ADP Global HR Transformation Survey 2010

Download ADP Global HR Transformation Survey 2010

Post on 18-Nov-2014

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What are the trends in Human Resources transformation practices?What is the current and future transformation scope?In which way have recent global economic changes affected HR transformation plans?

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<ul><li> 1. Global HR 2010Transformation An ongoing journey Conducted by SharedXpertise in association with ADP </li> <li> 2. table of contents introduction 4 about the survey 5 executive summary 6 introduction ............................................................................ 4 research findings about the survey...................................................................... 5 8 executive summary.................................................................. 6 HR transformation status 8 research findings ..................................................................... 8 HR transformation outcomes 12 HR transformation status .................................................. 8 HR transformation outcomes .......................................... 12 outsourcing and shared services 18 outsourcing and shared services ..................................... 18 HR management practices 28 HR management practices .............................................. 28 about the survey participants about the survey participants ................................................ 30 30 about the research research .................................................. 32 about the sponsors sponsors 32Conducted by SharedXpertise in association with ADP [3] </li> <li> 3. introduction one glass, two ways to see it There are many ways to look at things, but a situation can usually be analysed by viewing it from one of two angles: the glass is half full or its half empty. In other words, look on the bright side of the story or let your less optimistic side take control. In fact the real choice is between the intent to get better at something or just maintain a situation as is. What do you think we chose for ADP, a company that has been in business for over 60 years? What could have led us to support the Global HR Transformation Report for so many years, if not the will to understand where room for improvement exists? What does this years report tell us? First of all, things are heading in the right direction. No revolution here but a movement that has been steadily gathering momentum. Companies around the world that embarked on HR Transformation years ago now reap the rewards of their efforts. Regional variances still exist but those of you who have been reading the report for several years will find concepts that were previously unfamiliar are now conventional wisdom. So, is HR Transformation over? It would be foolish to think so. There are in fact many aspects yet to be examined; ideas and actions to be carefully considered that could lead to fantastic opportunities. I am confident the HR Transformation journey is far from over. More than ever, companies have to deal with uncertainty and new forms of competition, and I invite you to listen carefully to how other HR professionals identify new challenges and bring innovations. Any component of a business has the potential to play a significant role in the changes that must be made for a company not just to survive, but to thrive. HR plays an important role in reaching this goal. It is in our interest, as solution providers and HR professionals, to strive to move forward together toward the goal of making HR more agile. We may then accurately assess the resources needed to manage change, deal with cultural differences, and define the appropriate breakout of processes to manage at the local, regional and global levels. These are but a few examples of how to solve the equation. This is how HR and, more specifically HR Transformation, should be viewed: a sophisticated equation. No one said it would be easy to figure out, nor that its components would remain the same, but mathematics is all about defining new possibilities and transforming them into real opportunities. New challenges lie ahead. It is up to us to leverage this report to find innovative ways to meet them. I wish you a rewarding read, Doug Cummings Senior Vice President, Global MNC Sales ADP Employer Services[4] Conducted by SharedXpertise in association with ADP </li> <li> 4. about the survey Our survey, now in its seventh year, examines trends in human resources (HR) transformation practices (which we define as any concerted effort to change and improve HR operations, whether through outsourcing, shared services, internal reengineering, or a combination of these strategies) in organisations around the globe. The 2010 report offers a view of market trends and changes in HR transformation, as well as a perspective on future plans. In addition to discussing transformation status and strategy, our report addresses: Reasons organisations transform, and the barriers that limit their transformation Transformation timing, cost and satisfaction Engagement of external resources and experience Current and future transformation scope HR outsourcing and shared services strategy, budget and provider selection The survey received responses from 225 executives around the globe in varying stages of HR transformation. For a full breakdown of respondent demographics, please visit the About the Survey Participants section of the report.Conducted by SharedXpertise in association with ADP [5] </li> <li> 5. executive summary summary of 2010 findings Transformation is on the rise again. After a dip in 2009, HR HR transformation continues to take longer than anticipated. transformation appears to be on the rise again with 85% of all Organisations in all regions take slightly longer to transform respondents saying they are considering, in the process of, or than they originally anticipate, a finding that has been finished with HR transformation. In fact, although the recent consistent throughout the seven years of our research. economic recession does appear to have had some impact on On average, HR leaders say HR transformation requires two to HR transformation activity (many indicators were down in three years; more than a quarter of organisations take more 2009 over 2008) there are signs of increased transformation than four years to transform HR. The top reasons activity improvement in 2010 (though generally not back to transformation is delayed are: management/leadership/ 2008 levels): organisational changes impacted transformation progress; Transformation efforts overall were down in 2009, and, timing and transformation is/was more complex than reversing a years-long trend of growth, but on the rise expected. again in 2010. And continues to generate less in savings than anticipated. At The proportion of respondents who say they are not the same time, organisations often miss their transformation transforming due to cost pressures increased savings targets by a slim margin: whilst 62% of all respondents significantly from 2008 to 2009,but declined from 2009 anticipate savings of 6% 25%, 57% actually achieve those to 2010. savings; another 14% anticipate the lowest level of savings Internal reengineering (versus engaging outsourcing, (less than 5% savings), but 20% say they actually achieve shared services or some kind of hybrid approach) was up savings in that range. Respondents in EMEA are more significantly in 2009 over 2008, but it stayed virtually the aggressive than those in other regions in both their cost same in 2010. savings expectations and results. Regional shifts in HR transformation may be appearing on the Organisations achieve the best transformation results in horizon. On a regional basis, organisations in the Americas are organisational management areas. Survey respondents say slightly more likely than their counterparts in other regions to they perform best in aligning the organisation around be engaged in HR transformation, but longitudinal research common objectives (79% of respondents say they exceed or indicates there may be changes. Our results show an increase meet expectations in this area) and responding to in HR transformation activity in Europe/Middle East/Africa organisational changes (73% of all respondents exceed or (EMEA) (75% transforming in 2008 versus 87% in 2010), and a meet expectations). Respondents rate themselves worst at decline in activity in Asia Pacific (93% transforming in 2008 leveraging HR transformation to free internal HR staff to focus versus 81% in 2010), whilst the Americas remain fairly steady on strategic issues (46% say the fall below expectations in this at 89%. area) and benefiting from a new technology to empower line Transformation approaches vary by region. Americas-based management (42% say they fall below expectations in this organisations are most likely to employ a hybrid approach, area). Asia Pacific oranisations focus on internal reengineering, and Organisations do a good job of matching areas of importance EMEA organisations are the most varied with nearly equal to performance. Generally, organisations are performing best portions engaging hybrid, internal reengineering and shared in the areas that they deem important, with the single services approaches. exception being the objective of freeing internal HR staff to Top reasons organisations engage in HR transformation also focus on strategic issues, which has the lowest reported vary by region. In a departure from prior years, our 2010 performance of all key performance areas. research indicates different top reasons for transformation by HR transformation hurdles are becoming entrenched. Across region: all seven years weve been conducting this research, the main Americas: to align the organisation on common hurdles to HR transformation have remained unchanged, with objectives and to free internal HR staff to focus on skills of existing HR staff at the top of the list every year. strategic issues (both selected by 56% of respondents) Other top hurdles continue to include underestimation of resources needed (52%), lack of ad...</li></ul>

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