Getting Strategic with HR Technology

Getting Strategic with HR Technology Dresser & Associates, Inc.

Dresser & Associates, Inc. 1

Getting Strategic with HR Technology

Objectives

1. Current Trends in HR Technology

2. Getting Strategic with Technology

3. Building a Business Case for Technology

Who Is This Guy?

HR Strategist

HR/Payroll Systems Expert

Trusted Advisor

Social Media Advocate

Self-Professed Geek

Early Adopter



Terminology – HR Technology

• Acronym Soup

• SHRM

– Core Discipline

• David Ulrich, University of Michigan

– Primary HR Competency Domain

Terminology

• Long-Term

• Big Picture Thinking

• Holistic View

• Company Goals/Objectives

• Value/Outcome Focused

“HR must give value, or give notice.”

– David Ulrich

HR Technology Efficiencies

Reduce Administrative Burden

Better Reports/Distribution

Better Compliance

Better Talent Management

Improved Labor Relations

Efficien

cy



Strategic HR Technology

• Key Economic Data

• HR Decision-Making

• Business Impacts

• Start with End in Mind

Create Analytics

• Improve Company Performance

• Reduce Costs

• Budgeting/Planning

• Manage Change

Influence “C”-Suite

Trends in HR Technology

1. Web 2.0

2. Workforce Mobility

3. Employee Self Service

4. Talent Management

5. HR Analytics

Trend #1 – Web 2.0



What Was Web 1.0?

Information

Consumption

PU

SH


Collective Intelligence

User Content


Blogs & Wikis

RSS Feeds

Aggregate Sites

Social Networking



Social Media in Business

Business

• Branding

• Marketing

• Public Relations

• Customer Service

• Loyalty Building

• Customer Acquisition

• Networking

Human Resources

• Recruiting

• Onboarding

• Sourcing

• Scheduling

• Learning

• Thought Leadership

• Employee Engagement

• Internal Communication

Social Media – HR Opportunities

• Many-to-Many Dialogue

• Qualitative Contact

• Hunters Now The Hunted

• Passive Job Seekers

• Mitigate Risk

Social Recruiting

Social Media – HR Opportunities

• Enhance Collaboration

• Unlock Tacit Knowledge

• Immersion

• Innovative Approaches

• Reduced Cost

Social Learning



World Class Examples

YouTube – ‘The Company as Wiki’

Trend #2 – Mobility

• Statistics

– 70% - Mobile phones for work

– 50% - Check work email on weekend

– 89% - U.S. companies offer telecommuting

– 51% - American workforce is mobile

Sources: Socialcast Telework Coalition

Mobility – HR Opportunities

HR Leadership

So

cia

l M

ed

ia

Ale

rts/T

rigge

rs

Work/Life Balance

http://www.youtube.com/watch?v=H_jhLGxH-m4



Trend #3 – Self Service

Self Service – HR Opportunities

Recruitment

Open Enrollment

Onboarding

Time Reporting

Pay Statements

W-2’s

Electronic Forms

Time Off Requests

Personal Info Updates

Training

Talent Management

Performance Appraisals

Succession Planning

Manager Dashboards

Trends #4 – Talent Management

• Learning Tech Spending Up

• Talent Challenges

– Performance-driven Culture

– Filling Leadership Pipeline

– Developing Skills to Address Business Challenges

War For Talent 2.0



Talent Mgmt – HR Opportunities

• Acquiring Talent

– Sourcing

– Selection

• Developing Talent

– Succession Planning

– Social Learning

• Assessing Talent

– Performance Appraisal

– Goals Measurement

Trends #5 – HR Analytics

• Data Decisions

• Metrics/Key Performance Indicators

– Analytical Tools

– Dashboards Knowledge

Information

Data

Level o

f

Abstra

ctio

n

Analytics – HR Opportunities

Organizational Strategic Planning

Bottom Line Impact of HR Best Practices

Empower Managers to Make Better Decisions

Align HR Strategy with Corporate

Be More Strategic!



