The document summarizes key findings from Mercer's research on digital HR transformation and HRIS implementations. Some of the main points covered include: - Emerging workforce trends are driving needs for improved metrics/analytics, manager skills development, and mobile/digital access to information. - HR functions have evolved from personnel to talent management to integrated human capital management with a focus on data-driven decision making. - Research studies provided insights from HR leaders on drivers for replacing HRIS systems and challenges faced during implementations. - Top challenges included integrations, customizations, change management and internal resource constraints. - Successful implementations resulted in single systems of record, improved data quality and standardization, and increased

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H E A L T H W E A L T H C A R E E R
T H E J O U R N E Y T O D I G I T A L H R
W H A T R E S E A R C H T E L L S U S
A B O U T I M P L E M E N T I N G A N E W
H R I S
J U L Y 2 7 , 2 0 1 6

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T O D AY ’ S S P E A K E R S
Partner, Talent
Information Systems
San Francisco
Partner, North America
Leader for HR
Transformation
Chicago
DENISE
LAFORTE
Chicago, IL
KATHERINE JONES, PH.D.
San Francisco, CA

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E M E R G I N G W O R K F O R C E T R E N D S A R E D R I V I N G
T H E N E E D F O R M O R E C H A N G E
There is an increasing demand for metrics
and analytics to understand key roles,
talent flows, obstructions to talent mobility
and the cost of not getting it right from
business and talent perspectives
W O R K F O R C E A N A LY T I C S
Managers are the key to a successful
employee/employer relationship, AND
managers’ coaching and employee
development skills need to improve
R O L E O F T H E M A N A G E R
Technology is transforming how people
access, retain and apply information.
Demand is on the rise for continuous, just-
in-time access using digital, mobile, and
social platforms
D I G I TA L W O R K F O R C E
Organizations are taking a close look at
how they are perceived in the marketplace
– formally and socially – to ensure that
they are meeting the “employee as
consumer” expectations
B R A N D I N G & E M P L O Y E E
E X P E R I E N C E
The loss of institutional knowledge
combined with changing expectations
and work styles will create significant
talent management challenges across
every industry
B O O M E R / M I L L E N N I A L
T R A N S I T I O N
Global and multinational companies
struggle with setting global HR policies that
can also be flexible enough to meet the
needs of local lines of business, regulations
and employee expectations
“ G L O C A L I Z AT I O N ”
Reference: Mercer Global Talent Trends Study 2016 findings

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H R T R A N S F O R M A T I O N : O U R R E S E A R C H A G E N D A
R E C E N T R E S E A R C H S T U D I E S N E W M E R C E R P O V PA P E R S
Future-Proofing HR
Mercer’s 2016 Global Talent Trends Study
• 1,730+ HR Leaders
• 4,500+ employee opinions
• 17 countries
• 10+ industries
The Journey to Digital HR
2016 HR Technology Survey
• 500 HR Professionals
• 19 countries
• 10+ industries

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T O D AY ’ S D I S C U S S I O N
The Evolution of HR
01 What Research
Tells Us
02
Takeaways for your
HRIS Implementation
03

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© MERCER 2016 5
THE EVOLUTION OF HR

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T H E E V O L U T I O N O F H R
Personnel
• Focus: Staffing
• Spreadsheets
and post-its
HR The ERP
Way
• Focus:
Compliance
• Inflexible
technology
Talent
Management
• Focus:
Employee
Life Cycle
• The “Best of
Breed” Frenzy
Integrated
Human Capital
Management
• Focus:
HR+Talent
• Total workforce
data curation
Timeline

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T O D AY : R E V O L U T I O N A R Y
Data-driven
Decision
Support
Mobile Delivery
Model
Cloud based
Economic Model
Social-driven
hiring and
branding
People-centric
HR

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B U T W H AT I S O U R H R L A N D S C A P E T O D AY ?
OVERLY CUSTOMIZED
Aging solutions
IRRECONCILABLE REPORTS
Fragmented employee data
DECENTRALIZED
DATA STORES
REDUNDANT
HR PROCESSES
Standalone applications
Disparate systems

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B U T W H E R E T O S T A R T ?
1 Review HCM Processes: should we do them differently?
2 What strategic initiatives might we simultaneously seek to pursue with a new
HRIS deployment?
3 What technology functions are required to support the processes within
those initiatives?
4 How will the combination of new processes and new technology effect
my organization?
5 And what is the impact on my workforce?

