January 30, 2018
New Year, New HR SystemsStrategy Resolutions
20th Annual Edition
EmployeesService & Solution AreasApplication ServicesBusiness Intelligence
Host & Managed ServicesInfrastructure Services
Integration & Cloud SolutionsResearchStrategyTraining
Delivering industry-focused client success by providing consulting, technical, and managed servicesfor the deployment, management and optimization of next-generation applications and technology.
Industry FocusCommercialHealthcare
Higher EducationPublic Sector
Justice & Public Safety
Sierra-Cedar Fast Facts
Years of Leading HR Systems Survey & Thought Leadership
7 20+ 900+
5
2
ConsultingProjects
1,500+
Research
Stacey HarrisVice President Research and Analytics, Sierra-Cedar
Background:● Oversee the Annual HR Systems Survey and its safekeeping for the Industry● HR and OE Practitioner for over 10 years in finance, retail, and franchised businesses.● Director of Research at Bersin & Associates, Launched the HR research practice● VP of Research for Brandon Hall Group● Major Research and Papers: The High Impact HR Organization, The HR Framework, Employee
Engagement: A Changing Marketplace, and Relationship Centered Learning● Feel free to connect at: www.linkedin.com/in/staceyharris● @StaceyHarrisHR
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Erin SpencerSenior Research Analyst
Background:● Research and Analysis at Brandon Hall Group● Learning Administration at ACS Learning Services● LMS selection and administration, and training at MRINetwork● Feel free to connect at: www.linkedin.com/pub/erin-spencer/6/734/388
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Sierra-Cedar 2017–2018 HR Systems SurveyOver 20 years of continuous data gathering The most comprehensive survey in the industry:
● Strategy, Process, and Structure● Administrative and Service Delivery Applications ● Workforce Management Applications
● Talent Management Applications● BI/Analytics/Workforce Planning Applications● Integration and Implementation ● Emerging Technologies and Innovations
● Vendor Landscape● Workforce and HR Expenditures● Workforce Usage and Perception
Participate in the 21st Annual Survey Download the 20th Annual White Paper
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Top Performers
Organization Sizes and Types
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Small<2,500
Medium2,500–10,000
Large10,000+
Talent-Driven
Data-Driven
Aggregate SociallyResponsible
54%
23%
23%
High TechManu-facturing
Other
Sierra-Cedar 2017–2018 HR Systems Survey
Demographics: All Respondents
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Trans./Comm. Utilities
Higher EdFinance Retail Ag. Mining.Const.
15%14%
13%12%
10% 10% 10%9%
6%
Health
17.7 Million Employees/Contingents
Avg. number of Employees = 13,610
1,312Organizations
Industries
CultureStrategy Technology
Key Themes for 2017–2018 Survey Results
Competition vs. Culture
HR Tech as a Leader
Risk and Security
Beyond the Cloud
Social ResponsibilityIntegration Strategies
Intelligent Platforms
Outcome-Focused HR
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Personalization
28%
27%
11%
25%
11%
10%
11%
18%
16%
36%
44%
63%
No Plans Developing Rarely Updated Updated Regularly
Do you Have Enterprise System Strategies?Perception often leads to Priority Setting
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ENTERPRISE FINANCE SYSTEMS STRATEGY
ENTERPRISE SUPPLY CHAIN SYSTEMS STRATEGY
ENTERPRISE HUMAN RESOURCES SYSTEMS STRATEGY
Are Enterprise Systems Strategies Important?25% Higher Business Outcomes w/Functional Enterprise Systems Strategies
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Innovation Market Share Profitability Customer Sat Competitive
HR Systems Strategy No HR Systems StrategyFinance Systems Strategy No Finance Systems StrategySupply Chain Systems Strategy No Supply Chain Systems Strategy
Business Outcomes Have They Declined or Improved in the Last 12 Months?
Impr
oved
Neu
tral
Dec
lined
25%Higher
41%
30%
14%
15%
Updated Regularly In Development Updated Rarely No Plans
2016 HR Systems Strategy By Size
54%24%
11%
10%
11
26%
25%10%
39%
HR Systems Strategies Increases Value to BusinessOrganizations with a Regularly Updated HR Systems Strategy are twice as likely to be viewed by all levels of management as contributing strategic value, versus organizations that have no HR Systems Strategy.
2X
Top 10 HR Technology InitiativesMajor Initiatives Haven’t Changed Dramatically in the last 5 Years
67%
40% 35% 35% 34%
19% 17% 17% 17% 16%
Bus. Proc
Improvement
HR Systems
Strategy
Talent
Management
Service
Delivery
BI/Workforce
Metrics
HR/All
Systems
Integrations
Mergers and
Acquisitions
Workforce
Management
Mobile
Enablement
Social
Enablement
1st Year Mergers & Acquisition
Made Top 10
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Poll One:For next year’s Survey, what topics are most important to you?
