How Organizations are Transforming Current-state to Future-state HR Technology Plans. April LEHRN HR Tech Expo, 2016

Transcription

1 How Organizations are Transforming Current-state to Future-state HR Technology Plans April LEHRN HR Tech Expo, 2016

2 Stacey Harris Vice President Research and Analytics, Sierra-Cedar Passions: Research Background: Oversee the Annual HR Systems Survey and its safekeeping for the Industry HR and OE Practitioner for over 10 years in finance, retail, and franchised businesses. Director of Research at Bersin & Associates, Launched the HR research practice VP of Research for Brandon Hall Group Major Research and Papers: The High Impact HR Organization, The HR Framework, Employee Engagement: A Changing Marketplace, and Relationship Centered Learning Feel free to connect at:

3 Sierra-Cedar Fast Facts Service & Solution Areas Application Services Business Intelligence Host & Managed Services Infrastructure Services Integration & Cloud Solutions Research Strategy Training Years of Leading HR Systems Survey & Research merger of companies with decades of experience Employees Industry Focus Commercial Healthcare Higher Education Public Sector Justice & Public Safety Delivering industry-focused client success by providing consulting, technical, and managed services for the deployment, management and optimization of next-generation applications and technology. 5 3

4 Sierra-Cedar HR Systems Survey Over 18 years of continuous data gathering The most comprehensive survey in the industry: Strategy, Process, and Structure Administrative and Service Delivery Applications Workforce Management Applications Talent Management Applications BI/Analytics/Workforce Planning Applications Integration and Implementation Emerging Technologies and Innovations Vendor Landscape Workforce and HR Expenditures Participate in the 19 th Annual Survey Launching May 9 th, 2016 Download the 18 th Annual White Paper 4

5 Sierra-Cedar HR Systems Survey Demographics: All Respondents 1,204 Organizations 21 Million Employees/Contingents Avg. number of Employees = 17,709 Large 10, % Industries Medium 2,500 10,000 24% 15% 14% 13% 13% 13% 10% 9% 7% 5% `` Small <2,500 49% Other Higher Ed Finance Health Manu- Trans./Comm. Retail High Tech Ag. Mining. facturing Utilities Const. 5

6 Key Themes from Survey Results How Organizations Are Transforming from Current State to Future State This is the Year of an Enterprise HR Technology Strategy Improved User Experience and Better Workforce Data are the key requirements driving movement to the Cloud When the Workforce is Viewed as a Customer, we see Increased HR Technology Adoption and Outcomes Outcome based HR Provides Greater Clarity for HR Technology Decision Making 6

7 The Year of the Enterprise HR Systems Strategy Percentage of Organizations With a Current Enterprise HR Systems Strategy 20% 12% 30% Regularly updated strategy In development strategy Rarely updated strategy No strategy Not aware 12% 26% 60% of Top Performing Organizations have an Initiative to create or improve their Enterprise HR System Strategies 7

8 Creating Your HR Systems Strategy 1. Benchmark Current State & Benchmark of HR Technology Environment 2. Blueprint Enterprise Business Goals & HR Strategies, Enterprise System Strategies 3. Roadmap Action Plan, Communication, Measures and KPIs 4. Governance Decision Making, Maintenance, Change Management 5. Budgets & Resources Required, Contingency plans, Outsourcing Diagnosis Guiding Policy Clear Action

9 9 Driving Modern HR Technology

10 FIN Sierra-Cedar HCM Application Blueprint General Ledger, Purchasing, Budgeting, T&E Vendor Management Enterprise Data Privacy Enterprise Content Enterprise Social Enterprise Workflow VMS 66% Adoption Self Service/Direct Access Employee Self Service Manager Self Service Service Delivery HR Help Desk, Portal 93% Adoption Administrative Excellence Service Delivery Excellence Workforce Management Excellence Talent Management Excellence Workforce Optimization Excellence Administrative Apps Core HRMS, Roles/Competencies (Profile Mgt.), Payroll, Benefit Admin, Embedded HR Analytics, 58% Adoption Workforce Management Time & Labor, Absence & Leave Management, Labor Scheduling, Labor Budgeting, WFM Analytics, 39% Adoption Workforce Optimization Workforce Planning, Workforce Analytics, Predictive Analytics Business Intelligence Foundation Reporting/Visualization and BI tools 55% Adoption Talent Management Recruiting, Performance, Learning, Compensation, Succession, Career, Talent Profile, Onboarding, TM Analytics CRM Network Security Mobile Access Backlog, Pipeline, Customer Satisfaction SOA, API, ETL PaaS Integration Platform Project Costing, Contracts, Grants Projects

