As the need to change the face of hiring and employment services rises, spending by human resources departments is increasing. Employee turnover is on the rise, partially due to an improving economy where people who are unhappy with their employment are less afraid to leave a job and more confident in finding new work. A recent study from Bersin by Deloitte Research indicates that as a result of this increase in turnover, HR organizations are spending more across the board.
The study, whose results were published in January of 2015, indicates several interesting finds. The first is that those HR organizations who are the most mature, who have fully-integrated business HR functions, tend to spend more than others—over $4,000 per employee as opposed to just over $2,000 per employee.
It also indicated that these mature organizations tend to have more staff overall as well as less employee turnover at the involuntary level. This means that high-impact organizations tend to perform better with employee retention than those who are compliance-driven.
20% of the respondents said that technology was a key factor when it came to increased HR investment and spending. Therefore, the HR technology market is on the rise with companies scrambling to stay ahead of the technology curve.
Finally, the HR budget for a given business varies wildly depending on the industry it serves. Financial services companies tend to fare better from increased spending than retail organizations, which have cut their budgets in an effort to remain solvent in an era where online sales dominate.