hr-transformation-survey-2015

*2015 KPMG HR Transformation Survey, formerly Towers Watson HR Service Delivery and Technology Survey

HR Operator, HR Project Leader

This year’s survey results clearly reveal that professionals in the HR function wear two hats. Respondents report thatthey split their time between providing HR services and leading a variety of human capital projects. Our findings highlight what separates the

great HR operators and project leaders from the rest of the pack.

While not a new trend for 2015, it’s important to note that HRtechnology spending continues to rise (typically in place of otherHR priorities) again this year. In fact, 88% of survey respondents will spend the same or more on HR technology in 2015 than they spent in 2014. Building on this trend, organizations are replacing their core human resource management systems (HRMS) more frequently than ever before (every three to five years versus historically every five to seven years).

Global Highlights at a Glance

are using or planning to use mobile technology,up from 46% in 2014.

Asia Pacific

45%EMEA

64%Americas

78%

88%will spendthe same ormore on HR technology.

66%provide an HR portal.

40%are looking to change their HR structurein 2015 or 2016.

40%existing, on-premiseHR system with asoftware-as-a-servicesolution.

30%will replace their core HR system in 2015—an all-time high.

61%Organizations are replacing their core HRMS morefrequently thanever before.

Investment in HRMScontinues to grow and is now doing so at an exponential rate.

2015 KPMG HR Transformation Survey* Highlights Report — Key Global Findings

Keys to HR Success

We are pleased to present key findings from the KPMG HR Transformation Survey*. This report highlights key trends emerging from our study of HR

transformation and technology goals, initiatives and outcomes at 798 organizations across 37 countries.

will replace their

Focus On: HR Technology

So then, what do successful organizations have in common? Organizations that have successfully transformed HR have taken the following actions:

79% of those using technologyfor core compensation activities say the technology is effective.

Yet 47%still use paper.

79% of those using technologyfor global grading/job leveling say the technology is effective.


74% of those using technologyfor performance management say the technology is effective.


• Introduced new types of collaboration tools for the deliveryof HR services

• Implemented a new HR portal

• Reengineered key HR processes

• Implemented a new core HR system

• Built or further invested in an HR analytics function

Over the next 12 months, we will publish deeper-dive reports on each of these action items to help your organization unlock its own success.

HR is constantly pulled between serving as project leader and operator. No doubt both roles are important, but higher performing HR organizations have managed to find the appropriate balance between the two, and maximized the output from each role. How is your organization working to unlock the potential of HR?

11%

14%

22%20%

24%

9% 11% HR leadership

14% HR businesspartners

22% HR generalists

20% HR operations/shared services

24% Centers ofexpertise

9% Other


Focus On: Structure and Responsibility Percentage of overall HR headcount aligned to specific HR functional areas

A finding from this year’s survey that came as a bit of a surprise to us was the gap between the level of satisfaction with HR technology and the extent to which organizations still use paper to perform tasks in areas such as talent management. For example, as shown in the figure below, 74% of organizations that are currently using technology for their performance management believe this technology is effective. Yet 28% of these organizations still rely on paper for some performance management tasks. And the trend only continues upward with global grading/job leveling and core compensation activities. Which begs the question: Why do many organizations continue to report satisfaction with HR technology, while others continue to use paper?

Focus On: Operational Effectiveness

In Conclusion

Focus On: Keys to Success

About the SurveyThe 2015 KPMG HR Transformation Survey, formerly Towers Watson HR Service Delivery and Technology Survey, is in its 18th year and was fielded between the second week of January and the second week of February 2015. In total, 798 organizations across 37 counties participated. Half of these participants are global organizations.

During the same survey window, organizations that utilize HR shared services functions were given the opportunity to complete a follow-up survey: 198 organizations across 28 countries participated; 60% of these organizations are global.

In both surveys, responses came from a broad cross section of industries, with the largest number concentrated in financial services, high technology, manufacturing, professional services, health care and hospitals, and retail.

yy

*HR Service Delivery and Technology Survey Shared Services Survey

798participants for theHR Service Delivery

and TechnologySurvey

50%are global

organizations

37countries

198participants for the

Shared ServicesSurvey

28countries

60%are global

organizations

kpmg.com

© 2015 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in the U.S.A. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International. NDPPS 395232


Documents

hr-transformation-survey-2015