What is the Market Trend in HR

What Is Talent Management

What Drives Talent Management

Why Have Projects Failed

Trends in HR Technology

Integrated vs Best of Breed

Advantages

Core HR and Payroll Benefits Workforce Planning Talent Management◦ Recruiting Solution◦ Onboarding◦ Performance/Feedback and Goal Management ◦ Succession Planning and Career Development◦ Training (Learning Management System)◦ Compensation Management◦ Labour Relations◦ Total Rewards◦ Wellness

Workforce Analytics◦ SAP buys Qualtrics◦ Workday buys Adaptive

2018/2019 Changes• Wellness• Increase on People Analytics• Feedback/Continuous PM

Traditional HR

Reactive

Administrative

Confined to HR staff

Transactional

Certain times

Promises soft-dollar benefits

Adds paperwork

Counts heads

Downplays its drag on bottom

line

Should be outsourced

Talent Management

Proactive

Strategic

Everyone’s Responsibility

Collaborative

All the time

Delivers hard-dollar benefits

Adds value

Heads count

Adds to the bottom line

Mission critical/core

competence

Reports Decision Support

Stand Alone

ApplicationsIntegrated Suite

Local Focus Global Mindset

Automation Transformation

The demand for strategy-based talent management has never been greater.

Senior management, boards of directors, analysts, and investors factor a company’s talent management maturity and the quality of its workforce into the valuation equation.

A McKinsey study concluded that organizations scoring in the

top quintile of talent management practices out perform

their industry, as measured by return on shareholder value,

by a remarkable 22%.

.

Attraction – want to attract top performers◦ Salary is no longer number one reason to take a job

Ability for career advancement Money spent on Training Culture

Retention – want to keep top performers◦ Improve employee satisfaction◦ Keep employees engaged

Engagement – Improving the individual performance of employees so that the organization meets is Business Goals

Analytics – need to be able to prove what HR is doing is having a positive effect (to HR and Business)

Process Improvement/Best Practices – improving ability to perform functions, freeing time for more strategic initiatives

Strategic – Ability for HR to be strategic versus transactional Total Cost of Ownership (TCO) and ROI

1. Did not do proper due diligence2. Automate old processes (OP+NT=EOP)3. Too difficult to use4. Too many systems - Incomplete processes 5. No change management6. No time to train (especially on multiple solutions)7. No real data to validate ROI8. No Executive buy in9. No Manager buy in (WIIFM)10. To short sighted – no long term vision

Need Applicant Tracking System - ATS◦ Too many resumes

◦ No database

◦ Tracking

◦ Reporting

◦ Career Site

◦ Research, RFI, RFP,

◦ Present and Future Needs

◦ Buy Best System

What goes around comes around!

Late 90’s ERP preaching Integrated

(Oracle, SAP, Peoplesoft, JDE, BAAN)

Major Players Piping Best of Breed Story

Recruitsoft/Taleo CEO says they will dominate market

because their unique value proposition is that they do Applicant Tracking and nothing else!

SAP buys SuccessFactors

IBM buys Kenexa

Oracle buys Taleo

Big players are spoken for who will buy up who next?

What will happen to these products? This can be a risk?

Why did they buy? Need integrated suite, market leader

DotcomEverything Paper to Web

Point SolutionsEmployee Driven

Integrated Engagement Platform

2000

WEB 1.0

2010

WEB 2.0

2020

WEB 3.0

Integrated means that software, systems, or applications can be made to speak to each other. (Pass defined data back and forth)

Integrations - Cost and service of having two unique solutions often purchased as stand a lone or best of breed that you now require to communicate with each other

“We are reaching a point in this market where ‘integration’ is more important than ‘functionality,’” Bersin wrote. “The days of having one island of software for learning management, another for performance management, and a third for recruiting, are slowly going away – most mid-market and an increasing number of large companies are now heavily leaning toward ‘full suite’ solutions.”

Josh BersinThe TM Software Slump. JoshBersin.com

In the past we have been skeptical about the ability of the big players to incorporate new technologies and to be flexible enough to cater the different needs of organizations. Our skepticism is decreasing, and our expectation is that especially the big players will be able to help HR to make the transformation into digital. The creative and innovative small players, and there are many, will increase their chances of survival if they are bought by one of the big players, if they work seamlessly together (as a plug-in) with the big players or if they have been able to capture a truly unique niche area. …. HR Trend Institute 2019

While On Premise ERP’s are Integrated they have all purchased cloud HR solutions and these solutions are their go forward strategy for these organizations (SAP, Oracle, IBM) Why:◦ Can often lag behind on functionality

◦ May already have sunset date

◦ Based on licensing model – large IT Footprint (why SAP bought SuccessFactors)

Integrated Talent Management vendors through acquisition ◦ Delays in true integration and possible multiple user interfaces

◦ Increased Functionality (best of breed)

Best of Breed perceived as leaders with unique features

Integrated providers will catch up or are leaders

Occasionally a niche vendor offers a valuable, specialized feature not available within an integrated talent management framework. It is crucial to remember that development is continuously progressing on the capabilities of the framework. Therefore, it is likely that same feature will come available with

the framework in the near future—if the feature is part of a best practice.

A CedarCrestone study revealed a strong correlation between organizations with integrated or mixed talent management solutions and operating income growth as measured over a two-year period.

One vendor to manage

One sign-on

One interface

Less training

Higher user adoption

Improved analytics

Less Integrations – down time and money

Reduced Costs

Long Term Vision

Not always what’s best now

Collaboration between HR business units◦ Recruitment, OD, Training

Road To SuccessAlign Strategy and Technology

SUCCESSNext Exit

Terri JoostenHR Strategies Consultingtjoosten@hrstrategiesconsulting.com