HR Systems Survey Results

Transcription

1 Debut of the HR Systems Survey Results 19 th Annual Edition October 5, 2016

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3 Sierra-Cedar HR Systems Survey Over 19 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 Workforce Usage and Perception Participate in the 20 th Annual Survey Download the 19 th Annual White Paper 3

4 Welcome Our Panel Guests Karen Caveney Dana Christian Dell Global HR Business Architecture & Technology Ingersoll Rand Director Workforce Technology and Data Governance 4

5 Sierra-Cedar HR Systems Survey Demographics: All Respondents 1,528 Organizations 20.6 Million Employees/Contingents Avg. number of Employees = 13,551 23% Industries 21% 16% 15% 14% 14% 11% 9% 8% 7% 7% 56% Other Manufacturing Health Finance Higher Ed High Tech Trans./Comm. Retail Ag. Mining. Utilities Const. 5

6 Organization Sizes and Types Large 10,000+ Medium 2,500 10,000 Small <2,500 Data-Driven Talent-Driven Top Performers Aggregate 6

7 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 90% 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, 60% 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 51% 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

8 My Role: Director, Workforce Technology & Data Governance About Ingersoll Rand: Diversified Industrial 45,000 Employees 8% Contingent Workforce Workforce in 60 countries 8

9 Overview of HR System Environment: HR Practice Category Solution in Use Today Core HCM PeopleSoft 9.0 Payroll (U.S., Mexico, Chile) PeopleSoft 9.0 Time and Labor Management Kronos Talent Management SuccessFactors Talent Acquisition Taleo Career Management Fuel 50 Learning Oracle ilearning Compensation Planning PeopleFluent Workforce Analytics Visier 9

10 OUR PURPOSE To Create Technologies That Drive Human Progress OUR PEOPLE 140,000 team members 60,000 contingent workforce 40,000+ sales professionals 30,000+ customer service and support professionals OUR PLACES 180 countries 25 manufacturing locations 40+ finished good distribution/configuration centers 17 global research and development centers

11 Dell s HCM Ecosystem Legacy-Dell Legacy-EMC HR Helpdesk 12 custom apps 15 custom apps

12 Key Themes for Survey Results Strategy HR Technology Strategy Culture Outcome-Focused HR Technology Enterprise Cloud Pathways Forward Constant Change Relationships SMB Opportunity EE Trust & Transparency Intelligent Systems 12

13 HR Tech Spending Trends Outlook Continued decline in spending except for mid-market % 58% 52% 45% 40% 35% 41% 47% 11% 8% 7% 8% 46% 51% 47% 51% 49% 44% 44% 39% 5% 4% 10% 10% 41% 51% 42% 38% 55% 45% 53% 57% 4% 5% 5% 6% n = 1,506 Increase Stay the Same Decrease

14 Business Process Improvement Initiatives Where do Organizations Plan to Spend Their Time? Service Delivery Payroll 8% Core HR Compensation, Benefits, Rewards 8% Service Delivery Self Service/Direct Access 11% Administrative Apps 17% 5% are working on all HR processes at once Recruiting 20% Onboarding 17% Performance Learning & Skills Succession 7% 10% 11% Talent Management 16% are working on non-hr processes (operational) HR Analytics 6% Workforce Optimization 14

15 Top Initiatives by Size Noticing What Makes Them Different 27% 27% HR Apps Integration Mergers & Acquisitions 22% 22% 20% Mobile Enablement Global HRMS Expansion All System Integration 20% 17% 16% 16% 15% HR Apps Integration Replacing an HRMS Mergers & Acquisition Workforce Planning Woforce Management Apps Everyone s Top 5: BPI Strategy TM SS BI Remaining Top 10s change dramatically 20% 19% 18% 15% 13% n=1,528 Social Enablement Workforce Planning HR App Integrations All System Integrations Replacing HRMS

16 2016 The Enterprise HR Cloud Conversation Movement to the Cloud is about transforming the User Experience WFM Cloud SaaS/Cloud Deployments 41% 50% On Premise Deployments WFM Licensed 52% 44% Payroll Cloud 53% 59% Payroll Licensed 43% 35% HRMS Cloud 51% 63% HRMS Licensed 54% 38% TM Cloud 66% 72% TM Licensed 31% 24% 3.46 Average User Experience Scores 2.99 Average User Experience Scores n = 980 Note these include combination and hosted environments 16

