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Move to service-oriented HR
The document discusses moving HR to a service-oriented model. It notes that current HR departments focus too much on administration and are inefficient. A new model is needed where strategic HR services are provided to support the business. This involves transforming HR's role, reviewing processes, and establishing an HR service center and centers of expertise to efficiently deliver transactions and expertise. The goal is for HR to prove its contribution to the bottom line and better serve customers through a unified service delivery approach and technology.
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Move to service-oriented HR
- 1. Move to service-orientedHR Anita Lettink Business Development Manager ARINSO International March 2003
- 2. What’s your performance? ●Do you know: − FTE’s per HR Department FTE? − Absence rates? − Percentage of new hires to achieve management positions? − Performance scores of management and professionals? − Human Investment Ratio? − The wealth created per FTE? − How you compare to other organizations?
- 3. What’s your performance? ●What is the contribution of the HR department to the bottom line of the organization? − What are the “all-in” costs of HR? − What’s the ROI of HR? − How can you prove that? − Do you measure that?
- 4.
- 5. What is theproblem? ● ARINSO Research shows: − HR customers are not satisfied − Main HR focus is (still) administration − Ineffective use of technology − HR functions are not efficient, associated cost are high − HR departments are focused on internal HR performance ● New services do not meet customer needs ● Business demands are not met by HR Transformation ● HR departments often introduce non-HR services
- 6. What’s needed? ● TransformRole of HR HR Value Proposition How can we serve the company strategically? How can we serve our customers? How can we best deliver services? HR Business Transformation
- 7. HR Business Transformation ●Introduce HR Service Delivery Model ● New HR Business Model ● Concentrate on strategic HR services ● HR Process Review ● Become comfortable with technology Measure contribution to bottom-line
- 8. HR Service Delivery Subject Matter Experts TIER2 E-HR Portal IVR, Kiosks TIER 0 Service Agents HR Service Center TIER 1 TIER 3 Policy Experts HR Expertise Center Inquiries Employees Management HR-Professionals 9% 1%55% 35%100%
- 9. HR Business Model ●A new way of providing HR Services: − Business HR embedded in business structure supporting transformational change and business needs − Service Center(s) delivering transactional activities and basic employee support (web, IVR, etc) − Center(s) of Expertise providing world class advice and policy development on HR topics (Resourcing, Development, etc)
- 10. HR Services ● Providestrategic HR services: − Defining corporate vision, goals and identity − Leadership development − Performance management − Workforce planning & development − Talent acquisition and retention − Management support − Workplace improvement
- 11. “To - Be”HR Process Model: Service Map Managing the Service Delivering the Service Technology Support Services Network Management Applications Management Applications IntegrationIT Operations Basic Value Strategic Time & Attendance Payroll Benefits Labour & Employee Relations Employee Communications Expatriates Administration Resourcing Learning Remuneration Employee Development Performance Management Organisation Development HR Strategy & Benchmark Managing Diversity Enabler HR Reporting Personnel Administration Organisation Administration Service Center Center of Expertise Business Partners Technology Executive Compensation Supply Management
- 12. HR Technology Support ●Introduce more efficiency: − Information management and discovery − Transactions and simulations − Streamlined, standardized processes − Personalization − Web-based collaborative team services − Broadcast delivery of business communications to employee desktops
- 13. HR Customer Scenarios Information& Transactions ● Resumes ● Careers ● Company Handbook ● Discussion boards ● Training ● Benefits ● Live Broadcasts Benefits ● Rapid information dissemination ● Legal compliance ● Broad audience reach ● Real-time communication ● Increased productivity ● Reduced costs
- 17. Most popular scenarios ●Company handbook ● Time/money exchange ● Vacancies ● Expenses ● Change Personal Data ● Time & Attendance ● Payslip Online ● … ● Benefits statement
- 18. What’s needed? ● HRBusiness Transformation HR Value Proposition How can we serve the company strategically? How can we serve our customers? How can we best deliver services? Initiatives in corporate strategy and culture HR Contribution to financial goals Service Offering that satisfies employees
- 19. ARINSO’s answer ● HRBusiness Transformation − Achieve economy of scale − Excel in administrative transaction processing − Unified process delivery − Use technology for HR support − Optimal use of scarce HR resources − Key Performance Indicators to measure results − Business chooses service level − Services based on SLA’s ● HR departments focus on − Creating value for the company − Improving Human Capital Performance