eHR delivers whopping value

While employee retention and benefits outsourcing continue to be the rage in human resources circles, eHR are also a hot topic.

According to a report on the BenefitNews.com highlighting the research of Forrester (EBN/Forrester Research 2005 Benefits Strategy and Technology Study), nearly one-quarter of companies in a recent survey plan on implementing a benefits portal in the next two years.

Of course the big benefit of HR portals is the big time cost savings on HR administration (i.e. paper pushing). Organizational Diagnostics is a management-consulting firm in California specializing in research in high-tech Silicon Valley companies. Over the past decade, it has conducted research on the effect of employee satisfaction on employee retention.

They conclude that for every two-percent increase in employee satisfaction, there is a one-percent increase in employee retention. Put another way, to the extent that you satisfy your staff with the resources and services they need, you can reduce employee replacement costs.