Research Brief. From Access to Engagement: The Evolution of Human Capital Management Technology

Transcription

1 The Evolution of Human Capital Management Technology Featuring the Real-World Impact on the Restaurant and Food Services Industry Research Brief Brandon Hall Group Research Team May 2016

2 TABLE OF CONTENTS Introduction 3 HCM Evolution 4 Systems of Engagement for the Employee Life Cycle 8 Talent Acquisition 11 Employee Services 12 Retention 13 Succession/Workforce Planning 15 Industry Spotlight: Restaurant and Food Services 16 Key Takeaways 23 Authors and Contributors 24 About Brandon Hall Group Brandon Hall Group. Licensed for Distribution by Vibe HCM 2

3 NOTABLE INSIGHT This report looks at how HCM technology has evolved and what happens to organizational performance when HCM technology is used as a system of engagement Introduction The strong link between employee engagement and organizational performance has been well-accepted by organizations for a long time. Brandon Hall Group s recent Employment Value Proposition (EVP) study showed that more than half the organizations (55%) surveyed believe that employee engagement is one of the top drivers of organizational success over the next 24 months. In addition, Gallup found that companies with an average of 9.3 engaged employees for every actively disengaged employee in experienced 147% higher EPS compared with their competition in Brandon Hall Group research highlights the role that Human Capital Management (HCM) technology has on impacting employee engagement at every stage of the employee life cycle and fostering organizational performance: Engagement: Over 80% of organizations using HCM tools, such as rewards, social recognition, onboarding, and social collaboration, consider them to be valuable as part of their employee engagement strategy. Performance: High-performing organizations are much more likely to widely use and value their HCM technology compared to other organizations (not high-performing). For example, high-performing organizations are four times as likely as other organizations to consider their performance management system to be valued and widely used (28% vs. 7%). Experience: Employee experience is one of the top drivers for HCM technology replacement (51%). This report looks at how HCM technology has evolved and what happens to organizational performance when HCM technology is used as a system of engagement that fosters 2016 Brandon Hall Group. Licensed for Distribution by Vibe HCM 3

4 communication, collaboration, and connection at each point of the employee life cycle. It then highlights how the Restaurant and Food Services industry can benefit from using systems of engagement. Figure 1 Connection Between Stages of Employee Lifecycle and HCM Technologies Let the journey begin. HCM Evolution Source: 2016 Brandon Hall Group Life used to be simpler. You used the telephone book to find a phone number. You pulled out a map to see where something was. And your watch wasn t smarter than you are. Today s reality is, we have come to expect an integrated experience. With one query I want to know where something is, how far away I am, when it s available, and if they have it in my favorite color. The same is true of work. We don t want to interact with siloed processes, we want capabilities to engage with information and people seamlessly as we go in order to get the job done. As HCM technology evolves, it is moving from a place where people simply access discrete bits of information learning over here, benefits over there to a system of engagement enabling individual and organizational growth, productivity and results Brandon Hall Group. Licensed for Distribution by Vibe HCM 4

5 Let s see where we are in this evolution of HCM technology. Based on Brandon Hall Group s latest HCM Technology Trends study, the majority of organizations have automated workforce and talent management systems and/ or tools, especially for time and attendance, HRIS, payroll, and absence management. The exceptions seem to be for onboarding and succession management, where nearly half still use manual systems. Figure 2 Current Workforce Management Systems Automation Levels Source: Brandon Hall Group 2015 HCM Technology Trends Survey (n=346) *Includes standalone, suites, and ERP solutions Brandon Hall Group. Licensed for Distribution by Vibe HCM 5

6 Figure 3 Current Talent Management Systems Automation Levels (continued) Source: Brandon Hall Group 2015 HCM Technology Trends Survey (n=346) *Includes standalone, suites, and ERP solutions. The reasons for this high-level of automation for most applications relate to the desire to improve efficiency and to create a favorable HR experience for employees. Organizations want to reduce manual tasks, provide better reporting, reduce cost, support self-service, create a better HR experience for employees, and improve accuracy. Improving communication and transparency also come into play when purchasing HCM technology Brandon Hall Group. Licensed for Distribution by Vibe HCM 6

7 Figure 4 The Top Drivers of HCM Automation Source: Brandon Hall Group 2015 HCM Technology Trends Survey (n=346) Respondents could select up to three answer choices Employee experience gains prominence as a driver for replacing HCM technology. As organizations gain experience in the usage of these solutions, it becomes evident that HCM technology can impact employee engagement and collaboration and thereby improve organizational performance. Among organizations that have replaced their HCM system in the past two years, adding additional functionality and improving the employee experience are the main reasons for replacement, followed at a distance by supporting integration with other systems and supporting globalization Brandon Hall Group. Licensed for Distribution by Vibe HCM 7

