Companies of all sizes are struggling to manage the massive amounts of data related to human resource management. This program will examine the various solutions technology offers to deal with this challenge, and provide examples to increase department efficiency while adding strategic value to the business.
8. Trend #1 – Web 2.0
Collective Intelligence
User Content
9. Trend #1 – Web 2.0
Blogs & Wikis
RSS Feeds
Aggregate Sites
Social Networking
10. Social Media in Business
Business Human Resources
• Branding • Recruiting
• Marketing • Onboarding
• Public Relations • Sourcing
• Customer Service • Scheduling
• Loyalty Building • Learning
• Customer Acquisition • Thought Leadership
• Networking • Employee Engagement
• Internal Communication
11. Social Media – HR Opportunities
• Many-to-Many Dialogue
• Qualitative Contact
• Hunters Now The Hunted
• Passive Job Seekers
• Mitigate Risk
Social
Recruiting
12. Social Media – HR Opportunities
• Enhance Collaboration
• Unlock Tacit Knowledge
• Immersion
• Innovative Approaches
• Reduced Cost
Social
Learning
14. Trend #2 – Mobility
• Statistics
– 70% - Mobile phones for work
– 50% - Check work email on weekend
– 89% - U.S. companies offer telecommuting
– 119 Million U.S. workers are mobile
Sources: Socialcast
Telework Coalition
IDC
17. Self Service – HR Opportunities
Recruitment Time Off Requests
Open Enrollment Personal Info Updates
Onboarding Training
Time Reporting Talent Management
Pay Statements Performance Appraisals
W-2’s Succession Planning
Electronic Forms Manager Dashboards
18. Trend #4 - BAM
Business Activity Monitoring
1. Executing Redundant Tasks
2. Exception Management
3. Trend Analysis
4. Data Integrity
5. Data Inconsistencies
6. Reporting
19. BAM – HR Opportunities
1. Business Intelligence
1. Monitor Data in Automated Way
2. Alerting
1. Email, Fax, Phone, Dashboard, Twitter
3. Reporting
1. Reports, Analytics, Forms
4. Workflow
1. Initiate and Act On HR Data
20. BAM – HR Opportunities
New Hire Pay Rate Absence %
Change Over Time
Paperwork
Req’d Data Missed
Excessive OT
Review Review
Happy Certifications Term
Birthday Due
Notification
21. Trend #5 – Talent Management
• Talent Challenges
– Filling Leadership Pipeline
– Developing Skills to Address Business Challenges
– Performance-driven Culture
– Dissatisfied Employees
War For Talent 2.0
23. Trend #6 – HR Analytics
• Data Decisions
• Metrics/Key Performance Indicators
– Analytical Tools
– Dashboards Knowledge
Information
Data
24. Analytics – HR Opportunities
Organizational Bottom Line Impact of
Strategic Planning HR Best Practices
Be More
Strategic!
Empower Managers to Align HR Strategy with
Make Better Decisions Corporate
25. Terminology
• Long-Term
• Big Picture Thinking
• Holistic View
• Company Goals/Objectives
• Value/Outcome Focused
“HR must give value, or give notice.”
– David Ulrich
28. Strategic HR with Technology
- Professor Jon Boudreau,
USC’s Marshall School of Business
29. Strategic HR with Technology
• Why Aren’t We?
– HR Administrivia
• Transactional duties
• ‘Social work’ activities
• Comfort zone
– HR Skill Set
– Data Accuracy
30. Strategic HR with Technology
Why don’t we?
1. Social workers and not interested in business
2. HR pursues efficiency in lieu of value
3. HR isn’t working for ‘you’
4. The corner office doesn’t get HR
- Keith Hammonds – editor, Fast Company magazine
“Why We Hate HR”, 2005
khammonds@fastcompany.com
32. Leverage HR Technology
TWO: Serve the Business
• Human Capital Management Plan
– M, V, G, O
• HR Goals Corporate Goals
• HR Metrics Business Decisions
• Data Integration
33. Leverage HR Technology
Corporate Objective Aligned HR Goals
• Increase Productivity • Increase EE engagement
• Provide training to employees
• Speed up onboarding process
• Strategic compensation
• Improve Competitiveness
• Retention of top performers
• Performance management
• Reduce Costs • Increase EE retention
• Manage benefit costs
• Reduce transactional paperwork
• Improve Sustainability • Capture workforce analytics
34. Leverage HR Technology
THREE: Measure the Right Things
• Baby Steps
• K.I.S.S.
