Developing a new model of HR Services
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1 Developing a new model of HR Services Claire Macconnell Associate Director of Business Services arvato Cheshire HR Service
2 Cheshire HR Service Overview Established in 2006, experienced in supporting NHS organisations in various sectors of healthcare Hosted by East Cheshire NHS Trust as an arms-length division with an operating framework to provide increased autonomy Provider of a full range of business focused HR and L&D services We offer customers a wealth of experience and knowledge of working with the complexities of the changing healthcare environment Our mission to deliver excellence in people management
3 Cheshire HR Service Timeline Pre 2006 Separate HR Teams Acute, Community, PCT NHS HR Shared Service 5 Organisations NHS HR Service Provider 50+ customers NHS Service Provider with Commercial Partner
4 The HR Challenge Safety & Effectiveness Value for Money Quality Increased Patient & Staff Satisfaction Improving Health and Wellbeing DoH Back Office Report 2010 Potential to save 616m- 1bn nationally 56% of HR function could be provided as a shared service 20-50% operational savings Best practice approaches 20bn savings required People and skills taking centre stage Risk management and governance giving HR pivotal role OD and change capability high demand NHS Outputs Drivers
5 Our Key Drivers Small shared HR Service already existed Changes to commissioning structure new organisations forming Introduction of Electronic Staff Record (ESR) across NHS Increased measurement and monitoring of HR indicators CQC, NHSLA Absence of coherent HR strategy/lack of strategic HR input Cumbersome and outdated HR processes, inadequate technology Poor levels of satisfaction with HR Different payroll arrangements
6 Transforming HR Services Separate HR Departments Multiple sites Multiple Processes and Procedures Multiple contact points Disparate, outdated technology platforms Manual and duplicate data entry Strategic staff performing administrative tasks Results Costly, disparate HR functions. No performance metrics No customer service focus Shared HR Service Harmonised and centralised HR services Single point of contact for HR customers Single employee access portal and data entry Enhanced Technology platforms Enhanced HR reporting Results Cost reduction Customer focused HR delivery Strategic staff re-focused on strategic delivery
7 Our HR Build
8 Initial Three Year HR Build Year One (2007) Centralisation of transactional teams New structures Staff retention Standardisation New finance model ESR phase 1 Outsourced payroll Year Two (2008) Management of payroll contract Development of corporate identity Resource Planning Formation of HR ICT group SLA development & reporting Talent management Further centralisation Year Three (2009) Transfer of staff into one host Review of services New Wellbeing Service Focus on OD 3 Year Business Plan Focus on Self Service Stakeholder feedback processes
9 How we spent our time (the early days) Illustrative Example: Cheshire HR 2008 Task Analysis Strategic 12% Administrative 40% Operational 48%
10 What our customers said they wanted (World Class HR Results ) Strategic input into the business Improved line manager people management skills Improved technology and efficient processes Improved access to HR services Greater staff involvement in policy development Greater focus on learning and development Things done in a more timely manner
11 2009 World Class HR Survey Results Between 10-50% improvement in the following areas: Gets basics right Reliable & easy to get hold of staff Effective recruitment Support in times of change HR staff are expert, well informed and professional Understanding of employee & business needs Effective in area of Reward & Recognition Effective in workforce planning Help with staff absence & poor performance Good advice given Ensures policies consistently & fairly applied by 62% said that HR was better or much better than in 2008
12 Our vision for a model service Process improvement automisation, Selfservice /HR Service Centre Customer retained HR activities Centres of expertise Future proofing Strategic health of organisation Policy & Process Administration
13 Year 4 - Transformation through Innovation Strategic Goals Developing our future HR service model Development of Strategic Business Partners Introduction of shared HR Consultancy service Introduction of new technology providing 24*7access to HR information and guidance Customer Benefits Focused dedicated HR and L&D Business partner support for each customer Increased confidence & competence of line managers in people management issues Reduced costs to customers Consistent delivery of HR advice Tailored coaching support & development
