More Related Content Similar to Leading the Charge, Driving the Change: Delivering the HR of the Future (20) Leading the Charge, Driving the Change: Delivering the HR of the Future1. Leading the Charge, Driving the Change:
Delivering the HR of the Future
Towers Perrin 2009 HR Service Delivery Survey
July 30, 2009
Ā© 2009 Towers Perrin
2. About the HR Service Delivery Survey
ļ® Each spring, Towers Perrin surveys HR, HR operations and service delivery
professionals globally on their organizationsā HR service delivery strategies,
plans, tactics and tools
ļ® New this year: Modules on HR shared services and
HR outsourcing effectiveness
ļ® Fielded in March and April 2009, and drew responses from 332 companies
headquartered in North America, Europe and Asia
ļ® This yearās survey covered numerous content areas, including
ļ® HR service delivery priorities ļ® HR staff ratios
ļ® HR function/organization design ļ® HR shared services approaches
and metrics
ļ® HR technology and systems
ļ® HRO effectiveness
ļ® Talent management approaches ļ® HRO governance
ļ® Web 2.0 in HR
ļ® Employee/manager self-service
Ā© 2009 Towers Perrin 2
3. Headline #1:
Cost has emerged as a top service delivery issue for the first time
Top 10 HR Service Delivery Issues (top three frequency)
Talent/performance systems 13% 13% 9%
Streamline processes/systems 7% 16% 12%
Cost 15% 3% 6%
More involvement in strategic, business-driven issues 9% 8% 6%
Upgrade HR system 9% 5% 4%
Define human capital metrics and dashboards 2% 5% 10%
Manager self-service 3% 6% 7%
New HR system 9% 4% 2%
Accuracy of data 3% 5% 6%
Systems integration 4% 3% 6%
First Second Third
Ā© 2009 Towers Perrin 3
4. Most organizations are focusing on cost-reduction strategies
Activities Done or Considered Due to the Economic Downturn
Focus more on cost-reduction strategies within 65%
our service delivery approach
Postpone certain service delivery initiatives 45%
Shrink infrastructure supporting service
delivery (e.g., reduce staff)
37%
Standardize service delivery tactics across all
locations (i.e., both domestic and international) 30%
Try or consider new service delivery strategies we
would not have considered otherwise
22%
Accelerate service delivery decisions we
would have made anyway
21%
(n = 290)
Ā© 2009 Towers Perrin 4
5. Headline #2:
Technology spending is not the target for these cost savings
Spending on HR Technology vs. Prior Year
55%
43%
25%
22%
15%
11% 9% 8%
6% 6%
(>20% (<20% Same (<20% (>20%
reduction) reduction) increase) increase)
(2008 Survey n = 382; 2009 Survey n = 331)
2008 Survey 2009 Survey
Ā© 2009 Towers Perrin 5
6. Headline #3:
Whoās doing whatā¦
Companies Undertaking Initiatives in Past 18 Months
Reengineered key HR processes 209
Sought to increase alignment of HR
strategy with business strategy 208
Refocused the role of the HR business partners 133
Implemented and leveraged self-service
(employee and/or manager self-service) 129
Introduced a new channel of HR delivery 86
Implemented a new, robust HRMS 64
Implemented a shared services model 57
Developed a standard global data architecture for HR
data 53
Note: Base is those who have undertaken the initiative.
