Last year, we identified that HR had done a good job of managing its budget, but was not improving impact to the business or employees. Based on results from our current annual PwC Saratoga US Human Capital Effectiveness Report, HR continues to succeed at controlling operational costs, and has begun making improvements to influence business results.
However, its time for HR to focus more on employee impact. Furthermore, the function is not fully positioned to address several key workforce trends affecting employees, such as the rise of the Gig Economy and an increased focus on diversity and inclusion.
To advance our analysis, we also explore HR sub-functions as part of the specific opportunities to improve the ability for the HR function as a whole to deliver more value.