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HRIS: Trends & Products National Conference of State Legislatures Randy J Di Bernardo, Principal November 2015

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Page 1: HRIS: Trends & Products · Talent strategy solely through technology without addressing Talent operations and process Global HR Transformation Trends Business Driven HR Case for Change

HRIS: Trends &

Products

National Conference of State Legislatures

Randy J Di Bernardo, Principal

November 2015

Page 2: HRIS: Trends & Products · Talent strategy solely through technology without addressing Talent operations and process Global HR Transformation Trends Business Driven HR Case for Change

1© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member

firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Today’s Agenda

■ Pressures facing Human Resources (HR) Today

■ The Evolution of HR

■ Emerging Trends in HR

■ HR Technology Trends

■ Global HR Transformation Survey (Highlights)

■ So, where do we go from here?

Page 3: HRIS: Trends & Products · Talent strategy solely through technology without addressing Talent operations and process Global HR Transformation Trends Business Driven HR Case for Change

Pressures facing HR

Today

Page 4: HRIS: Trends & Products · Talent strategy solely through technology without addressing Talent operations and process Global HR Transformation Trends Business Driven HR Case for Change

3

Technical

CapabilitiesWar for Talent

Globalization

Localization

Leadership

Pipeline

Waning

Capabilities

of HR

Cloud HR

Systems

MOOCs

BigData

Analytics

Disruption of

the CHRO

400 LMS and

TM vendors

Social

Recruiting

Employment

Brand

Retention and

Engagement

Millenials

The

“Overwhelmed”

employee

Workforce

Planning

Global

Recruitment

HR as Decision

Science

Social

Everything

Social

Everything

Global

Payroll

The world has gotten

complicated

Page 5: HRIS: Trends & Products · Talent strategy solely through technology without addressing Talent operations and process Global HR Transformation Trends Business Driven HR Case for Change

4© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member

firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

What HR Leaders are saying…

How can I retain and

engage my top talent?

Our company has

capability gaps in new

technology areas across

the organization.

We are shifting our

business to a services

business. How do I

transform the workforce?

We compete for engineers with

some of the most successful

silicon valley companies? How

can I attract and retain the

brightest in our company?

How do we create more

collaboration and

knowledge sharing across

the company?

Our performance

and comp process

is obsolete and not

engaging people.

We are still having

trouble attracting

millenials and younger

workers.

Our mid-level and

entry leadership gaps

are still huge

How can we globalize

our employment brand

and talent programs??

We need to restructure

HR to build common

systems and reduce

costs.

The skills of our HR

business partners and

specialists need

improvement.

We need better data

and analytics in HR.

Our training organization

is too expensive and not

driving enough value.

How do we more

rapidly move talent

from early leadership

to senior leadership?

We need to accelerate

hiring of senior and

mid leadership in Asia

and Middle east.

How do we

increase women

and diversity in

leadership?

How do we drive

greater innovation into

the organization?

How do we

optimize our global

mobility program?

Page 6: HRIS: Trends & Products · Talent strategy solely through technology without addressing Talent operations and process Global HR Transformation Trends Business Driven HR Case for Change

The Evolving Role

of HR

Page 7: HRIS: Trends & Products · Talent strategy solely through technology without addressing Talent operations and process Global HR Transformation Trends Business Driven HR Case for Change

6© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member

firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

The Evolution of HR since the ‘90s

6

Builds on 1st Generation foundation by improving the efficiency of service delivery, focusing on the effectiveness of strategic HR services that support the business, and measuring business performance targets.

Focused on establishing and improving new HR service delivery models with strong emphasis on rationalizing infrastructure to deliver transactional HR services – utilizing core HR systems (e.g., ERP), standardized processes, and consistent organizational designs.

1st Generation HR 2nd Generation HR

1990s 2000s 2010s

Standardization Optimization Business Focus

ERP Systems

Shared Services

Outsourcing

Process

Standardization

MSS

ESS

?

