HR technology can help HR move from data management to strategic business partnering by providing information craftsmanship. Effective use of HR technology leverages data to provide metrics and analytics that address key business issues of concern to C-level executives, such as meeting strategic needs, optimizing processes, and contributing to financial goals. HR technology allows HR to shift from administrative tasks to strategic expertise by facilitating employee and manager self-service, centralizing information, and standardizing best practices.

1. HR’s Strategic Shift:
How to Leverage
HR Technology to
Drive Business
Results
Guest Presenter: Marc S Miller
President and Founder
Marc S Miller Associates
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4. “VALUE” is gained by
leveraging technology to help
HR move from “Data
Management to Information
Craftsmanship”
EFFECTIVE “BUSINESS RESULTS” =
ACCEPTABLE “VALUE” – IN ALL ITS
FORMS…
4

5. “Information responsibility… begins with correctly
identifying the information you need to effectively
carry out your job … extends to insuring that the
information flows to people who stand to benefit from
it, and in a form those people will readily understand.
“Increasingly, the measure of the executive will not
be his ability to interpret data, but his ability to define
and exploit information.”
Peter Drucker
“Across the Board”
December 1991
VERY DOABLE!
If we keep in mind some other opinions:
5

6. The "Value” of HR and
Using HR Technology to
Achieve “Value” & Sell
“Value”
6

7. Top 10 HR Challenges Through 2017
1. Managing talent
2. Improving leadership development
3. Managing demographics (MILLENIALS)
4. Delivering on employee ENGAGEMENT
5. Managing change and cultural
transformation
6. Enhancing THE USER EXPERIENCE
7. Transforming HR into a strategic partner
8. Improving performance
management/rewards
9. Managing globalization
10.Managing work/life balance
7

8. A NEW NEED FOR HR…..
WORKFORCE AWARENESS OF
CYBERSECURITY!!!
8

9. Basic
Personnel
Services
Control and
Compliance
Strategic
Expertise
A very long
time ago
A while ago Recently – last
5-10 years
Bureaucratic and
administrative
aspects of dealing
with employees -
PERSONNEL
Aspects of dealing
with unions (1930s
and 1940s in U.S.)
Dealing with
discrimination and
other US Federal
Legislations - (1960s
till present day)
Take a business
perspective in
compensation, benefits,
recruiting and staffing,
succession planning
Organizational
effectiveness,
business planning,
workflow, best practices
Apply behavioral science
knowledge for recruiting,
evaluating, compensation,
Training, change
management and DO
workforce modeling and
forecasts
Administrator
Enforcer
EXPERT
Onboarding,
Engagement,W
orkforce
Analytics /
Metrics /
predictive
analytics
Strategic
Workforce /
Talent
Management
IMPORTANCETOTHEORGHR’s Evolving Role
HR TECH
9

10.  Employee & Manager Self-Service (ESS/MSS)
 Forecasts & Trends via Dashboards
 Web-Delivered:
 Time Capture & Reporting
 Performance & Career Development
 Job Posting, Recruiting, Hiring & On-
boarding
 Web-based:
 Work Group Collaboration
 Workflow and best practices
 Remote Location 24/7 Access via Mobile
 Some interaction with Social Media sites
“Value” is Achieved with HR Technology…
 Cost Reduction
 Cycle Time Reduction –
Processing Efficiencies
 Improved Information
 Full Compliance at all
levels
 Increased Capabilities &
Functionality
 Enhanced Employee
Engagement
 Data Quality Near 100%
 “Big Picture” – Business
Metrics Easily Available
10

11. HR’s Hierarchy of INFLUENCE/value
Analytics
Evaluation
Engagement
IT & Telecom /
Facilities & Security /
Workforce Mgmt & Planning /
Labor Allocation / Procurement
Government Compliance:
Environmental Mgmt & OSHA /
Social Media Policy and Procedures
Recruitment / Employment /
Compensation / Benefits / Learning Mgmt
/ Performance / Workforce Development /
Time & Attendance / Payroll /
Regulatory Requirements
TACTICAL
ENTERPRISE SUPPORT
“GAME CHANGING”
STRATEGIC INFLUENCE
Getting to
“Policy and
Planning”
11

