HR Technology That Delivers The CEO Agenda
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1 The Time is Now. The Tools are Here. HR Technology That Delivers The CEO Agenda MARK WEBER MAY 19, 2016
2 CEO Challenges The future of HR is no HR. We need to get back to what HR does, driving the CEO agenda, Mike Ettling, President, SAP Successfactors (at HR Tech, 2015) Source: Gruppo Marcucci Interviews and Analysis 2
3 HR Technology Marketplace Key Definitions Enterprise Resource Planning (ERP) Integrates info across entire organization Usually installed onsite, IT resource intensive Enterprise functions Job Costing, Inventory Management, General Ledger, Payables, Receivables, HR/Benefits/Payroll/Other SAP, Oracle, PeopleSoft, Lawson, Workday, NetSuite, Microsoft Dynamics Human Capital Management (HCM) HCM Point Solutions Benefit Point Solutions Enrollment Platforms Exchange Platforms Focused on end to end recruitment to retire HR solutions HRIS/Time/Payroll/Benefits/Talent Mgmt./Recruiting/Learning/Performance/Other ADP, Ceridian, Epicor, UltiPro Specific HCM solutions focusing on single HCM process Litmos, Spark Hire, Equifax, Bloomfire Specific solutions focusing on mgmt. of benefits process-enrollment and admin In general can support an exchange environment Benefitfocus, Bswift, PlanSource, Businessolver Platforms built specifically for enrollment of voluntary benefits Can support core enrollment, generally on a one-time basis Selerix, Spotlite, Univers Platforms built specifically for exchange activity Varying degrees of benefit administration capabilities Strong decision support capabilities Liazon, Bloom, ConnectedHealth 3
4 What are clients trying to solve for? 4
5 Growth and Investment Activity Global HCM Technology $11B 2014 $17.5B 2019 $9.8% $697M (40 deals) Current Market Size Growth Projection CAGR 2015 Private Investments Benefits Administration $9.7B 2015 $11.9B 2018 $7.1% $696M (11 deals) Current Market Size Growth Projection CAGR 2015 Private Investments 10
6 What You ll Learn Today Understand what s on your CEO s mind Available technology to automate, comply and drive human capital input strategy Cost justification ammunition What to know before you buy 6
7 CEO s Human Capital Input Agenda Automation Using technology to increase efficiency Strategy High value, bottom line impact; strategic outcomes that drive the business objectives Compliance Basic to complex to reduce liability 7
8 Investment Return is Proven 15% Non-data driven organizations ROE Return on Equity 27% Data-driven organizations Source: Sierra-Cedar HR Systems Survey White Paper, 18th Annual Edition 8
9 The Tools Recruiting 1099 Contingent Workers Onboarding Performance - Talent Employee Benefits Wellbeing Time & Attend. & Scheduling Performance - Learning Engagement, Social Collaboration, Recognition Data Analytics 9
10 CEO Agenda - Recruitment What does my people pipeline look like? How fast can you fill these positions? How do we know the quality of our hires? 04 What are our most effective recruiting techniques? 10
11 Recruiting Recruiting is now marketing. Automation Compliance Strategy 11
12 Recruiting 65% 15% 35% 70% 75% Bottom Line Impact Increase in referral hires Gender diverse companies perform 15% better Ethnically diverse companies perform 35% better Decrease in agency spend Decrease in time to fill 9
13 CEO Agenda - Onboarding How many people accept and show up day one? How much turnover do we have in the first 6 months and why? How many new hires understand our objectives and our culture? 1 13
14 Onboarding Day one readiness. Automation Compliance Strategy 14
15 Onboarding 1/3 77% Bottom 44% Line 14% Impact Reduce employee turnover 30% Improve new hire time to productivity Met 1 st performance milestone Plunging attrition rates when using social onboarding 12
16 CEO Agenda Employee Benefits How many employees are in the right medical plan? How many employees understand & appreciate our benefit program? How do we know if our employees understand how to effectively use their benefit program? 16
17 Employee Benefits A $10K $20K complex employee purchase. Automation Compliance Strategy 17
18 Employee Benefits 80% $50M Bottom Line Impact Avoid ACA penalties 80% of EEs buy differently using a rec. engine that supports 5+ medical plans DOL increased enforcement budget $50M over 2 years Employee expectations rising 15
19 CEO Agenda Wellbeing What does the health of our organization look like physical/financial/emotional? How is the health of our employees affecting our bottom line? What does absenteeism / presenteeism look like? 19
20 Wellbeing The whole person comes to work everyday. Automation Compliance Strategy 20
21 Wellbeing $28K Bottom 44% 59% 18% Line Impact Drop from 12.7 to 8.8 days lost time of presenteeism Savings in sick day lost productivity with high wellbeing Less likely to look for a job (59%); less likely to change jobs (18%) 18
22 CEO Agenda Workforce Management Time & Attendance / Scheduling How much time are our employees spending on activities that don t drive my agenda? How do we know if our employees are really working? How are we positioned for the potential change in FLSA status? 04 How are we making sure our employees are not working too hard? 22
23 Workforce Management Time & Attendance / Scheduling Time is money. Automation Compliance Strategy 23
24 Workforce Management Time & Attendance / Scheduling.5 to 2% - 41% 2 out of 3 Bottom Line Impact Highest ROI of all HR technology.5% to 2% of payroll costs can be saved 41% LESS unplanned overtime with automated scheduling Time tracking tools to prepare for/ manage likely DOL O.T. rule changes for 2 of 3 businesses 21
25 Workforce Management Contingent Workers How are we leveraging contingent workers given our business objectives? How do we know we are in compliance with contingent work rules? How do we review the performance of contingent workers?