Ulrich

Model

Workforce

Analytics

The Evolution of HR Transformation

Page 8: HRIS: Trends & Products · Talent strategy solely through technology without addressing Talent operations and process Global HR Transformation Trends Business Driven HR Case for Change

Emerging HR

Market Trends

Page 9: HRIS: Trends & Products · Talent strategy solely through technology without addressing Talent operations and process Global HR Transformation Trends Business Driven HR Case for Change

8© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member

firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Emerging HR Trends

“The 21st Century Workforce” is different – and engagement and

retention are now top issues on the minds of CEOs and CHROs

HR is falling behind in structure, skills, analytics, technology, and

the development of world-class recruiting and L&D programs

Technology, analytics, and the “overwhelmed employee” are

acute focus areas for HR

Skills gaps, the rapid obsolescence of skills, the need for next-

generation learning, and talent mobility will differentiate companies

Leadership continues to be the biggest challenge companies face

around the world

Today’s workforce demands a whole new set of leadership, talent, recruiting,

and engagement strategies and HR organizations are struggling to keep pace

Study by Bersin by Deloitte, 2014

Page 10: HRIS: Trends & Products · Talent strategy solely through technology without addressing Talent operations and process Global HR Transformation Trends Business Driven HR Case for Change

9© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member

firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Trends we see in the marketplace

What we see in the marketplace:

• Business leaders view delivery of HR services in

an efficient, effective and compliant manner as

“table stakes”

• Operational efficiency is fundamental to a more

effective HR function and no longer the primary

focus of HR Transformation. With so many

companies having already accomplished big

improvements. The real value today involves

leveraging those operational improvements to

support the broader business strategy.

• Many companies are shifting to globally integrated

HR service delivery models

• Leading organizations are creating increased

capacity for strategic and consultative activities by

streamlining operational HR activities first

Global HR

Transformation

Trends

Business

Driven HR

Case for

Change

Next

Generation

HR Service

Delivery

HR in the

Cloud

Talent

Operations,

Process and

Technology

HR

Benchmarks

&

Leading

Practices

Evolution of

HR

Outsourcing

HR

Technology

Page 11: HRIS: Trends & Products · Talent strategy solely through technology without addressing Talent operations and process Global HR Transformation Trends Business Driven HR Case for Change

10© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member

firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Business Driven HR Case for Change

What we see in the marketplace:

• Business leaders understand the value of people

and expect HR to play a more central role in

executing the business strategy

• The business is willing to invest in HR services that

it sees as valuable (e.g. new market entry,

business transformation, and M&A/divestitures)

• Leading organizations are using quantifiable

measurements to reflect HR’s contribution to

business outcomes

• Most HR organizations focus too much attention on

operational excellence — and not enough on

creating business value. Both are essential for

making the case for change in today’s market

Global HR

Transformation

Trends

Business

Driven HR

Case for

Change

Next

Generation

HR Service

Delivery

HR in the

Cloud

Talent

Operations,

Process and

Technology

HR

Benchmarkin

g &

Leading

Practices

Evolution of

HR

Outsourcing

HR

Technology

Page 12: HRIS: Trends & Products · Talent strategy solely through technology without addressing Talent operations and process Global HR Transformation Trends Business Driven HR Case for Change

11© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member

firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Next Generation of HR Service Delivery

What we see in the marketplace:

• Increased usage and breadth of self service

beyond simple transactions which impacts the HR

service delivery model

• Larger focus on defining and implementing shared

services for transactional activities and redefining

the role of the HR Business Partner and Centers of

Expertise

• Moving to a more effective service delivery model

requires significant behavioral change and

capabilities. Strategic activities require different

skills. For example, HR Business Partners must

have broad HR knowledge and consultative skills

and are not required to perform traditional

administrative HR activities.

