HR June 2010


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One day interactive training course delivered in London to an audience of HR and personnel professionals, Learning & Development managers, Training officers and Compensation & Benefits specialists.

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HR June 2010

  1. 1. Things HR and Personnel people need to know<br />by Fluid <br />June 2010<br />
  2. 2. Page 2<br />Contents<br />3-4 Introduction to Fluid<br />5-6 Terminology<br />7-20 Strategy, real-life examples<br />21-24 Shared services, Cambridgeshire County Council<br />25-27 Pay<br />28-29 CIPD qualifications whilst working<br />30-33 Surviving the downturn<br />34-35 Assessing the contribution of HR<br />36-37 Making HR more credible <br />38-39 Make the HR intranet work<br />40-41 Exercise<br />42-53 Outsourcing<br />54-55 Case studies<br />56-57 Conclusion and questions<br />
  3. 3. Page 3<br />Introduction<br />
  4. 4. Page 4<br />Introduction to Fluid<br />Fluid Consulting Limited (Fluid) is a specialist human resources consultancy headed by Tim Holden MCIPD <br />10 years in banking<br />10 years in Human Resources consultancy<br />Fluid trading since 2006<br />The core services provided by Fluid are:<br /><ul><li>Retention
  5. 5. Selection</li></ul>- Attraction<br />- Remuneration & Reward <br />- Outplacement<br />- Training & HR consultancy<br />
  6. 6. Page 5<br />Terminology<br />
  7. 7. Page 6<br />Terminology<br /><ul><li>TERMINOLOGY
  8. 8. Change management
  9. 9. Coaching
  10. 10. High-performance working
  11. 11. HR business partner
  12. 12. Human capital
  13. 13. Knowledge management
  14. 14. Shared services
  15. 15. Talent management
  16. 16. Total reward</li></li></ul><li>Page 7<br />Strategy, real-life examples<br />
  18. 18. Croydon Council is the largest employer in the borough, spending more than £900M each year. However it was felt that the council’s HR service was struggling; decentralised and with no overall strategy
  19. 19. The council developed a people strategy, aligned with the council’s community strategy and corporate plan
  20. 20. Introduced a new leadership academy to develop talent
  21. 21. Workforce planning was focused on new ways of working for integrated workforce of council, police and health staff
  22. 22. Strategy monitored through annual plans</li></ul>Strategy, real-life examples 1 of 13<br />
  23. 23. Page 9<br />Strategy, real-life examples 2 of 13<br /><ul><li>CROYDON COUNCIL-BENEFITS AND ACHIEVEMENTS
  24. 24. Croydon is now the best-performing London council for reducing sickness absence, now down to 5 working days
  25. 25. The council went from 68th to 6th in the human capital best value indicator for local authorities
  26. 26. The annual government inspection highlighted rapid improvement and increased productivity
  27. 27. More than £1.6M was saved in recruitment advertising and agency contracts</li></li></ul><li>Page 10<br /><ul><li>HM PRISON SERVICE-THE CHALLENGE AND WHAT THEY DID
  28. 28. A new HR strategy was launched, aiming to deliver more effective working practices among its employees
  29. 29. Replaced large prison-based teams with a dedicated shared service centre, with HR business partners recruited to implement change
  30. 30. Sold the business case-reduction in costs by £148M over five years-to the board
  31. 31. Set challenging goals to improve diversity, restructure training, increase employee engagement, develop leaders and introduce qualifications for officers</li></ul>Strategy, real-life examples 3 of 13<br />
  32. 32. Page 11<br />Strategy, real-life examples 4 of 13<br /><ul><li>HM PRISON SERVICE-BENEFITS AND ACHIEVEMENTS
  33. 33. BME representation has risen from 3% to 6% in a ten year period
  34. 34. New training plans were created for 600 people with increased training requests
  35. 35. A recent survey revealed that 75% were satisfied with their jobs, 72% felt they were treated with respect, and 88% were clear about what was expected from them
  36. 36. 2000 candidates have taken a new NVQ</li></li></ul><li>Page 12<br />Strategy, real-life examples 5 of 13<br /><ul><li>LANCASHIRE COUNTY COUNCIL-THE CHALLENGE AND WHAT THEY DID
  37. 37. The council provides a wide range of public services directly and through partnerships to citizens. It recognised the time-bomb of a ‘demographically imbalanced’ workforce propped up by costly agency staff. The council wanted to target different types of jobseekers and connect them with the authority
