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Getting Strategicwith HR Technology

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Objectives1. Trends in HR Technology2. How to Leverage Technology to be Strategic3. Analytics and Metrics Examples

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

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

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Trends in HR Technology1. Web 2.02. Workforce Mobility3. Employee Self Service4. Business Activity Monitoring5. Talent Management6. HR Analytics

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Trend #1 – Web 2.0

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What Was Web 1.0? Information PUSH Consumption

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Trend #1 – Web 2.0 Collective Intelligence User Content

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

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

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

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

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World Class ExamplesYouTube – ‘The Company as Wiki’

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Trend #2 – Mobility• Statistics – 70% - Mobile phones for work – 50% - Check work email on weekend – 89% - U.S. companies offer telecommuting – 119 Million U.S. workers are mobile Sources: Socialcast Telework Coalition IDC

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Mobility – HR Opportunities HR Leadership Engagement Innovation Work/Life Balance

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Trend #3 - Self Service

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

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Trend #4 - BAMBusiness Activity Monitoring 1. Executing Redundant Tasks 2. Exception Management 3. Trend Analysis 4. Data Integrity 5. Data Inconsistencies 6. Reporting

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BAM – HR Opportunities1. Business Intelligence 1. Monitor Data in Automated Way2. Alerting 1. Email, Fax, Phone, Dashboard, Twitter3. Reporting 1. Reports, Analytics, Forms4. Workflow 1. Initiate and Act On HR Data

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BAM – HR Opportunities New Hire Pay Rate Absence % Change Over Time Paperwork Req’d Data Missed Excessive OT Review Review Happy Certifications Term Birthday Due Notification

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Trend #5 – Talent Management• Talent Challenges – Filling Leadership Pipeline – Developing Skills to Address Business Challenges – Performance-driven Culture – Dissatisfied Employees War For Talent 2.0

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

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Trend #6 – HR Analytics• Data  Decisions• Metrics/Key Performance Indicators – Analytical Tools – Dashboards Knowledge Information Data

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

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

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

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Strategic HR Technology • Key Economic Data Create • HR Decision-Making Analytics • Business Impacts • ROEI • Improve Company Performance Influence • Reduce Costs “C”-Suite • Improve Competitiveness • Manage Change

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

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Strategic HR with Technology• Why Aren’t We? – HR Administrivia • Transactional duties • ‘Social work’ activities • Comfort zone – HR Skill Set – Data Accuracy

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Strategic HR with TechnologyWhy 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

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Leverage HR TechnologyONE: Reduce ‘Social Work’• Utilize Technology – ESS – Business Alerts – Reporting

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Leverage HR TechnologyTWO: Serve the Business• Human Capital Management Plan – M, V, G, O• HR Goals Corporate Goals• HR Metrics Business Decisions• Data Integration

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Leverage HR TechnologyCorporate Objective Aligned HR Goals• Increase Productivity • Increase EE engagement • Provide training to employees • Speed up onboarding process • Strategic compensation• Improve Competitiveness • Retention of top performers • Performance management• Reduce Costs • Increase EE retention • Manage benefit costs • Reduce transactional paperwork• Improve Sustainability • Capture workforce analytics

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

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Leverage HR TechnologyFOUR: Make Value, Not Activity• Key Performance Indicators• Scorecards Training Attendees/Month Training Effectiveness• Analysis

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Leverage HR TechnologyFIVE: Inquiry, Not Intuition• Get Answers From Metrics• Bust Myths• 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

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HR Analytics – ExamplesRevenue Factor • Total Revenue / Total HeadcountNet Income/FTE • Revenue – Operating Expense / FTE’sAbsence Factor • Absence Hours / Pay RateTurnover Ratio • Total Terms / Total Headcount

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

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HR Analytics – Examples Time to Fill • Number of days to fill position Cost per Hire • Cost involved with new hireBenefit Cost/EE • Total cost / # employeesHuman Capital • Salaries / Overall operating expense Cost

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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

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Dashboard Metrics

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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.

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Thank You!hford@dresserassociates.comhttp://www.linkedin.com/in/haroldgfordiii