Getting Strategic with HR Technology - 2012
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Companies of all sizes are struggling to manage the massive amounts of data related to human resource management. This program will examine the various solutions technology offers to deal with this challenge, and provide examples to increase department efficiency while adding strategic value to the business.
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Getting Strategic with HR Technology - 2012
- 1. Getting Strategic with HR Technology
- 2. Objectives 1. Trends in HR Technology 2. How to Leverage Technology to be Strategic 3. Analytics and Metrics Examples
- 3. Who Is This Guy? HR Strategist HR/Payroll Systems Expert Trusted Advisor Social Media Advocate Self-Professed Geek Early Adopter
- 4. Terminology – HR Technology • Acronym Soup • SHRM – Core Discipline • David Ulrich, University of Michigan – Primary HR Competency Domain
- 5. Trends in HR Technology 1. Web 2.0 2. Workforce Mobility 3. Employee Self Service 4. Business Activity Monitoring 5. Talent Management 6. HR Analytics
- 6. Trend #1 – Web 2.0
- 7. What Was Web 1.0? Information PUSH Consumption
- 8. Trend #1 – Web 2.0 Collective Intelligence User Content
- 9. Trend #1 – Web 2.0 Blogs & Wikis RSS Feeds Aggregate Sites Social Networking
- 10. 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
- 11. Social Media – HR Opportunities • Many-to-Many Dialogue • Qualitative Contact • Hunters Now The Hunted • Passive Job Seekers • Mitigate Risk Social Recruiting
- 12. Social Media – HR Opportunities • Enhance Collaboration • Unlock Tacit Knowledge • Immersion • Innovative Approaches • Reduced Cost Social Learning
- 13. World Class Examples YouTube – ‘The Company as Wiki’
- 14. 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
- 15. Mobility – HR Opportunities HR Leadership Engagement Innovation Work/Life Balance
- 16. Trend #3 - Self Service
- 17. 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
- 18. Trend #4 - BAM Business Activity Monitoring 1. Executing Redundant Tasks 2. Exception Management 3. Trend Analysis 4. Data Integrity 5. Data Inconsistencies 6. Reporting
- 19. BAM – HR Opportunities 1. Business Intelligence 1. Monitor Data in Automated Way 2. Alerting 1. Email, Fax, Phone, Dashboard, Twitter 3. Reporting 1. Reports, Analytics, Forms 4. Workflow 1. Initiate and Act On HR Data
- 20. 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
- 21. 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
- 22. Talent Mgmt – HR Opportunities • Acquiring Talent – Sourcing – Selection • Developing Talent – Succession Planning – Social Learning • Assessing Talent – Performance Appraisal – Goals Measurement
- 23. Trend #6 – HR Analytics • Data Decisions • Metrics/Key Performance Indicators – Analytical Tools – Dashboards Knowledge Information Data
- 24. 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
- 25. Terminology • Long-Term • Big Picture Thinking • Holistic View • Company Goals/Objectives • Value/Outcome Focused “HR must give value, or give notice.” – David Ulrich
- 26. HR Technology Efficiencies Reduce Administrative Burden Better Reports/Distribution Efficiency Better Compliance Better Talent Management Improved Labor Relations
- 27. 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
- 28. Strategic HR with Technology - Professor Jon Boudreau, USC’s Marshall School of Business
- 29. Strategic HR with Technology • Why Aren’t We? – HR Administrivia • Transactional duties • ‘Social work’ activities • Comfort zone – HR Skill Set – Data Accuracy
- 30. Strategic HR with Technology Why 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
- 31. Leverage HR Technology ONE: Reduce ‘Social Work’ • Utilize Technology – ESS – Business Alerts – Reporting
- 32. Leverage HR Technology TWO: Serve the Business • Human Capital Management Plan – M, V, G, O • HR Goals Corporate Goals • HR Metrics Business Decisions • Data Integration
- 33. Leverage HR Technology Corporate 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
- 34. Leverage HR Technology THREE: Measure the Right Things • Baby Steps • K.I.S.S. • Few, But Layered • Start With the End in Mind
- 35. Leverage HR Technology FOUR: Make Value, Not Activity • Key Performance Indicators • Scorecards Training Attendees/Month Training Effectiveness • Analysis
- 36. Leverage HR Technology FIVE: 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
- 37. HR Analytics – Examples Revenue Factor • Total Revenue / Total Headcount Net Income/FTE • Revenue – Operating Expense / FTE’s Absence Factor • Absence Hours / Pay Rate Turnover Ratio • Total Terms / Total Headcount
- 38. HR Analytics – Examples Turnover Ratio Turnover 20% 18% 16% 14% 12% 10% 8% Turnover 6% 4% 2% 0%
- 39. HR Analytics – Examples Time to Fill • Number of days to fill position Cost per Hire • Cost involved with new hire Benefit Cost/EE • Total cost / # employees Human Capital • Salaries / Overall operating expense Cost
- 40. 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
- 42. 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.
