Is HR fit for the future?

Transcription

1 Is HR fit for the future? Today s technology vs tomorrow s transformation David Wilson, CEO / 10/22/2018 1

2 Europe s #1 HR Industry Analyst Founded 1996 In-depth corporate research on Next Gen HR, Talent and Learning Analyst & advisory services to European & International HQ multi-nationals and corporates Independent vendor research and EMEA market commentary 10/22/2018 2

3 EUROPEAN HR REALITIES RESEARCH 83% of respondents European 66% Respondents from Organisations > 5000 Employees Unique market data from our strategic research partnership with Over 500 survey respondents overall 10/22/2018 3

4 HR18-19 What did they tell us? 10/22/2018 4

5 Currently, what are your organisation's most significant business challenges? Increasing organisation performance & profitability Increasing business agility Improving customer satisfaction & service quality Reducing operation costs Regional business growth Maximising the organisation's presence in new markets Managing the impact of automation, robotics and AI Organisation restructure Regulation & compliance Globalisation Merger & acquisition Sustainability Corporate social responsibility 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Major challenge Minor challenge Not a challenge Not Applicable 10/22/2018 5

6 Currently, what are your organisation's most significant business challenges? Increasing organisation performance & profitability Increasing business agility Improving customer satisfaction & service quality Reducing operation costs Regional business growth Maximising the organisation's presence in new markets Managing the impact of automation, robotics and AI Organisation restructure Regulation & compliance Globalisation Merger & acquisition Sustainability Corporate social responsibility Top 5 Business Challenges: 1. Increasing performance and profitability (58%) 2. Increasing business agility (50%) 3. Improving customer satisfaction / service (47%) 4. Reducing operating costs (38%) 5. Regional business growth (36%) (% major challenge) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Major challenge Minor challenge Not a challenge Not Applicable 10/22/2018 6

7 What are your top priorities as an HR organisation? Better leadership & management Being a strategic business partner Facilitating the digital transformation of the workforce Improving employee engagement Facilitating cultural change Being a learning organisation Enhancing the use of analytics in decision making Enhancing the talent pipeline Improving HR service quality & provision Adopting next generation HR approaches More effective recruiting Improving employee retention Increasing the consistency of HR processes Copyright Fosway Group Improving Limited. All employee Rights Reserved. performance 10/22/2018 7

8 Improving employee retention 14th Increasing the consistency of HR processes Adoption of AI, HR automation & chatbots 16th 21st Improving employee performance Resolving talent shortages Improving training and development Managing diversity Responding to changes in demographics Improving work life balance Measuring employee performance Improving employee mobility Enhancing compensation, reward and benefits Overcoming culture differences Better payroll Managing regional legislative frameworks Lack of alignment between HR priorities and business priorities / critical drivers 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 10/22/2018 8

9 What is driving changes in investment in your HR organisation and HR systems? Digital transformation, disruption of the financial services industry and our change to being a more agile business. Digital Transformation of HR Ecosystem is a top enabler in our Mid Term Plan. AI, smooth processes, deliver business results, stay competitive, be employer of choice. The business need to be competitive in the market, especially the job market. Simplicity - no need for over complicated systems, as our business processes are simple and down-to-earth. The need for increased business agility and self service functionality. 10/22/2018 9

10 2018 Overall, how satisfied do you believe your business executive / board are with the your HR systems? Payroll Learning & development Core HR Employee engagement Reward - compensation & benefits Shared Services Performance management Talent & succession management Recruiting / talent acquisition Workforce management Onboarding Analytics 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Very satisfied Satisfied Dissatisfied Very dissatisfied 10/22/

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12 Investment Trends #1 HR Tech & Innovation #2 Develop HR Expertise 2% Expect 4% Decrease Expect Decrease 76% Expect Increase 64% Expect Increase 10/22/

13 How do you expect your investment in HR systems to change over the coming years? Analytics Recruiting / talent acquisition Learning & development Talent & succession management Onboarding Employee engagement Core HR Performance management Workforce management Reward - compensation & benefits Shared Services Payroll 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Increase Stay the Same Decrease 10/22/

14 How do you expect your investment in HR systems to change over the coming years? Analytics Recruiting / talent acquisition Learning & development Talent & succession management Onboarding Employee engagement Core HR Performance management Workforce management Reward - compensation & benefits Shared Services Payroll Investment is increasing in all areas of HR IT! Most consistent areas for investment: 1. Analytics (68%) 2. Recruiting / Talent Acquisition (53%) 3. Learning & Development (53%) 4. Talent & Succession Management (49%) 5. Onboarding (48%) (% of respondents expecting to increase investment) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Increase Stay the Same Decrease 10/22/

15 HR HEADCOUNT SEES CONSISTENT PRESSURE over the past 4 years vs 25% expect to grow HR Headcount 32% Expect to see a Reduction in Investment in HR Headcount 10/22/

16 When do you intend to change your HR systems in the future? Onboarding Recruiting / talent acquisition Performance management Analytics Learning & development Talent & succession management Core HR Reward - compensation & benefits Employee engagement Shared Services Workforce management Payroll 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Within 2 years Between 2 to 3 years Over 3 years No Changes Expected 10/22/

17 When do you intend to change your HR systems in the future? Onboarding Recruiting / talent acquisition Performance management Analytics Learning & development Talent & succession management Core HR Reward - compensation & benefits Employee engagement Shared Services Workforce management Payroll Top 5 to change in next 2 years: 1. Onboarding (48%) 2. Recruiting / Talent Acquisition (47%) 3. Performance Management (45%) 4. Analytics (45%) 5. Learning & Development(43%) (% major challenge) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Within 2 years Between 2 to 3 years Over 3 years No Changes Expected 10/22/

18 THE TO P 5 D RIVERS F O R CHANGING HR SYSTEMS 1. Quality of End User Experience 2. Lack of Business Agility and Flexibility 3. Lack of Analytics 4. Level of Innovation 5. Enhanced Self Service Tools User Experience is consistently the most critical driver for changing HR Tech 10/22/

19 How standardised are the HR systems in your organisation? Not standardised 20% Partially standardised 45% Very standardised 35% How standardised are the HR systems in your organisation? Core HR Performance management Learning & development Payroll Recruiting / talent acquisition Talent & succession management Employee engagement Shared Services Onboarding Reward - compensation & benefits Analytics Workforce management 0% 20% 40% 60% 80% 100% Very standardised Partially standardised Not standardised 10/22/

20 45% think that AI and RPA will become truly significant < 2 years! 10/22/

21 How likely do you think your organisation is to adopt the following Artificial Intelligence (AI) technologies in the future? Predictive analytics Chatbots i.e. replacing HR help-desk agents AI-led candidate short-listing and selection AI-led manager dashboards & semantic reporting AI in HR decision making AI-led personal assistants for employees AI-led personal development coaching Voice activated self service HR processes 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Already using Planning to use Actively considering using Not thinking about using Unlikely to ever use 10/22/

22 What does this mean for your choices as a HR Tech buyer? 10/22/

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24 Cloud HCM Session 11.00am STAND 134 Talent Management Session 12.30pm STAND /22/

25 LATEST FOSWAY RESEARCH Latest Research Fosway 9-Grid Reports - Cloud HCM - Talent Management - Learning Systems - Digital Learning - Authoring Systems 10/22/

26 E ur ope s #1 HR In dustr y A n alyst Make better HR buying decisions faster +44(0) /22/