Ā© 2009 Towers Perrin 6
7. ā¦and whatās paying off the most
Results Achieving Expectations Among Those 76%-100% Complete
Reengineered key HR processes (n=56) 25% 21% 36% 4% 14%
Sought to increase alignment of HR strategy with
business strategy (n=68) 18% 19% 47% 4% 12%
Refocused the role of the HR business partners
(n=47)
13% 26% 49% 6% 6%
Implemented and leveraged self-service (employee
and/or manager self-service) (n=48) 19% 19% 37% 10% 15%
Introduced a new channel of HR delivery (n=36) 19% 14% 42% 8% 17%
Implemented a new, robust HRMS (n=32) 16% 6% 31% 22% 3% 22%
Implemented a shared services model (n=25) 12% 24% 52% 12%
Developed a standard global data architecture for
HR data (n=23) 9% 22% 43% 9% 17%
Well above expectations Slightly above expectations Met expectations Slightly below expectations Well below expectations Too early to tell
Ā© 2009 Towers Perrin 7
8. Headline #4:
Talent management is still top of mindā¦even in this economy
Top 10 HR Service Delivery Issues (top three frequency)
Talent/performance systems 35%
Streamline processes/systems 35%
Cost 24%
More involvement in strategic, business-driven issues 23%
Upgrade HR system 18%
Define human capital metrics and dashboards 17%
Manager self-service 16%
New HR system 15%
Accuracy of data 14%
Systems integration 13%
Recruiting/staffing services/systems 12%
(n=332)
Ā© 2009 Towers Perrin 8
9. A variety of methods support the delivery of talent management
programs ā from HRMS, to outsourced, to paper-based processes
Methods Primarily Used to Support Each Function
Provided though Outsourced or Custom/in-house Manual/ N/A to our
current HRMS system best of breed developed tool paper-based organization
Compensation ā base pay (n=309) 44% 22% 19% 14% 1%
Compensation ā variable pay/bonus
(n=307) 29% 23% 25% 20% 3%
Workforce analytics (n=270) 24% 19% 20% 23% 14%
Recruiting/staffing ā internal (n=318) 19% 59% 9% 11% 2%
Recruiting/staffing ā external (n=320) 16% 66% 6% 10% 2%
Learning management and training
16% 53% 16% 12% 3%
(n=303)
Onboarding (n=273) 16% 22% 15% 39% 8%
Performance management and goal
15% 32% 21% 29% 3%
setting (n=311)
Compensation ā sales/incentive (n=286) 15% 19% 21% 19% 26%
Career development/planning (n=274) 11% 24% 17% 36% 12%
Succession planning (n=282) 8% 23% 18% 42% 9%
Ā© 2009 Towers Perrin 9
10. Manager self-service (MSS) is still growing, with significant
gains expected in onboarding and succession planning
MSS Availability
View applicant rƩsumƩs 62% 8% 8% 22%
Review/update employee performance 55% 7% 12% 26%
Initiate/approve job requisitions 56% 8% 10% 26%
Track status of applicants 53% 10% 8% 29%
Post jobs 50% 6% 7% 37%
Plan annual incentive pay 48% 4% 8% 40%
View employee data history 47% 8% 11% 34%
Approve training classes for employees 46% 8% 9% 37%
Extend offers 28% 8% 8% 56%
Scan existing employee population for suitable candidates 21% 7% 13% 59%
Onboard new employees 21% 11% 19% 49%
Perform succession planning activities 18% 9% 18% 55%
Workforce planning (project future workfore demand and supply) 6% 6% 16% 72%
In place now During 2009 In 2010 Beyond 2010 or no plans
(n = 302-314)
Ā© 2009 Towers Perrin 10
11. While technology is effective in helping meet some key talent
management objectives, thereās still a long way to go
Effectiveness of Technology in Helping Meet Talent Management Objectives
Compensation ā base pay (n=261) 28% 39% 25% 6% 2%
Compensation ā variable pay/bonus (n=237) 26% 39% 25% 7% 3%
Performance management and goal setting (n=210) 21% 44% 24% 10% 1%
Recruiting/staffing ā internal (n=277) 17% 46% 19% 14% 4%
Recruiting/staffing ā external (n=281) 16% 49% 16% 15% 4%
Compensation ā sales/incentive (n=158) 15% 40% 32% 11% 2%
Learning management and training (n=255) 12% 41% 30% 16% 1%
Succession planning (n=138) 12% 36% 35% 14% 3%
Onboarding (n=143) 11% 36% 36% 14% 3%
Career development/planning (n=140) 8% 34% 34% 17% 7%
Workforce analytics (n=166) 6% 35% 31% 24% 4%
Very effective Somewhat effective Neutral Somewhat ineffective Very ineffective
Ā© 2009 Towers Perrin 11
12. Headline #5:
Web 2.0 tool usage is on the rise within the enterprise and HR
Plans to Launch Web 2.0 Tools
Wikis (n=197) 24% 6% 3% 14% 53%
Blogs (n=199) 23% 5% 3% 16% 53%
Forums (n=188) 23% 5% 5% 19% 48%
Podcasts (n=198) 22% 5% 5% 19% 49%
Social networking (n=205) 17% 8% 5% 18% 52%
Social bookmarking (n=304) 6% 4% 2% 10% 78%
Already in place Yes, currently under development Yes, within a year Yes, no definite time frame No
Note: Base is all respondents excluding insufficient personal knowledge.