• Few, But Layered
• Start With the End in Mind
35. Leverage HR Technology
FOUR: Make Value, Not Activity
• Key Performance Indicators
• Scorecards Training
Attendees/Month
Training
Effectiveness
• Analysis
36. Leverage HR Technology
FIVE: Inquiry, Not Intuition
• Get Answers From Metrics
• Bust Myths
• Use Standardized Data
• Measure Consistently
“... when HR uses fact-based decision making – instead of intuition or best
guesses – the group becomes a more credible partner to the business it
serves. Fact-based decisions help HR improve HCM practices, recruit and
deploy the right talent, cut costs, contribute to business performance and
provide evidence of those contributions.”
- BusinessWeek Research Services, May 2009
37. HR Analytics – Examples
Revenue Factor • Total Revenue / Total Headcount
Net Income/FTE • Revenue – Operating Expense / FTE’s
Absence Factor • Absence Hours / Pay Rate
Turnover Ratio • Total Terms / Total Headcount
39. HR Analytics – Examples
Time to Fill • Number of days to fill position
Cost per Hire • Cost involved with new hire
Benefit Cost/EE • Total cost / # employees
Human Capital • Salaries / Overall operating expense
Cost
40. HR Analytics – Examples
• Salaries as a % of Operating Expense
– All Industries – 57%
– Government Agencies – 54%
– Nonprofit Organizations – 56%
– Privately Owned For-Profit – 60%
– Publicly Owned For-Profit – 45%
Source: 2008 SHRM Human Capital Benchmarking Study
42. In Summary
• Social Media and Workforce Mobility are
changing the dynamics of HR Technology.
• Popularity of Employee Self Service and Talent
Management systems has increased.
• HR Technology can increase HR
effectiveness, but will ultimately make HR more
strategic.
• Utilize technology to create business oriented
analytics and metrics.
Something everyone wants to talk about, HR Technology!I love tech, and HR Tech is my passion – technology & building better tech strategies in companies
Current and trends in HR techHow HR Tech can make you more strategicWhy an ROI matters
18 years providing technology advice to HR/Payroll deptsUse a smartphone? 1.2 billion people carry smartphonesUse GPS? Tweeted that they were here today?
Acronym soup –daze and confuse, almost as much as HRBenefits admin, HR info mgmt, recruiting, training/learning mgmt, performance mgmt, payroll, work timeCore HR discipline by SHRM and is a facet of all other HR disciplines.HR Guru David Ulrich HR Magazine’s Most influential HR person#1 management educator by Business WeekMastery of HR Technology as one of the five competency domains
5 Trends taken from a variety of sources: SHRM’s HR Trend Book (weknownext.com), Watson Wyatt Research, IHRIM, our customersThese 5 trends all incorporate a similar theme:Better strategic design, & HR’s role in that strategyChanges in how employees work
Connecting with people Building CommunitiesCommunicating and Collaborating with your customers, employees, and peers to improve your brand.Provide Clarity and transparency about yourself & your company.Cultivating loyalty and trust.Sharing ContentConvergence – a complete transformation on how we do everything
Major transformation of the internetWeb 1.0 – push content out to masses; “advertising”We searched for information and consumed it
2nd generation of web development and design Facilitates communication, information sharing, and collaboration on the world wide web Part of our daily lives
Blogs –200,000,000 blogs Wikis – Collaborative user communities (ex: Wikipedia)RSS – Updates are automated, update site and RSS updates thousands of areas on the webAggregate – sites like indeed.com – one stop shopping for candidatesSocial networking sites – online communities that provide users a variety of ways to interact3 out of 4 Americans use social technology.
