Is Disjointed Data Blurring Your View of Who to Retain or Fire?5 Steps to Gaining Application Clarity and Better Decision-Making Expert Advice from Paul D. Hamerman, Nora Costa and Nick Camelio March 26, 2009
Agenda• Introduction: Our Team of Experts• The Situation• The HR Dilemma• Common Pitfalls and Causes• 5 Steps to Fixing the Problem• Getting Executive Buy-In
IntroductionSalary.com presents the “HR Dilemma™ Series”• Fictional cases that present common managerial dilemmas...and,• Offer concrete solutions from experts on how to resolve them
Our Experts Paul Hamerman Nora Costa Nick Camelio Forrester Iron Mountain Salary.com ResearchLeading industry analyst at Forrester Director of compensation at Iron Vice President of Human Resourceswith nine years of experience specific Mountain, with over 25 years of and Talent Development atto business technology, evaluating: experience as a business & practice Salary.com, with over 16 years ofsoftware vendor mergers and leader in corporate HR, with proficiency experience providing HR leadershipacquisitions, next-generation in market pricing and skill- or to technology companies –architectures, industry-specific competency-based salary structure specifically in recruiting,strategies, & packaged application design. Industries include business compensation and benefits, learningdeployment models (including services, higher education, financial and development, and employeesoftware-as-a-service). services, healthcare, and software. retention.Expertise: Enterprise Applications Expertise: Compensation Management Expertise: Strategic HR Functions
The Acme CompanyLeading Pharmaceutical Provider• 2,500 FTE• 3 Global Offices (UK, Singapore, Tokyo)• 15 US offices• Annual compensation budget is roughly $250 million• 15 Product Lines in US and 10 in Europe/Asia
Our Cast of CharactersClaire, VP of HR at Acme Co. Seasoned HR veteran with over 15 years of experience. Responsible for US and global HR operations for 2,500 FTE company. Has Team of 20 People. Working on consolidating two operating divisions via acquisitions; manages multiple homegrown and packaged point solutions.Mark, CFO at Acme Co. Fiscally conservative CFO. Responsible for HR, Legal and Finance operations. Believes strong balance sheet is crucial to company’s health. Believes in paying for results and strategic use of technology to improve business operations. Investing in sales initiatives to drive top-line sales growth inside US.
March 2008: Strategic Planning Mark and Claire review corporate objectives and set budget:• Aggressively recruit in new sales positions in US• Integrate 2 new acquisitions and critical sales positions in US• Implement aggressive pay-for-performance plan across globe• Build pipeline of strong leaders for key positions• Manage to specific cash flow targets per quarter
Business Environment Changes Underneath Strategic PlanTracking to goals Market Collapses
The New Corporate ObjectivesMark, CFO walks into Claire’s office:• Implement hiring freeze and reduce payroll by 15%• Must maintain high level of customer service, and...• Stay competitive in our key focal areas• Craft a plan to execute in next 30 days
The Patch ProcessClaire’s team scrambles to craft the plan and reviews that data shehas to work with: • 3 HRMS systems for headcount, positions and salaries • Excel-based submissions for remaining domestic offices – Multiple performance input across company • Performance ratings, potentials but no historical data • Paper-based job descriptions, development plans with no competency data
Claire’s HR Dilemma & Opportunity• Claire must pull together a recommended methodology and list: – No standard core system of record; – Has to make over 5 phone calls to pull data requests across IT, Legal Compliances, HRMS directories, performance histories, learning updates & finance – Team works overtime to aggregate, organize and validate data. – Lack of executive awareness - most executives don’t realize they lack the ability and systems to pull the information together• How can she pull it all together so executive leadership can focus on the best methodology and process, ensuring they make the best talent decisions to achieve their business goals?
The Challenge: What Should Claire Do?Expert Commentary
Paul D. HamermanCauses and Pitfalls• Multiple core HRMS solutions, lack of global HR data• Outdated HRMS core system with manual processes• Processes optimized around payroll, not HR• Numerous best-of-breed solutions
Nora Costa• The pain of patching together a view• Turning the executive dilemma into an “aha moment”• Window of opportunity to educate and pitch to senior management and coordinate a plan that saves time and money
Nick CamelioAdministrative burden, time to patch vs. the focus onstrategic decisions – Pre and post reduction – How does unified data help through the aftermath?
Build Case for HR ROI5 Things You Can Do:1. Go to CFO with business case2. Calculate the cost of disjointed data • # of man-hours to pull/aggregate across functions • Impact of redeploying resources on strategic talent decisions1. Calculate the cost of multiple systems and vendors • # of people and vendors to manage • Cost to operate internally vs. leveraging SaaS options
Build Case for HR ROI …continued4. Quantify the impact of deploying best practices on CFO- metrics: • Revenue per employee and net income per employee • Reduction in operating expenses vendor consolidation, (SaaS) • Improvement in reporting • Lower employee turnover and replacement costs (time, $)5. Develop a coordinated HR Applications Roadmap and ROI
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