26 Workforce Management Contingent Workers Thank you PPACA 1099 we are now a 1099 nation. Automation Compliance Strategy 26
27 Workforce Management Contingent Workers Bottom Line Impact 1099 Tax advantage for 1099 workers Savings from flexible workforce Return on equity from unemployment tax, SS and workers comp 24
28 CEO Agenda Performance Management Talent How are we identifying and managing high performers in and up? How are we identifying low performers out? Why do we have turnover? 28
29 Performance Management Talent We need to get the right people with the right skills in the right place at the right time at the right cost. Automation Compliance Strategy 29
30 Performance Management Talent 29% 40% 26% Bottom Line Impact 29% higher levels of engagement 40% lower turnover with highperforming EEs 26% higher revenue per employee 27
31 CEO Agenda Performance Management Learning What are we doing to develop our employees, our contractors? How are we using learning to increase sales? How is our investment in training impacting time to get new hires up to speed? 31
32 Performance Management Learning The global skill gap is now HR s problem. Automation Compliance Strategy 32
33 Performance Management Learning 11% 15% Bottom 79% Line 2% Impact Companies indicating a shortage of critical skills Decline in vacancy rates (RN industry) Increase in sales -- post-training 30
34 CEO Agenda Engagement / Social Collaboration / Recognition What do our employees, ex-employees and contractors say about us on social media? Does our recognition program support our corporate objectives? What is my glassdoor rating? 34
35 Engagement Social Collaboration Recognition HR Systems are increasingly being referred to as systems of engagement. Allowing Elements of Social and Recognition. Automation Compliance Strategy 35
36 Engagement Social Collaboration Recognition 19.2% 3x 2x Bottom $3,400 Line Impact Increase in operating income (12- mo. period) Profit growth speed (vs. non-engaged competitor) Customer loyalty (vs. nonengaged competitor) Disengaged employee costs 10% per 10K of salary 33
37 CEO Agenda Data Analytics 01 What are doing to optimize all data available inside and outside our organization to drive our business objectives? 37
38 Data Analytics Data is everywhere, information is scarce. Automation Compliance Strategy 38
39 Data Analytics $ % #1 Bottom Line Impact Return for every $1 spent on analytics Higher productivity and output Engagement #1 variable linked to hospital mortality rates 36
40 Creating C-Suite Buy-In for HR Technology C CIO / CTO / IT Department Involve them early 3 5 yr. plan aligned with tech strategy Be prepared to minimize implementation concerns B CEO / Leadership Address CEO/Leadership concerns about competition, resource availability & people Long-term people strategy supported by data analytics Ability to plan for change in real-time A CFO Be prepared to show some cost savings or reasonable ROI Show the value of being able to provide a holistic view of the organization 26
41 Technology Provider Community In a disarray but smoking hot Client Size Client Objectives Client Industry Can be organized by Funding Service Attitude Client Budget Brand Service Capabilities 12
42 Crowded and Confusing Market Good News: There is something for everyone! ADP Marketplace 42
43 HCM Technology and Outsourcing Space EEs EEs EEs 43
44 HCM Technology and Outsourcing Space HCM + Payroll + Benefits * * * * * * * * HCM HCM + Payroll HCM + Benefits * * * Other partner services (Payroll and/or BA) are available 44
45 When you re ready to buy 1 For many employees the HR website is HR 6 Determine support needed; some players are tech only some have experts to help with strategy. 2 Always define the what first; technology is a how. 7 Don t underestimate the value of change management for success. 3 Beware the bright shiny ball. 8 HR Technology cost is $100- $500 per employee annually. 4 Beware of the slick sales person. 9 There is no bad technology only bad fits. 5 Many software review sites get paid by software providers on the site. 10 Yes, there is industry specific software; check it out! 38
46 Wrap Up 39
47 Thank You 444 Liberty Avenue, Suite 805 Pittsburgh, PA Phone
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