Transforming HR and Talent in the Digital Age
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1 Transforming HR and Talent in the Digital Age June 2017 David Wilson, CEO / 31/05/2017 1
2 Fosway Group - Europe s #1 HR Analyst 31/05/2017 2
3 T h e c h a n g i n g n a t u r e o f w o r k t o g e t h e r w i t h f o r c e s f o r o r g a n i s a t i o n s t o b e c o m e d i g i t a l b u s i n e s s a r e c r e a t i n g s i g n i f i c a n t c h a l l e n g e s f o r H R a n d t a l e n t t o t r u l y t r a n s f o r m, a s w e l l a s t o a d d r e s s g r o w i n g s k i l l s g a p s 31/05/2017 3
4 The real drivers for change in HR and Talent in Europe Which HR and talent technologies are changing fastest The critical factors in successfully identifying and selecting next gen HR and talent solutions 31/05/2017 4
5 EUROPEAN HR REALITIES RESEARCH 94% of respondents European 66% Respondents from Organisations > 5000 Employees Over 500 survey respondents overall Unique market data from our strategic research partnership with 31/05/2017 5
6 SEGMENTATION HQ Location 35% 30% 25% 20% 15% 10% 5% How many employees work for your organisation? UK DACH Nordics Benelux France USA Other 0% ,000-10,000 10,000-50,000 50, /05/2017 6
7 EUROPEAN INSIGHTS BUT GLOBAL INFLUENCE 70% have a role with Global Responsibility 31/05/2017 7
8 HR What did they tell us? 31/05/2017 8
9 EUROPEAN HR - OPERATING IN PERFORMANCE AND PROFITABILITY FOCUSED ORGANISATIONS 91 % Increasing Organisation Performance & Profitability 87% Reducing Costs 87% Improving Customer Satisfaction & Service Quality For 63% this is a Major Challenge For 43% this is a Major Challenge For 44% this is a Major Challenge Currently, what are your organisation's most significant business challenges? 31/05/2017 9
10 EUROPEAN HR KEY BUSINESS CHALLENGES 87% see Business = Agility as a Challenge The same level as Improving Customer Satisfaction & Service Quality 31/05/
11 EMPLOYEE ENGAGEMENT IS THE LEADING MEASURE OF SUCCESS FOR EUROPEAN HR STRATEGY Top Measures of Success for HR Strategy Employee Engagement is 1. Employee Engagement 2. Employer of Choice 3. Strong Talent Pipeline 4. Company Profitability 5. Lower Cost HR Ops 6. Reduce Employee Turnover seen as 6x more important as a measure of success than having a HR presence at Board level 31/05/
12 FUTURE INVESTMENT IN EUROPEAN HR #1 HR Tech & Innovation #2 Develop HR Expertise 79% Expect Increase 2% Expect Decrease 76% Expect Increase 5% Expect Decrease 31/05/
13 HR HEADCOUNT IS THE BIGGEST FOCUS FOR REDUCING INVESTMENT IN HR 30% Expect to see a Reduction in Investment in HR Headcount 73% expect investment in Headcount to Stay the Same or Reduce 31/05/
14 CENTRALISED HR IS NOT THE DOMINANT OPERATING MODEL 62% are in either a Decentralised or Federated HR Operating Model How are your HR operations mainly organised? Federated 55% Decentralised 7% Centralised 38% This has massive implications for HR Tech choices, approaches to change management and the effort / impact / opportunities / success of standardisation 31/05/
15 Historical Focus THE CHALLENGE OF BEING A DIGITAL FUNCTION Professional User (Function) only Access from Office Desktop Back Office/Admin Centric HR Process Driven Formal Hierarchical Annual Cycle Manage Employees One Interface Operational HR Context Silo-restrictive End User/Manager and Function Access Everywhere Front Office/Usability Centric Business Process Driven Informal/Social Networked Work Transactional Whole People Value Chain Contextually Relevant Interfaces Many Contexts Silo Connected Next Generation Focus 31/05/
16 Implications for HR and Talent Technology? 31/05/
17 Fragmented HR Tech 35% Standardised HR Systems 65% Fragmented HR Systems only 35% have standardised HR systems 31/05/
18 TOP 5 LEVERS for Future Success of European HR Operations 37% Critically Important 33% Critically Important 43% Critically Important 2. Quality HR Systems 1. High Quality Data & Analytics 3. Next Gen Technologies 92% Critically or Very Important 87% Critically or Very Important 78% Critically or Very Important but.. Outsourcing HR Processes still only seen as Critically or Very Important for <15% of respondents 40% Critically Important 4. Integration of HR & Business Systems 80% Critically or Very Important Fosway Group - European HR Realities Research 2016 with HRN. October % Critically Important 5. HR Influencing Skills 78% Critically or Very Important 31/05/
19 HR solutions most likely to be part of the HR Suite Core HR - 75% Workforce Management - 47% Performance Management - 46% Payroll 44% Analytics 43% Employee Engagement - 75% Payroll 52% Analytics 45% Learning - 39% Recruiting 38% Onboarding 39% or a specialist system 31/05/
20 MAJOR SHIFTS IN HR TECH ON THE WAY >40% envisage changing their Analytics, Onboarding Learning, Recruiting, Reward, Talent, Performance, Core HR, Employee engagement or Workforce management solutions within the next 3 years 31/05/
21 THE TOP 5 DRIVERS FOR CHANGING HR SYSTEMS 1. Quality of End User Experience 2. Need for Enhanced Analytics 3. Lack of Business Agility and Flexibility 4. Current Solutions Functionality 5. Level of Innovation 31/05/
22 SELECTING VENDORS MORE THAN FUNCTIONALITY! Performance Potential Presence Total Cost of Ownership Trajectory e.g. HCM ~ 280 functional areas 31/05/
23 UNDERSTANDING CUSTOMER EXPERIENCE Understand your needs Exceed User Expectations Deliver GREAT Service Innovate their Offering Deliver Value for Money Positive Impact 31/05/
24 Historical Focus IN SUMMARY Professional User (Function) only Access from Office Desktop Back Office/Admin Centric HR Process Driven Formal Hierarchical Annual Cycle Manage Employees One Interface Operational HR Context Silo-restrictive End User/Manager and Function Access Everywhere Front Office/Usability Centric Business Process Driven Informal/Social Networked Work Transactional Whole People Value Chain Contextually Relevant Interfaces Many Contexts Silo Connected Next Generation Focus 31/05/
25 LATEST FOSWAY 9-GRID REPORTS Integrated Talent Management Learning Systems Latest Fosway Research 31/05/
26 THANK YOU 31/05/
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