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1. Is Disjointed Data Blurring Your
View of Who to Retain or Fire?
5 Steps to Gaining Application Clarity
and Better Decision-Making
Expert Advice from Paul D. Hamerman,
Nora Costa and Nick Camelio
March 26, 2009
2. Agenda
• Introduction: Our Team of Experts
• The Situation
• The HR Dilemma
• Common Pitfalls and Causes
• 5 Steps to Fixing the Problem
• Getting Executive Buy-In
3. Introduction
Salary.com presents the “HR Dilemma™ Series”
• Fictional cases that present common managerial
dilemmas
...and,
• Offer concrete solutions from experts on how to
resolve them
4. Our Experts
Paul Hamerman Nora Costa Nick Camelio
Forrester Iron Mountain Salary.com
Research
Leading industry analyst at Forrester Director of compensation at Iron Vice President of Human Resources
with nine years of experience specific Mountain, with over 25 years of and Talent Development at
to business technology, evaluating: experience as a business & practice Salary.com, with over 16 years of
software vendor mergers and leader in corporate HR, with proficiency experience providing HR leadership
acquisitions, next-generation in market pricing and skill- or to technology companies –
architectures, industry-specific competency-based salary structure specifically in recruiting,
strategies, & packaged application design. Industries include business compensation and benefits, learning
deployment models (including services, higher education, financial and development, and employee
software-as-a-service). services, healthcare, and software. retention.
Expertise: Enterprise Applications Expertise: Compensation Management Expertise: Strategic HR Functions
8. The Acme Company
Leading Pharmaceutical Provider
• 2,500 FTE
• 3 Global Offices (UK, Singapore, Tokyo)
• 15 US offices
• Annual compensation budget is roughly $250 million
• 15 Product Lines in US and 10 in Europe/Asia
9. Our Cast of Characters
Claire, VP of HR at Acme Co.
Seasoned HR veteran with over 15 years of experience.
Responsible for US and global HR operations for 2,500 FTE
company. Has Team of 20 People. Working on consolidating
two operating divisions via acquisitions; manages multiple
homegrown and packaged point solutions.
Mark, CFO at Acme Co.
Fiscally conservative CFO. Responsible for HR, Legal and
Finance operations. Believes strong balance sheet is crucial to
company’s health. Believes in paying for results and strategic
use of technology to improve business operations. Investing in
sales initiatives to drive top-line sales growth inside US.
10. March 2008: Strategic Planning
Mark and Claire review corporate objectives and set budget:
• Aggressively recruit in new sales positions in US
• Integrate 2 new acquisitions and critical sales positions in US
• Implement aggressive pay-for-performance plan across globe
• Build pipeline of strong leaders for key positions
• Manage to specific cash flow targets per quarter
12. The New Corporate Objectives
Mark, CFO walks into Claire’s office:
• Implement hiring freeze and reduce payroll by 15%
• Must maintain high level of customer service, and...
• Stay competitive in our key focal areas
• Craft a plan to execute in next 30 days
13. The Patch Process
Claire’s team scrambles to craft the plan and reviews that data she
has to work with:
• 3 HRMS systems for headcount, positions and salaries
• Excel-based submissions for remaining domestic offices
– Multiple performance input across company
• Performance ratings, potentials but no historical data
• Paper-based job descriptions, development plans with no competency data
15. Claire’s HR Dilemma & Opportunity
• Claire must pull together a recommended methodology
and list:
– No standard core system of record;
– Has to make over 5 phone calls to pull data requests across IT, Legal
Compliances, HRMS directories, performance histories, learning updates &
finance
– Team works overtime to aggregate, organize and validate data.
– Lack of executive awareness - most executives don’t realize they lack the
ability and systems to pull the information together
• How can she pull it all together so executive leadership
can focus on the best methodology and process,
ensuring they make the best talent decisions to achieve
their business goals?
17. Paul D. Hamerman
Causes and Pitfalls
• Multiple core HRMS solutions, lack of global HR data
• Outdated HRMS core system with manual processes
• Processes optimized around payroll, not HR
• Numerous best-of-breed solutions
18. Nora Costa
• The pain of patching together a view
• Turning the executive dilemma into an “aha moment”
• Window of opportunity to educate and pitch to senior
management and coordinate a plan that saves time
and money
19. Nick Camelio
Administrative burden, time to patch vs. the focus on
strategic decisions
– Pre and post reduction
– How does unified data help through the
aftermath?
20. Build Case for HR ROI
5 Things You Can Do:
1. Go to CFO with business case
2. Calculate the cost of disjointed data
• # of man-hours to pull/aggregate across functions
• Impact of redeploying resources on strategic talent
decisions
1. Calculate the cost of multiple systems and vendors
• # of people and vendors to manage
• Cost to operate internally vs. leveraging SaaS options
21. Build Case for HR ROI …continued
4. Quantify the impact of deploying best practices on CFO-
metrics:
• Revenue per employee and net income per employee
• Reduction in operating expenses vendor consolidation,
(SaaS)
• Improvement in reporting
• Lower employee turnover and replacement costs (time, $)
5. Develop a coordinated HR Applications Roadmap and ROI
37. Thank You for Attending
Questions?
If we do not answer your question during the live
event, please feel free to send any questions to
Alison Kelly: akelly@salary.com, with the name of
the speaker your question is for, and we will be
happy to get back to you!