• Leading organizations are developing a roadmap

for HR transformation, including the priorities,

business cases and the future solution

Global HR

Transformation

Trends

Business

Driven HR

Case for

Change

Next

Generation

HR Service

Delivery

HR in the

Cloud

Talent

Operations,

Process and

Technology

HR

Benchmarkin

g &

Leading

Practices

Evolution of

HR

Outsourcing

HR

Technology

Page 13: HRIS: Trends & Products · Talent strategy solely through technology without addressing Talent operations and process Global HR Transformation Trends Business Driven HR Case for Change

12© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member

firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

HR in the Cloud

What we see in the marketplace:

• Emergence of Software as a Service (SaaS)

technology for HR and point solutions

• Increasing number of customers are leveraging

SaaS as a key HR Transformation enabler as a

result of faster implementation, lower total cost of

ownership, intuitive usability and an accelerated

time to value

• Changing need of the HR Portal to integrate SaaS

and other technology/sourcing solutions

Global HR

Transformation

Trends

Business

Driven HR

Case for

Change

Next

Generation

HR Service

Delivery

HR in the

Cloud

Talent

Operations,

Process and

Technology

HR

Benchmarkin

g &

Leading

Practices

Evolution of

HR

Outsourcing

HR

Technology

Page 14: HRIS: Trends & Products · Talent strategy solely through technology without addressing Talent operations and process Global HR Transformation Trends Business Driven HR Case for Change

13© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member

firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Talent Operations, Process and Technology

What we see in the marketplace:

• The ability to improve talent management more

than cost or efficiency is driving an increasing

number of HR decisions around talent process and

technology

• HR and Talent strategies vary based on geography

• Talent management is one of the key drivers for

the business to fund HR technology initiatives

• Increased competition in talent technology: growth

and proliferation of point solutions at same time HR

systems are upgrading their capabilities

• Some organizations are failing to realize the full

value of their investments by trying to implement

Talent strategy solely through technology without

addressing Talent operations and process

Global HR

Transformation

Trends

Business

Driven HR

Case for

Change

Next

Generation

HR Service

Delivery

HR in the

Cloud

Talent

Operations,

Process and

Technology

HR

Benchmarkin

g &

Leading

Practices

Evolution of

HR

Outsourcing

HR

Technology

Page 15: HRIS: Trends & Products · Talent strategy solely through technology without addressing Talent operations and process Global HR Transformation Trends Business Driven HR Case for Change

14© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member

firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

HR Benchmarking & Leading Practices

What we see in the marketplace:

• Consistent requests for benchmarking data and

leading HR business practices to understand

where organizations fall within their peer groups

• HR Leadership values benchmarking data as

important inputs into the business case for HR

Transformation

• Need to go deeper into benchmarking than the

traditional HR metrics and FTE ratio’s

• HR Business Partners and HR Shared Services

require specific data that cannot be found in the

typical benchmark data set

• Leading organizations are using benchmark data

and leading practices as a comparative guide to

determine what makes sense for their organization

and cultural identity

Global HR

Transformation

Trends

Business

Driven HR

Case for

Change

Next

Generation

HR Service

Delivery

HR in the

Cloud

Talent

Operations,

Process and

Technology

HR

Benchmarkin

g &

Leading

Practices

Evolution of

HR

Outsourcing

HR

Technology

Page 16: HRIS: Trends & Products · Talent strategy solely through technology without addressing Talent operations and process Global HR Transformation Trends Business Driven HR Case for Change

15© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member

firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Evolution of HR Outsourcing

What we see in the marketplace:

• There is no longer a “one-size-fits-all” solution for

the HR Outsourcing space

• Buyers are taking control of the evolving HR

outsourcing (HRO) provider landscape with

custom-designed solutions that take advantage of

different vendor and technology options

• Total HR Outsourcing (BPO) providers have

struggled to deliver global solutions consistently

causing some clients to take services back in

house

• There is a greater need for the integration of HRO

solutions — both across providers and within the

HR Service Delivery Model

Global HR

Transformation

Trends

Business

Driven HR

Case for

Change

Next

Generation

HR Service

Delivery

HR in the

Cloud

Talent

Operations,

Process and

Technology

HR

Benchmarks

&

Leading

Practices

Evolution of

HR

Outsourcing

HR

Technology

Page 17: HRIS: Trends & Products · Talent strategy solely through technology without addressing Talent operations and process Global HR Transformation Trends Business Driven HR Case for Change

16© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member

firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

HR Technology

What we see in the marketplace:

• Focus on driving out operational costs via an

integrated service delivery, process improvement

and HCM technology strategy

• Accessing personal and workplace information

24/7 via self service applications is improving

operational efficiency and is now expected practice

• The integration of HR applications with wireless

and mobile technology is evolving at a rapid pace

• U.S. based companies are trending towards a

global consolidation of Core HR technology to a

single HR provider (supporting analytics and lower

total cost of ownership (TCO))

• The HR technology landscape has matured into

fully integrated systems that link recruiting,

learning, talent management, and compensation

systems

• EMEA based companies continue to trend towards

a best of breed of approach

• Social media and mobile devices are raising the

bar on HR Service Delivery

Global HR

Transformation

Trends

Business

Driven HR

Case for

Change

Next

Generation

HR Service

Delivery

HR in the

Cloud

Talent

Operations,

Process and

Technology

HR

Benchmarkin

g &

Leading

Practices

Evolution of

HR

Outsourcing

HR

Technology

Page 18: HRIS: Trends & Products · Talent strategy solely through technology without addressing Talent operations and process Global HR Transformation Trends Business Driven HR Case for Change

17© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member

firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

The Top-7 HR Technology Trends we see in the marketplace:

HR Tech Trend Overview

Innovative Application User

Interface

HR software applications are moving from

capturing transactional data to a higher quality,

intuitive user experience (i.e., no training

required)

Leveraging Wireless and

Mobile Technology

The integration of HR applications with

Wireless and Mobile technology is evolving at

a rapid pace – smartphones, tablets – allowing

portable access to info and transactions

Embracing Social Media

Use of Social Media (Web 2.0 Tools) has

exploded in popularity – and considered

mainstream today. Facebook and Linkedin are

common sources of business exchange.

Enhanced Flexibility in HR

Applications

ERP systems such as SAP, PeopleSoft and

Oracle have seen dramatic increase in

deployments since the 90’s and the flexibility is

adopting to business practices drives selection

HR

Tech

Page 19: HRIS: Trends & Products · Talent strategy solely through technology without addressing Talent operations and process Global HR Transformation Trends Business Driven HR Case for Change

18© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member

firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

The Top-7 HR Technology Trends we see in the marketplace:

HR Tech Trend Overview

Increased Focus on HR

Analytics

Given the importance of Talent and People,

organizations have moved beyond gut instinct

and tribal wisdom in making workforce

decisions. Analytics are fast becoming critical

in making informed business decisions.

Embracing Software as a

Service (SaaS)

Cloud computing and SaaS are the next big

disruptive HR technologies. SaaS has already

demonstrated value in terms of scalability and

flexibility while reducing support costs and

expensive and disruptive upgrades.

Selecting Best-of-Breed

Solutions

Best-of-Breed HR Point solutions will remain a

force in HRM vendor selections, particularly in

the Talent Management space – learning,

recruitment, performance, succession

planning, and onboarding.

HR

Tech

Page 20: HRIS: Trends & Products · Talent strategy solely through technology without addressing Talent operations and process Global HR Transformation Trends Business Driven HR Case for Change

19© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member

firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

The Overwhelmed Employee…

Page 21: HRIS: Trends & Products · Talent strategy solely through technology without addressing Talent operations and process Global HR Transformation Trends Business Driven HR Case for Change

Global HR

Transformation

Survey Highlights

Page 22: HRIS: Trends & Products · Talent strategy solely through technology without addressing Talent operations and process Global HR Transformation Trends Business Driven HR Case for Change

21© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member

firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

y

y

Survey Participant Demographics at a Glance

*HR Service Delivery and Technology Survey Shared Services Survey

798participants for the

HR Service Delivery

and Technology

Survey

50%are global

organizations

37countries

198participants for the

Shared Services

Survey

28countries

60%are global

organizations

*2015 KPMG HR Transformation Survey formerly Towers Watson HR Service Delivery and Technology Survey

Page 23: HRIS: Trends & Products · Talent strategy solely through technology without addressing Talent operations and process Global HR Transformation Trends Business Driven HR Case for Change

22© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member

firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

What Makes HR Successful

as an Operator and Project Leader?