Strategic HR with Technology

- Professor Jon Boudreau,

USC’s Marshall School of Business


• Why Aren’t We?

– HR Administrivia

• Transactional duties

• ‘Social work’ activities

• Comfort zone

– HR Skill Set

– Data Accuracy


Why don’t we?

1. Social workers and not interested in business

2. HR pursues efficiency in lieu of value

3. HR isn’t working for ‘you’

4. The corner office doesn’t get HR

- Keith Hammonds – editor, Fast Company magazine

“Why We Hate HR”, 2005

[email protected]




• Key Economic Data

• HR Decision-Making

• Business Impacts

• Start with End in Mind

Create Analytics

• Improve Company Performance

• Reduce Costs

• Budgeting/Planning

• Manage Change

Influence “C”-Suite

Leverage HR Technology

ONE: Reduce ‘Social Work’

• Utilize Technology

– ESS

– Alerts

– Reporting


TWO: Serve the Business

• M, V, G, O

• HR Goals Corporate Goals

• HR Metrics Business Decisions

• Data Integration




THREE: Measure the Right Things

• Baby Steps

• K.I.S.S.

• Few, But Layered

• Start With the End in Mind


FOUR: Make Value, Not Activity

• Key Performance Indicators

• Scorecards

• Analysis

Training Attendees/Month

Training Effectiveness


FIVE: Inquiry, Not Intuition

• Get Answers From Metrics

• Use Standardized Data

• Measure 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



HR Analytics – Examples

• Total Revenue / Total Headcount Revenue Factor

• Revenue – Operating Expense / FTE’s Net Income/FTE

• Absence Hours / Pay Rate Absence Factor

• Total Terms / Total Headcount Turnover Ratio


Turnover Ratio

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

Turnover

Turnover


• Number of days to fill position Time to Fill

• Cost involved with new hire Cost per Hire

• Total cost / # employees Benefit Cost/EE

• Salaries / Overall operating expense Human Capital

Cost




• Salaries as a % of Operating Expense

– All 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

Dashboard Metrics

Justifying HR Technology

• Why HR Technology Isn’t Implemented:

– Budget/Funding approval

• Unclear Goals

• No Buy-in

– Resistance to Change

– IT Infrastructure

– “No Decision”



10 Steps to Obtaining Tech

1. Expand Your HR Technology Knowledge

– Webinars

– IHRIM

– Follow HR Tech Experts


2. Determine Your Current Reality

– Technology

– Processes

– Workflow


3. Develop “Needs” and “Wants” List




4. Create a Business Case

– Goals and Objectives

– Costs and Saving Measures

– Define Current HR Issues

– Outline Productivity Increases

– More Strategic Opportunity

• Metrics

• KPI’s

• Business Impact


5. Calculate ROI and Rate of Return

Outsourced Fee Reduction

Ongoing Maintenance

Reduced Paper Costs

Mailing Costs

Fines / Compliance

Accuracy of Information

Employee Transaction Cycle Time

Administrative Work Reduction

Process Standardization

Improved Customer

Service

Hard Costs Soft Costs


Form Reduction

Improve FTE Tracking

Improve Compliance

Reduce Litigation

Automate Recruiting

Better EE Service

Tactical Benefits Strategic Benefits

Reduce Hiring Costs

Reduce Absenteeism

Improve Retention

Improve Budget

Improve Productivity

Reduced Risk

5. Calculate ROI and Rate of Return




6. Determine Budget

– Use Business Case

– Use ROI


7. Research Software & Companies

8. Evaluate Systems

– Flexibility

– Scalability


9. Set Implementation Expectations

10.Make Purchase Decision



In Summary

• Social 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.

• Justify HR Technology by creating an ROI with clear goals and objectives.

Thank You!

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

Date post:	30-Oct-2014
Category:	Business
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