Five Steps to HR Optimization: Transforming from Transactional Back Office HR Operations to Strategic Mission Support

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1 Five Steps to HR Optimization: Transforming from Transactional Back Office HR Operations to Strategic Mission Support CURRENT CHALLENGES Disparate HR functions Legacy systems with numerous interfaces No employee self-service Little or useless data Reactive GEAR UP TECH TIME Implement technology to support new business processes which collect and connect clean data, allowing HR to measure activities and identify areas for improvement. ENABLE BIG DATA, EASY ACCESS Incorporate business intelligence tools to drive new insights across HR and the organization. DESIRED OUTCOMES Shared services across the agency Single-core HR system Self-service for all employees Forecasting & reporting Proactive TRANSACTIONAL BACK-OFFICE STRATEGIC MISSION SUPPORT KEY GET THE BASICS RIGHT Revise redundant and disparate business processes and policies for quick wins that set direction. HELP EMPLOYEES HELP THEMSELVES Use self-service technology to give employees control over many HR transactions and foster collaboration across the organization. BRING MORE TO THE TABLE Bring executives what they need to make better decisions. EMPLOYEE CENTRIC COST SAVINGS NEW CAPABILITIES

2 1 STEP 1: GET THE BASICS RIGHT Revise redundant and disparate business processes and policies for quick wins that set direction. Citizen services at this health agency expanded over time which created redundant processes and left only a few employees nearing retirement with the institutional knowledge required to run their business. 67, Business Processes GEOGRAPHICALLY DISPERSED EMPLOYEES SCOPE: Program support center managed 300+ essential human services programs Funded under a fee-for-service model rather than through appropriations Business measures vital to ensuring enduring center viability Workplace modernization required to redesign business processes and reduce physical footprint deemed inefficient or redundant Redesigned 30+ business processes deemed inefficient or redundant to move organization towards shared services model; business processes documented; institutional knowledge centralized 10 $ MILLION IN ANNUAL COST SAVINGS $9.5 MILLION IN ANNUAL COST SAVINGS THROUGH PROPERTY CONSOLIDATION ANALYSIS OVER 3 YEARS Enhanced human capital decision making and investment; met compliance with President s Management Agenda s focus on strategic human capital management

3 2 STEP 2: GEAR UP TECH TIME Implement technology to support new business processes which collect and connect clean data, allowing HR to measure activities and identify areas for improvement. A backlog of personnel actions, high turnover, and an inability to meet Service Level Agreements (SLAs) created a lack of accountability and multiple challenges for this Federal transportation agency. A large federal agency with nationally dispersed workforce experienced significant personnel growth quickly HR capabilities and technology platforms did not evolve at the same pace of growth, impairing ability to meet mission requirements Agency adopted automated web-based attendance & scheduling system to reduce payroll errors/inefficiencies for accurate, on-time transaction delivery Backlog of HR actions and lack of timeliness across employee transactions SLAs that do not drive accountability or performance High contractor turnover and limited flexibility due to single-contractor model Virtualized 60,000+ individual personnel records Improved customer call center satisfaction to 95% while processing 12,000 new hires, 60,000 personnel actions and 30,000 benefit transactions $2 MILLION PROJECTED ANNUAL SAVINGS FROM REDUCED PAYROLL ERRORS

4 3 STEP 3: HELP EMPLOYEES HELP THEMSELVES Use self-service technology to give employees control over many HR transactions and foster collaboration across the organization. MULTIPLE FEDERAL AGENCIES WITH 111,000 EMPLOYEES AND 3,500 HR STAFF A perception of poor quality services from this government agency, coupled with low levels of efficiency, motivated the agency to understand how to improve operations and empower employees. Established a centralized process model, allowing the organization to operate more effectively with fewer employees; resulted in savings of SITUATION A cross-agency initiative aimed to make HR information accessible to employees via in-house technology and streamlined call center operations Multiple customer entry points and fragmented customer service models led to inconsistent answers, poor customer service and expensive HR operations Improved accessibility to HR information and tools through the introduction of employee self-serve functionality (new case management system) $3.6 MILLION annually that was reinvested in mission critical programs Enabled consistent service quality for employees at any location Increased collaboration between call and web transaction centers through case management

5 4 STEP 4: ENABLE BIG DATA, EASY ACCESS Incorporate business intelligence tools to drive new insights across HR and the organization. High attrition among top performers and senior leadership caused this organization to analyze which incentive programs and compensation packages would not only attract, but also retain talent in different economic environments. Faced high attrition rates Needed to aggregate existing information from various systems to understand risks to employee retention, predict future demand scenarios based on external and internal factors, and determine the most effective way to fill talent needs Disparate data and systems didn t provide insights necessary to determine efficient incentive structure to retain top talent Inefficient spending on trial and error solutions to attract and retain top talent; invoked employee feelings of inequality and eventually led to employee separation Used HR analytics to achieve 15% REDUCTION in costs across recruitment, severance, training and HR operations Built a Build, Borrow, Buy model which reduced costly external hiring Streamlined incentive packages led to more consistent HR support and higher employee satisfaction Developed flexible talent strategy that can change based on needs and external factors

6 5 STEP 5: BRING MORE TO THE TABLE Bring executives what they need to make better decisions. Forecast workforce supply and demand Predict ROI for specific HR activities Understand the pulse of the workforce React quickly to external pressures Faced with integrating personnel from realigned organizations and a need for higher performing employees to increase efficiency, this organization looked to better understand its workforce to put the right people in the right positions. Faced redundant workforce positions but was unable to understand or evaluate employee skills and experiences Needed to revise business processes and implement system for employee profiles and performance management to enable comprehensive views into workforce and gain flexibility to reorganize seamlessly in the future Overstaffing Cultural clashes Inability to evaluate talent pool to identify the right people for the right job Inconsistent and unaccountable employee evaluations led to unpredictable financial results Identified 15% in personnel reductions through redeployment and attrition Redistributed workload to increase employee productivity by 10% to 50% Saved ~ $6.2M through process improvement and resource reduction Improved process orientation and accountability and verified employee capabilities Provided organization structure recommendations for improved operational performance; led to faster decision-making across department heads Enhanced management capability by building perception of HR as trusted advisor PRINT LINE

7 TIP Empower people and improve processes to create new efficiencies. With a concentrated focus on the employee, HR operations can move closer to enabling mission outcomes through small, yet impactful, steps. STRATEGIC GOVERNMENT EFFICIENCY Accenture is a global management consulting, technology services and outsourcing company, with more than 293,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$28.6 billion for the fiscal year ended Aug. 31, Its home page is Copyright 2014 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. For more information Kate Abrey kathleen.l.abrey@accenturefederal.com Mimi Yeh mimi.y.yeh@accenturefederal.com For more information on how HR optimization can help your agency preserve the mission and increase efficiency, visit accenture.com/govefficiency PRINT LINE