Hr's strategic shift -how to leverage hr technology to drive business results

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  • HRs Strategic Shift:

    How to Leverage

    HR Technology to

    Drive Business

    Results

    Guest Presenter: Marc S Miller President and Founder

    Marc S Miller Associates

    TalentTakeawayswebinar & podcast series

  • AGENDAThe Series

    TalentTakeawayswebinar & podcast series

    Talent Takeaways Series

  • AGENDAAGENDA

    Resource Library

    Product Information

    Product Tour & Demo

    The Sponsor

    Talent Takeaways Series

    Talent Management Made for Managers

  • VALUE is gained byleveraging technology to help HR move from Data Management to Information Craftsmanship

    EFFECTIVE BUSINESS RESULTS = ACCEPTABLE VALUE IN ALL ITS FORMS

    4

  • Information responsibility begins with correctly identifying the information you need to effectively

    carry out your job extends to insuring that the

    information flows to people who stand to benefit from

    it, and in a form those people will readily understand.

    Increasingly, the measure of the executive will not be his ability to interpret data, but his ability to define

    and exploit information.

    Peter Drucker

    Across the BoardDecember 1991

    VERY DOABLE!

    If we keep in mind some other opinions:

    5

  • The "Value of HR and Using HR Technology to

    Achieve Value & Sell

    Value

    6

  • Top 10 HR Challenges Through 2017

    1. Managing talent

    2. Improving leadership development

    3. Managing demographics (MILLENIALS)

    4. Delivering on employee ENGAGEMENT

    5. Managing change and cultural transformation

    6. Enhancing THE USER EXPERIENCE

    7. Transforming HR into a strategic partner

    8. Improving performance management/rewards

    9. Managing globalization

    10.Managing work/life balance

    7

  • A NEW NEED FOR HR..WORKFORCE AWARENESS OF CYBERSECURITY!!!

    8

  • Basic Personnel Services

    Control and Compliance

    Strategic

    Expertise

    A very long

    time ago

    A while ago Recently last 5-10 years

    Bureaucratic and administrative aspects of dealing with employees -PERSONNEL

    Aspects of dealing with unions (1930s and 1940s in U.S.)

    Dealing with discrimination and other US Federal Legislations - (1960s till present day)

    Take a business perspective in compensation, benefits, recruiting and staffing, succession planning

    Organizational effectiveness, business planning, workflow, best practices

    Apply behavioral science knowledge for recruiting, evaluating, compensation, Training, change management and DO workforce modeling and forecasts

    Administrator

    Enforcer

    EXPERT

    Onboarding, Engagement,WorkforceAnalytics / Metrics /predictive analytics

    Strategic Workforce / Talent Management

    IMP

    OR

    TAN

    CE TO

    THE O

    RG

    HRs Evolving Role

    HR TECH

    9

  • Employee & Manager Self-Service (ESS/MSS)

    Forecasts & Trends via Dashboards

    Web-Delivered:

    Time Capture & Reporting

    Performance & Career Development

    Job Posting, Recruiting, Hiring & On-boarding

    Web-based:

    Work Group Collaboration

    Workflow and best practices

    Remote Location 24/7 Access via Mobile

    Some interaction with Social Media sites

    Value is Achieved with HR Technology

    Cost Reduction

    Cycle Time Reduction Processing Efficiencies

    Improved Information

    Full Compliance at all levels

    Increased Capabilities & Functionality

    Enhanced Employee Engagement

    Data Quality Near 100%

    Big Picture Business Metrics Easily Available

    10

  • HRs Hierarchy of INFLUENCE/value

    AnalyticsEvaluation

    Engagement

    IT & Telecom / Facilities & Security /

    Workforce Mgmt & Planning / Labor Allocation / Procurement

    Government Compliance:Environmental Mgmt & OSHA /

    Social Media Policy and Procedures

    Recruitment / Employment /

    Compensation / Benefits / Learning Mgmt

    / Performance / Workforce Development /

    Time & Attendance / Payroll /

    Regulatory Requirements

    TACTICAL

    ENTERPRISE SUPPORT

    GAME CHANGINGSTRATEGIC INFLUENCE

    Getting to Policy andPlanning

    11

  • Transforming HR: Chiming in with advice

    Say the right thing

    Do the right thing

    Measure the right thing

    Get rid of social workers

    Serve the business

    Make value, not activity

    Sources: Hay Group, SHRM, Ulrich, other Fast Company interviews

    12

  • IMPACT OF BUSINESS ALIGNMENT

    Aligning HRto impact . . .