Operator Project leader

■ HR Technology

■ Operational

Effectiveness

■ Structure and

Responsibility

■ Relative Level

of Satisfaction

■ Contributing

Factors

HR focus

Page 24: HRIS: Trends & Products · Talent strategy solely through technology without addressing Talent operations and process Global HR Transformation Trends Business Driven HR Case for Change

23© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member

firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Global Highlights at a Glance

40%88%will spend the same or

more on HR technology.

30%will replace their core

HR system in 2015 —

an all-time high.

66%provide an HR portal.

40%will replace their existing, on-premise

HR system with a software-as-a-service solution.

are using or planning

to use mobile

technology, up from

46% in 2014.61%

Asia Pacific EMEA Americas

46% 64% 78%

Improving line manager

effectiveness is the

second most popular HR

initiative in 2015.#2

are looking to change

the HR structure in

2015 or 2016.

Page 25: HRIS: Trends & Products · Talent strategy solely through technology without addressing Talent operations and process Global HR Transformation Trends Business Driven HR Case for Change

24© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member

firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Anticipated Changes to HR Structure in 2015 or 2016

(Americas cut)

52%

45%

17%

11%

10%

6%

3%

1%

7%

Bringing additional services into our shared services environment

Moving to a shared services environment with HR centers of excellence(COEs) and HR business partners

Outsourcing some/more functions

Combining our HR shared services with other corporate functions (e.g.,Finance)

Bringing some/more outsourced functions back in-house

Have not finalized the exact nature of the changes

Moving to a single HR function for the entire enterprise

Decentralizing HR, allowing HR to be run by business unit or geography

Moving away from a shared services environment

Other

Base: Those anticipating making a change in 2015 or 2016 (n = 99)

Half of organizations that

anticipate changes are adding

additional scope to their shared

services function.

Page 26: HRIS: Trends & Products · Talent strategy solely through technology without addressing Talent operations and process Global HR Transformation Trends Business Driven HR Case for Change

25© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member

firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Top Three Initiatives Undertaken in Previous 18 Months

(Americas cut)

40%

29%

27%

25%

24%

20%

16%

16%

15%

12%

12%

7%

7%

4%

7%

Reengineered key HR processes

Implemented initiatives for improving line managers’ people management capabilities

Refocused the role of the HR business partners

Built or further invested in an HR analytics function

Implemented and/or further leveraged manager self-service

Implemented a new talent management system

Implemented a new core HR system

Outsourced activities previously handled internally

Implemented a new HR portal

Implemented a shared services model

Changed the scope of the COEs within HR

Introduced new types of collaboration tools for the delivery of HR services

Built or further invested in an HR project management office (PMO) function

Brought back services previously outsourced to a vendor

Other

(n = 244)

Page 27: HRIS: Trends & Products · Talent strategy solely through technology without addressing Talent operations and process Global HR Transformation Trends Business Driven HR Case for Change

26© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member

firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Focus on: HR Technology

Software-as-a-

Service

Page 28: HRIS: Trends & Products · Talent strategy solely through technology without addressing Talent operations and process Global HR Transformation Trends Business Driven HR Case for Change

27© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member

firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Focus on: HR Technology

Everyone is changing, but the changes vary by region.

Asia Pacific — Oracle/PeopleSoft EMEA — SAP/SuccessFactors Americas — Workday

Investment in HRMS

continues to grow and

is now doing so at

an exponential rate.

