Digitally Transforming HR

Transcription

1 SAP SuccessFactors Solutions Digitally Transforming HR The Key to Successful Business Transformation in Professional Services 1 / 12

2 Table of Contents 4 The Impact of Digital Disruption on the Professional Services Industry 5 Workforce Transformation Is Vital to Business Transformation 7 Transform HR with Human Capital Management Software 9 SAP SuccessFactors Solutions 2 / 12

3 The effects of digitalization driven by widespread adoption of technologies such as artificial intelligence (AI), Big Data, and machine learning have just begun to be felt within the professional services (PS) industry. As these effects are manifest, PS firms will have to break the dependency of revenue growth on increased headcount. Digitalization will force this break by changing the underlying economics of service delivery thus transforming the rules of the game for incumbents while opening the door for new competition. 3 / 12

4 The Impact of Digital Disruption on the Professional Services Industry DIGITAL IS THE NEW NORMAL AND IT S CHANGING EVERYTHING One thing is certain: digitalization will force PS firms to rethink their business models and focus on finding ways to drive revenue growth without having to grow their employee base. The traditional model where firms provide highly skilled professionals to clients, charge them on a time basis, and take as profit the difference between the fees earned and the salary and overhead costs will not survive. Companies will increasingly need to focus on new business models such as: Outcome-based engagements whereby companies commit to delivering predetermined desired outcomes for customers not just services and are compensated based on those outcomes Knowledge-as-a-service delivery models which provide affordable lifecycle services Open talent networks which tap into the infinite capacity to source work through talent networks At the same time, expect to see widespread digitalization of the four key areas of business: Digitalization of expertise letting clients easily access digitalized knowledge that is understandable, can be used instantly, and can be paid for on a usage or outcome basis Digitalization of talent creating value by aggregating and integrating services from various providers into complete solutions that deliver value to their clients Digitalization of service execution leveraging technology to automate and scale previously people-intensive services as well as create entirely new services that were not even possible before Digitalization of customer engagement being impacted by business-to-consumer principles, the consumerization of the way we acquire and transact with customers, adoption of self-service scenarios, and automation of the front office These business areas will impact not only business models but also business processes, which must become much more agile and responsive to customer needs. At the same time, so companies can achieve nonlinear growth, services will be proposed to customers that can be easily codified in rules and therefore are ripe for automation and delivery, as an alternative to face-to-face engagements. It is likely that a core of high-value services will survive, but these will need to be more clearly differentiated to demonstrate the value of strategic and judgment-based solutions requiring face time with customers. Talent will remain the primary asset driving revenues. Human capital is and will remain the last bastion of differentiation for services companies. This makes HR and its focus on talent retention critical to ensuring top- and bottom-line growth. 4 / 12

5 Workforce Transformation Is Vital to Business Transformation DIGITAL DISRUPTION: IMPLICATIONS FOR HR Talent will remain the primary asset driving revenues. In fact, human capital is and will remain the last bastion of differentiation for services companies. This makes HR and its focus on talent retention critical to ensuring top- and bottom-line growth. But there is no consensus yet on the impact of digitalization and how it changes the way firms attract and retain talent. It s safe to say that HR will not need to assist with the hiring of fewer junior staff to do grunt work; instead, the company will hire top algorithm experts to design AI systems that can do this work better and faster. AI will also be used to create opportunities to solve new and different problems, which will drive the need to find and hire new kinds of talent, which will, in turn, be needed to generate new sources of revenue. As a result of changes in the types of resources and talent demand, SAP is seeing an evolution from the typical pyramid-shaped structure of the firm to a structure that narrows at the base because fewer junior resources are required and fewer new entrants are being taken on due to automation (see Figure 1). The composition of the workforce is also being transformed due to increases in contingent workers. Firms are able to supplement their workforce and flex headcount by using a contract workforce enabled by digital talent networks, thus reducing their permanent payroll staff and over time building a more experienced contract workforce in specialist disciplines such as Big Data and machine learning. 5 / 12

6 Figure 1: The Impact of Digital Disruption on Workforce Composition at Professional Services Firms Partners Directors Senior managers Partners Directors Senior managers Managers Associates Traditional hierarchical structure Contingent Managers Associates Contingent Contingent workers increasingly used at all levels driven by the freelance economy To meet the company s demand for talent, HR executives will need to harness digital technologies to: Drive a highly efficient talent supply chain one that extends internal talent and workforce management across internal and contingent labor, minimizes the cost of core processes, and continuously forecasts and supplies the exact talent needed, when and where it s needed Support continuous learning, tracking, and institutionalization of new skills and knowledge needed to provide differentiated value to highly informed customers Enable new digital business models with speed and agility and restructure their organization as they evolve Build strong, digitally savvy future leaders Flexibly manage shift plans, rosters, overtime, shift allowances, payroll management, and more Make HR available on the go, from any mobile device Harness Big Data analytics to understand the cause-and-effect relationship between HR policy, people outcomes, and business performance Foster a culture of innovation at all levels 6 / 12

