HR seen critical to efficiency: PwC.

• Position: Human resources - Report by Saratoga Institute unit of PriceWaterhouseCoopers

A survey by the Saratoga Institute, a PricewaterhouseCoopers LLP Human Resource Services unit, found that many companies dealt with the uncertainties of the economy last year by restructuring their businesses and shifting operations and staff.

Organizational and employee profiles continue to change, and human resource departments must look for credible and innovative ways to manage a company's most complex investment--human capital. More specifically, the 2002 Workforce Diagnostic Survey revealed a focus on benefit costs, particularly related to healthcare, and compensation controls as a means of delivering better results. Survey data was provided by organizations in more than 20 industry sectors, ranging in size from 1,000 employees to more than 50,000.

"As the U.S. economy slowly gains ground toward recovery, human resource executives are being challenged to find innovative and competitive ways of delivering improved results," said James Hatch, national director, Saratoga Institute. "HR must be a key player in this search for added value by managing a global workforce, retaining and motivating talent and containing costs while delivering more efficient human capital programs and services."

Concerted cost-cutting efforts are evident in the compensation area...