11 Outcomes and Impact Top Performers, Talent-Driven, and Data-Driven Organizations Top Performers Talent Driven Data Driven Top Quartiles Revenue/Employee Profit/Employee OIG (1 year) Return on Equity Mature Career Planning Succession Mgmt Metric Outcomes Employee engagement Workforce readiness Retention risks Top talent Mature Workforce Analytics 3+ Metrics 20%+ Managers/BI 3+ Data Sources 11

12 The Enterprise HR Cloud Conversation Movement to the Cloud is about transforming the User Experience SaaS/Cloud Deployments On Premise Deployments WFM Cloud 37% 46% WFM Licensed 62% 55% Payroll Cloud 38% 41% Today Payroll Licensed 59% 55% Today HRMS Cloud 50% 57% 12 Months HRMS Licensed 58% 51% 12 Months TM Cloud 83% 96% TM Licensed 22% 6% 3.5 Average User Experience Scores 3.0 Average User Experience Scores n = 900 Note these include combination and hosted environments 12

13 Deployments by Size Organizations Under 2,500 Employees are Moving the Fastest HRMS Payroll WFM Large 10, % 33% 69% 20% 14% 66% 16% 18% 68% Medium 2,500 10,000 13% 43% 57% 32% 15% 56% 31% 18% 56% Small <2,500 13% 28% 61% 15% 26% 58% 31% 16% 46% n = 900 On Premise SaaS Hosted 13

14 HRMS Vendor Satisfaction and User Experience Greatest Impact on Vendor Satisfaction = s User Experience Very Satisfied Workday Vendor Satisfaction Satisfied Ceridian HR SAP (HCM) Oracle EBS Oracle PS ADP GV/E SuccessFactors (EC) SilkRoad ADP (Vantage) Infor/ Lawson Kronos ADP (WN) UltiPro Ceridian DF Oracle (HCM C) Dissatisfied Poor Good User Experience Excellent 14

15 ITM Vendor Satisfaction and User Experience Talent Suites Achieve Highest Scores, but Overall TM Satisfaction is Lower Very Satisfied Vendor Satisfaction Satisfied SAP (HCM) ADP (Vantage) Ceridian DF ADP (WN) Oracle Cloud UltiPro Oracle PS N/A Saba Kenexa/ IBM Workday Halogen CSOD PeopleFluent SilkRoad SuccessFactors (EC) Dissatisfied Poor Good User Experience Excellent 15

16 Total HCM Legacy Solutions The Future is Inevitable, but The Timeline is Unknown Adoption Today Planned Adoption in 12 Months Oracle (PS) -Δ5% Kronos* Δ6% SAP (HCM) -Δ16% Oracle (EBS/JD) -Δ20% Infor/Law/WB -Δ6% ADP (GV/E) -Δ10% * Kronos is not split into its two primary solutions for this analyses, which includes both a legacy solution and new solution Core HRMS Payroll WFM Suite TM Suite 16

17 Total HCM Cloud Solutions Growth Across All New Platforms Adoption Today Planned Adoption in 12 Months ADP (WN)* -Δ7% UltiPro Δ21% Workday Δ66% SuccessFactors (EC) Δ11% Ceridian Dayforce Δ31% Oracle (HCM Cloud) Δ66% ADP Vantage Δ18% *ADP Workforce Now has a large population below 50 employees, which we do not track in our research at this time Core HRMS Payroll WFM Suite TM Suite 17

