nasscom hr summit 2015: technology led hr transformation: path to driving business performance by...
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PwC
Draft
NASSCOM HR Summit HR Transformation through Technology
NASSCOM HR Summit
HR transformation through technology
Draft | 24 July 2015
Strictly Private and Confidential
24 July 2015
www.pwc.com
PwC
Today’s discussion points
People/HR function issues
Key considerations
Enabling HR transformation through HR technology
Value of HR transformation
PwC
People/HR function issues
Section 1
PwC
What we have heard from our clients…
July 2015
Slide 4 PwC
‘How can I get my organisation ready to adopt the HR system and new service delivery model?’
● What are the key areas of consideration for getting my organisation ready for technology change?
● Should I outsource or build an in-house shared service delivery model?
● Are we wasting money on things that employees do not value?
● Can we, with our employees’ permission, use their non-business related data to create a better experience for them?
‘We need help in assessing and finding the right HR technology and systems for our organisation.’
● Do we have rent or buy?
● How is cloud better than on-premise solutions?
‘We do not have confidence in our data governance and HR IS, which hinders decision making.’
● How robust are our HR data and data governance?
● How much effort is it to gather even basic reports?
● Do we hold the right data in the right systems?
● Are the data easy to interpret and display?
● Can we cut our data in ways that are relevant to our business structure?
‘We are struggling to standardise our
processes across our various business
units.’
‘The HR team is spending too much time in
administration and transaction activities. How can I transition them to a
more strategic role?’
NASSCOM HR Summit
PwC
Other triggers we have heard from our clients…
NASSCOM HR Summit
Business growth: A diversified Indian business
conglomerate with interests in electronics,
infrastructure, power and foods An organisation aimed to
grow its revenue fourfold in the medium term and twelvefold over
the next ten years. Keeping this business growth in mind, they
envisioned the need for a strong leadership pipeline and hence
wanted a succession framework and a tool that enabled it.
M&A harmonisation: Indian entity of a
leading global cement manufacturer
The organisation had acquired another
organisation and wanted to standardise key HR
processes and align them to a new single
technology platform.
Cost effectiveness: A large telecommunications
company
The organisation had multiple systems for different HR
processes and this resulted in a huge HR technology cost,
duplication, errors and an administrative function that
was unable to focus on strategic priorities.
July 2015
Slide 5
Standardise and centralise: An
Indian conglomerate with presence
in healthcare, insurance and
manufacturing
The organisation had multiple entities and
inconsistent processes and practices
across each of them.
PwC
Making the future workforce more effective…
NASSCOM HR Summit July 2015
Slide 6
PwC
Key considerations
Section 2
PwC
Playing ‘whack a mole’ with your HRMS approach can be very dangerous, making the output very clunky and unreliable…
NASSCOM HR Summit July 2015
Slide 8
● We believe good HR operations are the foundation of a good company culture. Playing the whack-a-mole game of fixing HR operational issues in isolation will not be lucrative in the long run.
● You know this game: No sooner do you put one issue to rest than two more rear their ugly heads, and soon you’re faced with a snowball. These issues are expensive to fix and require patch fixes, with the threat of a breakdown always looming.
● There are several considerations and areas you will need to factor in before you embark on a transformational journey. A broader planning effort is usually needed to make sure that HR leaders are not playing the game of whack a mole in resolving these types of issues.
Image Credit: Rube Goldberg
PwC
HR tech consideration… When you decide to improve your HR technology capability, these are some of the things you should consider.
NASSCOM HR Summit July 2015
Slide 9
Exiting tech landscape
Decision to buy
and cost
Process maturity
Global vs local
Integrations
Mobile/social/
self-service
Platform Best of Breed (BOB)
Basic building locks
The scale of the roll-out is critical in understanding the extent of the change.
The existing landscape will help narrow down your choice of platform.
Both IT and HR need to be involved in the buying and decision-making process, which needs to be planned and factored into the budget in advance.
The maturity of your existing processes will be critical in assessing the right technology platform, the functionality you want and the phased approach of the implementation.
The maturity of your existing processes will be critical in assessing the right technology platform, the functionality you want and the phased approach of the implementation.
Do you have the basic building blocks in place to leverage the technology better, e.g. grading, job family framework and competency framework?
The existing systems that you will need HRMS to talk to, the compatibility of the two systems and the extent to which you want to do away with manual interfaces.
Culturally, how much ownership and access have you given your employees in the past? What are the future aspirations?
PwC
Enabling HR transformation through HR technology
Section 3
Case for
change
How?