8 Figure 5 Top Drivers of HCM Replacement (Past 2 Years) Source: Brandon Hall Group 2015 HCM Technology Trends Survey (n=346) Respondents could select up to three answer choices. Systems of Engagement for the Employee Life Cycle At each stage of the employee life cycle, organizations now have the ability to impact employee engagement and promote collaboration through their choice of HCM solutions, from talent acquisition to succession. At the crux of this evolution in automation choices, organizations believe that HCM technology is a valuable part of their employee engagement strategy and that employee engagement is intrinsically linked to organizational performance. In fact, at least 80% of organizations experiencing solutions such as social recognition, rewards, learning management, and onboarding consider them to be valuable for engagement (Figure 5). The underlying features of 2016 Brandon Hall Group. Licensed for Distribution by Vibe HCM 8

9 these tools are that they foster connection to the organization, connection to peers, collaboration, and personal development paths. Figure 6 Most Valuable Technology Tools for Engagement* Source: Brandon Hall Group 2014 Employee Engagement Study (n=201) *Among organizations using technology. However, not all HCM solutions promote employee engagement. In terms of an overall assessment of organizations current talent, HR, and workforce management solutions, about half find it difficult to work with these solutions or they avoid the solution all together. This difficulty in using the core HCM technology systems in place can have a profound impact on the employer brand, employee engagement, and the employment value proposition (EVP) itself. Instead of contributing toward improving collaboration, productivity, and engagement it has the exact opposite affect - where employees either avoid using a solution or need to work around those solutions by asking HR and management for assistance Brandon Hall Group. Licensed for Distribution by Vibe HCM 9

10 Figure 7 Overall Assessment of Current Tools and Technology Source: Brandon Hall Group 2015 Employment Value Proposition (n=209) Brandon Hall Group research shows that by selecting the right HCM solution organizations can impact performance through each stage of the employee life cycle. Note: High-performing organizations are defined as those organizations that are doing better than others in terms of increased revenue and key performance indicators, such as employee engagement, customer satisfaction, customer retention, organizational revenue performance, and market penetration Brandon Hall Group. Licensed for Distribution by Vibe HCM 10

11 NOTABLE INSIGHT Once the hiring decision is made, a comprehensive onboarding system can shorten time-to-productivity and give new hires a solid start on the path to engagement and productivity. Talent Acquisition At a candidate s first touchpoint with your organization, the applicant tracking system (ATS) can have a tremendous impact on attracting quality talent, engaging your candidate with your brand or having the candidate drop out of the pipeline, never complete an application, or respond to your invitations, or even join a talent community. Once the hiring decision is made, a comprehensive onboarding system can shorten time-to-productivity and give new hires a solid start on the path to engagement and productivity. Onboarding systems can have many features that make it easy to administer, manage tasks, and manage training. It is well worth it to make sure that your talent acquisition systems are effective and engaging. Brandon Hall Group research shows that high-performing¹ organizations are about twice as likely to consider their job posting distribution tool (25% vs. 13%), ATS (19% vs. 7%) and/or their onboarding system (17% vs. 9%) to be valued and widely used than other organizations. ¹ High-performing organizations are shown through survey results to see overall improvement across these criteria: employee engagement, customer satisfaction, organizational revenue/performance, voluntary turnover, and organizational productivity Brandon Hall Group. Licensed for Distribution by Vibe HCM 11

12 Figure 8 Current Talent Acquisition Technology is Valued and Widely Used Source: Brandon Hall Group 2015 Employment Value Proposition (n=209) Employee Services Throughout the employees tenure at an organization, they encounter HR services, such as payroll, time-off, time and attendance, HRIS (employee records), and benefits. These important functions can either be engaging, encourage communication and collaboration, and provide support in the form of knowledge tools or they can frustrate the employee, hinder engagement throughout the year, and waste HR resources by needing to find workaround solutions. Because employee services impact employees throughout their tenure at the organization, on a daily to weekly basis, it is critical that organizations choose systems that foster the employee experience, self-service, and collaboration/communication. High-performing organizations 2016 Brandon Hall Group. Licensed for Distribution by Vibe HCM 12

13 are 28% to 113% more likely to consider their employee service tools to be valuable and widely used, especially payroll, benefits, and HRIS (employee records). Figure 9 Current Employee Services Technology is Valued and Widely Used Retention Source: Brandon Hall Group 2015 Employment Value Proposition (n=209) The drivers of employee retention and engagement generally relate to learning and development, performance management, recognition/rewards, compensation, and collaboration. If employees feel they are doing meaningful work, their opinions are valued, their performance is evaluated fairly, there is a path for learning and development, and they can easily communicate and work with their peers, then they are more than likely to be engaged at work. HCM tools can have a big impact on those factors Brandon Hall Group. Licensed for Distribution by Vibe HCM 13

