Workday Webinar: How HR Spends on Technology

How HR Spends on Technology

Tom Keebler, Towers Watson

Leighanne Levensaler, Workday

Bill Kutik, HR Technology® Conference

WORKDAY CONFIDENTIAL
© 2010 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.

Shaping the HR Function of Tomorrow…Today
The Towers Watson 2010 HR Service Delivery Survey

© 2010 Towers Watson. All rights reserved.

Industry and Employee Population

I.A. Industry I.F. Employee Population

Financial Services,
Including Insurance 17% Large — Greater
Healthcare, Including than 20,000
Pharmaceuticals
17% 24%
Small — Less
Manufacturing 15% than 5,000
36%
High Tech 7%

Retail 6%

Utilities and Energy 6%
Media and
Communications 5%

Food and Beverage 4%

Public Sector and Nonprofit 4%
Professional and
Business Services 3%
40%
Property and Construction 3%
Medium — 5,000 to
20,000
Transportation Services 3% n = 449

Chemical, Oil and Gas 3%

Other 7%

n = 456

2

HR Technology Spending

III.A.11. HR Technology Spending

54%

18%

10% 11%
7%

Much lower Lower About the same Higher Much higher
(>20% reduction) (<20% reduction) (<20% increase) (>20% increase)

n = 453

3

HR Systems Profile Overview
III.A.7. Planned New HRMS
(For Those Implementing a New HRMS)

Workday 15%

SAP 15%

Oracle (legacy PeopleSoft) 13%

Lawson 7%

Oracle (legacy Oracle HRMS) 6%

Ceridian 3%

ADP/EmployEase 2%

Other HRMS 6%

Currently evaluating the new HRMS options 2%

Will be provided by an HRO vendor 31%

n = 54

NuView, Oracle (legacy JDE), Ultimate Software/Ultipro and in-house developed system received no mentions.
4

Software as a Service (SaaS)

III.E.1. Use of SaaS to Support HR Service Delivery

Yes, we use SaaS extensively
for HR 8%

Yes, we use SaaS
29%
somewhat for HR

Not yet, but we are implementing a
SaaS-based solution 4%

No, but we plan to use SaaS
11%
in the future

No, and we have no plans
48%
to use SaaS

n = 456

5

III.E.2. Primary Benefits of SaaS (Select Up to Three)
(Companies Currently Using or Planning to Use SaaS)

Quick implementation 47%

Better functionality 44%

Easier to manage on an
42%
ongoing basis

Lower ongoing costs 41%

No need to upgrade; we are 41%
always on current version

Lower upfront costs 28%

Predictable ongoing costs 23%

Other 2%

n = 231

6


III.E.3. Concerns or Apprehensions About Using SaaS

Cost 50%

Inability to customize your own solution 33%

Lack of data ownership/control 32%

Philosophical acceptance of SaaS by IT organization 21%

Greater reliance on an external vendor 19%

Being locked into an external vendor 16%

Data security 16%

Immaturity/stability of SaaS vendors and solutions 10%

Compliance with data privacy laws 4%

Doubts about the viability of SaaS business model 4%

Other 3%

n = 135

7

HR Systems Profile Overview

III.A.6. Main HRMS Application Objectives for 2010

Streamline business processes 45%

Deploy additional manager self-service functionality 43%

Deploy additional employee
42%
self-service functionality

Utilize additional HR modules 39%

Deploy reporting analytics/KPIs, and/or
strategic reporting functionality 32%

Upgrade to a new version 31%

Consolidate multiple HR systems globally 13%

Implement a new HRMS 12%

Create a global data warehouse 10%

Keep HRMS, but outsource payroll 2%

Other 9%

n = 452

8

Manager Self-Service: Still Gaining, But…

MSS Transactions Currently Deployed

No
42%

Yes
58%

9

Impact of Manager Self-Service

IV.D.6. Effect of MSS on Timeliness of Processing IV.D.7. Effect of MSS on Accuracy of Data

44%
37% 39%
32%

23%
16%

5%
1% 2% 1%

Slower Slightly No Slightly Faster Less Slightly No Slightly More
slower change faster accurate less change more accurate
accurate accurate
n = 209 n = 209

10

And it’s not just faster, more accurate…it’s better, too

Effectiveness of Process
49%

25%
23%

3%
0%

1 2 3 4 5
Less No change More effective
effective

(n = 162, 2009 results)

11

Impact of Manager Self-Service

IV.D.8. Impact of Manager Self-Service

73%
HR generalist/specialist n = 199 21%

6%

69%
HR service center/administrator n = 194 16%

15%

39%

Manager n = 199 19%

42%

 Less work
 No change
 More work
12

Top HR Service Delivery Issues
II.B.4. Top HR Service Delivery Issues (Top Three Frequency)

Talent/performance system 42%
35%
Streamline processes/systems 35%
35%
More involvement in strategic business-driven issues 27%
23%
22%
Define human capital metrics and dashboards 17%
21%
Recruiting/staffing services/systems 12%
19%
Upgrade HR system 18%
Cost 18%
24%
17%
Compensation/benefit services/systems 12%
16%
Manager self-service 16%
14%
New HR system 15%
12%
Employee self-service 10%
11%
Systems integration 13%
10%  2010 n = 456
Payroll/time management services/systems 11%
 2009 n = 332
10%
Training 9%
9%
Accuracy of data 14%
8%
HR Web site/usability 8%
6%
Reports 7%
13

Talent Management Delivery

III.D.1. Primary Delivery System Currently Used for Talent Management

Compensation - Base Pay n = 445 46% 21% 15% 18%

Compensation - Variable Pay/Bonus n = 429 33% 27% 15% 25%

Workforce Analytics n = 360 30% 22% 15% 33%

Recruiting/Staffing - Internal n = 440 24% 13% 49% 14%

Recruiting/Staffing - External n = 432 23% 10% 53% 14%

Compensation - Sales/Incentive n = 331 22% 33% 14% 31%

Performance Management and Goal Setting n = 443 22% 24% 26% 28%

Learning Management and Training n = 420 20% 23% 42% 15%

Onboarding n = 377 16% 19% 19% 46%

Career Development/Planning n = 375 15% 19% 20% 46%

Succession Planning n = 378 11% 18% 23% 48%

 Current HRMS  Custom/In-house  Best of breed  Manual/Paper-based
system developed tool technology
14

Talent Management Delivery

III.D.3. Status Regarding Changes Being Made to Primary System Used for Talent Management

Performance Management and Goal Setting n = 428 18% 9% 9% 20% 44%

Compensation — Variable Pay/Bonus n = 419 18% 4% 6% 13% 59%

Compensation — Base Pay n = 429 17% 6% 7% 11% 59%

Workforce Analytics n = 419 17% 5% 7% 18% 53%

Succession Planning n = 422 13% 8% 8% 23% 48%

Career Development/Planning n = 420 13% 7% 7% 22% 51%

Recruiting/Staffing — Internal n = 432 12% 13% 8% 14% 53%

Learning Management and Training n = 429 11% 11% 7% 21% 50%

Compensation — Sales/Incentive n = 404 11% 4% 5% 12% 68%

Recruiting/Staffing — External n = 436 10% 14% 9% 15% 52%

 Implementing additional  Implementing additional  Implementing new  Exploring new  No changes
functionality from functionality from current vendor vendor options planned
current HRMS best-of-breed technology
15

For more information on Workday, please visit
www.workday.com

Follow Leighanne: @leighlevensaler
Follow Workday: xxxx

16
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