Organizations are

replacing their

core HRMS more

frequently than

ever before.

Page 29: HRIS: Trends & Products · Talent strategy solely through technology without addressing Talent operations and process Global HR Transformation Trends Business Driven HR Case for Change

28© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member

firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Primary HRMS

(Americas cut)

29%

17%

12%

7%

7%

6%

4%

4%

3%

11%

Oracle/Peoplesoft

SAP

Workday

Infor/Lawson

Oracle (Legacy Oracle HRMS)

ADP/Enterprise

Ultimate Software/Ultipro

Custom/In-House

Ceridian

Other (please specify):

(n = 250)

Responses of less than 2% for the

Americas:

SAP/SuccessFactors

Employee Central

ADP/Globalview

ADP/Vantage

Infor/Infinium

SumTotal

Sage

Page 30: HRIS: Trends & Products · Talent strategy solely through technology without addressing Talent operations and process Global HR Transformation Trends Business Driven HR Case for Change

29© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member

firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Is Your Organization Implementing or Planning to Implement a New

Primary HRMS? (Americas cut)

40%

13%

8%

6%

6%

5%

2%

17%

3%

Workday

SAP/SuccessFactors Employee Central

Oracle/Peoplesoft

ADP/Enterprise

Infor/Lawson

Ceridian

Ultimate Software/Ultipro

Currently evaluating new HRMS options

Other

New HRMS Chosen

(n = 64)

Yes

29%No

71%

(n = 252)

Page 31: HRIS: Trends & Products · Talent strategy solely through technology without addressing Talent operations and process Global HR Transformation Trends Business Driven HR Case for Change

30© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member

firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Focus on: HR Technology

mobile

content

searchable

Mobile HR apps

are effective

85%of the time.

HR portals meet or

exceed expectations

69%of the time.

Keys to a

successful

portal

Page 32: HRIS: Trends & Products · Talent strategy solely through technology without addressing Talent operations and process Global HR Transformation Trends Business Driven HR Case for Change

31© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member

firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Current Portal Technology

(Americas cut)

39%

25%

23%

8%

4%

1%

Promote employee/manager self-service

Single point of communication forHR to employees

One-stop shop for access to allHR systems

Information sharing/Knowledgemanagement

Ensure compliance/Policycommunication

Social/Collaboration acrossenterprise

Other

What Is the Primary Reason You Deployed an HR Portal?

(n = 124)(n = 123)

55%

54%

50%

48%

41%

40%

38%

34%

28%

25%

22%

Search capabilities are noteffective

Site does not support mobile(tablet or phone)

Content is difficult or takes toolong to maintain and update

Limited analytics on websiteusage

Content is stale

Information is too generic orlacks enough personalization

Multiple HR websites withoverlapping or competing…

Lack of governance for contentmanagement

Access is limited to only intranetconnections (not Internet)

Sites have inconsistentbranding, look and feel, or…

Too many logins to HR systems

Which Challenges Do You Have With Your Existing HR Portal?

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How Are You Using Mobile Technology?

(Americas cut)

60%

55%

45%

38%

38%

35%

33%

8%

10%

Employee self-service

Manager self-service

Viewing wage/benefit statements

Expense approval

Time card approval

Time entry

Recruiting

Logging issue tickets

Other

(n = 40)

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Focus on: Operational Effectivenessof talent management technology

9

74% of those using technology

for performance management

say the technology is effective.

Yet 28%

still use paper.

69% of those using technology

for global grading/job leveling

say the technology is effective.

79% of those using technology

for core compensation

activities say the technology is

effective.

Yet 42%

still use paper.

Yet 47%

still use paper.

