Getting Strategic with HR Technology

Transcription

1 Getting Strategic with HR Technology

2 Objectives 1. Current Trends in HR Technology 2. Getting Strategic with Technology 3. Building a Business Case for Technology

3 Who Is This Guy? HR Strategist HR/Payroll Systems Expert Trusted Advisor Social Media Advocate Self-Professed Geek Early Adopter

4 Terminology HR Technology Acronym Soup SHRM Core Discipline David Ulrich, University of Michigan Primary HR Competency Domain

5 Terminology Long-Term Big Picture Thinking Holistic View Company Goals/Objectives Value/Outcome Focused HR must give value, or give notice. David Ulrich

6 HR Technology Efficiencies Reduce Administrative Burden Better Reports/Distribution Better Compliance Better Talent Management Efficiency Improved Labor Relations

7 Strategic HR Technology Create Analytics Key Economic Data HR Decision-Making Business Impacts Start with End in Mind Influence C -Suite Improve Company Performance Reduce Costs Budgeting/Planning Manage Change

8 Trends in HR Technology 1. Web Workforce Mobility 3. Employee Self Service 4. Talent Management 5. HR Analytics

9 Trend #1 Web 2.0

10 What Was Web 1.0? PUSH Information Consumption

11 Trend #1 Web 2.0 Collective Intelligence User Content

12 Trend #1 Web 2.0 Blogs & Wikis RSS Feeds Aggregate Sites Social Networking

13 Social Media in Business Business Branding Marketing Public Relations Customer Service Loyalty Building Customer Acquisition Networking Human Resources Recruiting Onboarding Sourcing Scheduling Learning Thought Leadership Employee Engagement Internal Communication

14 Social Media HR Opportunities Many-to-Many Dialogue Qualitative Contact Hunters Now The Hunted Passive Job Seekers Mitigate Risk Social Recruiting

15 Social Media HR Opportunities Enhance Collaboration Unlock Tacit Knowledge Immersion Innovative Approaches Reduced Cost Social Learning

16 World Class Examples YouTube The Company as Wiki

17 Trend #2 Mobility Statistics 70% - Mobile phones for work 50% - Check work on weekend 89% - U.S. companies offer telecommuting 51% - American workforce is mobile Sources: Socialcast Telework Coalition

18 Social Media Mobility HR Opportunities HR Leadership Alerts/Triggers Work/Life Balance

19 Trend #3 Self Service

20 Self Service HR Opportunities Recruitment Open Enrollment Onboarding Time Reporting Pay Statements W-2 s Electronic Forms Time Off Requests Personal Info Updates Training Talent Management Performance Appraisals Succession Planning Manager Dashboards

21 Trends #4 Talent Management Learning Tech Spending Up Talent Challenges Performance-driven Culture Filling Leadership Pipeline Developing Skills to Address Business Challenges War For Talent 2.0

22 Talent Mgmt HR Opportunities Acquiring Talent Sourcing Selection Developing Talent Succession Planning Social Learning Assessing Talent Performance Appraisal Goals Measurement

23 Trends #5 HR Analytics Data Decisions Metrics/Key Performance Indicators Analytical Tools Dashboards Knowledge Information Level of Abstraction Data

24 Analytics HR Opportunities Organizational Strategic Planning Bottom Line Impact of HR Best Practices Be More Strategic! Empower Managers to Make Better Decisions Align HR Strategy with Corporate

25 Strategic HR with Technology - Professor Jon Boudreau, USC s Marshall School of Business

26 Strategic HR with Technology Why Aren t We? HR Administrivia Transactional duties Social work activities Comfort zone HR Skill Set Data Accuracy

27 Strategic HR with Technology Why don t we? 1. Social workers and not interested in business 2. HR pursues efficiency in lieu of value 3. HR isn t working for you 4. The corner office doesn t get HR - Keith Hammonds editor, Fast Company magazine Why We Hate HR, 2005 khammonds@fastcompany.com

28 Strategic HR with Technology Create Analytics Key Economic Data HR Decision-Making Business Impacts Start with End in Mind Influence C -Suite Improve Company Performance Reduce Costs Budgeting/Planning Manage Change