Editor's Notes
- Something everyone wants to talk about, HR Technology!I love tech, and HR Tech is my passion – technology & building better tech strategies in companies
- Current and trends in HR techHow HR Tech can make you more strategicWhy an ROI matters
- 18 years providing technology advice to HR/Payroll deptsUse a smartphone? 1.2 billion people carry smartphonesUse GPS? Tweeted that they were here today?
- Acronym soup –daze and confuse, almost as much as HRBenefits admin, HR info mgmt, recruiting, training/learning mgmt, performance mgmt, payroll, work timeCore HR discipline by SHRM and is a facet of all other HR disciplines.HR Guru David Ulrich HR Magazine’s Most influential HR person#1 management educator by Business WeekMastery of HR Technology as one of the five competency domains
- 5 Trends taken from a variety of sources: SHRM’s HR Trend Book (weknownext.com), Watson Wyatt Research, IHRIM, our customersThese 5 trends all incorporate a similar theme:Better strategic design, & HR’s role in that strategyChanges in how employees work
- Connecting with people Building CommunitiesCommunicating and Collaborating with your customers, employees, and peers to improve your brand.Provide Clarity and transparency about yourself & your company.Cultivating loyalty and trust.Sharing ContentConvergence – a complete transformation on how we do everything
- Major transformation of the internetWeb 1.0 – push content out to masses; “advertising”We searched for information and consumed it
- 2nd generation of web development and design Facilitates communication, information sharing, and collaboration on the world wide web Part of our daily lives
- Blogs –200,000,000 blogs Wikis – Collaborative user communities (ex: Wikipedia)RSS – Updates are automated, update site and RSS updates thousands of areas on the webAggregate – sites like indeed.com – one stop shopping for candidatesSocial networking sites – online communities that provide users a variety of ways to interact3 out of 4 Americans use social technology.
- Branding - #1 business use when polledHR transformation:* Recruiting is driving Web 2.0 in HR, FB & LI drive people to employer’s career site.Enhance learning opportunities through virtual networksDemocratizing HR processesTrend: HR moving away from social media policeHelp business leaders leverage social media for maximum ee engagement
- 88% look for jobs online, 60% apply onlineCandidate experience - Open transparent conversation, build trustInbound Activities (search aggregate sites, research companies, ask friends)Passive job seekers – job hunting consumes 0% of their time60% think that hiring passive candidates results in better employees – LinkedIn poll, 2009Gather info to mitigate risk - Right person – right positionInstead of building an employment funnel, create an employment tunnel
- Gartner Research – 80% learning comes from informal trainingImmediate, relevant trainingCreate communities for sharing knowledge* Use to identify people who know a lot about their jobs* Connect EE’s with experts in the companyUsing more sophisticated training tools that harnesses the power of social media and virtual worlds in favor of slides and conventional classroom environments
- We know that the best use of SM is relationship building and branding, you can be the one that gets your company ready for the movement!What’s working? Good Content, Good Community, Value of RelationshipsGoogle “The company as a wiki” – BestBuy’s move to Web 2.0, leading edge & bleeding edge
- Borderless WorkplaceWhat’s the first thing 1/3 of mobile Americans do when they wake up? Check email.1.2 Billion people carry smartphonesBy 2013, mobile will take over PC/Laptop use. Nearly 75% of the American workforce will be mobile by 2013, according to market research firm IDC.Two aspects:“You” are your office – text, phone, wifi, 3G - ‘central office’ model is barely recognizableWork/Life balance – what are we doing to attract and retain top talent?For many, connectivity is like oxygen, and increasing it drives higher production.Employees will expect HR departments to provide mobile access to core HR functions
