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Five Trends that will Redefine Human Capital Management - Presentation

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Steve Hardy, Vice-President of Multinational Marketing at ADP describes five critical trends for today’s business: Globalization, Demographics, Integration, Compliance and Talent and explores how …

Steve Hardy, Vice-President of Multinational Marketing at ADP describes five critical trends for today’s business: Globalization, Demographics, Integration, Compliance and Talent and explores how ADP’s global human capital management solutions have successfully addressed these trends for our multinational clients.

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  • 1. 5 Trends that Will RedefineHuman CapitalSteve HardyVice-President, Multinational Marketing
  • 2. Five Critical Trends for Today’s Business Pressure to be more Strategic2 © Copyright 2012 ADP, Inc. Proprietary and Confidential Information.
  • 3. Trend #1 - Globalization Expanding Global Workforce  Nearly 40% of employees work outside the home country Pressure  Integrated human capital to be more management is key* – Compensation Planning, Strategic Performance, Learning, Self service, mobile are also highly desired * ADP Research Institute MNC Market Study 20113 © Copyright 2012 ADP, Inc. Proprietary and Confidential Information.
  • 4. Trend #2 - Demographics Evolving Workforce Demographics  Demographic – 47% of all employees will have Pressure been born after 1977 by 2013 to be more  Mobile* Strategic – 70% of employees will be mobile  Social** – 52% of Executives now view social networking as an effective collaboration tool * Frost and Sullivan, 2010 ** SHRM Research Spotlight: Social Networking Websites and Staffing, August 20114 © Copyright 2012 ADP, Inc. Proprietary and Confidential Information.
  • 5. Trend #3 - Integration Need to Integrate and Simplify  On average companies have to manage over 8 HR and Payroll systems and/or vendors* Pressure to be more  58% of HR staff time spent on administrative tasks** Strategic  19% of time spent on feeding data into multiple systems * ADP MNC Market Study, May 2011 ** ADP Research Institute Achieving Strategic HR5 © Copyright 2012 ADP, Inc. Proprietary and Confidential Information.
  • 6. Trend #4 - Compliance Intensifying Compliance Burden  ~20K new pieces of legislation worldwide affects employers Pressure to be more  Less time to implement state / federal employment tax Strategic regulations – Days vs. months6 © Copyright 2012 ADP, Inc. Proprietary and Confidential Information.
  • 7. Trend #5 - Talent Attracting / Growing and Retaining People  83% of CEOs list talent management as their #1 priority* Pressure – Managing skills shortage to be more – Driving engagement and Strategic productivity – Retaining your people  Managing the entire employee life cycle is critical * Price Waterhouse Coopers 14th Annual CEO Survey, June 20117 © Copyright 2012 ADP, Inc. Proprietary and Confidential Information.
  • 8. Talent Management Drives Business Results higher revenue lower voluntary 26% per employee 17% turnover more capable of retaining lower turnover among 109% high performers 41% high-performers more capable of less likely to have had 87% hiring the best 28% a major layoff in 2009 better at responding to 92% economic conditions better at planning for 144% future talent needs
  • 9. ADP Helps Make Human Capital More Manageable Career and Individual Development Performance Recognition, Merit , Pay Management Engagement, Bonus, Incentive Goal Alignment Programs On-Boarding Learning Career Sourcing, Development Screening, Selection End to End, Human Capital Lifecycle Management9 © Copyright 2012 ADP, Inc. Proprietary and Confidential Information.
  • 10. Complete End-to-End, Global Human Capital Management Cloud based Software Recruiting Learning Performance Compensation Succession Reporting Analytics Mobile Portal HR System of Record Time and Labor Management Payroll Processing Managed Comprehensive Delivered as a Service Seamless integration. Complete End to End Suite. Innovative Cloud Based Delivery10
  • 11. Our Track Record In Meeting the Challenges Globalization Talent  Serve ~7.5M employees outside US  Over 9,000 Talent clients  Operate in 81 countries  More than 95M total job seekers  Deep in country compliance expertise  Over 2M pay adjustments and  Provide service and support in $125 billion in total comp managed 26 languages  More than 2M completed performance reviews on file Demographics Compliance  Over 250K clients and 13M users  1,500+ associates interpret, manage accessing ADP through the cloud legislative updates  Single mobile solution available for  2,000+ tax agency relationships 16+ ADP services, available in 12  Last 12 months processed: languages – ~1.5M liens – ~810K unemployment claims11 © Copyright 2012 ADP, Inc. Proprietary and Confidential Information.
  • 12. Our Track Record Total Cost of Ownership (Per Employee per Year)* 15% 24%  Increased Accuracy  Improved HR Service Delivery and Employee $1,202 Satisfaction $1,020 $910  Achieve Overall Cost Advantages With HCM Outsourcing In-House In-House Outsourcing Solution Multiple Common Common Platforms Platform Platform * HCM, Payroll, TLM12 © Copyright 2012 ADP, Inc. Proprietary and Confidential Information.
  • 13. ADP’s Global Reach Helps Address DifferentNeeds of the Business Attract and retain talentHR Maintain headcount / increase productivity Increase employee engagement Meet agility needs of the business Technology Reduce number of systems, vendors Optimize spend, return on investment Reduce costs Finance Balance capital, operating expense Increase margins13 © Copyright 2012 ADP, Inc. Proprietary and Confidential Information.
  • 14. Summary  Globalization and Shifting Demographics Significant Business 1 Trends Impact HR  Integration and Compliance  Talent Managing Talent  CEO’s #1 Priority 2 Becomes Critical  Measurable impact on business  Integrated cloud-based HCM suite ADP is Positioned To  Lower total cost of ownership 3 Help Drive Your  Measurable impact to business Success  One cohesive delivery and service model14 © Copyright 2012 ADP, Inc. Proprietary and Confidential Information.
  • 15. Thank you.15 © Copyright 2012 ADP, Inc. Proprietary and Confidential Information.