir des dirigeants RH seniors impliqués dans la planification stratégique et offrent 47% d'heures de formation supplémentaires par an. Leur efficacité se manifeste par le fait qu'elles remplissent 68% de postes de manière interne et réduisent le temps de recrutement de 27%.

Die neueste Forschung der Hackett Group zeigt, dass Digital World Class® HR-Organisationen durch strategische Technologieinvestitionen erhebliche Effizienzsteigerungen erzielt haben. Diese Organisationen berichten von 44% niedrigeren Arbeitskosten im Vergleich zu Gleichgestellten im Jahr 2024, was einem Anstieg von 33% im Jahr 2023 entspricht. Ihre Ausgaben für Technologie pro HR-Vollzeitäquivalent liegen 200% höher als bei den Kollegen, was einen erheblichen Anstieg von 85% im Jahr 2023 darstellt.

Diese Organisationen haben 85% oder mehr der Transaktionen in sechs wichtigen HR-Prozessen automatisiert, was zu einem Produktivitätsanstieg der HR-Mitarbeiter um 51% im Jahr 2024 führte. Sie sind 67% wahrscheinlicher, dass hochrangige HR-Führungskräfte an strategischer Planung beteiligt sind, und bieten 47% mehr Schulungsstunden pro Jahr an. Ihre Effizienz zeigt sich darin, dass sie 68% mehr Positionen intern besetzen und die Einstellungszeit um 27% reduzieren.

Positive
  • 44% lower labor costs compared to peers in 2024
  • 200% higher technology investment per HR FTE compared to peers
  • 51% increase in HR staff productivity through automation
  • 85% automation rate across key HR processes
  • 68% more professional positions filled internally
  • 27% reduction in hiring time
  • 47% more training hours provided annually
Negative
  • None.

Insights

The research findings from The Hackett Group highlight a transformative shift in HR operations, with Digital World Class® HR organizations achieving 44% lower labor costs and demonstrating superior efficiency metrics. The 200% higher technology investment compared to peers signals a strong commitment to digital transformation. The projected 51% efficiency boost from Gen AI integration represents a significant opportunity for HR operations enhancement. These organizations are seeing tangible returns on their technology investments, serving 65% more employees per HR staff while maintaining quality.

The quantitative improvements in operational metrics - including 68% more internal position fills and 27% faster hiring times - demonstrate clear competitive advantages. The increased focus on strategic workforce planning, with 45% higher investment in this area, positions these organizations well for future growth and talent management challenges.

The substantial increase in technology investment by Digital World Class® HR organizations represents a strategic pivot towards digital transformation. The implementation of automation across 85% of key HR processes demonstrates mature digital adoption. The focus on Gen AI integration is particularly noteworthy, as it promises to create 40% additional capacity for value-added services. The technology stack appears to be delivering measurable ROI through improved operational efficiency and enhanced service delivery capabilities.

The increased emphasis on staff training with 47% more training hours annually indicates a commitment to maintaining technological competency. This combination of technology investment and human capital development creates a sustainable model for digital transformation in HR operations.

Report Highlights Significant Increases in Productivity and Strategic Business Alignment, Setting the Stage for Gen AI to Boost HR Efficiency by 51%

MIAMI--(BUSINESS WIRE)-- According to new research from The Hackett Group, Inc. (NASDAQ: HCKT), Digital World Class® human resources (HR) organizations have continued to establish their leadership through notable efficiency improvements and strategic investments in technology. These advancements have resulted in significantly lower labor costs, increased productivity and a robust foundation for the successful integration of generative artificial intelligence (Gen AI), projected to enhance HR efficiency by 51%.

In 2024, Digital World Class® HR organizations reported labor costs that are 44% lower than their peer groups – an impressive leap from 2023’s 33% reduction. This shows an ongoing commitment to efficiency and reflects a notable improvement from 2019 when world-class HR organizations aimed for a 17% reduction in cost per 1,000 employees through smart automation. Similarly, these teams can create an additional 40% capacity, delivering more value-added services to the business by leveraging intelligent automation, especially Gen AI.

Technology investments further underscore this commitment to reducing operational costs. In 2023, Digital World Class® HR teams spent 85% more on technology per HR full-time equivalent than their peers. By 2024, this spending increased to 200% (or two times) that of their peers.

Automation remains a key factor, with Digital World Class® HR organizations streamlining 85% or more of their transactions across six key HR processes. This increased focus on automation has led to a 51% increase in HR staff productivity in 2024, illustrating the continued impact of digital tools and Gen AI in boosting operations and enabling extensive self-service capabilities.

