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Looking for ways to do more with less? It’s simple STOP doing non/low value activities. Focus on what matters automate or outsource what doesn\'t. Automate processes where you can get a great combination of cost/risk/results. But sometimes you need an impartial 3rd party to shake off the old ways and help you identify those opportunities and change rapidly.
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Guidelines and Best Practicesfor HR Process Management
in the New Economy
Eric BergquistPrincipal Advisor
www.theemploymentvault.com
www.theemploymentvault.com
Agenda
Welcome What is driving business and HR Best Practice HR Process Management Introducing “ECO” a real example Closing
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What is driving Business
The Economy– Long and slow recovery
CEO & Business Perspective– Productivity– Costs– Not hiring permanent employees
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Top HR service delivery issues*
#1 Streamlining processes/systems
#2 Costs
#3 Manage/upgrade HR systems
You need to drive productivity or someone else will
*from Towers Perrin
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How to Manage your Processes
Today HR departments have many reasons to adopt "lean" practices;
– Generate a continuing advantage in cost, quality, speed, and customer service to achieve world-class performance at reduced risk.
A framework is needed for diagnosing, improving and designing effective processes along with identifying leverage points with the greatest impact on the bottom line.
– This framework includes the Business Process Flow Paradigm, which examines an organization as a collection of business flows with a critical link between operational drivers and strategic success.
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How to Manage your Processes
How do you decide which processes to deliver through shared services and which to automate or outsource?
– Focus limited HRM resources on what drives business outcomes, take the CEO’s and business perspective.
Stop doing non-value HRM work, focus on what matters, automate or outsource what doesn't. Automate processes where we can get a great combination of cost/risk/results.
Stop doing low value HRM work,…– Use the "great recession" and "new normal" as the burning
platform to make real progress on eliminating low value processes– Upgrade your system for lower cost, agility, and intelligent self
service.– Seize opportunities, to include automating quickly and on the
cheap.
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Self-services
Self-service has made tremendous strides for the greater effectiveness and efficiency of HR. It’s effective, pervasive and widely accepted –it works
It’s also very transactional, as it was designed to be– Self-service often does not allow a high-touch experience– Self-service, in and of itself, does not improve engagement
The challenge is finding balance– Creating the ideal blend of effective and accurate processes and
technology with improved service levels and reduced cost and risk as the goal.
Challenge yourself to think about where technology can help your organization.
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Framework Outline
Look at everything you do and Stop doing no/low value HRM work, focus on what matters, automate or outsource what doesn't.
Look for transactional processes that do not require a touch experience.
Balance the blend of effective and accurate processes and technology with improved service levels and reduced cost and risk as the goal.
I'm repeating myself for emphasis: enhance process foundations, push HRM process standardization and rationalization, make process automation and self service the only service.
Make sure we have a list of HRM improvements that have an impact and get them done ASAP.
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“ECO” a real example
Most companies outsource background checks, but have you considered the other side, the interruptions to your staff to handle those incoming requests for current and past employment verifications from mortgage brokers, car dealers, landlords and background screening companies?
What about the lost productivity, cost and risk of your staff attending to these requests?
– Costs US companies approximately $1.5 billion for current employees– Cost approximately $940 million for past employees. – Both costs are expected to rise significantly in the coming years due to
changes in the financial system and as employment (temp, full and part) improve.
Let’s face facts, confirming someone used to work at your company does not add value to the company’s bottom line. Why not use an automated web service to handle those requests.
Past Employment looking for new job
Current employee looking to refinance their house, buy a car, rent an apartment
Confirmation check performed
Phone Call Fax Email
Duplicate request(because no timely response received)
HR or Payroll receives request
HR or Payroll Processes request
HR or Payroll replies back
HR or Payroll ramps back up to work on value added activities
Generic Current Process
Fills out application
Two or more
Reply not received in timely manner so employee asked to verify with pay stub
If reply finally received it is just discarded
Past Employment looking
for new job
Current employee looking to refinance their house, buy a car, rent an apartment
Confirmation check performed
Phone Call, Faxes, Emails directed to Website
Verifier creates and account and Logs into system
Employee logs into the system and releases report (not the content)
to specific person
Only information entered and Title, stat, end date and status verified (no information released)
Enters unique one time use report ID and password and report is displayed
New Process
Fills out applicationFills out application
Verifier creates and account and Logs into system
Improved service delivered in a secure, accurate and quick way lowering cost and risk, freeing HR for what matters most
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Thank you
To find out more about best practices in HR process management read our complimentary White Paper by visiting (anonymous access, no contact info required) this page;
http://www.theemploymentvault.com/whitepaper/Best.pdf
Please pass this along to fellow colleagues who may be interested in these future trends and the innovations available to address them.
If you know of group or organization that would be interested in this presentation please let me know or give them my contact info.
Eric BergquistPrincipal Advisor
www.theemploymentvault.com Main: 888-655-0501Office: 630-687-1852
mailto: [email protected]