- HR must be able to support the virtual workforceHR Role as leader – review policies, cultural ‘fit’, worker responsibilities, employer of choiceGenerational changes - The emerging workforce Expanding HR’s service delivery and increasing HR’s role in business.Provide HR services through Web 2.0 technologyFoster a culture of innovation
- Automate AdministriviaSimplify/Enhance CommunicationConsolidate DataImprove EEsatisfactionReduce Paper – Go Green!Don’t you have something better to do?Employee collaboration and business social networking Value – improved performance, creativity, communication, informal learningEmpowers EE’s – control of information, be self-sufficient
- Employees directly view, create, and maintain information in a Web browser.‘Paperless’ office 3. Deploy via mobileAllow ee’s to take ownership of their information/dataAllow HR to do more with less (less HR staff/#ee’s)Deploy via mobile
- Business Latencies – ‘slow processes’ inside a business, automation can reduce/eliminate these latenciesBusiness Activity Monitoring & AlertingProactive communicationIdentify and respond to trouble spots (data that is a potential problem)Date sensitive conditions (certification about to expire)Approaching thresholds (excess OT, leave balance approaching zero)Exceptions to normal processing (pay rate changes)Things that should have happened, but didn’t (renewing visas)
- What you do not know is what hurts youBuild business rules to monitor the data Deploy via alerts once BAM identifies conditionsAutomate reports, forms, metricsBesides just alerting, do something once the condition is reached
- Is your HR Data talking to you?
- Talent Management, or Integrated Talent ManagementMany silo’d applications are consolidating, traditional HRMS closing the gap on ITM.SHRM – “Biggest investment challenge over the next 10 years” - Obtaining and Optimizing Human Capital – 47%Around the world, there is an imbalance between needed and available skills1 in 3 employees seriously considering leaving employer – Mercer “What’s Working” surveyDecreased employee loyalty, low ee satisfactionHeightened competition for skilled workersRetirement of baby boomers (at some point they will retire!)Outsourcing trendsWar for talent – 1997 McKinsey study coined the term
- Manage inordinate amount of data we collect on our best talentLeverage inordinate amount of data we retain on our best talentEE Turnover – high cost (30-400% of salary) – separation, vacancy, replacement, trainingSHRM - $8/hour employee - $3,500 to replaceInvestments to increase retention: communication, engagement, recognition, training, benefitsInvested Employees = increased revenue, higher customer service rates, Workforce planning – identify gaps between supply and demand of talent in order to meet specific business needs.
- Turn data into information, information into knowledge, and knowledge into plans that drive profitable business actionsData - Collection of raw value elementsInformation - Facts can be gathered on data to draw conclusions.Intelligence - Use information to perceive, discover, and understand abest course of actionHow do we get from information to intelligence?
- Intelligence = linking HR data to overall business strategyTo do that, we must be more strategic in our thinking
- Everyone talks about it, who’s doing it? What does it even mean?Term borrowed from military - having an impact outside your own military unit. Strategic – taking a ‘longer term’, ‘big picture’ approach. vs. Tactics HR’s Direct contribution to long-term corporate objectives.Understand all parts of organization, how organization fits together, and how any change will impact organization as a whole
- Yes, Technology can do all of these things to HR, but the real value lies in building better strategic vision.Measuring HR technology on its efficiencies alone is an old fashioned and short-sighted approach.