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© MERCER 2016 10
WHAT RESEARCH
TELLS US

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S T U D Y : 2 0 1 6 H U M A N R E S O U R C E S
I N F O R M A T I O N S Y S T E M S
I N D U S T RY G R O U P S :
• Consumer Goods
• Education
• Energy
• Healthcare
• Pharmaceutical
• Banking, Finance, Insurance
• Hospitality
• Professional Services
• Government
• Manufacturing
• Technology &
Communications
Representing a wide range
of industry sectors
From global/multinational and
local/domestic companies
Nearly 500 HR Professionals
Located in 19 countries
Reference: 2016 Human Resources Information Study was
commissioned by Mercer and conducted by Human Capital
Media Advisory Group, Oct 2015 to Feb 2016

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T H E B U S I N E S S C O N T E X T
ORGANIZATIONAL
CHANGE
• Acquisitions
• Divestitures
• Reorganization
EMPLOYMENT
MANAGEMENT
• Contingent Management
• Hourly Management
HR
TRANSFORMATION
• Global Centralization
• COE Review
• Cost Management R E A S S E S S
W H I C H
P R O C E S S E S
A R E K E Y
R E I M A G I N E
E M P L O Y E E
I N T E R A C T I O N S
R E D U C E
C O M P L E X I T Y
F O C U S O N
S E R V I C E
O P T I M I Z AT I O N

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W H Y S W A P O U T A N H R I S ? T H E T O P F I V E
D R I V E R S F O R R E P L A C I N G
We needed a single system of record for all HR data
We needed to have reliable, consistent reporting for
compliance and legal obligations
We needed an integrated HR data system to perform workforce
analysis
We needed to standardize HR data across multiple
geographies and/or business units
We needed to move away from a legacy system
that was not meeting organizational needs
66
55
54
52
49
Majority of new
HRIS
implementations
are in the cloud

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A N E W H R I S D R I V E S N E W I N I T I AT I V E S
Implemented or expanded an HR Service Center
Implemented or expanded an HR Business Partner model
Implemented or expanded HR Centers of Expertise
49
45
39

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P R O C E S S R E - D E S I G N D U R I N G I M P L E M E N T AT I O N
O F O R G AN I Z AT I O N S A R E R E D E S I G N I N G T H E I R E N D - T O - E N D H R
P R O C E S S C O N C U R R E N T LY W I T H H R I S I M P L E M E N TAT I O N
55%
34%
55%
11%
Before Implementation During Implementation After Implementation
J O B D E S I G N
A N D R O L E P R O F I L I N G
R E W A R D S A N D B E N E F I T S
NEW JOB
CODING SYSTEM
Before
During
After
NEW ORGANIZATION
GRADE STRUCTURE
Before
During
After
NEW JOB
DESCRIPTIONS
Before
During
After
NEW
ORGANIZATION-
WIDE JOB CATALOG
Before
During
After
REFINED SELECT
BENEFIT PLANS
HARMONIZED LONG-TERM
INCENTIVE PLANS
HARMONIZED SHORT-TERM
INCENTIVE PLANS
Before
During
After
Before
During
After
Before
During
After

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T H E B I G G E S T H E A D A C H E S
Respondents picked their top 3
I N T E G R A T I O N S C O N F I G U R A T I O N S C H A N G E
M A N A G E M E N T
P R O J E C T
M A N A G E M E N T
R E P O R T I N G
47% 41% 3 0 % 2 6 % 2 6 %
O T H E R H E A D A C H E S I N C L U D E :
• H R O R G A N I Z A T I O N A L R E D E S I G N
• H R I S V E N D O R S E L E C T I O N
• B U I L D I N G T H E B U S I N E S S C A S E

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T O P F I V E I M P L E M E N T AT I O N C H A L L E N G E S
28%
29%
37%
44%
49%
Difficulty defining the future state of
the HR organization to support new
roles and responsibilities stemming
from HCM implementation
1
Need for customization added time
and expense
2
Challenges developing and
running reports and analytics
3
Lack of knowledge/experience
with HCM technology on
the internal team
4
Internal resource
constraints
5
Reference: Mercer‘s 2016 Human Resources
Information Systems

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W H AT W O U L D P A R T I C I P A N T S D O D I F F E R E N T L Y ?
Set realistic timelines
DEDICATED INTERNAL RESOURCES
Document business processes
Consult end-users
STANDARDIZE GLOBAL POLICIES FIRST
Squelch customization
Change management
Training
BETTER PRE-IMPLEMENTATION
PLANNING STAKEHOLDER
COMMUNICATION
Understand the new technology better

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H R I S I M P L E M E N T AT I O N R E S U L T S
68% Single system of record for
all HR data across regions
63% Improved data quality
62% Standardization of HR data
59% Increased ability to run
HR analytics
57% More reliable,
consistent reporting
43% Increased integration with
other systems
34% Increased user adoption
27%
Reduced costs
(Ongoing maintenance,
licensing, support)

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© MERCER 2016 20
TAKEAWAYS FOR YOUR
HRI S IMPLEMENTATIO N

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D E F I N E
S U C C E S S
What will it look like and
how will you measure it
C L E A R
V I S I O N
Concisely articulated
Identified stakeholders
Realistic timelines
Clear processes
P L A N F O R T H E
H E A D A C H E S
Dedicated resources
Integration & migration
Manage change
Get professional
assistance
S U M M A R Y

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T O M O R R O W ’ S H R L A N D S C A P E ─ T O D A Y
Cloud-based
Mobile Devices
Social
Collaboration
Data-driven
Employee-Centric
Consumer-grade
Functionality

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DENISE
LAFORTE
Chicago, IL
KATHERINE
JONES, PH.D.
San Francisco, CA

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