The document discusses strategies for human capital management to cut costs and reduce risks. It notes that the human capital management market is growing at 12-15% annually due to organizations seeking tools to enable faster growth with greater efficiencies and lower costs. Cloud-based human capital management systems can help streamline processes like recruiting, hiring, training, performance tracking, and more. Automating these human resource activities through technology can reduce costs from things like bad hires while improving compliance.

1. Human Capital Management
Strategies to Cut Costs and Reduce Risk
Rachel Lyubovitzky
St. Global Product Manager. Workforce Ready
© KRONOS INCORPORATED
October 28, 2013
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2. Introduction
Rachel Lyubovitzky
• Senior Global Product Manager,
Workforce Ready, Kronos
• Co-Contributor to Workforce Asset
Management Book of Knowledge
• Worked in Human Capital Management
(HCM) space for 7 years
http://www.linkedin.com/in/rlyubovitzky
@rlyubovitzky
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3. Presentation Logistics
• Find a copy of the presentation in the attachments
• Crowd wisdom!
• Ask questions!
• Rank the presentation
• Enjoy!
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4. Employees
RECRUITING
OFF-BOARDING
MOTIVATION
HIRING
PERFORMANCE
TRAINING
TRACKING
MANAGING
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5. HCM Is Not Easy!
• Growing Complexity
– Internally: size, demographics, skill sets, and geographic
distribution
– Externally: labor laws, compliance, audits, healthcare
• Tight Resources
– Competition with sales, marketing, R&D, production
• Economy
– Understaffing, low morale, poor performance
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6. Turbulent HCM Waters
• Costs
– The actual cost of an employee is twice their salary1 and
growing.
– The impact of each bad hire can cost a company on average
$50,0002
• Lost Opportunity
– Waiting for the “right” candidate to come by, time spent
providing specialized training, letting go a “wrong” hire,
– $9,400 to replace $8 / hour employee, a nurse: $40,000; IT:
$125,000 / vacancy3
• Liability
− Keeping on top of evolving regulatory compliance
− Employment litigation & dispute resolution up 400%4
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7. Cloud HCM
While the core HCM activities have remained unchanged,
technologies had evolved to streamline & automate them:
• Wide range of business
processes supported
• Lower cost of ownership
HCM
• Does not compete with
company IT resources
• Globally available to meet the
new working paradigms
• Updates immediately
available to all users
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8. Crowd Wisdom!
How fast is HCM market growing
a. 2-5%
b. 12-15%
c.
50-55%
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9. HR Management Activities Spectrum
OFF-BOARDING
RECRUITING
MOTIVATION
HIRING
PERFORMANCE
TRAINING
TRACKING
MANAGING
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10. Hiring
IT: I need an engineer!
HR: When?
IT (3 days later): ASAP!
HR (3 days later): Can you give me a job
description?
IT (5 days later): Here it is!
HR (5 days later): I had some fires to put out,
IT Manager
HR Manager
I’ll get right to it.
IT (10 days later): Lead engineer just had a
nervous breakdown and left, can you also find
a lead engineer ASAP.
HR (3 days later): Can you give me a job
description?
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11. Hiring: Recruitment
• Automated Job Requisitioning
– Improved communications and approval workflows between the
hiring managers and HR
– Stored job requisition information and prior hiring history
• Facilitated Application Processing
– Automated follow-up reminders and notifications
– Insight into the interviewing state of each applicant
– Prior application history
• Analytics
– Current status of hiring efforts
– Past hiring trends, turnover stats
– Budgeting and forecasting
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12. Hiring: Evaluation
• Automate Applicant Assessment
– Administer applicant qualification tests and store results
– Capture, collect, and share feedback from each interview
– Terminate interviewing process based on the test results and
feedback from managers
– Automated workflows to secure releases to run background
checks and personality tests for qualified candidates
• Benefits
– Streamlined hiring process where due diligence
is followed and yet the applicant is able to get to
the finish line quickly
– Consistent and fair treatment of every applicant
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13. Hiring: On-boarding
• Convert applicant into a new hire while preserving the
application information for the future reference
• Automated on-boarding checklists ensure consistency,
compliance and accountability
– Mandatory form completion, sign-off and timely filing
– Compliance processes such as E-Verify
– Work asset requisition and distribution such as office supplies,
computer, telephone, vehicle, id, etc.
– Access to the resources appropriate for the job
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14. Management
• Training
• Time keeping and scheduling
• Performance management
• Succession planning
• Engagement
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15. Management: Training
• Conduct online training and store
results including any licenses and
certifications
• Provide reminders about mandatory
updates and re-training/re-certification
• Offer ability to expand professional skills
• Provide insights to HR and management team
pertaining to the overall skillset of the team and any
skill gaps
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16. Management: Time Tracking & Scheduling
• Track time worked and absence across
projects, departments and activities
• Offer self-service ability for employees
to request time off or overtime and get
approval
• Schedule employees based on skills, preferences, and
required coverage
• Track trends with pay period reporting and analytics
• Communicate information to payroll to
ensure accurate and timely payment
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17. Management: Performance Tracking
• Establish individual and team goals and track success
against measurable targets, team performance, and the
overall company vision and mission
• Provide insights into performance across the company
to enable fast response to mitigate poor performance
and engage to ensure exceptional results
• Offer guidance of the ROI following training and
engagement opportunities
• Career planning to motivate continued growth &
development
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18. Infrastructure
• Self-service functionality on every level of the
organization takes the burden off the HR department by
allowing each employee to manage their own
demographic updates, benefits enrollment, time off
requests, training updates and other info
• Convenient access to secure document storage for the
company forms, policies and handbooks
• Access to 3rd party employment laws to ensure that HR
recommendations are in line with
the latest regulations
• Keeping the team together with social
components such as birthday reminders
and event notifications
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19. Closing
• According to IDC, in 2012 all segments of the human
capital management (HCM) applications market grew
12.3%
• What drives HCM adoption?
– Organizations are able to provide their HR with better tools to
enable faster growth with greater operating efficiencies and
lower costs and the focus on compliance
– Mobile solutions further expand the spectrum of supported
activities
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20. Q&A
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21. Resources
1. http://blog.intuit.com/employees/how-much-does-an-employeereally-cost/
2. http://www.jobscience.com/company/real-cost-bad-hire/
3. http://smallbusiness.chron.com/average-cost-train-newemployee-44072.html
4. http://www.dol.gov/_sec/media/reports/dunlop/section4.htm
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