14 As seen in Figure 10, there is a significant difference between high-performing organizations and other organizations when it comes to learning management, performance management, career planning, and collaboration tools. High-performing organizations are from two to four times as likely to consider their talent management tools to be valued and widely used. Figure 10 Current Talent Management Technology is Valued and Widely Used Source: Brandon Hall Group 2015 Employment Value Proposition (n=209) There is also a higher percentage of organizations achieving an increase in revenue over the past 12 months among those valuing and using recognition, collaboration, and/or social solutions as compared to those organizations that do not value or use those solutions. This again speaks to the need to provide employees with tools that encourage communication, collaboration, and celebrates achievement Brandon Hall Group. Licensed for Distribution by Vibe HCM 14

15 Figure 11 Impact of Recognition, Collaboration and Social Solutions on Past 12-Month Revenue Source: Brandon Hall Group 2014 Employee Engagement Study (n=201) Succession/Workforce Planning Obtaining a comprehensive and in-depth understanding of your organization s workforce, in terms of skills, capabilities, interests, and work contributions will enable efficient and effective succession planning and use of talent as needed by the organization. Additionally, accurate and real-time metrics and dashboards are crucial to workforce planning and measuring the effectiveness of all talent strategies. Based on Brandon Hall Group s EVP research, those organizations that value and use their succession/workforce planning technology are 2½ times as likely to be a high-performing organization Brandon Hall Group. Licensed for Distribution by Vibe HCM 15

16 NOTABLE INSIGHT Figure 12 Current Succession/Workforce Planning Technology is Valued and Widely Used The restaurant and food services industry is a useful case study for systems of engagement because of the dynamics of the market. Source: Brandon Hall Group 2015 Employment Value Proposition (n=209) Industry Spotlight: Restaurant and Food Services The restaurant and food services industry is a useful case study for systems of engagement because of the dynamics of the market. The National Restaurant Association expects eating and drinking places to add jobs at a 3.0 percent rate in 2016, more than a full percentage point above the projected 1.8 percent gain in total U.S. employment. However, as indicated by the Bureau of Labor Statistics Job Openings and Labor Turnover Survey, when the quit rate (not seasonally adjusted) continues to increase, from an annual rate of about 43.6 in 2014 to 47.7 in 2015, it puts unique stresses on restaurants and its employees. Restaurants need to be able to use efficient and engaging 2016 Brandon Hall Group. Licensed for Distribution by Vibe HCM 16

17 NOTABLE INSIGHT The opportunity (for restaurants) is to harness the young age group s social networking skills to motivate them to collaborate with their peers, engage with the organization, streamline HR processes, and deliver efficient and effective service. Systems of engagement answers all those needs. human capital systems to quickly hire, onboard, and train talent; engage all their employees; reduce turnover; and deliver efficient, outstanding service to a growing customer base. In addition to the turnover and growth experienced by the restaurant and food services industry, their workforce is young, with many workers starting their first restaurant job at the age of 18. This poses both a challenge and an opportunity to restaurants. The challenge is in the need to train their first-time restaurant job employees. The opportunity is harness that age group s social networking skills to motivate them to collaborate with their peers, engage with the organization, streamline HR processes, and deliver efficient and effective service. Systems of engagement answers all those needs. California Pizza Kitchen is a global restaurant that operates over 250 casual dining restaurants with over 13,000 employees. California Pizza Kitchen needed a unified online platform to engage their dynamic culture and drive efficiencies at the same time. They wanted a solution that would connect all their employees from all locations to network, share ideas and get involved with the company and community. They chose a global system that could be personalized to individuals and locations and was highly interactive. They deployed Calibrate powered by Vibe HCM and achieved in 12 months: over 7 million minutes spent on Calibrate, 12,000 pieces of shared content, and 3.7 million page visits. As an example, California Pizza Kitchen engaged their employees in The Kindness Fund by branding and using a variety of media in the Vibe HCM program communication page Brandon Hall Group. Licensed for Distribution by Vibe HCM 17

18 Figure 13 California Pizza Kitchen Communication Page Powered by Vibe HCM Source: Vibe HCM Below are additional trending restaurants Umami Burger and Luna Grill moving toward systems of engagement and streamlining their HR processes, attracting talent, and engaging employees. These examples show a sneak-peak at their highly branded, employee friendly platforms. Pictured below are a talent profile page and careers page, respectively Brandon Hall Group. Licensed for Distribution by Vibe HCM 18