12. Transforming HR: Chiming in with advice
 Say the right thing
 Do the right thing
 Measure the right thing
 Get rid of “social
workers”
 Serve the business
 Make value, not activity
Sources: Hay Group, SHRM, Ulrich, other Fast Company interviews
12

13. IMPACT OF BUSINESS ALIGNMENT
Aligning HR
to impact . . .
. . . Key organization
success drivers to build . . .
. . . Organization
capabilities that address
business challenges to
create . . .
. . . Improved
business performance
and increased value
The 5 “success drivers”
must be aligned from top
to bottom: PEOPLE, PROCESS
TECHNOLOGY, STRUCTURE and
CULTURE
13

14. Admin
Policy/
Planning
20%
50%
30%
Outsourced
activities to
third party
Outsourced
activities to
employees
Business
Partnering
HRT
SaaS
HR Admin, Payroll,
Benefits Admin,
Recruitment
60%
30%
10%
Administration
Business
Partnering
Policy/
Planning
ESS/MSS
Workflow
Best Practices
Email Alerts
Transforming HR:
Classical View to “Diamond” view
14

15. “The Portal”
A Personalized
“My
WORK/LIFE”
Gateway
Work/Life Web Site
An employee or enterprise “portal” will improve the quality
of HR service delivery by providing:
 Single point of access
 intuitive user experience
 Consistency of information, procedures,
and transactions
 Faster transactions via built in workflow
 Increased employee productivity and morale
 A channel to facilitate change management and culture
alignment
Resulting in:
 Reduced costs
 Re-enforcing a “high tech” culture, appealing to new
generation workers – Gen X, Y and Millennial
 “The Sticky Workplace,” which retains quality people
An effective EMPLOYEE SELF SERVICE STRATEGY (ESS) as well as MANAGER SELF
SERVICE (MSS) results in lower costs, increased value to the business, and
improved work/life balance for employees.
THE VISION
15

16. THE VISION
Internal /
External
Users
Business
partners
Applicants Employees Managers Retirees
Knowledge
Based
Systems
Core HRMS
Systems
Foreign
Local
Payroll
Systems
HR
ADMINISTRATION
AND
POLICIES
Access Technologies
Desktop
Web
Social media
“The Portal”
A Personalized “My
WORK/LIFE” Gateway
Laptop Tablet
Smartphone
16

17. THE VISION
HR organizations are shifting from functional structures to process-driven structures to
support “Event-Based” services. This shift further enhances the role of HUMAN
RESOURCES as a Strategic Business Partner, freed from transactional activities, to deliver
strategic HR services.
Today’s HR Functions
Eliminate or
Outsource
Transformational Informational or Transactional
HR Business Partner Services/Activities ESS/MSS/Service Center
 Consolidation of value-
added HR services.
 PROACTIVE rather than
reactive HUMAN CAPITAL
MANAGEMNT
 Builds upon what makes
today’s HR professional
valuable to the business
 Global Metrics
 Workforce Analytics
 Workflows and Policies
 Consolidation of strategic
 Virtual Teams – collaboration
across cultures and time
zones
 Develops and designs HR
Programs
 Consolidation of information- and
transaction- based activities that cross
organizational AND GEOGRAPHIC
boundaries
 Designed to efficiently process event-
based transactions – BY EMPLOYEES
DIRECTLY
 Enables managers to manage –
DIRECTLY
Non Value-Added
Services and Processes
Transforming
to
Compensation
and Benefits
Strategy and
Process
Planning
Education,
Training and
Development
Employee
Relations
Services
Staff
Planning &
Resourcing
Organization
Planning and
Development
Occupational
Health &
Safety
17