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firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Primary Delivery System Currently Used for

Talent Management (Americas cut)

64%

49%

35%

35%

33%

33%

29%

29%

28%

27%

25%

25%

24%

19%

11%

15%

17%

54%

32%

57%

14%

23%

34%

18%

33%

53%

26%

29%

27%

42%

9%

14%

7%

16%

4%

21%

16%

26%

21%

15%

16%

15%

16%

17%

12%

11%

19%

4%

17%

5%

32%

31%

11%

33%

25%

6%

33%

31%

37%

34%

Compensation — Base pay (n = 169)

Compensation — Variable pay/Bonus (n = 167)

Recruiting/Staffing — Internal (n = 169)

Performance management (n = 167)

Recruiting/Staffing — External (n = 169)

Workforce planning/Analytics (n = 142)

Compensation — Global grading/Job leveling (n = 141)

Total rewards statements (n = 114)

Compensation — Sales/Incentive (n = 131)

Compensation — Long term/Equity/Stock (n = 125)

Learning management and training (n = 161)

Career development/Planning (n = 173)

Onboarding/Joiner administration (n = 158)

Succession planning (n = 146)

Compensation — Market analysis/Survey management (n = 153)

Current HRMS Best-of-breed technology Custom/In-house tool Manual/Paper-based

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firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Focus on: Operational EffectivenessCompanies with shared services

85% of organizations are meeting or exceeding

expectations with HR shared services.

Almost 9 out of 10 questions/inquiries are solved by self-service

and HR shared services.

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General Operating Metrics ― Performance Measures

(Americas cut)

Performance measure Average target Average actual

Response time for calls routed to Tier 1 (n = 14 – 15)82% of calls

within 34 seconds

83% of calls

within 35 seconds

Average time to answer for calls to Tier 1 (n = 17 – 18) 32 seconds 33 seconds

Average hold time during a call (n = 5 – 7) 54 seconds 79 seconds

Abandonment rate (begin counting when call first goes into queue) (n = 22 – 25) 4% 4%

Calls escalated (n = 7 – 10) 29% 23%

Resolution rate on first call (n = 22 – 23)78% of calls resolved or

closed on first call

73% of calls resolved or

closed on first call

Callback response time for calls unresolved (n = 6 – 7) 93% within 38 hours 89% within 40 hours

Average time to resolve and close open cases (n = 19) Two days Two days

Response time for email requests (n = 14 – 15) 96% within 26 hours 91% within 25 hours

Response time for voice-mail requests (n = 7) 95% within 31 hours 90% within 31 hours

Transaction input accuracy (n = 13 – 14) 98% accuracy 90% accuracy

Activities shown here were chosen by a group of subject matter experts as the top activities on the minds of

our clients.

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HRSS Technologies Used

(Americas cut)

57%

54%

51%

48%

46%

43%

41%

40%

40%

40%

39%

33%

32%

15%

7%

19%

4%

16%

6%

17%

18%

7%

10%

4%

4%

7%

10%

9%

10%

8%

14%

15%

10%

22%

22%

19%

15%

18%

15%

25%

25%

14%

33%

23%

38%

23%

24%

42%

28%

34%

38%

42%

48%

46%

59%

67%

Case management (n = 73)

Quality monitoring (n = 69)

Knowledge base tool — For HR use only (n = 73)

Call transfer/routing (via VRU to external vendor) (n = 71)

Document imaging/management (n = 74)

Knowledge base/Portal tool — For employee use (n = 71)

Voice response (VRU, IVR) (n = 72)

eforms (n = 72)

Web chat (n = 74)

Collaborative browsing (n = 73)

Voice over Internet Protocol (VoIP) (n = 72)

Online (audio/video) (n = 71)

Computer telephony integration (screen pop) (n = 72)

Enterprise 2.0 tools (e.g., wikis, forums) (n = 69)

Crowdsourcing (n = 69)

In place now and not planning to change/Deployed in 2014/Deploying in 2015

In place now but planning to change

Beyond 2015 or no plans

We do not use this technology

Note: Values of 3% or below do not have the percentage number displayed.