Branding - #1 business use when polledHR transformation:* Recruiting is driving Web 2.0 in HR, FB & LI drive people to employer’s career site.Enhance learning opportunities through virtual networksDemocratizing HR processesTrend: HR moving away from social media policeHelp business leaders leverage social media for maximum ee engagement
88% look for jobs online, 60% apply onlineCandidate experience - Open transparent conversation, build trustInbound Activities (search aggregate sites, research companies, ask friends)Passive job seekers – job hunting consumes 0% of their time60% think that hiring passive candidates results in better employees – LinkedIn poll, 2009Gather info to mitigate risk - Right person – right positionInstead of building an employment funnel, create an employment tunnel
Gartner Research – 80% learning comes from informal trainingImmediate, relevant trainingCreate communities for sharing knowledge* Use to identify people who know a lot about their jobs* Connect EE’s with experts in the companyUsing more sophisticated training tools that harnesses the power of social media and virtual worlds in favor of slides and conventional classroom environments
We know that the best use of SM is relationship building and branding, you can be the one that gets your company ready for the movement!What’s working? Good Content, Good Community, Value of RelationshipsGoogle “The company as a wiki” – BestBuy’s move to Web 2.0, leading edge & bleeding edge
Borderless WorkplaceWhat’s the first thing 1/3 of mobile Americans do when they wake up? Check email.1.2 Billion people carry smartphonesBy 2013, mobile will take over PC/Laptop use. Nearly 75% of the American workforce will be mobile by 2013, according to market research firm IDC.Two aspects:“You” are your office – text, phone, wifi, 3G - ‘central office’ model is barely recognizableWork/Life balance – what are we doing to attract and retain top talent?For many, connectivity is like oxygen, and increasing it drives higher production.Employees will expect HR departments to provide mobile access to core HR functions
HR must be able to support the virtual workforceHR Role as leader – review policies, cultural ‘fit’, worker responsibilities, employer of choiceGenerational changes - The emerging workforce Expanding HR’s service delivery and increasing HR’s role in business.Provide HR services through Web 2.0 technologyFoster a culture of innovation
Automate AdministriviaSimplify/Enhance CommunicationConsolidate DataImprove EEsatisfactionReduce Paper – Go Green!Don’t you have something better to do?Employee collaboration and business social networking Value – improved performance, creativity, communication, informal learningEmpowers EE’s – control of information, be self-sufficient
Employees directly view, create, and maintain information in a Web browser.‘Paperless’ office 3. Deploy via mobileAllow ee’s to take ownership of their information/dataAllow HR to do more with less (less HR staff/#ee’s)Deploy via mobile
Business Latencies – ‘slow processes’ inside a business, automation can reduce/eliminate these latenciesBusiness Activity Monitoring & AlertingProactive communicationIdentify and respond to trouble spots (data that is a potential problem)Date sensitive conditions (certification about to expire)Approaching thresholds (excess OT, leave balance approaching zero)Exceptions to normal processing (pay rate changes)Things that should have happened, but didn’t (renewing visas)
What you do not know is what hurts youBuild business rules to monitor the data Deploy via alerts once BAM identifies conditionsAutomate reports, forms, metricsBesides just alerting, do something once the condition is reached
Is your HR Data talking to you?
Talent Management, or Integrated Talent ManagementMany silo’d applications are consolidating, traditional HRMS closing the gap on ITM.SHRM – “Biggest investment challenge over the next 10 years” - Obtaining and Optimizing Human Capital – 47%Around the world, there is an imbalance between needed and available skills1 in 3 employees seriously considering leaving employer – Mercer “What’s Working” surveyDecreased employee loyalty, low ee satisfactionHeightened competition for skilled workersRetirement of baby boomers (at some point they will retire!)Outsourcing trendsWar for talent – 1997 McKinsey study coined the term
Manage inordinate amount of data we collect on our best talentLeverage inordinate amount of data we retain on our best talentEE Turnover – high cost (30-400% of salary) – separation, vacancy, replacement, trainingSHRM - $8/hour employee - $3,500 to replaceInvestments to increase retention: communication, engagement, recognition, training, benefitsInvested Employees = increased revenue, higher customer service rates, Workforce planning – identify gaps between supply and demand of talent in order to meet specific business needs.
Turn data into information, information into knowledge, and knowledge into plans that drive profitable business actionsData - Collection of raw value elementsInformation - Facts can be gathered on data to draw conclusions.Intelligence - Use information to perceive, discover, and understand abest course of actionHow do we get from information to intelligence?
Intelligence = linking HR data to overall business strategyTo do that, we must be more strategic in our thinking
Everyone talks about it, who’s doing it? What does it even mean?Term borrowed from military - having an impact outside your own military unit. Strategic – taking a ‘longer term’, ‘big picture’ approach. vs. Tactics HR’s Direct contribution to long-term corporate objectives.Understand all parts of organization, how organization fits together, and how any change will impact organization as a whole
Yes, Technology can do all of these things to HR, but the real value lies in building better strategic vision.Measuring HR technology on its efficiencies alone is an old fashioned and short-sighted approach.