18 Multiple Pathways to an HR Tech Transformation There is no right or wrong way to move to the Cloud Rip & Replace Move everything all at once to the Cloud Hybrids Move ONLY TM or WFM applications to the Cloud Focused Hosting/Outsource Single Tenant Hosting or BPO Parallel/Patchwork Combination Licensed and Cloud Solutions Reactive High Risk Low Risk 18

19 If You Can t Replace Your Technology Today Checklist To High User Experience Scores Mobile Access Admin Applications Enterprise Integration Strategy HRMS and Talent Management = Same Solution Central Shared Services Model Stay Current on Licensed Software Customize Less Actually Roll out: Employee and Manager Self Service Get your own Processes in Order 19

20 Plans For Replacing HR Technologies 40% of Organizations are planning to replace or evaluating options No Change Replace in Months Evaluating 63% 62% 62% 54% 2Xs More likely to replace a vendor if User Experience Score is low 23% 18% 20% 19% 18% 19% 20% 12% HRMS Payroll WFM Suite TM Suite 20

21 The Journey Doesn t End Here What Drives Transformation Success! Shared Implementation Models Reimagining Your Process Improvement Efforts Ramping Up Internal and External Skill-Sets Creating a Culture Of Change Management Treating Your Workforce Like a Customer Making HR Analytics a Process Not a Project 21

22 Implementation Resources, Who Does the Work? What % of your Implementation was completed by these resources? 15% Likely to use Mostly Vendor or Mostly 3 rd Party resources 60% 56% 45% 40% 37% 28% System Vendor Third-Party Internal Licensed SaaS 48% Likely to use all three resources 37% Likely to use Mostly Internal resources 22

23 HR Process Management Out of the Box: Cloud Solutions Provide Best Practices, Not Unique Practices Transformational: unique, stands above others, contributes to competitive advantage financially and as an employer of choice. Effective: aligned, best practice, strategically-focused Efficient: transaction-focused, standardized Manual: non-standardized, ad hoc, or reactive 23

24 Tomorrow s HR is More Focused and Analytical What HR roles does your organization plan to increase or decrease this year? 29% 31% 10% 11% 7% 13% 18% 15% 5% 17% 3% 19% 23% 23% 6% 6% 3% 2% Payroll HR Management HR Generalist HR Business Partner Workforce Management HR IT Infrastructure HR System Support Talent Management HR Data Analytics n = 1, Decrease Increase

25 Change Management Practices 29% of Respondents Report a Culture of Change Management Level of Change Management for HR Technology Projects 29% 6% 29% Consistent culture of change management Key projects that meet criteria Sporadically, with no criteria Never 36% 17% increase in organizations doing any level of Change Management from last year 25

26 Benefits of Change Management 2 nd year in a row we ve found Cost and Perception Outcomes! Total HR Technology Costs/Employee Culture of CM $243 Key projects $253 Sporadic 57% Never $341 $572 2 X Change Management Increases Strategic Value of HR Organizations with a Culture of Change Management are twice as likely to be viewed by all levels of management as contributing strategic value, versus at organizations that never uses change management. 26

27 Integration Strategies Matter In Implementation Years, Integration Costs can reach 40% of Expenditures Enterprise Integration Strategy? Approach to Integrating HR Technology Yes, updated regularly Case by Case 43% 17% 19% Yes, rarely updated Into core HR 22% 31% 25% 8% In development No Strategy Unknown 45% Spend between 10% to 25% of their HR Technology budgets on Integration Into TM Suite Integration platform Other None 17% 8% 4% 6% 27

28 We No Longer Live in a Project Based World Average Timeline for HR Technology Updates and Upgrades SaaS HRMS Update Average # of Weeks, 3 to 4 Times A Year Week 1 Week 2 Large = 5.8 Weeks Medium = 3.1 Weeks Small = 3.3 Weeks Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Licensed HRMS Upgrade Average # of Months, Every 3 to 5 Years JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Large = 9.3 Months Medium = 7.0 Months Small = 3.3 Months 28