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firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Focus on: Structure and Responsibility

11% HR leadership

14% HR business partners

22% HR generalists

20% HR operations/shared services

24% Centers of expertise

9% Other

11%

14%

22%

20%

24%

9%

Percentage of overall HR headcount

aligned to specific HR functional areas

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firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Median Employee to HR Staff Ratios

(Global Data)

Note: A “—” indicates that the sample size was insufficient to ensure data accuracy and that the data has been excluded from this survey.

Industry All

Small — Between

1,000 and 4,999

employees

Medium — Between

5,000 and 20,000

employees

Large — Greater than

20,000 employees

n Ratio n Ratio n Ratio n Ratio

Chemical, Oil and Gas 25 1:86 — — — — — —

Insurance 128 1:59 61 1:54 44 1:56 23 1:85

Healthcare (incl. Pharmaceuticals) 53 1:100 — — 20 1:117 — —

High Tech (incl. Semiconductor) 78 1:67 41 1:60 20 1:75 — —

Manufacturing 77 1:94 29 1:93 33 1:94 — —

Professional and Business Services 45 1:72 23 1:70 — — — —

Property and Construction 22 1:98 — — — — — —

Public Sector and Nonprofit 21 1:73 — — — — — —

Retail 50 1:107 — — 21 1:116

Transportation Services 19 1:86 — — — — — —

Utilities and Energy 54 1:52 37 1:50 — — — —

Global 278 1:75 90 1:65 99 1:79 89 1:91

Multinational 81 1:83 42 1:64 24 1:98 — —

Domestic 249 1:67 156 1:56 68 1:98 25 1:120

All Firms/Organization Types 609 1:72 289 1:60 191 1:86 129 1:103

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Organizations that have successfully transformed

HR have done the following things…

62%

54%

65%

96%

Of organizations focus on involving HR

professionals in the design and implementation of

the change.

Of organizations have ensured leadership

ownership in the implementation of the change.

Of organizations who failed at their transformation

did not identify measures for success.

Integrated changes to HR process and roles when

implementing technology.

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firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Focus on: Operational Effectiveness

Manager self-service and shared services are the enablers for effective

line managers.

Page 43: HRIS: Trends & Products · Talent strategy solely through technology without addressing Talent operations and process Global HR Transformation Trends Business Driven HR Case for Change

Where should HR

Focus?

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So, where should HR focus?

43

Invest in leadership at

all levels and ensure

clear career paths and

succession plans exist

Be bold,

innovate, and

invest in people,

especially

millennials

Build your Case for

Change by focusing on

what’s best for the

business

Expand your employee

engagement thinking –

including a revised

Performance Management

Process

Embrace new

technologies that deliver

an improved employee

experience and lower

cost of ownership

Revisit your talent acquisition

strategy to make sure it’s

modern and social, and you

have a compelling and

authentic employment brand

Take a serious look at the

“overwhelmed employee”

and find ways to simplify

his/her work environment

Build an efficient and

scalable operating model

so you invest in building

capabilities that support

the business

Performance

management is broken:

Replace annual ratings

with real-time coaching

and development

Page 45: HRIS: Trends & Products · Talent strategy solely through technology without addressing Talent operations and process Global HR Transformation Trends Business Driven HR Case for Change

Appendix

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45© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member

firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

About the HR Transformation Survey

The 2015 KPMG HR Transformation Survey, formerly Towers Watson HR Service

Delivery and Technology Survey, is in its 18th year and was fielded between the second

week of January and the second week of February 2015. In total, 798 organizations

across 37 countries participated. Half of these participants are global organizations.

During the same survey window, organizations that utilize HR shared services functions

were given the opportunity to complete a follow-up survey: 198 organizations across 28

countries participated; 60% of these organizations are global.

In both surveys, responses came from a broad cross section of industries, with the largest

number concentrated in financial services, high technology, manufacturing, professional

services, healthcare and hospitals, and retail.

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© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm

of the KPMG network of independent member firms affiliated with KPMG International

Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

The KPMG name, logo and “cutting through complexity” are registered trademarks or

trademarks of KPMG International.