Ā© 2009 Towers Perrin 12
13. HR foresees numerous benefits from the use of Web 2.0 tools
Reasons for Deploying Web 2.0 Tools for HR Purposes
Enable knowledge management and collaboration within teams 36% 34% 15% 11% 4%
Increase engagement among all employees within company 26% 31% 19% 14% 10%
Enable knowledge management and collaboration between departments 25% 33% 18% 13% 11%
Increase effectiveness of onboarding and integration 24% 29% 22% 4% 21%
Increase individual and group productivity 23% 37% 17% 15% 8%
Increase engagement among high-performing employees 21% 27% 25% 13% 14%
Increase employee engagement among Generation Y 20% 37% 14% 15% 14%
Search internal talent pool for individuals with right skills 19% 25% 14% 13% 29%
Improve peer-to-peer support 16% 38% 25% 7% 14%
Increase employee engagement among affinity groups 16% 28% 22% 14% 20%
Extremely important Important Moderately important Slightly important Not at all important
(n = 68-74)
Ā© 2009 Towers Perrin 13
14. HR is playing a major role in itās own use of these applicationsā¦
HRās Role in Setup and Deployment of Tools for HR Purposes
Content generation 68%
Catalyst for initial implementation 67%
Content maintenance 62%
Involved in change management/communications 61%
Creation of policies 48%
Ongoing governance 44%
Risk identification/mitigation 32%
Measurement 27%
HR not involved 7%
Other 4%
(n = 81)
Ā© 2009 Towers Perrin 14
15. ā¦but is lacking a strong role for enterprise-wide Web 2.0 applications
HRās Role in Setup and Deployment of Tools for Broader Organization
Involved in change management/communications 42%
Creation of policies 35%
Content generation 32%
Catalyst for initial implementation 31%
Content maintenance 24%
Ongoing governance 23%
Risk identification/mitigation 19%
Measurement 14%
HR not involved 31%
Other 3%
(n = 31)
Ā© 2009 Towers Perrin 15
16. Headline #6:
Shared services and outsourcing share consistent goals and results
Top Reasons HR Shared Services Organization Was Created
1 Eliminating the distraction of administrative and transactional
48%
HR work to focus on more strategic work
2 Ongoing, longer-term operational cost savings 40%
3 Standardizing HR processes throughout the business 40%
Substantial improvements in HR service quality beyond what you
4 could achieve on your own at the available level of investment 35%
Changing the behaviors of employees/managers 25%
As part of a broader HR transformation effort 22%
Substantial improvements in the timeliness, accuracy and
meaningfulness of the workforce information 20%
Substantial productivity improvements in HR 17%
Changing the behaviors of HR 16%
As part of a move to a broader Corporate Shared Services function 11%
Reduced capital expenditures 6%
Obtaining a higher level/quality of service and support than that
available through internal IT
4%
(n = 100)
Ā© 2009 Towers Perrin 16
17. The reasons for creating shared services are similar to the reasons
that organizations outsource
Shared Services
Ranking Top Reasons for Outsourcing
2 Cost savings 73%
Eliminating the distraction
1 of administration and transactional HR work 73%
4 HR service quality improvements 50%
3 Standardized HR processes 35%
Changing behaviors of employees and managers 23%
Substantial improvements in timeliness, accuracy and meaningfulness of 20%
workforce information available to management
Facilitate mergers and acquisitions 10%
Obtain higher level of service and support 5%
Acceptance by business as a strategic partner 3%
(n = 40)
Ā© 2009 Towers Perrin 17