29 Customer Service For Your Workforce Over 70% of Organizations Leverage Some Form of Shared Services Model Shared Service Models 10% Increase in Organizations with a Shared Service Center over last year 30% 43% Enterprise Shared Services Central SS w/ Variations 16% 12% Regional Shared Services No Shared Services n =

30 Value of Service Delivery Technologies 51% More Employees Served with Mobile + Help Desk Technology Employees Served by HR Administrative Headcount 18% No or Low Tech 51% With Self Service* With Mobile With Self Service*, and Help Desk *With Self Service: Employee and manager Self Service applications serve 60% or more of employees and 50% or more of manager populations 30

31 Functions Included in HR Shared Services 46% of Organizations Centralize their Data Privacy Processes HR Records Administrative Functions 85% Talent Functions Benefits Admin 83% Compensation 66% Payroll Absence/Leave Time & Attendance Labor Sched 18% 78% WFM Functions 66% 65% Data and Intelligence Functions 46% Data privacy HR Analytics 33% Recruiting Onboarding Performance Mgmt Learning Succession Plng Career Dev 61% 56% 55% 45% 26% 24% Workforce Plng 17% 31

32 What Is HR Analytics? Transition your Thinking from a Project to a Process DESIGN IMPLEMENT Identify Need/ Question Identify Data/ Analysis Plan Collect Data Clarify Data & Actionable Insights Share Results & Solutions Start Again

33 Integrated Data Sources for HR Analytics Licensed Environments More Likely to Include Financial Data Which of the following are Integrated for HR Analyses? 89% 89% 44% 58% 55% 34% 48% 28% 13% 14% 10% 11% Core HR TM WFM Financials Benchmarking Sales/CRM Licensed HRMS SaaS HRMS 33

34 Wrapping Up With- Outcomes and Impact Top Performers, Talent-Driven, and Data-Driven Organizations Top Performers Talent Driven Data Driven Top Quartiles Revenue/Employee Profit/Employee OIG (1 year) Return on Equity Mature Career Planning Succession Mgmt Metric Outcomes Employee engagement Workforce readiness Retention risks Top talent Mature Workforce Analytics 3+ Metrics 20%+ Managers/BI 3+ Data Sources 34

35 Achieving Outcomes Requires Focus Talent- and Data-Driven Organizations Achieve Best Outcomes 5 Talent Outcomes HR Outcomes Business Outcomes TD DD TP Agg 35

36 Most Use HR Analytics to Look BACKWARD Compliance Risks Retention Risks HR Benchmarking 52% 50% 56% 46% 68% 61% Data-Driven Organization Non-Data-Driven Organization 36

37 Some Use HR Analytics to Look FORWARD Workforce Assignments Identify Talent Improve Employee Engagement Workforce Skills/ Readiness 80% 48% 52% 60% 30% 32% 30% 40% Data-Driven Organization Non-Data-Driven Organization 37

38 Data-Driven Orgs Also Focus on the BUSINESS Customer Satisfaction 28% Increase Innovation/ Agility 36% 36% Increase Competitive Advantage Optimize Workforce Productivity 44% 16% 9% 11% 21% Data-Driven Organization Non-Data-Driven Organization 38

39 Emerging Technologies Align with your HR Strategies and Desired Business Outcomes Workforce Using Today Evaluating No Plans Employee Feedback Applications 65% 11% 24% Wearable Technology 10% 6% 84% Rewards & Recognition Applications 25% 15% 60% Talent Acquisition Tools 42% 29% 29% Talent-Driven Organizations Use all of these Extensively 39

40 Why Organizations Participate In This Research To obtain a personalized benchmarking snapshot filtered by size, region, or industry They like conducting a review of their own enterprise HR system environment annually They need data to build their own HR Technology strategy or business case for change They believe it is important to support the broader HR technology community Metrics tell such a great story and are fabulous for supporting proposed initiatives. The data provided underscored what we have been hearing D and seeing as trends in HR especially as they relate to social media. HRIT, Leslie Krug 40

41 Thank you! 41