14 Our Services Wellbeing Service Systems Support Service HR Consultancy Service Employment Consulting Service Learning & Development Service Recruitment Service Business Partnering
15 Business Partnering Inefficient case mix, lots of ER activity, chasing of information, limited business skills Analytical skills, strategic consultancy, workforce planning skills, psychometric testing, service improvement training OD, workforce planning, productivity, service change, governance and compliance, business strategy
16 Tier 1: HR Direct 24/7 Online Advice and Tools Tier 2: Advice Line/Administrators Case Handlers/HR Advisors, recruitment/general administration, online system management, MI Reports Tier 3: Specialist Advisors Case Managers, specialist advisors, people coaching, mediation, people development, policy development Services underpinned by Systems Support
17 Business Partnering Retained Roles HR & OD Director at Board Level Senior HR & OD Roles at subboard level Business Partnering Teams Medical Workforce Lead Local Administration Presence Retained Duties Strategy, planning & delivery Partnership Working Organisational Development Communications HR Governance and Risk Wellbeing Strategy Some complex change Managing the HR services contract
18 Barriers to change Source: HR Transformation in Europe, a Mercer Study, 2006 Most significant barriers to enhancing HR's future role 45% 39% 38% 35% 20% 20% 16% 7%
19 Multiple Systems Non-Standard Complex Processes Multiple Locations Transactional Efficiencies Baseline Remove Complexity Multiple Systems Non-Standard Simple Processes Multiple Locations Transactional Efficiencies 20% Increasing process maturity Remove complexity Standardise Processes Multiple Systems Standard Simple Processes Multiple Locations Transactional Efficiencies 40% Remove complexity Standardise Processes Implement Common System Common Systems Standard Simple Processes Multiple Locations Transactional Efficiencies 50% Establish new organisation Remove complexity Standardise Processes Implement Common System Centralise transaction processing Common Systems Standard Simple Processes Single/ Few Locations Transactional Efficiencies 60% Establish new organisation Remove complexity Standardise Processes Implement Common System Centralise transaction processing Implement e- enabled common system Migrate to Virtual transaction processing e-enabled system Standard Simple Processes Virtual Locations Transactional Efficiencies 75%
20 Cheshire HR Journey Technology change Culture Change -Changes to underpin HR model development. -Changes to support cost savings in customer organisations. Process Change HR job Development HR Team Development
21 Technology Programme (2012) HR Direct Web-Based HR Information Portal Workforce Information Data Warehouse to improve workforce reporting HR Vision - automated workflow system Manual processes automated
22
23 Line Manager Dashboard
24 Challenges Diversity of cultures from multiple organisations and ownership of HR Ownership of HR the role of the manager Allocation of resources Geography/location Managing change alongside business continuity Developing technology against competing demands Achieving change in behaviours customer/business focus Developing internally capability to let go and become commissioning partners
25 Was it worth it? Supported organisations in making savings year on year Increased customer satisfaction organisation, manager, staff Technology benefits for HR and customers modern, fast, efficient, compliant Improved job satisfaction in HR (above the best national average score) Skill Mix/Career Development - Right people undertaking right tasks Increased confidence and capability of managers
26 What did we learn? The Organisation Self Diagnose their current state on maturity map Set realistic expectations aligned to culture and practice Identify quick wins Make sure leaders are a partner on the journey Absolutes Investment in technology Commitment to concept of new mode of control Clear governance arrangements Simplify customer facing end New Capabilities HR Business Partnering and Strategy Managing SLA s/outsourced services Business Case Development Demonstrating value through information Renegotiating the deal between HR and managers Internal HR An OD/Change Programme which focuses on: Defining roles/mind the gaps Developing capability to let go and take on the new Change in behaviours/ taking a customer Internal HR perspective HR Business Partners as commissioners of HR services Don t put off dealing with capability issues
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