17 Multiple Pathways to an HR Tech Transformation Todays State of Replacing HR Technology Rip & Replace Move everything all at once to the Cloud Hybrids Move ONLY TM or WFM apps to Cloud Hosting/Outsource Single Tenant, or BPO Parallel/Patchwork Combination Licensed and Cloud Solutions Current State High Risk Low Risk Focused Reactive 17

18 Multiple Pathways to an HR Tech Transformation Future State of Replacing HR Technology Hybrids Move ONLY TM or WFM apps to Cloud Rip & Replace Move everything all at once to the Cloud Patchwork Replace as License Ends Hosting/ Outsource Single Tenant, or BPO Future Plans Parallel Combo Licensed and Cloud Solutions High Risk Low Risk Focused Reactive

19 Does the Technology Meet Your Current Needs? 9% 16% 12% 7% 0% 1% 11% 3% 15% 3% 13% 15% 12% 20% 52% 14% 24% Payroll Meets Our Needs HRMS Meets Our Needs WFM Meets Our Needs TMS Meets Our Needs 56% 57% 60% Always Most Times ½ Time Sometimes Never 19

20 Higher Cloud Adoption = More Needs Met? Our HR Systems Always Meets Our Needs 31% 17% 24% 20% 21% 8% 9% 8% Payroll HRMS WFM TMS High Cloud Low Cloud 20

21 Total HCM Legacy Solutions The Future is Inevitable, but The Timeline is Unknown Adoption Today Planned Adoption in 12 Months Oracle (PS) -Δ12% Kronos WFC -Δ17% SAP (HCM) -Δ14% ADP (GV/E) -Δ18% Infor/Law/WB -Δ18% Oracle (EBS/JD) -Δ18% Core HRMS Payroll WFM Suite TM Suite 21

22 Total HCM Cloud Solutions Growth Across All New Platforms Workday ADP (WN)* UltiPro Paycor Oracle (HCM Cloud) SuccessFactors (EC) Ceridian Dayforce ADP Vantage Adoption Today Planned Adoption in 12 Months Δ42% Δ5% Δ23% Δ0% Δ53% Δ43% Δ29% Δ17% Kronos WFR *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 Δ11% 22

23 Vendor Satisfaction Dissatisfied Very Satisfied Administrative SumTotal SS ADP GV/E Oracle EBS Good Enough Zone Oracle PS SAP (HCM) Infor/Lawson ADP (WN) We Expect More! Zone Ceridian DF Kronos WFC Kronos WFR Oracle (HCM C) ADP (V) Workday Paycor UltiPro SF (EC) SilkRoad Poor Good User Experience Excellent 23

24 HRMS Average Customer Complexity Aggregate 13, % % % 8.31 Oracle (PSFT) 30, % % % Workday 11, % % % 8.70 * Full Chart Covering all HRMS Solutions in Report * Average 24

25 Very Satisfied Talent Management Vendor Satisfaction Ceridian DF Oracle PS ADP (V/WN) SAP (HCM) SumTotal Workday Paycor CSOD Halogen SF (EC) Oracle Cloud UltiPro Kronos WFR Saba PeopleFluent SilkRoad Kenexa/IBM Dissatisfied Poor Good User Experience Excellent 25

26 Very Satisfied Workforce Management Vendor Satisfaction Oracle EBS Kronos WFR Oracle (HCM C) Infor/WB SAP (HCM) Kronos WFC Workday UltiPro Oracle PS ADP (GV, V, WN) Workforce Software Paycor Ceridian DF Dissatisfied Poor Good User Experience Excellent 26

27 High and Low Vendor Satisfaction Drivers Are We Forgetting About the Customization Needs? Top Benefits Correlated with High Vendor Satisfaction Top Challenges Correlated with Low Vendor Satisfaction 40% Greater than Last Year 66% 32% 33% 35% 35% 37% 21% 21% 25% 38% User Experience Ability to Customize Integrated Solution Best Practice Functionality Service & Support Updates/Upgrades High Costs Not Integrated Lack of Innovation Poor User Experience 27

