HR funds, budget measures are scarce.

More HR departments are facing budget pressures in 2004 than in 2003, according to a study by Hewitt Associates. A survey of HR professionals in more than 100 companies nationwide revealed that 84 percent are facing budgets that are no higher than they were the year before; that percentage is

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"Cost pressures on HR are coming primarily from corporatewide initiatives," says Dick Rison, global content leader for HR effectiveness at Hewitt. "HR is feeling the greatest pressure to reduce costs in its operating budget and headcount."

Most HR professionals--72 percent--plan to achieve future cost savings by making greater use of technology; 70 percent plan to save money through use of self-service, and 68 percent believe process redesign will lead to greater efficiencies.

Although HR professionals believe their cost-cutting efforts are effective, most only estimate--rather than measure--their costs savings. For example, 46 percent implemented or expanded self-service efforts, but, of this group, 83 percent could only estimate the cost savings of these initiatives.

Hewitt's research shows that when companies rely on estimates, rather than measurements, they often undervalue the amount of money they are saving.

The study also found that few respondents track the return on investment (ROI) of their investments. For example, although 72 percent of respondents plan to increase their use of technology, only 27 percent track the ROI for their HR technology investments. And while at least a third currently outsource HR tasks, only 13 percent track their ROI on these efforts.