Getting Strategic with HR Technology - 2012

HR Technology Tools

Getting Strategic with HR TechnologyHarold G. Ford III, SPHRDresser & Associates, Inc.

Something everyone wants to talk about, HR Technology!I love tech, and HR Tech is my passion technology & building better tech strategies in companies1Dresser & Associates, Inc.Getting Strategic with HR Technology

Objectives

Trends in HR Technology

How to Leverage Technology to be Strategic

Analytics and Metrics Examples

Current and trends in HR techHow HR Tech can make you more strategicWhy an ROI matters2HRMG Solutions, Inc.Getting Strategic with HR Technology

Who Is This Guy?HR StrategistHR/Payroll Systems ExpertTrusted AdvisorSocial Media AdvocateSelf-Professed GeekEarly Adopter

18 years providing technology advice to HR/Payroll depts

Use a smartphone? 1.2 billion people carry smartphonesUse GPS? Tweeted that they were here today?3HRMG Solutions, Inc.Getting Strategic with HR Technology

Terminology HR TechnologyAcronym SoupSHRMCore DisciplineDavid Ulrich, University of MichiganPrimary HR Competency DomainHRMSHRISHCMSaaSITMERPWFM

Acronym soup daze and confuse, almost as much as HRBenefits admin, HR info mgmt, recruiting, training/learning mgmt, performance mgmt, payroll, work time

Core HR discipline by SHRM and is a facet of all other HR disciplines.

HR Guru David Ulrich HR Magazines Most influential HR person#1 management educator by Business WeekMastery of HR Technology as one of the five competency domains4HRMG Solutions, Inc.Getting Strategic with HR Technology

Trends in HR TechnologyWeb 2.0 Workforce MobilityEmployee Self ServiceBusiness Activity MonitoringTalent ManagementHR Analytics

5 Trends taken from a variety of sources: SHRMs HR Trend Book (weknownext.com), Watson Wyatt Research, IHRIM, our customers

These 5 trends all incorporate a similar theme:Better strategic design, & HRs role in that strategyChanges in how employees work

5HRMG Solutions, Inc.Getting Strategic with HR Technology

Trend #1 Web 2.0

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 everything6HRMG Solutions, Inc.Getting Strategic with HR Technology

What Was Web 1.0?Information Consumption

PUSH

Major transformation of the internetWeb 1.0 push content out to masses; advertisingWe searched for information and consumed it


Trend #1 Web 2.0Collective Intelligence

User Content

2nd generation of web development and design Facilitates communication, information sharing, and collaboration on the world wide web Part of our daily lives


Trend #1 Web 2.0Blogs & Wikis

RSS Feeds

Aggregate Sites

Social Networking

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 interact

3 out of 4 Americans use social technology.9HRMG Solutions, Inc.Getting Strategic with HR Technology

Social Media in BusinessBrandingMarketingPublic RelationsCustomer ServiceLoyalty BuildingCustomer AcquisitionNetworkingRecruitingOnboardingSourcingSchedulingLearningThought LeadershipEmployee EngagementInternal Communication

Branding - #1 business use when polled

HR transformation:* Recruiting is driving Web 2.0 in HR, FB & LI drive people to employers career site.Enhance learning opportunities through virtual networksDemocratizing HR processes

Trend: HR moving away from social media policeHelp business leaders leverage social media for maximum ee engagement10HRMG Solutions, Inc.Getting Strategic with HR Technology

Social Media HR Opportunities

88% look for jobs online, 60% apply online

Candidate 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, 2009

Gather info to mitigate risk - Right person right position

Instead of building an employment funnel, create an employment tunnel


Social Media HR Opportunities

Gartner Research 80% learning comes from informal trainingImmediate, relevant training

Create communities for sharing knowledge* Use to identify people who know a lot about their jobs* Connect EEs with experts in the company

Using more sophisticated training tools that harnesses the power of social media and virtual worlds in favor of slides and conventional classroom environments


World Class Examples

YouTube The Company as Wiki

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!Whats working? Good Content, Good Community, Value of Relationships

Google The company as a wiki BestBuys move to Web 2.0, leading edge & bleeding edge13HRMG Solutions, Inc.Getting Strategic with HR Technology

Trend #2 MobilityStatistics70% - Mobile phones for work50% - Check work email on weekend89% - U.S. companies offer telecommuting119 Million U.S. workers are mobileSources: SocialcastTelework CoalitionIDC

Borderless Workplace

Whats 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


Mobility HR OpportunitiesHR LeadershipEngagementInnovationWork/Life Balance

HR must be able to support the virtual workforceHR Role as leader review policies, cultural fit, worker responsibilities, employer of choice

Generational changes - The emerging workforce

Expanding HRs service delivery and increasing HRs role in business.