7 Transform HR with Human Capital Management Software Human capital management (HCM) solutions are essential to transforming the HR function of PS firms. Ideally, an HCM solution provides an alwayson HR system that delivers end-to-end support of the HR function with key capabilities geared for the needs and challenges of an evolving PS enterprise, including the following: Core HR and payroll processes should be facilitated by integration of employment data in a single human resource information system. This enables you to easily manage global benefits and payroll, improve employee self-service, automate processes, and help ensure compliance. And when all employee and worker data is in one database, it simplifies mergers and acquisitions and enables 24x7 access to critical insights into performance, the talent pipeline and gaps, managerial span of control, benefits costs, utilization, and more. Centralized core HR also enables HR to work with the business to structure evolving organizations, reporting lines, and approval workflows as the business seeks to restructure and flatten organizational structures to meet new needs. Time and attendance management can be enhanced by automating and streamlining labor, time, and attendance and offering insights into areas such as labor costs, time theft, and absence trends. HCM solutions should also support time tracking for contingent and temporary staff, so the entire extended workforce can be managed holistically. In addition, the system needs to help manage complex shift scheduling and rostering. Recruiting and onboarding can be improved by providing AI-based talent acquisition and cloud technologies that enhance the candidate and onboarding experience and equip new hires be they full-time, temporary, or contingency workers to engage and succeed right from day one. In addition, to help PS firms compete against technology giants for top digital talent, HCM solutions should help companies market jobs to the right people both active and passive job seekers and communicate the company brand effectively across channels. This requires advanced support for recruitment marketing, multiposting, career site building, and recruitment management to strengthen the entire hiring process. Learning and development should be supported by delivering personalized training and development, cognitive coaching, microlearning, skill gap analysis, and reskilling to employees, partners, contractors, and temporary and contingent workers. The goal is to equip talent at all levels inside and outside the organization to create differentiated value in terms of problem solving, insights, innovation, exception handling, and customer engagement. Equally important, the HCM solution should simplify the tracking of competency levels and skills so talent can be invested in, developed, and then matched to the right projects quickly and accurately. Finally, the system should help PS firms institutionalize and share knowledge of subject-matter experts across the enterprise and even with customers. 7 / 12

8 Performance and compensation should be simplified, making it easy to evaluate staff, access compensation benchmarking data, drive multiple pay and rewards programs for different employee groups, and track individual employee performance against position-level competencies. These integrated capabilities are essential to effective employee performance management within a digital business, as they keep your entire workforce accountable, satisfied, and motivated and connect workers performance to specific business goals. The system also needs to help HR optimally manage compensation budgets, which is critical when planning and launching new business models and services. HR analytics and workforce planning can be used to provide multidimensional, embedded people analytics and workforce planning tools that offer real-time insights into current resource pools and complex key performance indicator management. These capabilities enable better decisions about HR policies, hiring, diversity, turnover, performance, resource allocation (by skill set, competency, and cost), and more. Workforce planning functionality is essential to gaining insights into current resource pools (full time, temporary, and contingent), future talent and skill requirements and gaps, and the effectiveness of HR policies, learning programs, and more. Analytics must be easy for HR, analysts, managers, and even business partners to access and use so they can answer questions about the workforce and make better decisions based on multidimensional analysis of HR effectiveness and impacts on business outcomes. Workplace transformation is made possible by supporting the shift from a hierarchical to a collaborative, team-based work environment or flatter organizational structure that supports diversity and flexibly includes in-office employees, contractors, contingent and gig workers, and remote staff. This requires a collaboration platform across learning, knowledge management, and project management that can be accessed and used by the entire extended workforce, and even partners and suppliers. It also requires an entirely digital experience when administering HR tasks (such as leave time) and strategic HR initiatives such as talent management. Technology and digital HR require delivering functionality that takes advantage of the latest digital technologies AI and machine learning, robotics, natural-language processing and voice recognition, gamification, new productivity tools and apps, and more all in a secure cloud environment. In addition, your HCM platform needs to provide an entirely digital, always-on experience for employees and talent managers, complete with peer-to-peer sharing and mobile access to learning, processes, and information. HCM solutions are essential to transforming the HR function for professional services firms. Ideally, an HCM solution provides always-on, end-to-end support of the HR function with key capabilities geared for these firms evolving needs and challenges. 8 / 12