- Enable HR - Make predictive correlations between traditional HR metrics and the businessMore holistic view of human capitalIMPACTS to businessTransform HR from tactical to strategicKnowledge EconomyWorkforce AgilityMake decisions about human capital to continuously improve and enhance the value of the businessROEI – Return on Employee InvestmentForward-looking (predictive) metrics to improve decision making, prevent/mitigate future talent problems
- Honest look into HR and Technology
- Admin/transactional nature draws of HRComfort zone activities are EASY (transactions, paper admin)Soft side of business – the people, and not the hard side – the numbersForrester Research - over 50% of HR dept’s time is spent processing EE information and answering EE questions.Employee’s are children, and HR is their mommy and daddyDifferent skill sets – regression analysis, causal pathway modeling, predictive modelingHR training at undergrad level is focused on soft skills, little analytical emphasis
- HR doesn’t serve corporate objectivesActivity driven - not delivery driven. Reactive around services. Forfeits long term value for short term efficiency.Due to labor regs, corporate policies, etc., HR is bad cop that is focused on here and nowHR and Executives don’t speak same language. HR not only doesn’t have a seat in the board room, it doesn’t have a key!THE KEY IS TECHNOLOGYHR Technology can overcome all 4 arguments.Measure HR’s Impact on the bottom lineUse to influence CEO, CFO, CIO, CIA, CBS, or any other C-level executive in the companyMarketing – decisions about customers Finance – decisions about moneyIT – decisions about technologyHR – decisions about peopleHR is the only department that has direct access to both the “C”-suite and people assets of an organization. HR has it’s finger on the pulse of a company, and can report that data directly to those who need it most to make better business decisions.
- Technology will reduce admin so we can focus on strategyRe-engineer administrative processes
- Understand mission, vision, goals, objectives of companyAlign HR Goals with corporate onesProvide solutions to all levels of organizational workforceTie metrics to business decisionsDirect correlation of human capital performance and business performanceIntegrate your metrics with other departments (finance, customer satisfaction, etc.)Look for correlation and causation among workforce data, financials, and other business data
- Strategic alignment – align business units and individual employees with strategic goals identified by senior management.Measure through HR Metrics
- What metrics are important to the company?Compare over time8-12 KPI’s ("keep it simple and straightforward“)Measures should be few, but layeredWhat is to be gained
- Make value, not activity (from HR Value Proposition – Dave Ulrich). Pick KPI’s that add value in making decisionsTraining attendees per month vs. Effectiveness of training Did trained staff learn anything to make them better workers? How did quality improve? How did customer loyalty improve?
- Drive operational-decision making without “hunches”. Use metrics to answer important workforce questionsUse standardized auditable data (single point of truth)Measure consistently (measure twice, cut once)Gain insights and credible “what-if” scenariosAggregate turnover low in companyHigh in one location, why?“They ee’s there aren’t emotionally engaged”Using statistics, they found high voluntary turnover with those who had most emotional commitmentDiscussion around statistics built measurements around appropriate level of commitment
- Revenue / FTE – Links time and effort associated with firms human capital to its revenue output. Greater efficiency and productivity. $154K average
- Turnover clarity – don’t just focus on turnover rate, study data on different data points and multi-dimensional analytics – TenureBy wage ratesBy ageBy top producers
- Benefits – cost factor, percentage of total compensation, worker’s comp, etc.Profit Indicator/Human Capital ROI – Pre-Tax Profit less Financial capital costs/human capital costsAttrition Rate / Survival Rate
- Investment in human capital is company’s largest investment.HR - take the lead in identifying where people assets can best be allocated to meet the company’s goalsHow to hire, develop, and retain the human capital the company needs to stay competitive now and in the future.I’m preaching to the choir here, but…In a knowledge economy, companies with the best talent win
- Pull data from all sources and put into dashboard formDashboard – graphical snapshot of business health from an HR Perspective.Easy to read, summary of company’s current state of affairs
- What is your HR technology strategy?What system functionality do you need?What results do you wish to accomplish?What work processes do you wish to change?How will we handle change?Software or subscription?How does this system support the overall needs of the business?What HR metrics help drive business decisions?Who are the decision makers internally?What is your internal technology environment?What is your budget?