“Digital World Class® HR organizations have made exceptional strides by leveraging technology, leading to unparalleled efficiency and productivity improvements,” said Anthony DiRomualdo, senior research director, HR Executive Advisory at The Hackett Group. “Our findings suggest that to continue on this trajectory, HR leaders should focus on integrating AI thoughtfully, ensuring it complements human capabilities rather than replacing them. This balanced approach can unlock new levels of innovation and employee engagement.”

In terms of strategic business alignment, the report highlights that these organizations have significantly bolstered their influence. In 2024, Digital World Class® HR organizations were 67% more likely to have senior HR leaders involved in strategic business planning, expanding on the contributions noted in 2023.

Additionally, they deploy 2.9 times more staff who are highly effective in strategic thinking and analysis. Qualitative attributes of staff like these are a major contributing factor to why Digital World Class® HR organizations are so effective. They ensure staff keep pace with changing skills needs by providing 47% more training hours for professional staff annually.

Moreover, Digital World Class® HR organizations spend 45% more on strategic workforce planning relative to talent management, which improves employee life-cycle cost, productivity and talent outcomes. It follows that Digital World Class® HR organizations deliver remarkable business value by filling 68% more professional positions internally compared to their peers, and taking 27% fewer days to hire.

Jessica Haley, Global HR Executive Advisory practice leader at The Hackett Group, added, “The increased strategic alignment between HR and other parts of the business ensures that HR initiatives are closely integrated with overall business goals. For HR leaders, the path forward involves balancing cost-efficiency with strategic investments in technology, especially Gen AI, to foster sustainable growth and a resilient workforce.”

A public version of the research, “Insights From Top Performers: How to Level Up With Gen AI,” is available free, with registration, at: https://go.poweredbyhackett.com/dwchr2406nr.

About The Hackett Group

The Hackett Group, Inc. (NASDAQ: HCKT) is an IP and platform-based, Gen AI strategic consulting and executive advisory firm that enables Digital World Class® performance. Using AI XPLR and ZBrain – our ideation through implementation platforms – our experienced professionals help organizations realize the power of Gen AI and achieve quantifiable, breakthrough results, allowing us to be key architects of their Gen AI journey.

Our expertise is grounded in unparalleled best practices insights from benchmarking the world’s leading businesses – including 97% of the Dow Jones Industrials, 89% of the Fortune 100, 70% of the DAX 40 and 55% of the FTSE 100.

For more information on The Hackett Group, visit: https://www.thehackettgroup.com/ or email media@thehackettgroup.com.

Trademarks

The Hackett Group®, quadrant logo, and Digital World Class® are the registered marks of The Hackett Group®.

Cautionary Statement Regarding “Forward-Looking” Statements

This release contains “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Statements including without limitation, words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” or other similar phrases or variations of such words or similar expressions indicating, present or future anticipated or expected occurrences or outcomes are intended to identify such forward-looking statements. Forward-looking statements are not statements of historical fact and involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance or achievements to be materially different from the results, performance or achievements expressed or implied by the forward-looking statements. Factors that may impact such forward-looking statements include without limitation, the ability of The Hackett Group to effectively market its digital transformation, our ability to transition our capabilities to support generative artificial intelligence (AI)-related consulting services and solutions and other consulting services, our ability to effectively integrate acquisitions, including the LeewayHertz acquisition into our operations, our ability to manage joint ventures and successfully cooperate with our joint venture partners, competition from other consulting and technology companies that may have or develop in the future, similar offerings, the commercial viability of The Hackett Group and its services as well as other risk detailed in The Hackett Group’s reports filed with the United States Securities and Exchange Commission. The Hackett Group does not undertake any duty to update this release or any forward-looking statements contained herein.

media@thehackettgroup.com

Source: The Hackett Group, Inc.

FAQ

What cost savings did Digital World Class HR organizations achieve in 2024 (HCKT)?

Digital World Class HR organizations achieved 44% lower labor costs compared to their peers in 2024, an improvement from 33% in 2023.

How much more do Digital World Class HR teams invest in technology compared to peers (HCKT)?

In 2024, Digital World Class HR teams invested 200% more in technology per HR full-time equivalent compared to their peers, up from 85% in 2023.

What is the projected efficiency improvement from Gen AI in HR operations (HCKT)?

The Hackett Group projects that generative AI will enhance HR efficiency by 51%.

What percentage of HR transactions are automated in Digital World Class organizations (HCKT)?

Digital World Class HR organizations automate 85% or more of their transactions across six key HR processes.

How much faster do Digital World Class HR teams fill positions (HCKT)?

Digital World Class HR organizations take 27% fewer days to hire and fill 68% more professional positions internally compared to their peers.

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