19 Figure 14 Umami Burger Talent Profile* Page Powered by Vibe HCM Source: Vibe HCM *Fictitious Profile 2016 Brandon Hall Group. Licensed for Distribution by Vibe HCM 19

20 Figure 15 Career Web Site for Luna Grill Utilizing Vibe HCM Source: Vibe HCM 2016 Brandon Hall Group. Licensed for Distribution by Vibe HCM 20

21 These are two additional examples of how restaurants can use pre-boarding and social / community functionality to help ease employees socialization into the organization and accelerate their time to productivity. Employees get a chance to virtually meet a number of the organization s leaders and some of their colleagues, while also having a chance to experience a small taste of the culture and values of the company. Note: the restaurant names Tap & Grill and Indulge are fictitious. Figure 16 Pre-Boarding Web Page* Powered by Vibe HCM Source: Vibe HCM *Model restaurant 2016 Brandon Hall Group. Licensed for Distribution by Vibe HCM 21

22 Figure 17 Community Page* Powered by Vibe HCM Source: Vibe HCM *Model restaurant 2016 Brandon Hall Group. Licensed for Distribution by Vibe HCM 22

23 NOTABLE INSIGHT Not all HCM technology solutions are the same. Look for solutions that have a compelling, intuitive interface and embed real-time communication, social recognition, collaboration, and knowledge sources. Key Takeaways Examine HCM tool usage throughout the employee life cycle. Are employees working around or avoiding current HCM tools? If yes, that is impacting your organization s performance in terms of productivity, engagement, and collaboration/communication. Include technology in engagement strategy. When developing employee engagement strategies, consider how HCM technology can support those strategies. There are many solutions that are valuable for employee engagement, including social recognition solutions, rewards solutions, learning management systems, and onboarding solutions. Adopt technology that fosters engagement and collaboration. Not all HCM technology solutions are the same. Look for solutions that have a compelling, intuitive interface and embed real-time communication, social recognition, collaboration, and knowledge sources. Those features will help facilitate self-service, streamline HR processes, promote employee engagement, and improve overall organizational performance Brandon Hall Group. Licensed for Distribution by Vibe HCM 23

24 Authors and Contributors Daria Friedman wrote this report. She previously led the research practice for Bernard Hodes Group, a recruitment solutions agency, and Findly, a talent acquisition software service provider. Her research focus is on topics such as talent acquisition technology and metrics, candidate experience, EVP validation, onboarding, candidate experience, retention, and employee engagement. Claude Werder (claude.werder@brandonhall.com) edited this report. He is the Vice President of Research Operations and Principal HCM Analyst at Brandon Hall Group. His responsibilities include overseeing Brandon Hall Group s team of analysts, directing research priorities, content quality assurance, and producing the annual HCM Excellence Conference. Nissa Benjamin (nissa.benjamin@brandonhall.com) is the Marketing Coordinator at Brandon Hall Group and created the graphics and layout for this report Brandon Hall Group. Licensed for Distribution by Vibe HCM 24

25 About Brandon Hall Group Brandon Hall Group is a HCM research and advisory services firm that provides insights around key performance areas, including Learning and Development, Talent Management, Leadership Development, Talent Acquisition, and HR/Workforce Management. With more than 10,000 clients globally and 20 years of delivering world-class research and advisory services, Brandon Hall Group is focused on developing research that drives performance in emerging and large organizations, and provides strategic insights for executives and practitioners responsible for growth and business results. At the core of our offerings is a Membership Program that combines research, benchmarking and unlimited access to data and analysts. The Membership Program offers insights and best practices to enable executives and practitioners to make the right decisions about people, processes, and systems, coalesced with analyst advisory services which aim to put the research into action in a way that is practical and efficient. The Value of Membership The Brandon Hall Group Membership Program encompasses comprehensive research resources and an array of advisory services. Our Membership Program provides: Cutting-Edge Information Our rigorous approach for conducting research is constantly evolving and up-to-date, providing your organization with current and future trends, as well as practical insights. Actionable Research Your membership includes advisory services and tools that are research-driven and provide you a breakthrough approach to addressing immediate challenges and opportunities inside your organization. Customizable Support Whether you are an executive or entry-level practitioner, our research and analyst insights can be leveraged at an individual level and across the entire organization. We realize that every organization has unique needs, so we provide multiple analyst and research access points. Community of Peers We realize the value of connecting with your peers and being part of a community that is focused on continuous improvement. Your membership provides you with personal connections to fellow professionals. Unlimited Access Every member of your team has the ability to utilize research, best practices, and advisory services when they need it most. To learn more about Brandon Hall Group, please call us at (561) or us at success@brandonhall. com Brandon Hall Group. Licensed for Distribution by Vibe HCM 25