Leadership

Automaker Saves Money With A New Human Resources Service Delivery Model

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Executive Summary

A large automaker was able to save money by bringing in the right kind of transformation in its human resources service delivery. This automobile manufacturer is renowned for its efficient functioning and the high margins that it has managed to maintain. However, it was facing challenges of inefficient functioning and redundancy when it came to its human resources functions across the North America. Looking to reducing headcounts and costs related to its human resources functions across its North American HR functions, the company employed Deloitte Consulting LLP's HR Transformation team. On assessment, it was found that the human resource function was primarily, operating in independent silos across the company's North American operations and this was a major factor for the existing inefficiency in HR processes. The company then commissioned a benchmarking study which would assist in revealing the opportunities for reducing costs along with headcounts as well. Plus, a target for costs savings of $40 million was also set. Deloitte Consulting's HR Transformation team helped develop a new HR Service Delivery Model blueprint with a supporting business case. Thereafter, the team came up with detailed specifications for the new model, including organization, staffing, processes and technology requirements. This solution had active contributions The Deloitte Consulting's Total Rewards team and Change Management Practices team have also contributed to this effort, ensuring that the required solution was offered to the company within time.

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