    . . . Key organization success drivers to build . . .

    . . . Organization capabilities that address business challenges to create . . .

    . . . Improved business performanceand increased value

    The 5 success driversmust be aligned from topto bottom: PEOPLE, PROCESSTECHNOLOGY, STRUCTURE andCULTURE

    13

  • Admin

    Policy/Planning

    20%

    50%

    30%

    Outsourced activities to third party

    Outsourced activities to employees

    Business Partnering

    HRT

    SaaS

    HR Admin, Payroll,

    Benefits Admin,

    Recruitment

    60%

    30%

    10%

    Administration

    Business Partnering

    Policy/Planning

    ESS/MSS

    Workflow

    Best Practices

    Email Alerts

    Transforming HR:

    Classical View to Diamond view

    14

  • The PortalA Personalized

    My WORK/LIFE

    Gateway

    Work/Life Web Site

    An employee or enterprise portal will improve the quality of HR service delivery by providing: Single point of access intuitive user experience Consistency of information, procedures,

    and transactions Faster transactions via built in workflow Increased employee productivity and morale A channel to facilitate change management and culture

    alignment

    Resulting in: Reduced costs Re-enforcing a high tech culture, appealing to new

    generation workers Gen X, Y and Millennial The Sticky Workplace, which retains quality people

    An effective EMPLOYEE SELF SERVICE STRATEGY (ESS) as well as MANAGER SELF SERVICE (MSS) results in lower costs, increased value to the business, and improved work/life balance for employees.

    THE VISION

    15

  • THE VISION

    Internal / External Users

    Business partners

    Applicants Employees Managers Retirees

    Knowledge Based

    Systems

    Core HRMS Systems

    Foreign Local

    Payroll Systems

    HR

    ADMINISTRATION

    AND

    POLICIES

    Access Technologies

    Desktop

    Web

    Social media

    The PortalA Personalized My

    WORK/LIFE Gateway

    Laptop TabletSmartphone

    16

  • THE VISIONHR organizations are shifting from functional structures to process-driven structures to support Event-Based services. This shift further enhances the role of HUMAN RESOURCES as a Strategic Business Partner, freed from transactional activities, to deliver strategic HR services.

    Todays HR Functions

    Eliminate or Outsource

    Transformational Informational or Transactional

    HR Business Partner Services/Activities ESS/MSS/Service Center

    Consolidation of value-added HR services.

    PROACTIVE rather than reactive HUMAN CAPITAL MANAGEMNT

    Builds upon what makestodays HR professionalvaluable to the business

    Global Metrics Workforce Analytics Workflows and Policies Consolidation of strategic Virtual Teams collaboration

    across cultures and time zones

    Develops and designs HR Programs

    Consolidation of information- and transaction- based activities that cross organizational AND GEOGRAPHIC boundaries

    Designed to efficiently process event-based transactions BY EMPLOYEES DIRECTLY

    Enables managers to manage DIRECTLY

    Non Value-AddedServices and Processes

    Tran

    sfo

    rmin

    gto

    Compensationand Benefits

    Strategy and Process Planning

    Education, Training andDevelopment

    Employee Relations Services

    StaffPlanning & Resourcing

    OrganizationPlanning andDevelopment

    OccupationalHealth &

    Safety

    17

  • THE VISION AVAILABLE TODAY from any number

    of effective and proven HRMS VENDORS!

