HR in the Financial Services Industry? Most Are Paying too Much.

HR in the Financial Services Industry? Most Are Paying too Much. Posted by Greg des Groseilliers and Jeff Altman on April 26, 2012

We all know the financial services industry (FSI) has been under the microscope in the past few years, but a new Deloitte Consulting benchmarking study focuses the attention on a different aspect of FSI operations: HR. What’s revealed may seem like piling on to change-weary FSI organizations. But, as the saying goes, the truth can set you free, or in this case, help you understand where significant improvement opportunities lie and how to take advantage of them.

We all know the financial services industry (FSI) has been under the microscope in the past few years, but a new Deloitte Consulting benchmarking study focuses the attention on a different aspect of FSI operations: HR. What’s revealed may seem like piling on to change-weary FSI organizations. But, as the saying goes, the truth can set you free, or in this case, help you understand where significant improvement opportunities lie and how to take advantage of them.

The study finds that most banking and insurance companies spend more per employee and have a higher HR-staff-to-employee ratio than their industry’s top performers. Overall, the median FSI organization spends $1,274 more per employee than the top performers in the industry and uses 76 percent more HR staff per employee.

The good news is the potential savings FSI organizations could realize from correcting this gap: $10 to $40 million for banks and $10 to $45 million for insurance organizations. The study also examines how to close the gap, including revamping service delivery models, increasing the use of shared services centers, business partnering and automation, among others. The idea isn’t to spend less to get the same results. Many organizations have a clear opportunity to spend less for better results.

For FSI organizations immersed in transforming themselves in the wake of recent turmoil, HR’s own transformational efforts can not only help speed the journey, but also further secure HR leaders’ place at the strategic table.


Greg des Groseilliers Greg des Groseilliers is a specialist leader for Deloitte Consulting LLP with more than 23 years of industry and consulting HR experience. Currently, he is a benchmarking advisor in Deloitte’s Global Benchmarking Center.
Jeff Altman Jeff Altman is a director in the Human Capital Consulting Practice of Deloitte Consulting LLP. He has more than 25 years of management consultant experience, with a particular focus in the area of human capital management in the Financial Services industry.

As used in this document, “Deloitte” means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.

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