18. THE VISION – AVAILABLE TODAY from any number
of effective and proven HRMS VENDORS!
 ONE “SYSTEM OF RECORD”
 SINGLE SIGNON
 IMMEDIATE ACCESS BASED ON
ROLES AND RULES
 IMMEDIATE REPORTING
 HISTORY VIEWED
 WORKFLOW EMBEDDED
 “BEST PRACTICES”
 ESS AND MSS
 INTUITIVE NAVIGATION
 INTERGRATED FUNCTIONALITY
 DASHBOARDS AND METRICS
18

19. 800 #
CLIENT SUPPORT
HR Technology Solution ProviderThe Vendors support team— Systems
Development
Changes • Definition
Releases • Security
Transactions, queries,
Training &
Development
Employees
Managers
n Reports
n Metrics
n Analytics
n Data
General Ledger and other
financial systems
Payroll, with all filings
Benefits Admin, Cobra,
ACA
LMS – Learning
Recruiting
Knowledgebases
Vendors with other
Systems
HRT Vendors
YOUR COMPANY’S
DATA BASES AND
INSTALLED SYSTEMS
Feeds
Access
Tools
Staffing
Systems
THE VISION: PUTTING THE PIECES TOGETHER
Secure
Back ups
YOUR COMPANY’S
DATA BASES AND
INSTALLED SYSTEMS
CLIENT’S
ENTERPRISE WIDE
DATA
ESS
MSS
n Reports
n Metrics
n Analysis
n Data
HUMAN RESOURCES
SYSTEMS SUPPORT
ORGANIZATION
APPLICANTS
Time and Attendance
19

20.  Administrative efficiencies resulting in cost reduction
 Leadership development
 Overall alignment with the organizations’ strategies, mission,
goal and vision.
 High service quality to all customers (stakeholders)
 Responsiveness
 Risk Management
 Talent management, identification and acquisition, and a
pipeline
 Effective leveraging of technology to all appropriate functions
within the realm of HR, Payroll and Benefits
“VALUE CREATION”!
CEO, Board & Stakeholders expect…
20

21. Poll Question: Do you feel you are
getting the full value out of your
HR technology?
26

22. HR portal – Employee/Manager Self-Service
Taking advantage of SaaS, Web based Employee
Portals
 Entry/modification of personal data
 System driven processing of a majority of HR
transactions
 Personalized – Role based
 Interactive – Manager ‘in box”
 Work-flow driven
 Tablet and/or Smartphone enabled
 Direct access by employees to Benefits
providers websites
 Integration to company’s web portal
 Performance Management, Employee Goals
 Succession Planning, Competencies
 Version of software always current
Technology and outsourcing enable this shift to the
mindset of “value” creation…..
21

23.  Products and cost of
production
 Overhead
 Economic indicators
 Organizational financials
 Organizational structure
 The workforce and its
utilization
 The marketplace
 Competitors
 Acquisitions and mergers
 Research and development
 Technology development
 Human resource programs
and measurement
Think this……..
Stakeholders & C-Level Executives want
actionable information that assesses…
22

24. 1. Who are the key people within our organization? What are
they doing? How good are they? How do we know?
Compared to our competitors, are we paying them too little?
Too much? How do we know? If we do lose a key employee,
what is our succession strategy?
2. How much would it cost to reduce headcount by 10% while
retaining our highest level performers? What impact might that
reduction have on our ability to remain competitive?
Reasonable questions? How much information
can you provide? How long will it take you?
C-Level Stakeholders Ask “Big Picture” Strategic
(& Complex) Questions…
23

25. What COUNTRY do we go into next?... And WHAT
do we do there????
AND how was it responded to… who did what
to get the answer??????…. Let me tell you
about it…
One of the most Strategic question EVER asked by
a CEO ……(in my opinion)
Cargill Corporation - CEO
24

26. “Information Craftsmanship”Data Management
Data Analysis
C-Level Stakeholders Want Information NOT
Data
Data Analysis
 Static, aging, past, reactive,
transaction-based
 Evaluate costs already
spent
 Analyzing/presenting
 How many? Which?
 What groups?
 Based on past transactions
Data
Costs
Analysis
Strategic Support
 Forward view, projections,
forecast, proactive, model-
based
 Future costs estimated
 Future value estimated
 Estimating future total and
formulating scenarios
based on historical trends
and other influences
From
Static to
Strategic
25