  38. 38. Developed a public sector work trial scheme called WorkStart, creating a route back to work for long-term welfare recipients, reducing agency costs
  39. 39. Re-engineered the apprenticeship programme to address demographic trends
  40. 40. Founded Future Horizons, which gives young people qualifications, career advice and a work placement</li></li></ul><li>Page 13<br />Strategy, real-life examples 6 of 13<br /><ul><li>LANCASHIRE COUNTY COUNCIL-BENEFITS AND ACHIEVEMENTS
  41. 41. Developed a ‘grow your own’ culture by recruiting apprentices, saving £120000 a year
  42. 42. Arranged placements for 60 people through WorkStart, with 43 securing employment
  43. 43. New workforce models have contributed towards £1M in savings on agency staff
  44. 44. 18 young people completed pilot Future Horizons programme, with 14 going on to secure an apprenticeship with the council</li></li></ul><li>Page 14<br />Strategy, real-life examples 7 of 13<br /><ul><li>MCDONALDS-THE CHALLENGE AND WHAT THEY DID
  45. 45. McDonalds needed to transform its reputation and reclaim the phrase ‘McJob’. Enhancing the brand would bring about improvements in recruitment, retention, customer and staff satisfaction as well as profitability
  46. 46. Friends and family contract, enabling two friends or family members to cover each other’s shifts
  47. 47. A hard-hitting campaign of press advertising and in-store posters highlighting their attractive benefits and signed off with the strapline ‘not bad for a McJob’</li></li></ul><li>Page 15<br />Strategy, real-life examples 8 of 13<br /><ul><li>MCDONALDS-THE CHALLENGE AND WHAT THEY DID
  48. 48., which is a lifestyle, career and personal development website for employees including the chance to obtain GCSE-literacy and numeracy qualifications through online learning
  49. 49. A public petition to change the dictionary definition of McJob
  50. 50. McTime-an online schedule enabling restaurant staff to check their shifts without having to contact the store directly
  51. 51. Designer uniforms to increase confidence and pride</li></li></ul><li>Page 16<br />Strategy, real-life examples 9 of 13<br /><ul><li>MCDONALDS-BENEFITS AND ACHIEVEMENTS
  52. 52. Accreditation from the QCA granting McDonalds UK awarding body status
  53. 53. Crew turnover reduced by 20% since reputation work began
  54. 54. 84% said their perception of McDonalds had improved as a result of seeing the McJob campaign, with a 25% increase in those saying they would recommend it as an employer
  55. 55. 73% said they feel motivated in their job
  56. 56. The McDonalds UK Brand Index Corporate Score rose 16 points (the biggest sector rise of the 1500 companies monitored)</li></li></ul><li>Page 17<br />Strategy, real-life examples 10 of 13<br /><ul><li>PFIZER UK-THE CHALLENGE AND WHAT THEY DID
  57. 57. A business transformation driven by internal and external pressures was needed to put the customer at the heart of Pfizer’s operating model. HR needed to lead a reorganisation to develop new ways of working with less resource and flatter structures that would deliver sustainable business growth
  58. 58. Developed an integrated business strategy, recognising people as the foundation for success and clarifying new business goals, priorities, plans and metrics
  59. 59. Introduced leadership programmes to develop a talent pipeline Held a ‘One Pfizer’ launch to engage line managers & colleagues
  60. 60. Recruited 9% of the workforce as behavioural champions to work closely with management and the board to change practices</li></li></ul><li>Page 18<br />Strategy, real-life examples 11 of 13<br /><ul><li>PFIZER UK-BENEFITS AND ACHIEVEMENTS
  61. 61. Coaching programme for all line managers is on target for 95% completion
  62. 62. Latest revenue target is at 105% of budget
  63. 63. Embedded two of the new behaviours to the extent that 60% (behavioural index count) of all employees believe the behaviours have become part of ‘Ways of Working’</li></li></ul><li>Page 19<br />Strategy, real-life examples 12 of 13<br /><ul><li>THOMSON REUTERS-THE CHALLENGE AND WHAT THEY DID
  64. 64. Following a global merger a number of changes needed to take place
  65. 65. Designed and started implementation of a new global HR function, integrating the two HR functions
  66. 66. Put in place mechanisms for monitoring employee morale through regular ‘pulse checks’
  67. 67. Hand picked experienced employees to lead 16 workstreams
  68. 68. Ensured top team ownership of key processes-for example, the CEO wrote ‘guiding principles’ to inform line managers’ behaviour when appointing employees