9 SAP SuccessFactors Solutions SAP SuccessFactors solutions deliver all of the capabilities discussed here and more, enabling your HR function to become a strategic leader of digital transformation for your PS business. Comprising a full suite of cloud-based human resource software and fully integrated human capital management systems, these solutions cover everything from core HR, payroll, and people analytics to the four pillars of talent management: recruiting, learning and development, compensation, and performance management. It s never been easier to: Deeply weave talent management into the end-to-end supply chain Leverage talent networks to attract the best talent on an as-needed basis and source work though open networks for infinite capacity and ultimate flexibility Reduce the number of junior roles by replacing them with AI capabilities Codify and bundle expert knowledge into consumable formats that can be monetized using new business and delivery models Enable world-class collaboration and knowledge management using tools such as the SAP Jam collaboration platform The result is a complete HCM system that digitalizes and streamlines global HR processes, helping you win at the recruitment and retention game, train and reskill your workforce, take advantage of technologies such as AI, and much more. Plus, we have innovated this functionality by working with PS firms like yours and leveraging the expertise of the largest on-staff team of HR experts in the industry, including more than 3,500 engineers focused exclusively on HR. 1. Paul D. Hamerman, The Forrester Wave : SaaS Human Resource Management Systems, Q3 2017: Eight Comprehensive HR Solution Providers That Matter and How They Stack Up, August 22, Gartner, Magic Quadrant for Cloud HCM Suites for Midmarket and Large Enterprises, Ron Hanscome et al., August 15, IDC MarketScape: Worldwide Integrated Talent Management 2016 Vendor Assessment, IDC #US e, IDC MarketScape: Worldwide Recruiting in Integrated Talent Management 2016 Vendor Assessment, IDC #US e, IDC MarketScape: Worldwide Performance Management in Integrated Talent Management 2016 Vendor Assessment, IDC #US e, IDC MarketScape: Worldwide Learning Management in Integrated Talent Management 2016 Vendor Assessment, IDC #US e, IDC MarketScape: Worldwide Compensation Management in Integrated Talent Management 2016 Vendor Assessment, IDC #US e, SAP SUCCESSFACTORS SOLUTIONS ARE RECOGNIZED AS A LEADER IN THE FOLLOWING AREAS: Forrester Software-as-a-Service (SaaS) Human Resource Management Systems The Forrester Wave : SaaS Human Resource Management Systems, Q Gartner* Gartner Magic Quadrant recognition for human capital management software for midmarket and large enterprises 2 IDC MarketScape Recognition for: Talent management software 3 Recruiting software 4 Performance management software 5 Learning management software 6 Compensation management software 7 *Gartner does not endorse any vendor, product, or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. 9 / 12

10 Managers are making faster, more informed hiring decisions. Kim Bacci, Global Director HR Systems, Sitel We now have 21st-century technology in place, and that s something that is actually helping to transform our HR function. Phil Clarke, Head of Global Resourcing, Serco Group plc Markets are changing and we need to respond. Our clients demands are evolving. With our [SAP] SuccessFactors software platform, which we call Navigator, we are helping employees shape their careers in alignment with what the market is dictating. Megan Masoner, Senior Vice President, NTT DATA Inc. 10 / 12

11 PROVEN SUCCESS IN PROFESSIONAL SERVICES There are more than 100 million active SAP SuccessFactors solution users across 60 industries in more than 200 countries and territories and our services are translated into 42 languages. Already, we have more than 6,400 active customers using our solutions for everything from core HR, payroll, and people analytics to the four pillars of talent management. To better understand the value of SAP SuccessFactors solutions, consider the following results documented by SAP Performance Benchmarking with our customers: 26% Less cost per an HR transaction when employee data is administered using a single system 40% More staff productivity with mobile access to employees across all levels 72% Less manual reporting when HR software supports planning, monitoring, and simulation 11 / 12

12 To better understand how customers are realizing these kinds of results, consider the total workforce management scenario being implemented by many of our customers, shown in Figure 2. It optimally balances client demand with available talent. On one side, you have demand the opportunities and bids that eventually lead to projects. On the other, you have supply the people, internal or external, who can deliver those projects. Total workforce management with SAP SuccessFactors solutions encompasses the processes related to matching this supply and demand while optimizing time and cost to staff. The figure shows a digitally enabled process for engaging the best resources from either internal or external sources to deliver profitable services from a client service request to successful completion of the engagement. When optimized, it results in higher utilization of resources and flexibility to meet demands with contingent resources, as needed. This allows the firm s people to take on more projects than otherwise possible which boosts the bottom line. Figure 2: Delivering Value with Total Workforce Management Using SAP SuccessFactors Solutions DIGITAL BUSINESS SCENARIO: TOTAL WORKFORCE MANAGEMENT 1 Create customer projects 2 3 Analysis of previous bids Identification of resource requirements 4 Staffing analysis of internal and external talent 5 Vendor analysis to source external talent 6 7 Trigger procurement in talent network Candidate proposals provided 8 Select right candidate from talent network 9 Onboarding of total workforce Holistic view of internal and external talent Run project profitably Talent supply chain Workforce engagement Customer experience Digital core TIME LEARN MORE SAP SuccessFactors solutions offer the right tools to address the specific challenges of professional services. We re continuing to lead the way in creating market-defining HCM solutions that innovate HR processes for the PS industry. Learn more about how SAP can help you transform your HR function and lead digital transformation for your business by visiting 12 / 12

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