Provide HR services through Web 2.0 technology

Foster a culture of innovation15HRMG Solutions, Inc.Getting Strategic with HR Technology

Trend #3 - Self Service

Automate AdministriviaSimplify/Enhance CommunicationConsolidate DataImprove EE satisfactionReduce Paper Go Green!

Dont you have something better to do?

Employee collaboration and business social networking Value improved performance, creativity, communication, informal learningEmpowers EEs control of information, be self-sufficient


Self Service HR Opportunities

Employees directly view, create, and maintain information in a Web browser.Paperless office 3. Deploy via mobile

Allow ees to take ownership of their information/dataAllow HR to do more with less (less HR staff/#ees)Deploy via mobile


Trend #4 - BAM

Business Activity MonitoringExecuting Redundant TasksException ManagementTrend AnalysisData IntegrityData InconsistenciesReporting

Business Latencies slow processes inside a business, automation can reduce/eliminate these latencies

Business Activity Monitoring & AlertingProactive communication

Identify 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 didnt (renewing visas)18HRMG Solutions, Inc.Getting Strategic with HR Technology

BAM HR OpportunitiesBusiness IntelligenceMonitor Data in Automated WayAlertingEmail, Fax, Phone, Dashboard, TwitterReportingReports, Analytics, FormsWorkflowInitiate and Act On HR Data

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


BAM HR Opportunities

Is your HR Data talking to you?20HRMG Solutions, Inc.Getting Strategic with HR Technology

Trend #5 Talent ManagementTalent ChallengesFilling Leadership PipelineDeveloping Skills to Address Business ChallengesPerformance-driven CultureDissatisfied Employees

Talent Management, or Integrated Talent ManagementMany silod 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 skills

1 in 3 employees seriously considering leaving employer Mercer Whats Working surveyDecreased employee loyalty, low ee satisfaction

Heightened competition for skilled workersRetirement of baby boomers (at some point they will retire!)Outsourcing trends

War for talent 1997 McKinsey study coined the term21HRMG Solutions, Inc.Getting Strategic with HR Technology

Talent Mgmt HR OpportunitiesAcquiring TalentSourcingSelectionDeveloping TalentSuccession PlanningSocial LearningAssessing TalentPerformance AppraisalGoals Measurement

Manage inordinate amount of data we collect on our best talentLeverage inordinate amount of data we retain on our best talent

EE Turnover high cost (30-400% of salary) separation, vacancy, replacement, trainingSHRM - $8/hour employee - $3,500 to replace

Investments to increase retention: communication, engagement, recognition, training, benefits

Invested Employees = increased revenue, higher customer service rates,

Workforce planning identify gaps between supply and demand of talent in order to meet specific business needs.


Trend #6 HR AnalyticsData DecisionsMetrics/Key Performance IndicatorsAnalytical ToolsDashboards

Turn data into information, information into knowledge, and knowledge into plans that drive profitable business actions

Data - Collection of raw value elementsInformation - Facts can be gathered on data to draw conclusions.Intelligence - Use information to perceive, discover, and understand a best course of action

How do we get from information to intelligence?23HRMG Solutions, Inc.Getting Strategic with HR Technology

Analytics HR Opportunities

Intelligence = linking HR data to overall business strategyTo do that, we must be more strategic in our thinking24HRMG Solutions, Inc.Getting Strategic with HR Technology

TerminologyS-wordLong-TermBig Picture ThinkingHolistic ViewCompany Goals/ObjectivesValue/Outcome FocusedHR must give value, or give notice. David Ulrich

Everyone talks about it, whos 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

HRs 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


HR Technology EfficienciesEfficiency

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.


Strategic HR Technology

Enable HR - Make predictive correlations between traditional HR metrics and the businessMore holistic view of human capitalIMPACTS to business

Transform HR from tactical to strategicKnowledge EconomyWorkforce Agility

Make decisions about human capital to continuously improve and enhance the value of the business

ROEI Return on Employee Investment

Forward-looking (predictive) metrics to improve decision making, prevent/mitigate future talent problems


Strategic HR with TechnologyS-wordOrganizations dont know yet how to use the HR information system, how to make it connect to the kind of things that make HR strategic Professor Jon Boudreau, USCs Marshall School of Business

Honest look into HR and Technology28HRMG Solutions, Inc.Getting Strategic with HR Technology