  69. 69. Provided universal access to all jobs across the organisation by integrating recruitment systems</li></li></ul><li>Page 20<br />Strategy, real-life examples 13 of 13<br /><ul><li>THOMSON REUTERS UK-BENEFITS AND ACHIEVEMENTS
  70. 70. Delivered a globally consistent redundancy process
  71. 71. Rolled out a single performance management system in time for mid-year reviews
  72. 72. Agreed and delivered a single compensation framework by day one
  73. 73. Helped appoint more than 500 people to new roles by day one</li></li></ul><li>Page 21<br />Shared services<br />
  74. 74. Page 22<br />Shared services 1 of 3<br /><ul><li>CROSS-ORGANISATIONAL SHARED SERVICES
  75. 75. Be absolutely clear on what shared services will deliver to your organisations and set specific goals
  76. 76. Define who its customers are and implement robust review measures to ensure their needs are being met
  77. 77. Be pragmatic about which activities should be in-house and which should be outsourced, and be clear when communicating your new HR processes to stakeholders</li></li></ul><li>Page 23<br />Shared services 2 of 3<br /><ul><li>CROSS-ORGANISATIONAL SHARED SERVICES
  78. 78. Explore all your technology options with a view to taking the mundane tasks out of processes while keeping important services in place
  79. 79. Agree on governance structures that will determine the type and standard of services offered, designing procedures that allow adjustment with change
  80. 80. Develop an agreed internal pricing regime which can include a variety of charging mechanisms, but needs to be modelled so that partners are aware of cost exposure</li></li></ul><li>Page 24<br />Shared services 3 of 3<br /><ul><li>CROSS-ORGANISATIONAL SHARED SERVICES
  81. 81. Have service level agreements in place to avoid disagreements on things such as speed of delivery
  82. 82. Clarify whether the services are hosted by a separate new business owned by partners or by one organisation on behalf of others
  83. 83. Determine whether employees will retain contracts of employment or be TUPE-transferred
  84. 84. Maintain a long-term vision, as it will be needed to overcome any day-to-day problems</li></li></ul><li>Page 25<br />Pay<br />
  85. 85. Page 26<br />Pay 1 of 2<br /><ul><li>BBC
  86. 86. Department of Health
  87. 87. Derby Hospitals NHS Foundation Trust
  88. 88. BBC
  89. 89. BBC
  90. 90. BBC
  91. 91. Cabinet Office
  92. 92. BBC
  93. 93. Home Office
  94. 94. BBC</li></li></ul><li>Page 27<br />Pay 2 of 2<br /><ul><li>FTSE 100
  95. 95. Chief Executive
  96. 96. Finance Director
  97. 97. FTSE 250
  98. 98. Chief Executive
  99. 99. Finance Director
  100. 100. FTSE 350
  101. 101. Chief Executive
  102. 102. Finance Director</li></li></ul><li>Page 28<br />CIPD qualifications whilst working <br />
  103. 103. Page 29<br />CIPD qualifications whilst working<br /><ul><li>Think strategically
  104. 104. Build a support network
  105. 105. Keep your manager in the loop
  106. 106. Be organised
  107. 107. Manage your time
  108. 108. Work on key study skills
  109. 109. Link with continuing professional development
  110. 110. Make the most of resources
  111. 111. Keep your end goal in mind</li></li></ul><li>Page 30<br />Surviving the downturn<br />
  112. 112. Page 31<br />Surviving the downturn 1 of 3<br /><ul><li>Understand the business context
  113. 113. Look at competitors
  114. 114. Protect your talent
  115. 115. Think long term
  116. 116. Do your homework</li></li></ul><li>Page 32<br /><ul><li>Do get your house in order
  117. 117. Do refocus your HR agenda on new business priorities
  118. 118. Do tackle the basics
  119. 119. Do focus on top talent
  120. 120. Do more with what you’ve got
  121. 121. Don’t lose your identity
  122. 122. Don’t stop hiring the best talent
  123. 123. Don’t ignore opportunities to increase revenue
  124. 124. Don’t lose the wrong people
  125. 125. Don’t cancel capital projects that will be needed in the upturn</li></ul>Surviving the downturn 2 of 3<br />
  126. 126. Page 33<br /><ul><li>HR INTERIMS
  127. 127. Know yourself
  128. 128. Perfect your CV
  129. 129. Network, network, network
  130. 130. Prepare well for interview
  131. 131. Take advantage of agencies
  132. 132. Use the internet cleverly
  133. 133. Ask people to refer you-and return the favour
  134. 134. Explain your gaps
  135. 135. Be flexible</li></ul>Surviving the downturn 3 of 3<br />
  136. 136. Page 34<br />Assessing the contribution of HR<br />
  137. 137. Page 35<br />Assessing the contribution of HR<br /><ul><li>Understand the metrics
  138. 138. Collect the correct data
  139. 139. Report the right data to the right people
