Achieving HR services excellence to support Schneider Electric’s strategic transformation - Schneider Electric

The path towards Excellence in HR Services

Presented by: Pierre Yves Dauvergne

HR Services France

Confidential Property of Schneider Electric

Schneider Electric changed dimension over the past 15 years from the leader in Power & Control to the global specialist in energy management

•Revenues grew from 9,8Md€ in 2001 to 25Md€ in

2014

•Between 2000 and 2010, 20 new companies

joined the group per year

•Staff increased from 70000 to 170000

•Growth in new economies was such that today’s

Schneider’s footprint is well balanced across all

world regions

•The company’s portfolio transformed so as to

offer products and solutions

25% North

America

19% Rest of

the World

28% Western

Europe

28% Asia-

Pacific

►Our People Strategy has been the

catalyst of our Company’s

transformation

►The HR function is the principal

enabler of our People Strategy

►Within the HR function, HR

Services played a key role

Great people make

Schneider Electric a great

company Our People and our Culture

make the difference

Page 4 Confidential Property of Schneider Electric |

There was no choice but to reach Excellence in HR Services

►Excellence in HR Services establishes a strategic partner

and maximize value generation for each HR organization,

►It accelerates integration of new acquisition, while

optimizing synergies,

►It promotes Process control and Compliance,

►It enables faster implementation of new HR Policies,

Strategies

►It reduces HR function costs

Further insights into HR Services Excellence


Page 6 Confidential Property of Schneider

Electric |

Services

excellence

Quality

•1HR for 85EEs

Operational

Efficiency

Internal

Customer

Satisfaction

Compliance

•Cost of non compliance

(ie payroll: < 0,05%)

Agility

Employee

Engagement

In HR Services we have 6 objectives of excellence


Electric |

At the heart of our strive for excellence, there is our 3 pillars HR

delivery model

Human Resources

1.HR Business

Partners 2.HR Solutions 3.HR Services

Report to HR leader

and/or Business leader

Report to Global

HR Function

HR Shared Services

Business

Managers

Report to Business

leaders

Business partnership

Day to day support to managers and

employees for their HR requirements

Anticipate skill requirement and employee

development

Manage social relations

Become a strategic advisor, aligned

directly with line leaders and embedded into

the business

Define group policies

Create and develop comprehensive

solutions to the organization’s strategic

challenges in key areas, such as

compensation, benefits, human capital

development, training and performance

management.

Deliver services

Drive Global HR transformation

program Deploy SSC’s to optimize

efficiency and costs

Deploy HR tools: IS strategy,

Employee direct, Call centers, HR

Metrics & Data quality

First HR

define employee goals

manage performance

define development plans define

recruitement needs


Electric |

HR services delivery model a mixed delivery model results to better balance costs and risks

•Legal requirements

•Proximity with country stakeholders (legal, country HR,

Business leaders...)

•Process complexity (example: payroll), requiring deeper

expertise/experience

•Proximity with local partners or state authority

Local (country)

- Differentiation at local country is critical or mandatory

based on regulatory requirements

-Coordination role (management of change, exception

handling, escalation)

-Local contract governance

-Hybrid model (in & out sourced)

Regional (Mexico, Poland, Russia, China,

India) -Consolidation of operational teams

- Location strategy

-Country cluster model, with cross country supporting

teams: hiring, finance, Process efficiency, Quality and CI

Multi HR shared services center

-in sourced model

•Synergies & economies of scale

•Labor arbitrage

•Cost saving

•Continuous improvement and customer intimacy mindset

Drivers

Drivers


Electric |

A team of ~1000 professionals to serve 137000 employees

80% coverage

With a global Footprint

138

China

Hub

125 India

Hub

90

Poland

Hub

99 Local

teams

237 NA

Hub

202

35

NA

32000 EEs served

EMEAS

57000 EEs served

India

15 000 EEs served

APAC

33 000 EEs served

CIS

65


Electric |

Services offering Coverage of the entire hire to retire employee cycle

Mobility Administration

(international)

Payroll (IS partner)

Employee

Administration

Recruitment

Administration

HR Metrics &

Reporting

L1 - PeopleLink

L2/L3 support

Post Merger

Integration

HR IS Project

Learning

Administration

HRIS – Payroll systems remain local, HR is global

Payroll SI Local

Payroll teams are Schneider, Payroll IS is mixed (ie in France, NGA)

Core RH

Development and

Performance

Reward

Recruitment

Training

TALENTLINK PERFORMANCE

Currently PeopleSoft, being replaced by TALENTLINK

Centralized and worldwide system

Currently PeopleSoft, being replaced by TALENTLINK

ORACLE TALEO

CORNERSTONE – My Learning Link

Local SI Corporate SI

HR Document

Management System

Solution implemented as pilot: complements Core HR with dedicated functionalities for HR Document

Digitization (automatic document generation, workflow, electronic signature, archiving…)


Our longer term

vision

Establishing further as a strategic partner Delivering SSC 2.0 benefits to support Schneider Electric strategy

Time

Value

benefits:

•Cost reduction

•Transparence of Service performance

•Continuous improvement

•Transformation enablement

benefits:

•Simplification

•End to end process ownership

•Compliance

•Consistent HR experience for ALL employees

2011 2013 2015 2017 2019

• Consolidated Services Delivery

• Process Standardization

•Service governance

•Transactional services (high volumes)

•One HRIS/Payroll IS

•Provide solutions (ie digitization& self service, global

coverage…)

•Collaborate rather than consolidate (end to end

coverage)

•Client satisfaction culture

•Constantly measure & compare

SSC 2.0

SSC 1.0

Current state HR S 2020

vision

Aligned with Business

Strategy, People Strategy,

Life is On Company program

Next disruptives ideas


Q&A

THANK YOU.


Recruiting & HR

Achieving HR services excellence to support Schneider Electric’s strategic transformation - Schneider Electric