27. METRICS….. ALWAYS BEEN AROUND!
SINNERS
BELIEVERS
27

28. What is overall condition of the company? Business Unit? HR?
The Performance Metrics (aka - KPI’S) that HR should
measure MUST address the “Business”
 Are we meeting Strategic Needs?
 Are we helping to deliver on corporate
strategy and direction?
 Are we meeting our Customers’ Needs?
 Are we optimizing our Service Delivery
Process
 Are we contributing to the company’s
financial goals and overall well being?
28

29. Strategy
Internal Business
Perspective: What
are we doing well?
Financial Perspective:
How do we look to
shareholders?
Growth & Learning
Perspective: Can we
continue to improve
& create value?
Customer
Perspective: How do
customers see us?
Goals & Measures
Market Share
Brand Strength
Sales Trends
Customer
Satisfaction
Customer Loyalty
Goals & Measures
Earnings per Share
Price Earnings Ratio
Budget Accuracy
Growth Revenue
Gross Margin
Company stock price
versus competition
Profit-Employee
Ratio
What C-Level Executives Are CONCERNED ABOUT:
Goals & Measures
Design to Market
Cycle
First to Market %
New Product Ratio
Competency
Change Rate
Development
Activities Exist to
Meet Business Needs
% Ready Successors
Goals & Measures
Delivery Performance
Workforce Productivity
Process/ workflows
efficiencies / Quality
Compliance
Business Strategies
Talent pipeline
Workforce
competencies
Turnover Rate
Job Fill Rate
29

30. Metrics must be provided in support of the roles, responsibilities of different
constituencies that require INFORMATION.
Specific Performance Metrics that HR Should Measure
Audience Desired Metrics & Analytics
C-Level Executives Company Performance &
Strategy
Senior HR Executives;
Directors & Managers of
Specific Program Delivery &
Functionality
HR Operations &
Performance
HR Administrative Specialists HR Functionality Services &
Programs
HR Technology Specialists HR Technology Service
Delivery
30

31.  Human Capital Revenue Factor (HCRF)
 Total Revenue / Full Time Equivalent (FTE)
 Human Economic Value Added (HEVA)
 (Net Operating Margin – Cost of Capital) / Full Time
Equivalent (FTE)
 Human Capital Cost Factor (HCCF)
 W2 Pay + Cost of Contingent Labor + Cost of
Absenteeism + Cost of Turnover
 Human Capital Value Added (HCVA)
 Operating Revenue – (Operating Expenses – Pay and
Benefits) / FTEs
 Human Capital Return on Investment (HCROI)
 Operating Revenue – (Operating Expenses – Pay and
Benefits) / Pay and Benefits
HR Operations & Performance Metrics
31

32. ONE OF THE FIRST LISTINGS OF
VALUABLE HR METRICS:
 Benefit Factor (% of total salary)
 Cost per Hire
 Employee Cost Factor
 Human Capital ROI
 HR Headcount Ratio
 Income Factor
 Management Ratio
 Revenue Factor
 Training Cost Factor
 Voluntary Separation Rate
32

33. Cost Effectiveness Expressed As Computed As
Workforce
productivity (per
employee)
Net
income/employee
Net Income
Total Active
Employees
Production
output/employee
# Units
Output/Hourly
Employee
Total Hourly Active
Employees
Dollars of
sales/employee
Dollar Value or Units
Sold
Total # of Active
Employees
HR Functionality Services & Performance Metrics
33

34. Using Workforce Analytics to manage TALENT
Make Smarter
Hiring Decisions
Retain Key Talent Connect People
Performance to
Business
Performance
Quality of Hire
Recruiting Channel
Effectiveness
Attract & Source
First Year Effectiveness
First Year Turnover
Compa-/Market Ratios
Retirement &
Succession Planning
Turnover by
Performance / other trends
Value Creator Profiles
Engagement: HR Prog &
Bus Outcome
Return on Talent
Acquisition
Investment
Cost of Days Lost Per
Employee
Value Created (Quotas,
Productivity, Margin...)
Predictive Analytics
34