Enable HR - Make predictive correlations between traditional HR metrics and the businessMore holistic view of human capitalIMPACTS to businessTransform HR from tactical to strategicKnowledge EconomyWorkforce AgilityMake decisions about human capital to continuously improve and enhance the value of the businessROEI – Return on Employee InvestmentForward-looking (predictive) metrics to improve decision making, prevent/mitigate future talent problems
Honest look into HR and Technology
Admin/transactional nature draws of HRComfort zone activities are EASY (transactions, paper admin)Soft side of business – the people, and not the hard side – the numbersForrester Research - over 50% of HR dept’s time is spent processing EE information and answering EE questions.Employee’s are children, and HR is their mommy and daddyDifferent skill sets – regression analysis, causal pathway modeling, predictive modelingHR training at undergrad level is focused on soft skills, little analytical emphasis
HR doesn’t serve corporate objectivesActivity driven - not delivery driven. Reactive around services. Forfeits long term value for short term efficiency.Due to labor regs, corporate policies, etc., HR is bad cop that is focused on here and nowHR and Executives don’t speak same language. HR not only doesn’t have a seat in the board room, it doesn’t have a key!THE KEY IS TECHNOLOGYHR Technology can overcome all 4 arguments.Measure HR’s Impact on the bottom lineUse to influence CEO, CFO, CIO, CIA, CBS, or any other C-level executive in the companyMarketing – decisions about customers Finance – decisions about moneyIT – decisions about technologyHR – decisions about peopleHR is the only department that has direct access to both the “C”-suite and people assets of an organization. HR has it’s finger on the pulse of a company, and can report that data directly to those who need it most to make better business decisions.
Technology will reduce admin so we can focus on strategyRe-engineer administrative processes
Understand mission, vision, goals, objectives of companyAlign HR Goals with corporate onesProvide solutions to all levels of organizational workforceTie metrics to business decisionsDirect correlation of human capital performance and business performanceIntegrate your metrics with other departments (finance, customer satisfaction, etc.)Look for correlation and causation among workforce data, financials, and other business data
Strategic alignment – align business units and individual employees with strategic goals identified by senior management.Measure through HR Metrics
What metrics are important to the company?Compare over time8-12 KPI’s ("keep it simple and straightforward“)Measures should be few, but layeredWhat is to be gained
Make value, not activity (from HR Value Proposition – Dave Ulrich). Pick KPI’s that add value in making decisionsTraining attendees per month vs. Effectiveness of training Did trained staff learn anything to make them better workers? How did quality improve? How did customer loyalty improve?
Drive operational-decision making without “hunches”. Use metrics to answer important workforce questionsUse standardized auditable data (single point of truth)Measure consistently (measure twice, cut once)Gain insights and credible “what-if” scenariosAggregate turnover low in companyHigh in one location, why?“They ee’s there aren’t emotionally engaged”Using statistics, they found high voluntary turnover with those who had most emotional commitmentDiscussion around statistics built measurements around appropriate level of commitment
Revenue / FTE – Links time and effort associated with firms human capital to its revenue output. Greater efficiency and productivity. $154K average
Turnover clarity – don’t just focus on turnover rate, study data on different data points and multi-dimensional analytics – TenureBy wage ratesBy ageBy top producers
Benefits – cost factor, percentage of total compensation, worker’s comp, etc.Profit Indicator/Human Capital ROI – Pre-Tax Profit less Financial capital costs/human capital costsAttrition Rate / Survival Rate
Investment in human capital is company’s largest investment.HR - take the lead in identifying where people assets can best be allocated to meet the company’s goalsHow to hire, develop, and retain the human capital the company needs to stay competitive now and in the future.I’m preaching to the choir here, but…In a knowledge economy, companies with the best talent win
Pull data from all sources and put into dashboard formDashboard – graphical snapshot of business health from an HR Perspective.Easy to read, summary of company’s current state of affairs
What is your HR technology strategy?What system functionality do you need?What results do you wish to accomplish?What work processes do you wish to change?How will we handle change?Software or subscription?How does this system support the overall needs of the business?What HR metrics help drive business decisions?Who are the decision makers internally?What is your internal technology environment?What is your budget?