  140. 140. Use a basket of measures
  141. 141. Develop leading and lagging indicators
  142. 142. Dealing with the data</li></li></ul><li>Page 36<br />Making HR more credible<br />
  143. 143. Page 37<br />Making HR more credible<br /><ul><li>Get the basics right
  144. 144. Spend some time outside HR
  145. 145. Manage risk
  146. 146. Admit what you don’t know
  147. 147. Focus on outcome, not process
  148. 148. Help the line to achieve objectives</li></li></ul><li>Page 38<br />Make the HR intranet work<br />
  149. 149. Page 39<br />Make the HR intranet work<br /><ul><li>Sort out the basics
  150. 150. Get people to log on
  151. 151. Use it as a telephone substitute
  152. 152. Think big on HR self-service
  153. 153. Don’t forget payroll
  154. 154. Think outside the intranet
  155. 155. Get a second opinion</li></li></ul><li>Page 40<br />Exercise<br />
  156. 156. Page 41<br />Exercise<br />
  157. 157. Page 42<br />Outsourcing<br />
  158. 158. Page 43<br />Outsourcing 1 of 11<br /><ul><li>TERMINOLOGY
  159. 159. BPO
  160. 160. HR transformation
  161. 161. Infusion
  162. 162. Insourcing
  163. 163. KPI
  164. 164. Lift and shift</li></li></ul><li>Page 44<br />Outsourcing 2 of 11<br /><ul><li>TERMINOLOGY
  165. 165. Pure play
  166. 166. RFI
  167. 167. SLA
  168. 168. Value leakage
  169. 169. Vanilla service</li></li></ul><li>Page 45<br />Outsourcing 3 of 11<br /><ul><li>SELECTING A PROVIDER
  170. 170. Put yourself in their shoes
  171. 171. Plan the key messages
  172. 172. Communicate your case
  173. 173. Check, practice and rehearse
  174. 174. Give decision-makers a choice
  175. 175. Now repeat the first five steps
  176. 176. Maintain momentum</li></li></ul><li>Page 46<br />Outsourcing 4 of 11<br /><ul><li>DRAWING UP A CONTRACT
  177. 177. Scope
  178. 178. Managing service performance
  179. 179. Poor performance
  180. 180. The governance structure
  181. 181. Exit management</li></li></ul><li>Page 47<br />Outsourcing 5 of 11<br /><ul><li>MANAGING THE CONTRACT
  182. 182. Sign the contract but don’t abdicate responsibility
  183. 183. Develop core competence in contract management
  184. 184. Ensure board-level support
  185. 185. Select a partner that works to understand you
  186. 186. Establish a collaborative relationship
  187. 187. Consider setting up the contract as a joint venture
  188. 188. Understand what you currently get out of HR
  189. 189. Retain ownership of the HR policy and strategy</li></li></ul><li>Page 48<br />Outsourcing 6 of 11<br /><ul><li>RECRUITMENT PROCESS OUTSOURCING
  190. 190. Dos
  191. 191. Don’ts</li></li></ul><li>Page 49<br />Outsourcing 7 of 11<br /><ul><li>RECRUITMENT PROCESS OUTSOURCING-insand outs
  192. 192. Client seeking improved efficiency calls in RO company to handle some or all of its recruitment
  193. 193. Outsourcing experts assess company’s requirements with in-house HR department and advise on best strategy</li></li></ul><li>Page 50<br />Outsourcing 8 of 11<br /><ul><li>RECRUITMENT PROCESS OUTSOURCING-ins and outs
  194. 194. Recruitment process, including advertising, analysis of job applicants and interviews, handles by RO team
  195. 195. Once employees are hired, outsourcers help them settle into new positions by organising security passes, initial training etc.
  196. 196. When an employee leaves a RO firm, RO expert interviews them to ensure smooth transition of duties to their successor</li></li></ul><li>Page 51<br />Outsourcing 9 of 11<br /><ul><li>RECRUITMENT PROCESS OUTSOURCING-Key driversfor growth
  197. 197. Globalisation is driving down recruitment costs and increasing the opportunities for outsourcing
  198. 198. Communications technology links the world and drives efficiency gains
  199. 199. New business models are focusing on shareholder and stakeholder value leading to more transparent recruitment costs</li></li></ul><li>Page 52<br />Outsourcing 10 of 11<br /><ul><li>RECRUITMENT PROCESS OUTSOURCING-Key driversfor growth
  200. 200. Risk management techniques mean management is better prepared to evaluate alternative strategies
  201. 201. Mobility of labour, including migration within the EU and globally, makes recruitment more dynamic
  202. 202. Diversity of the workforce results in more flexible work patterns</li></li></ul><li>Page 53<br />Outsourcing 11 of 11<br /><ul><li>PAYROLL
  203. 203. Dos
  204. 204. Don’ts</li></li></ul><li>Page 54<br />Case studies<br />
  205. 205. Page 55<br />Case studies<br />
  206. 206. Page 56<br />Conclusion & Questions<br />
  207. 207. Page 57<br />Conclusion<br />Summary<br />Questions<br />