Strategic HR with TechnologyWhy Arent We?HR AdministriviaTransactional dutiesSocial work activities Comfort zoneHR Skill SetData Accuracy

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 numbers

Forrester Research - over 50% of HR depts time is spent processing EE information and answering EE questions.Employees are children, and HR is their mommy and daddy

Different skill sets regression analysis, causal pathway modeling, predictive modelingHR training at undergrad level is focused on soft skills, little analytical emphasis


Strategic HR with TechnologyWhy dont we?Social workers and not interested in businessHR pursues efficiency in lieu of valueHR isnt working for youThe corner office doesnt get HR Keith Hammonds editor, Fast Company magazine Why We Hate HR, 2005

[email protected]

HR doesnt 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 dont speak same language.

HR not only doesnt have a seat in the board room, it doesnt have a key!THE KEY IS TECHNOLOGYHR Technology can overcome all 4 arguments.

Measure HRs Impact on the bottom line

Use 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 people

HR is the only department that has direct access to both the C-suite and people assets of an organization.

HR has its finger on the pulse of a company, and can report that data directly to those who need it most to make better business decisions.


Leverage HR TechnologyONE: Reduce Social WorkUtilize TechnologyESSBusiness AlertsReporting

Technology will reduce admin so we can focus on strategyRe-engineer administrative processes


Leverage HR TechnologyTWO: Serve the BusinessHuman Capital Management PlanM, V, G, OHR Goals Corporate GoalsHR Metrics Business DecisionsData Integration

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


Leverage HR TechnologyCorporate ObjectiveIncrease Productivity

Improve Competitiveness

Reduce Costs

Improve SustainabilityAligned HR GoalsIncrease EE engagementProvide training to employeesSpeed up onboarding process

Strategic compensationRetention of top performersPerformance management

Increase EE retentionManage benefit costs

Reduce transactional paperworkCapture workforce analytics

Strategic alignment align business units and individual employees with strategic goals identified by senior management.Measure through HR Metrics33HRMG Solutions, Inc.Getting Strategic with HR Technology

Leverage HR TechnologyTHREE: Measure the Right ThingsBaby StepsK.I.S.S. Few, But LayeredStart With the End in Mind

What metrics are important to the company?Compare over time8-12 KPIs ("keep it simple and straightforward)Measures should be few, but layeredWhat is to be gained


Leverage HR TechnologyFOUR: Make Value, Not ActivityKey Performance IndicatorsScorecardsAnalysis

Make value, not activity (from HR Value Proposition Dave Ulrich). Pick KPIs 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?


Leverage HR TechnologyFIVE: Inquiry, Not IntuitionGet Answers From MetricsBust MythsUse Standardized DataMeasure 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

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 scenarios

Aggregate turnover low in companyHigh in one location, why?They ees there arent emotionally engagedUsing statistics, they found high voluntary turnover with those who had most emotional commitmentDiscussion around statistics built measurements around appropriate level of commitment36HRMG Solutions, Inc.Getting Strategic with HR Technology

HR Analytics Examples

Revenue / FTE Links time and effort associated with firms human capital to its revenue output. Greater efficiency and productivity. $154K average37HRMG Solutions, Inc.Getting Strategic with HR Technology

HR Analytics ExamplesTurnover Ratio

Turnover clarity dont just focus on turnover rate, study data on different data points and multi-dimensional analytics TenureBy wage ratesBy ageBy top producers38HRMG Solutions, Inc.Getting Strategic with HR Technology

HR Analytics Examples

Benefits cost factor, percentage of total compensation, workers comp, etc.

Profit Indicator/Human Capital ROI Pre-Tax Profit less Financial capital costs/human capital costs

Attrition Rate / Survival Rate39HRMG Solutions, Inc.Getting Strategic with HR Technology

HR Analytics ExamplesSalaries as a % of Operating ExpenseAll 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

Investment in human capital is companys largest investment.HR - take the lead in identifying where people assets can best be allocated to meet the companys goalsHow to hire, develop, and retain the human capital the company needs to stay competitive now and in the future.Im preaching to the choir here, butIn a knowledge economy, companies with the best talent win40HRMG Solutions, Inc.Getting Strategic with HR Technology

Dashboard Metrics

Pull data from all sources and put into dashboard formDashboard graphical snapshot of business health from an HR Perspective.Easy to read, summary of companys current state of affairs


In SummarySocial 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.

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?


Thank You!Harold G. Ford III, SPHRDresser & Associates, [email protected]

http://www.linkedin.com/in/haroldgfordiii

43Dresser & Associates, Inc.Getting Strategic with HR Technology