29 Leverage HR Technology ONE: Reduce Social Work Utilize Technology ESS Alerts Reporting

30 Leverage HR Technology TWO: Serve the Business M, V, G, O HR Goals Corporate Goals HR Metrics Business Decisions Data Integration

31 Leverage HR Technology THREE: Measure the Right Things Baby Steps K.I.S.S. Few, But Layered Start With the End in Mind

32 Leverage HR Technology FOUR: Make Value, Not Activity Key Performance Indicators Scorecards Analysis Training Attendees/Month Training Effectiveness

33 Leverage HR Technology FIVE: Inquiry, Not Intuition Get Answers From Metrics Use Standardized Data Measure Consistently... when HR uses fact-based decision making instead of intuition or best guesses the group becomes a more credible partner to the business it serves. Fact-based decisions help HR improve HCM practices, recruit and deploy the right talent, cut costs, contribute to business performance and provide evidence of those contributions. - BusinessWeek Research Services, May 2009

34 HR Analytics Examples Revenue Factor Total Revenue / Total Headcount Net Income/FTE Revenue Operating Expense / FTE s Absence Factor Absence Hours / Pay Rate Turnover Ratio Total Terms / Total Headcount

35 HR Analytics Examples Turnover Ratio 20% Turnover 18% 16% 14% 12% 10% 8% Turnover 6% 4% 2% 0%

36 HR Analytics Examples Time to Fill Number of days to fill position Cost per Hire Cost involved with new hire Benefit Cost/EE Human Capital Cost Total cost / # employees Salaries / Overall operating expense

37 HR Analytics Examples Salaries as a % of Operating Expense All Industries 57% Government Agencies 54% Nonprofit Organizations 56% Privately Owned For-Profit 60% Publicly Owned For-Profit 45% Source: 2008 SHRM Human Capital Benchmarking Study

38 Dashboard Metrics

39 Justifying HR Technology Why HR Technology Isn t Implemented: Budget/Funding approval Unclear Goals No Buy-in Resistance to Change IT Infrastructure No Decision

40 10 Steps to Obtaining Tech 1. Expand Your HR Technology Knowledge Webinars IHRIM Follow HR Tech Experts

41 10 Steps to Obtaining Tech 2. Determine Your Current Reality Technology Processes Workflow

42 10 Steps to Obtaining Tech 3. Develop Needs and Wants List

43 10 Steps to Obtaining Tech 4. Create a Business Case Goals and Objectives Costs and Saving Measures Define Current HR Issues Outline Productivity Increases More Strategic Opportunity Metrics KPI s Business Impact

44 10 Steps to Obtaining Tech 5. Calculate ROI and Rate of Return Hard Costs Soft Costs Outsourced Fee Reduction Ongoing Maintenance Accuracy of Information Employee Transaction Cycle Time Reduced Paper Costs Mailing Costs Administrative Work Reduction Process Standardization Fines / Compliance Improved Customer Service

45 10 Steps to Obtaining Tech 5. Calculate ROI and Rate of Return Tactical Benefits Strategic Benefits Form Reduction Improve FTE Tracking Reduce Hiring Costs Reduce Absenteeism Improve Compliance Reduce Litigation Improve Retention Improve Budget Automate Recruiting Better EE Service Improve Productivity Reduced Risk

46 10 Steps to Obtaining Tech 6. Determine Budget Use Business Case Use ROI

47 10 Steps to Obtaining Tech 7. Research Software & Companies 8. Evaluate Systems Flexibility Scalability

48 10 Steps to Obtaining Tech 9. Set Implementation Expectations 10.Make Purchase Decision

49 In Summary Social Media and Workforce Mobility are changing the dynamics of HR Technology. Popularity of Employee Self Service and Talent Management systems has increased. HR Technology can increase HR effectiveness, but will ultimately make HR more strategic. Utilize technology to create business oriented analytics and metrics. Justify HR Technology by creating an ROI with clear goals and objectives.

50 Thank You!