PwC
HR transformation is an investment for the organisation, and like any investment, your stakeholders expect to see the returns. The qualitative and quantitative benefits are both important.
NASSCOM HR Summit July 2015
Slide 11
Efficiency
Effectiveness
5. Reporting and compliance million INR p.a.
Improved regulatory, legal and business compliance and efficient management reporting
million INR p.a. 3. Self-service (MSS/ESS) and portal
Integrity of data, efficient reporting and decision making and reduced cost of updating employee data
Top line (soft) benefits
Bottom line (hard) benefits
7. Recruitment Effective tracking and management of recruitment million INR p.a.
million INR p.a. 2. Learning management/LMS
Effective learning management and rationalisation of learning management systems
million INR p.a. 1. Absence management Effective absence management (planned and unplanned)
4. Single instance million INR p.a. Rationalisation onto a single global instance based on the latest HR technology
6. Global assignments million INR p.a. Effective tracking and management of global assignments
million INR p.a. 8. Leavers /turnover Effective tracking and management of leavers
9. Strategic remuneration system Effective management of annual pay and deferred pay award million INR p.a.
10. Improved hiring capability
11. Improved new hire experience
12. Improved line management accountability
PwC
HR technology helps in realising business effectiveness value throughout the employee life cycle. Capturing the data and being able to report on it is critical, not only to understand the cost of the HR function today but also to gain a buy-in for future HR tech investment and to measure the returns post implementation.
NASSCOM HR Summit July 2015
Slide 12
Change
‘Analyze’ to
‘Analyse’ and
‘Requistions’
to ‘Requistion’.
2-4% decrease in voluntary turnover
15% increase in new hire to requisition ratio
1% increase in workforce planning execution
50% improvement in merit budget allocation
99% decrease in on-boarding time
50% increase in in-depth performance coaching
1% reduction in cost-to-hire
.25% increase in contribution per top talent
10%-20% improvement in hiring quality
1-2% increase in internal hiring
10% decrease in time-to-fill
75% increase in succession plan scale
Analyse
PwC
One of the most compelling arguments for change comes from comparing yourself to industry peers. You may want to benchmark your function against industry leaders, use this to flag underlying problem areas within the function, and thus build a case for change.
NASSCOM HR Summit July 2015
Slide 13
A Sample Scorecard
PwC Saratoga is our proprietary tool which offers measurement & benchmarking capability through a range of quantitative/ qualitative metrics and global/ local benchmarks
Source: PwC Saratoga India, Human Capital Effectiveness Study ,2014
PwC
The real transformational value of HR implementations can be delivered only by considering the fundamental elements in parallel and striking the right balance.
NASSCOM HR Summit July 2015
Slide 14
Process
Simplified processes using HR technology can remove the inefficiencies typically found in HR transactions, making your processes more sustainable for the future.
Technology
HR technology enables you to drive efficiencies across all HR systems. So, you can reduce costs, improve accessibility for your employees and provide better analytics, thus making better strategic decisions more easily.
People
This is a big change for your people. Finding the right people with the right capabilities is crucial, but you need to do more. The new technology acts as a catalyst to drive changes in values, culture and opportunities.
Organisational design
Using HR technology to structure your HR function and enable your people to focus on delivering better value, working towards the business strategy.
Four elements for
success of HR
technology
PwC
A transformation programme involves a huge change management effort. Getting it right involves a structured approach and taking into account all components given below. The building blocks to develop a change management programme should be designed expressly around the business needs.
NASSCOM HR Summit July 2015
Slide 15
Your best-fit change programme, powered by the right change management methodology, can
● Assess the level of impact and support stakeholders have on the needed change
● Engage the right leaders and give them opportunities to develop and support the transition and its long-term goals and implications
● Determine the level and style of communications that will engage all your stakeholders throughout the change
● Define all legacy cultures and develop tactics and implementation plans to mobilise people to work together effectively
● Use performance and talent management techniques to control employee costs and risks and promote the behaviours that will support your business goals
● Align HR strategies with your business strategy to navigate people through change
● Develop tangible processes and deliverables to manage people fairly, honestly and positively
Sustainability
Adoption
Training
Workforce transition
Cultural changes
Communication
Change impact and readiness
Stakeholder engagement
Leadership alignment
Transformation vision
Project and programme management
PwC
Value of HR transformation
Section 4
PwC
Organisations that undergo transformation are substantially different from those that try and those that never attempt change. HR transformation is about reducing costs and improving operating effectiveness through HR system(s), process improvements, shared services, outsourcing and employee self-service.