    ONE SYSTEM OF RECORD SINGLE SIGNON IMMEDIATE ACCESS BASED ON

    ROLES AND RULES IMMEDIATE REPORTING HISTORY VIEWED WORKFLOW EMBEDDED BEST PRACTICES ESS AND MSS INTUITIVE NAVIGATION INTERGRATED FUNCTIONALITY DASHBOARDS AND METRICS

    18

  • 800 #

    CLIENT SUPPORT

    HR Technology Solution ProviderThe Vendors support team Systems Development

    Changes DefinitionReleases Security

    Transactions, queries, Training &Development

    Employees

    Managers

    n Reportsn Metricsn Analyticsn Data

    General Ledger and other financial systems

    Payroll, with all filings

    Benefits Admin, Cobra, ACA

    LMS Learning

    Recruiting

    Knowledgebases

    Vendors with otherSystems

    HRT Vendors

    YOUR COMPANYS DATA BASES AND

    INSTALLED SYSTEMS

    Feeds

    Access Tools

    Staffing Systems

    THE VISION: PUTTING THE PIECES TOGETHER

    SecureBack ups

    YOUR COMPANYS DATA BASES AND

    INSTALLED SYSTEMSCLIENTS

    ENTERPRISE WIDEDATA

    ESS

    MSS

    n Reportsn Metricsn Analysisn Data

    HUMAN RESOURCES

    SYSTEMS SUPPORT ORGANIZATION

    APPLICANTS

    Time and Attendance

    19

    http://www.apple.com/iphone/fingertips/?tip=11

  • Administrative efficiencies resulting in cost reduction

    Leadership development

    Overall alignment with the organizations strategies, mission, goal and vision.

    High service quality to all customers (stakeholders)

    Responsiveness

    Risk Management

    Talent management, identification and acquisition, and a pipeline

    Effective leveraging of technology to all appropriate functions within the realm of HR, Payroll and Benefits

    VALUE CREATION!

    CEO, Board & Stakeholders expect

    20

  • Poll Question: Do you feel you are getting the full value out of your

    HR technology?

    26

  • HR portal Employee/Manager Self-Service

    Taking advantage of SaaS, Web based Employee Portals

    Entry/modification of personal data

    System driven processing of a majority of HR transactions

    Personalized Role based

    Interactive Manager in box

    Work-flow driven

    Tablet and/or Smartphone enabled

    Direct access by employees to Benefits providers websites

    Integration to companys web portal

    Performance Management, Employee Goals

    Succession Planning, Competencies

    Version of software always current

    Technology and outsourcing enable this shift to the mindset of value creation..

    21

  • Products and cost of

    production

    Overhead

    Economic indicators

    Organizational financials

    Organizational structure

    The workforce and its

    utilization

    The marketplace

    Competitors

    Acquisitions and mergers

    Research and development

    Technology development

    Human resource programs

    and measurement

    Think this..

    Stakeholders & C-Level Executives want actionable information that assesses

    22

  • 1. Who are the key people within our organization? What are

    they doing? How good are they? How do we know?

    Compared to our competitors, are we paying them too little?

    Too much? How do we know? If we do lose a key employee,

    what is our succession strategy?

    2. How much would it cost to reduce headcount by 10% while

    retaining our highest level performers? What impact might that

    reduction have on our ability to remain competitive?

    Reasonable questions? How much information

    can you provide? How long will it take you?

    C-Level Stakeholders Ask Big Picture Strategic(& Complex) Questions

    23

  • What COUNTRY do we go into next?... And WHAT

    do we do there????

    AND how was it responded to who did what

    to get the answer??????. Let me tell you

    about it

    One of the most Strategic question EVER asked by

    a CEO (in my opinion)

    Cargill Corporation - CEO

    24

  • Information CraftsmanshipData Management

    Data Analysis

    C-Level Stakeholders Want Information NOT

    Data

    Data Analysis

    Static, aging, past, reactive, transaction-based

    Evaluate costs already spent

    Analyzing/presenting How many? Which?What groups? Based on past transactions

    Data

    Costs

    Analysis

    Strategic Support

    Forward view, projections, forecast, proactive, model-based

    Future costs estimated Future value estimated

    Estimating future total and formulating scenarios based on historical trends and other influences

    From

    Static to

    Strategic

    25

  • METRICS.. ALWAYS BEEN AROUND!

    SINNERS

    BELIEVERS

    27

  • What is overall condition of the company? Business Unit? HR?

    The Performance Metrics (aka - KPIS) that HR should

    measure MUST address the Business

    Are we meeting Strategic Needs?