18. Organizations that outsource are improving over
time in terms of realizing results against many of their goals
Average
Score
2009 2008
Standardized HR processes (n=14) 93% 7% 4.1 3.6
Facilitate mergers and acquisitions (n=4) 75% 25% 4.7 4.0
Cost savings (n=28) 64% 4% 11% 21% 3.9 3.8
HR service quality improvements (n=20) 55% 5% 20% 20% 3.4 2.9
Eliminating the distraction of administration and
transactional HR work (n=28) 50% 14% 29% 7% 3.1 3.0
Obtain higher level of service and support (n=7) 50% 50% 3.0 2.0
Substantial improvements in timeliness, accuracy and
43% 43% 14% 3.5 3.1
meaningfulness of workforce information available (n=7)
Changing behaviors of employees and managers (n=8) 37% 25% 25% 13% 3.1 3.3
Successful Neutral Unsuccessful Too soon to tell
Ā© 2009 Towers Perrin 18
19. Headline #7:
The changing face of HRO
Approach to Transforming HR Delivery Model in the Context of HRO
Total
āLifted and shiftedā
43%
āTransferred and transformedā 57%
(n = 40)
Rookies Veterans
23%
48%
52%
77%
(n = 13) (n = 27)
Ā© 2009 Towers Perrin 19
20. How well results achieved through
HR transformation met expectations
Average
How Well Results of Transformation Met Expectations Average Percentage
Score Complete
Implemented a new, robust HRMS (n=5) 83% 17% 4.2 70%
Implemented a shared services model (n=19) 58% 26% 16% 3.7 56%
Developed a standard global data architecture
for HR data (n=9) 67% 33% 3.9 63%
Refocused the role of the HR business partners (n=15) 40% 27% 33% 3.1 53%
Sought to increase alignment of HR strategy
with business strategy (n=12) 42% 25% 33% 3.3 46%
Implemented and leveraged self-service (n=14) 43% 29% 21% 7% 3.4 46%
Introduced a new channel of HR delivery (n=7 57% 14% 29% 3.4 41%
Reengineered key HR processes (n=15) 47% 40% 13% 3.5 39%
Above expectations Met expectations Below expectations Too early to tell
Ā© 2009 Towers Perrin 20
21. āIf we had known thenā¦.ā
Attributes most important in initial selection process and now
Attributes Ranked by Change in Importance
Increased in Importance Decreased in Importance
(importance was underestimated initially) (importance was overestimated initially)
Quality of staff/expertise Prior experience providing HRO services
65% High 13%
23% 43%
Flexibility to meet your specific needs Implementation costs
48% 20%
30%
38%
Risk management processes
13% Transition approach (e.g., methods, tools, project management skills)
15%
0%
28%
Per-employee costs
53% Contract terms and conditions
43% 38%
Cultural match 50%
33% Geographic reach/ability to service employees working outside your home country
25%
18%
Service levels promised 25%
35%
28% Ability to transform HR processes
23%
Technological capabilities
28%
63%
58% Low Prior knowledge of your organization
No Change in Importance 3%
Financial stability (of the service provider) 8%
20%
ļ§ Attributes considered most important now selection process
ļ§ Attributes considered most important in initial
20%
(n = 40)
Ā© 2009 Towers Perrin 21
22. Questions?
Tom Keebler
1 215 246 6184
tom.keebler@towersperrin.com
Robert Zampetti
1 514 982 2099
robert.zampetti@towersperrin.com
Interested in other HR service delivery topics?
This Fall, we'll feature targeted webcasts on the following topics:
ļ® HR shared services
ļ® HR outsourcing
ļ® Best practices in total rewards portals
ļ® Best practices in onboarding/offboarding
To be notified about these events, please email either of us or hit the āContact Usā
button on towersperrin.com and we'll make sure that you are included.
Ā© 2009 Towers Perrin 22