1. HR Technology Resourcing2. HR Technology Initiatives3. Adoption Measurements4. Contingent Workforce Management5. Other
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Top Performing Talent Driven Data Driven
The Important Questions: Outcomes and Impact Top Performers, Talent-Driven, Data-Driven, and Socially Responsible Organizations
Top Quartiles • Revenue/Employee • Profit/Employee• OIG (1 year)• Return on Equity
• Mature Career Planning• Succession Mgmt• Metric Outcomes⁃ Employee engagement⁃ Workforce readiness⁃ Retention risks⁃ Top talent
• Mature Workforce Analytics
• 3+ Metrics• 20%+ Managers/BI• 3+ Data Sources
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Decisions based on Performance
Decisions based on Talent
Decisions based on Data
• Diversity• Family Leave• Flexible Schedules• Wellness• Engagement
Decisions based on Social Responsibility
Socially Responsible
Not Regulated
High Regulation
45%
54%
57%
62%
59%
60%
64%
75%
65%
68%
76%
77%
33%
31%
26%
22%
29%
26%
24%
20%
28%
22%
19%
21%
22%
15%
16%
16%
12%
14%
11%
5%
8%
9%
5%
2%
Outplacement
Employee Engagement
Tuition Assistance
Community/Volunteer
Retirement Planning
Wellness
Flex Schedules
Employee Assistance
Comp/Pay Equity
Paid Family Leave
Diversity & Inclusion
Healthcare
Excellent/Good Average Poor/Terrible
Social Responsibility Initiatives By Regulation
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Some Regulation
How Well Do We Manage Contingent Workforce?Only 38% of Orgs Feel Good About Their Contingent Workforce Practices
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38% 40% 22%ContingentWorkforce
Excellent/Good Average Poor/Terrible
What % of your Contingent Workforce is managed through these systems? (Mark all that apply)
Excellent/Good (Avg) Poor/Terrible (Avg)
Core HRMS 77% 62%
Procurement/Vendor Management System 63% 56%
Stand-Alone Contingent System 58% 45%
Outsourced Solution 48% 29%
24%the average % of an organizations workforce that is contingent today
Achieving Outcomes Requires FocusTalent, Data, and Socially Driven Organizations Achieve Best Outcomes
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Attrac
t talen
t
Develo
p work
force
Decisi
on data
Talent r
etentio
n
Talent m
obility
Engagemen
t
Productiv
ity
Cost eff
icien
cy
Busines
s alignment
Innovatio
n
Market s
hare
Profita
bility
Customer
sat
Competitive
TD DD Social TP Agg
Talent Outcomes HR Outcomes Business Outcomes
Impr
oved
Neu
tral
Dec
lined
3%Higher
8%Higher
14%Higher
14%Higher
5%
10%
7%
53%
44%
41%
42%
47%
52%
2015–2016
2017–2018 HR Tech Spending Trends OutlookLarge Organizations Slight Spending Increase, Everyone Else Holding Steady
Increase DecreaseStay the Same
6%
10%
8%
57%
39%
47%
38%
51%
45%
2016–2017
5%
8%
12%
62%
53%
39%
33%
39%
49%
2017–2018
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HR Technology Transformations Slowing Down
2016 2017
73%58%
% of Orgs Planning to Transform Their HR Tech Environment
26%Fewer Orgs Planning HR
Technology Transformation Efforts
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12% 16%11% 16%10% 17%12% 13%
12% 15%13% 16%14% 18%15% 15%
Plans For Replacing HR TechnologiesLarge Organizations 66% More Likely to be Evaluating System Changes
WFM SuitePayrollHRMS TM Suite
23% 24%13%
29%16%
26%19% 20%
Replace in12–24 Months Evaluating
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Hosting/OutsourceSingle Tenant, or BPO
Rip & ReplaceMove everything all at onceto the Cloud Future Plans
Focused
Low R
isk
HybridsMove ONLY TM orWFM apps to Cloud
PatchworkReplace asLicense Ends
ParallelCombo Licensedand Cloud Solutions
7% 11% 11%
16% 17% 17%17% 28% 36%
22% 19% 20%
38% 25% 22%
Focused
Multiple Pathways to an HR Tech TransformationApproach to Replacing Existing HR Technology By Size
21
ReactiveFocused
High RiskLow
Risk
80% Increase
Higher Cloud Adoption = More Needs Met?
22
32%
25%20% 22%
27%
14% 16% 14%
Payroll HRMS WFM TMS
Our HR Systems AlwaysMeets Our Needs
High Cloud Low Cloud
7% 9% 7% 8% 8% 10%6% 7%
4% 2%7% 6%
13% 14% 14% 15%20% 21% 22% 24%
27%
34% 35% 35%
Benefits Payroll HRManagement
HR Generalist HR BusinessPartner
HR ITInfrastructure
WorkforceManagement
HR SystemSupport
TalentManagement
HR DataAnalytics
Recruiting Learning andDevelopment
27%
55%
IncreaseDecrease
Talent Issues Impact HR Hiring PlansWhat HR Roles Does Your Organization Plan to Increase or Decrease This Year?