July 2015
Slide 17
NASSCOM HR Summit
Before After
HR organisation Impact of HR transformations
1. Expose the HR organisation to the true business of a company
2. Assign accountability to the HR organisation to achieve business goals
3. Redefine the metrics of success
4. Reconfigure HR process and technology to contribute to strategy
+ +
PwC
Through HR transformation, the HR team can be ingrained into the business: The value that HR transformation can deliver can thus be realised, and HR is set up to help the business achieve its strategic objectives around effectiveness, performance and growth.
NASSCOM HR Summit July 2015
Slide 18
Executes
Drives
Business strategy Sets direction and priorities for the organisation
HR strategy Determines people programmes, plans and initiatives to deliver business goals
Supports Prioritises
HR function excellence Enables execution of strategic priorities throughout the organisation
People
Process
Technology
Increase workforce productivity
Maximise return on workforce investment
Improve quality of hires
Grow the business
Improve leadership
Develop employees
Compensate efficiently
Improve profitability
Create workforce alignment
Drive workforce engagement
Retain high performers
Market agility and responsiveness
Measurement and analysis
Informs
Measures
PwC
A view of how HR technology can transform the employee experience…
NASSCOM HR Summit July 2015
Slide 19
You can identify the right talent for your company, link to external job boards, assess their fit and, once hired, track them throughout their career–all the way from hire to retire.
Attraction and recruitment
You will be able to plan and manage your team shape and size and be able to hire, transfer or exit your staff via an online, real-time organisation chart. Contingent worker information will be captured so that you can get a full view of your workforce and the jobs that they do.
Joiners, leavers and movers
Resource-intensive processes can be replaced by an automated system, reducing operational risk and ensuring you have reliable data about your teams’ annual pay and awards. You will be able to track reward commitments all the way from recruitment to retirement. Employees will be able to access their payslips online. Immediate access to organisation charts and roles and responsibilities will take away some of the manual effort involved in pay reviews.
Rewards and Benefit
You will be able to plan your resourcing more effectively because you will have access to live data.
Manpower Planning
New automated systems will enable HRBPs/CoEs to provide strategic support you’ve been asking for. HR can be involved in HR strategy and planning. The view of HR’s roles and responsibilities and those of the business and individual employees becomes clear.
HRBPs/COEs
A group-wide, consolidated system will provide a single source of HR data–from roles and responsibilities and organisation charts to reward information, employment policies and procedures and learning and development opportunities.
Management information
Based on the competencies required of their roles, your team members will be directed to the training and development they need via an integrated L&D system.
Learning and development There will be an online source for
your HR needs, tailored to your role and the country or region you work in. On-call support and online surveys will enable employee support and satisfaction.
Contact HR
You will be able to make the strategic decisions you need to based on a single source of data.
Performance Management
Your talent matrix and supporting HR data will be at your fingertips to help you manage your talent and succession planning.
Talent and succession
A unique employee ID will help new joiners to navigate facilities and access systems more smoothly.
On-boarding
PwC
Case study
PwC
HR process transformation and harmonisation for an Indian conglomerate
NASSCOM HR Summit July 2015
Slide 21
Client benefit
● The processes across all the six entities (15,000 employees) were successfully harmonised with minimum local variations, while ensuring alignment with the client’s overall people strategy and SBU-specific strategies.
● The programme ensured uniform employee experience.
● It delivered system adoption and approximately 100% usage across varied employee groups.
Key business issues ● The client identified the need to implement standardised HR processes across their six core entities across the group and to operate their
HR systems consistently across these entities. They wanted to move towards driving business benefits with far greater transparency and accuracy. This required them to transition to an operating model whereby commonly used systems for these functions are controlled in one place and operated in many.
What we did
•PwC was engaged to manage the entire programme:
● Process design: Defined a uniform set of processes for the entities by analysing the existing processes and harmonising them as far as possible, leaving minimum ‘local variations’
● Functional interface: Translated these functional requirements to the functionalities offered by the client’s chosen HR technology, PeopleSoft
● Technology-process alignment: Designed the to-be processes by aligning with the technology and minimised the need for customisations
● Technology implementation: Implemented the technology
● Change management and readiness assessment: Ran a parallel end-to-end change management track starting from change readiness assessment to deploying of various change management tools and assessing their efficacy in a timely manner
PwC
People and change Adding value to your business through people
Contact us:
Ram Periyagaram
Partner, Technology
+91 44 4228 5034
Padmaja Alaganandan
Partner, People & Change
+91 80 4079 4001
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