28 Modern HR Changes Everything Rethink Implementations, Change Management, and Cost Assumptions Traditional OnPremise World Modern Cloud World SI s Extra Hands & Extra Work =/< 25% implementation done by SIs takes 25% longer and costs more Project-Based Change Management Licensed 2X more likely to conduct BPI efforts before Implementation Work vs SaaS Negotiate Lowest Cost 8% lower UE and VS scores 10% lower Business Outcome averages SI s Strategic Partners =/> 60% implementation done by SIs is 20% faster & within budget Continuous Change Management 4X more likely to be viewed as contributing strategic value to their organizations Negotiate Better Relationships Cloud Tech, 1½X more likely to Always Meet Needs % Expenditures & Budgets Allocated % Expenditures & Budgets Allocated IT = 8%, Ops = 9%, HR = 15% IT = 7%, Ops = 5%, HR = 24% 28

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30 Tomorrow s HR is More Focused and Analytical What HR roles does your organization plan to increase or decrease this year? 29% 33% 37% 14% 15% 10% 7% 12% 10% 16% 16% 7% 6% 5% 21% 23% 23% 7% 8% 4% 3% 5% Payroll HR Management HR Generalist HR Business Partner Benefits Workforce Management HR IT Infrastructure HR System Support Talent Management HR Data Analytics Learning & Development n = 1, Decrease Increase

31 Business Intelligence/HR Analytics HRMS Embedded HR Analytics solutions Reach Tipping Point 39% of Organizations are doing some form of BI/HR Analytics with one of these tools 38% increase in Adoption from last year 98% 55% 10% 25% 21% 24% 34% 40% Dedicated HR/BI n = 681 Solutions BI Visualization Tools Statistical Tools Emb TM Analytics Emb WFM Analytics Emb HRMS Analytics Platform BI Solution Microsoft Excel 31

32 Workforce Planning Realities Rip & Replace Orgs More Likely to Conduct Enterprise Workforce Planning 66% More Likely 22% of all organizations are conducting Enterprise Workforce Planning Enterprise Workforce Planning 30% 23% 21% 19% 18% Rip & Replace Hosting Parallel Hybrid Patchwork Workforce Planning Approaches 32

33 Social Responsibility Initiatives & Regulations High Regulation Healthcare Diveristy & Inclusion Comp/Pay Equity Paid Family Leave Some Regulation Employee Assistance Flex Schedules Wellness Retirement Planning Not Regulated Community/Volunteer Employee Engagement Tuition Assistance Outplacement 74% 20% 5% 73% 19% 6% 66% 27% 6% 62% 22% 9% 69% 21% 4% 64% 22% 12% 55% 27% 13% 54% 27% 15% 58% 23% 15% 52% 33% 13% 47% 23% 16% 29% 27% 17% Excellent/Good Average Poor/Terrible 33

34 Contingent Workforces Managed Poorly Contingent Workforce 7% 22% 37% 17% 4% Excellent Good Average Poor Terrible 34

35 Average Generational Compositions No Major Differences by Organizational Size Greatest Gen Baby Boomer Gen X Millennials Gen Z % 26.1% 36.3% 26.1% 3.1% 7.4% 27.4% 36.0% 26.0% 2.7% 6.0% 27.6% 35.4% 27.7% 2.9% 35

36 Strategic Social Technology Use by Generations One of the Only Areas Where Differences Show Up in Technology Adoption 71% 64% 65% 55% 48% 42% 35% 11% 5% Older Workforce Equal Generations Younger Workforce 36

37 Emerging Technologies On the Edge of Intelligent Systems Preparing for Tomorrow Workforce Using Today 12 Months Evaluating No Plans Benchmarking Databases 17% 4.0% 18% 61% Wearable Technology 8% 1% 8% 86% Machine Learning 6% 1.5% 10% 83% Sentiment Analysis 4% 1.5% 10% 84% 37

38 2016 Business Systems: On the Move to Cloud 25% Increase in Organizations Evaluating Cloud Solutions from Last Year Non-HR Systems in the Cloud Today? Vendor Management 15% 6% 2% 19% 58% Financial Systems 17% 6% 4% 21% 52% Marketing Systems 17% 3% 2% 15% 63% Operations Systems 17% 5% 2% 17% 59% Sales/CRM 32% 5% 2% 15% 48% Cloud today Cloud in 12 Cloud in 24 Evaluating No Plans 38

39 39 Thank you!

40 Visit Sierra-Cedar Website Get Full Survey Details and Sign Up To Participate Next Year! 40

41 Stacey Harris, VP Research & Analytics Erin Spencer, Research Consultant 41

42 Why Organizations Participate? 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 and seeing as trends in HR especially as they relate to social media. Leslie Krug HRIT 42