    Are we helping to deliver on corporate strategy and direction?

    Are we meeting our Customers Needs?

    Are we optimizing our Service Delivery Process

    Are we contributing to the companys financial goals and overall well being?

    28

  • Strategy

    Internal BusinessPerspective: What are we doing well?

    Financial Perspective:How do we look to shareholders?

    Growth & Learning Perspective: Can we continue to improve & create value?

    Customer Perspective: How do customers see us?

    Goals & MeasuresMarket ShareBrand StrengthSales TrendsCustomer SatisfactionCustomer Loyalty

    Goals & MeasuresEarnings per SharePrice Earnings Ratio Budget AccuracyGrowth RevenueGross MarginCompany stock price versus competitionProfit-Employee Ratio

    What C-Level Executives Are CONCERNED ABOUT:

    Goals & MeasuresDesign to Market CycleFirst to Market %New Product RatioCompetency Change RateDevelopment Activities Exist to Meet Business Needs% Ready Successors

    Goals & MeasuresDelivery PerformanceWorkforce ProductivityProcess/ workflows efficiencies / QualityComplianceBusiness StrategiesTalent pipelineWorkforce competenciesTurnover RateJob Fill Rate

    29

  • Metrics must be provided in support of the roles, responsibilities of different constituencies that require INFORMATION.

    Specific Performance Metrics that HR Should Measure

    Audience Desired Metrics & Analytics

    C-Level Executives Company Performance &

    Strategy

    Senior HR Executives;

    Directors & Managers of

    Specific Program Delivery & Functionality

    HR Operations &

    Performance

    HR Administrative Specialists HR Functionality Services &

    Programs

    HR Technology Specialists HR Technology Service

    Delivery

    30

  • Human Capital Revenue Factor (HCRF)

    Total Revenue / Full Time Equivalent (FTE)

    Human Economic Value Added (HEVA)

    (Net Operating Margin Cost of Capital) / Full Time

    Equivalent (FTE)

    Human Capital Cost Factor (HCCF)

    W2 Pay + Cost of Contingent Labor + Cost of

    Absenteeism + Cost of Turnover

    Human Capital Value Added (HCVA)

    Operating Revenue (Operating Expenses Pay and

    Benefits) / FTEs

    Human Capital Return on Investment (HCROI)

    Operating Revenue (Operating Expenses Pay and

    Benefits) / Pay and Benefits

    HR Operations & Performance Metrics

    31

  • ONE OF THE FIRST LISTINGS OF VALUABLE HR METRICS:

    Benefit Factor (% of total salary)

    Cost per Hire

    Employee Cost Factor

    Human Capital ROI

    HR Headcount Ratio

    Income Factor

    Management Ratio

    Revenue Factor

    Training Cost Factor

    Voluntary Separation Rate

    32

  • Cost Effectiveness Expressed As Computed As

    Workforce

    productivity (per

    employee)

    Net

    income/employee

    Net Income

    Total Active

    Employees

    Production

    output/employee

    # Units

    Output/Hourly

    Employee

    Total Hourly Active

    Employees

    Dollars of

    sales/employee

    Dollar Value or Units

    Sold

    Total # of Active

    Employees

    HR Functionality Services & Performance Metrics

    33

  • Using Workforce Analytics to manage TALENT

    Make Smarter Hiring Decisions

    Retain Key Talent Connect People Performance to Business Performance

    Quality of Hire

    Recruiting Channel

    Effectiveness

    Attract & Source

    First Year Effectiveness

    First Year Turnover

    Compa-/Market Ratios

    Retirement &

    Succession Planning

    Turnover by

    Performance / other trends

    Value Creator Profiles

    Engagement: HR Prog &

    Bus Outcome

    Return on Talent

    Acquisition

    Investment

    Cost of Days Lost Per

    Employee

    Value Created (Quotas,

    Productivity, Margin...)

    Predictive Analytics

    34

  • Acquisition Cost per hire Time to fill jobs Total Number of New Hires Total number of replacement staff Quality of new hires

    Financial Average Total labor cost as a percentage of operating expense Pay per employee Benefits cost as a percent of pay Average performance score as compared

    to revenue per FT...

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