35. Acquisition
 Cost per hire
 Time to fill jobs
 Total Number of New Hires
 Total number of replacement staff
 Quality of new hires
Financial
 Average Total labor cost as a percentage of
operating expense
 Pay per employee
 Benefits cost as a percent of pay
 Average performance score as compared
to revenue per FTE
 Human Economic Value Added (HEVA)
Retention
 Total separation rate
 Percentage of voluntary
separation to total separations
 Separations by length of service
 Percentage of separations among
“key” performers
 Cost of turnover
Development
 Training cost as a percentage of payroll
 Total training hours provided
 Average number of hours of training/FTE
 Training hours by functions
 Training ROI
TALENT ANALYTICS
35

36. The Logic Chain: Why Metrics & Workforce
Analytics Are Critical… and create VALUE!!!!
 HR metrics and analytics emerge from an information system
 Managers make different and better decisions as a result of
information
 Decisions have impact on company’s strategy and goals
 Goals and Strategies aim for Value Creation
 Value Creation leads to efficiencies
 Efficiencies usually lead to improved company performance
(Revenues, Sales, Stock) ….. MEANING “VALUE”
Thus the demand for more INFORMATION, METRICS AND
WORKFORCE ANALYTICS!!
36

37. HR Scorecards &
Dashboards
37
 Visually appealing
 Colorful
 Shows trends
 Tells a story at a glance

38. 38

39. 39

40. 40

41. 41

42. 42

43. Predictive Analytics: “Who is likely to leave?”
43

44.  Web delivered – SaaS – “Software as a Service”
 Employee Self-Service and Manager Self-Service (ESS/MSS) – web
delivered – “MyPortal”, Manager’s “in box”
 Best practices and workflow built in, with templates provided
 Email triggers and notification for action alerts and process steps
 Functionality encompassing most functions within HR including Payroll
and Benefits
 A comprehensive “library of standard reports”
 Ad hoc Report Writer (user oriented)
 Metrics and “Dashboard” graphical presentation
 “Drill down” capability – underlying data at a “click”
 Tables - changeable/manageable by end user or by a trained “power user”
 Effective date processing – future and retroactive
 Security based on rules and end user roles
Features and Functions within HR Technology delivery
44

45.  Leverage HR Technology to reduce drastically time spent on
administrative tasks
 Shift responsibilities to employees, managers and other HR team
members so you can shift focus to strategic planning
 Require high performance and service from existing vendors and service
providers
 Redefine your mission to include only those functions that really matter
 Find ways to outsource important functions that are critical, but not core,
to the corporate mission
 Find service providers that can deliver a number of these functions more
efficiently while supporting the mission of the company
 Deliver Dashboards displaying Metrics that show trends over time
Grab new roles such as Workforce Cyber Awareness that might not be
considered an HR issue, but should be.
HR and HR Technologists: your “To Do” list…
45

46. SUMMARY : KEY WORDS….. AND CONCEPTS
VALUE DRIVEN : do everything within HR that OTHERS will
see generates ACCEPTABLE BUSINESS IMPACT.
 GET THE DATA, MAKE SURE IT IS “GOOD” DATA
 BE PROACTIVE …. KNOW YOUR ORGANIZATION, NOT JUST
YOUR FUNCTION
 USE TECHNOLOGY: DEMAND EXPERT SERVICE FROM
PROVIDERS
 SEEK METRICS, THEN SEEK THE UNDERLYING
“INFORMATION” BY UTILIZING “ANALYTICS”
 DON’T WAIT TO BE ASKED, PUSH YOUR CAPABILITIES,
MARKET THE IMPORTANCE OF HR
46

47. “Heroic HR”
You can purchase a copy
for $19.95 at:
www.marcsmillerassociates.com
www.Ihrimpublications.com
www.Futurapublishing.com
SECOND EDITION
47

48. Marc S Miller
www.marcsmillerassociates.com
48

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