Aberdeen Concludes that Hourly Hiring Management Systems Can Double Profitability; Investment has Clear Payback For Companies with an Hourly-Centric Workforce.

Business/Technology Editors

BOSTON--(BUSINESS WIRE)--June 4, 2002

In research summarized in a white paper released today, Aberdeen Group, a leading Information Technology (IT) market analysis and positioning services firm, identifies Hourly Hiring Management Systems (HHMS) as having the potential to double the bottom line of companies with hourly-centric workforces. Aberdeen concluded that -- for companies that depend upon an hourly workforce -- few other IT investments offer such clear potential for payback as an Hourly Hiring Management System.

Aberdeen compared Applicant Tracking Systems (i.e., solutions that support recruiting and hiring professionals) with HHMS (i.e., solutions that support these processes for hourly workers) and found them very dissimilar. Recruiting solutions for exempt professionals center on: the requisition for the position; workflow relating to approvals; the underlying search technology to locate candidates, who are often geographically dispersed; automated resume and position matching; and the longer process of interviewing, hiring, and tying the new hire into the Human Capital Management, payroll, and the corporate performance management system.

On the other hand, HHMS are targeted toward enterprises with large hourly workforces. These systems utilize in-location data capture devices and/or Web access to increase applicant flow -- they do not presume a resume or job requisition exists. HHMS facilitate almost every part of the business process of hiring and exit processing: sourcing, application completion and submission, suitability screening, initial interviewing, tax credit management, background screening, exit interviewing, and correct payment of unemployment claims. It should be noted that HHMS have initially been adopted by leaders in the retail and hospitality sectors with decentralized operations that benefit from a consistent and integrated company-wide process.

In their research, Aberdeen interviewed these early adopters and quantified the impact of HHMS in five key areas: turnover reduction, headcount reduction, impact on shrinkage, increased tax credit capture and reduced payment of bogus unemployment claims, and found the numbers to be dramatic. For example, a retail company with a 4% profit (EBITA) can potentially double its bottom line with an investment in HHMS -- although HHMS my require a substantial initial investment.

"Return on investment (ROI) has become an increasingly important factor in a business' IT purchasing decision. I have rarely seen an enterprise business application so positively impact the bottom line in so many different ways as HHMS," says Katherine Jones, Research Director of Aberdeen's Enterprise Application practice.

For more information about "Hourly Hiring Management Systems: Improving the Bottom Line for Hourly Worker-Centric Enterprises" visit www.aberdeen.com, or call [phone]. Contact authors Katherine Jones ([e-mail] or [phone]) and David Alschuler ([e-mail] or [phone]).

About Aberdeen

Aberdeen Group is a leading market analysis and positioning services firm that helps Information Technology vendors establish leadership in emerging markets. Steeped in technology and armed with end-user field research, Aberdeen answers clients' critical business and technology questions in the context of the Internet economy and across the product life cycle. Founded in 1988, Aberdeen is headquartered in Boston, MA, and has research divisions in Fort Collins, CO; Palo Alto, CA; and Amsterdam, the Netherlands. Aberdeen is accessible via the Web at www.aberdeen.com.