23
39%
22%
28%
41%
29%
2%
Consistent Culture of Change Mangement Key Projects – Meet Criteria Sporadically – No Criteria Never
2017 Change Management Practices High Cloud versus Low Cloud HR Technology Deployment and Change
22%
37%
34%
7%
24
70% of High Cloudorganizations practice consistent
Change Management.
HighCloud
Low Cloud
Low Cloud organizations 2½Xmore likely to have no Change
Management
Where are HR Technology Budgets Allocated?
25
7%
30%
12%18%
IT HR
What % of your Budgets are Allocated to HR Technology?
High Cloud Low Cloud
17%
10%
18%35%
20%
Enterprise Integration Strategy?
Yes, updated regularly
Yes, rarely updated
In development
No Strategy
Unknown
2017 Integration Strategies Matter47% of Orgs Have No Standard Approach to HR Technology Integration
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3%
9%
18%
22%
47%
Other
Integration platform
Into core HR
Into TM Suite
Case by Case/None
Approach to Integrating HR Technology
20%Organizations have a Major
Initiative to Improve Integrations
62
22
518
Average Number of Integration Touch Points Between HR and
Non-HR Systems
Do You Need an Enterprise Integration Strategy?
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21% Higher business outcome ratings
when organizations have anEnterprise Integration Strategyover those without a strategy
Enterprise Integration Strategymore aligned with Business Outcomes
than Change Management,Cloud Technology, Data Analytics,
and Talent Management efforts.
Wearables
Wellness Programs
Data TransferProtocols
General DataProtection
Regulations
Mobile Risk
It’s 2017, Do You Have an HRIT Security Strategy? 70% of Top Outcome Organizations Regularly Update a Risk/Security Strategy
28
46%
11%
15%
14%
14%
Cyber Security/Data Risk Strategythat Includes HR Systems
Yes, updated regularly
Yes, rarely updated
In development
No Strategy
I Don't Know
48%of organizations are Effective at Data Privacy Processes
8%are
Transformational
Is Effective Good Enough?
Regularly Updated Cyber Security Strategy What Do They Do Differently?
29
66%34%36%
64%
Yes No
Multi-factor Authentication for HR Systems
72%
28%36%64%
Yes No
Remote Wipe Technologyfor Mobile Devices
22% 27%51%
12% 14%
74%
Select Groups Everyone No Policy
Bring Your Own Device Policy
Strategy
No Strategy
58%50%
43%38%
33% 30%20% 17% 16% 12% 11%
ComplianceRisks
ManageHR Costs
EmployeeRetention
Engagement WorkforceReadiness
AttractingTalent
Productivity WorkAssignment
CustomerSatisfaction
Improvennovation
CompetitiveAdvantage
What Are You Currently Using HR BI to Accomplish?
20%
64%
What Are you Accomplishing with HR BI/Analytics#1 Outcome Organizations are Achieving Today is Risk Mitigation
n = 681
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46%
27%
Barriers to Rolling Out BI/Analytics to Managers● Role Security, Defining Team● Training Required● Cost, Time● Data Security● Lack of data standards
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“Training, and most managersshare staff that they don’t haveaccess to in Core”
“Culture of data protection”
“HR Controls the data, that is ourbusiness process. We schedule reports”
“Concerns aboutmisuse of data”
“HR teams “letting go”of the data”
Workforce Planning RealitiesTop Performing Orgs, 70% More Likely to Conduct Workforce Planning
32
23%of all organizations are conducting
Enterprise Workforce Planning
41%24%
TopPerforming
Not TopPerforming
Do You Conduct Enterprise Workforce Planning
32%
20%20%
13%
10%5%
Primary Function Leading Workforce Planning Efforts
HR Strategy
Business Strategy
Talent Management
Finance
Recruiting
Other
Intelligent Systems Building BlocksThe Emergence of Active Technology – Requires Your Input
Workforce Using
Intelligent Systems Building Blocks Today 12 Months Evaluating No Plans
Artificial Intelligence 40% Feel It is Valuable to Extremely Valuable
Predictive Analytics 76% Feel It is Valuable to Extremely Valuable, 29% Doing Something
Machine Learning 3% 2% 22% 73%
Sentiment Analysis 6% 4% 15% 75%
Wearable/RFI (IoT) 8% 1% 9% 82%
Benchmarking Databases 20% 5% 24% 52%
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5 Questions When Buying Emerging AI ToolsKnow Your Risk, Options, and Regulations
● Tell me about your views on product liability?● How do we make changes to the data?● What happens when we turn “it” off?
● Do we own what the machine learned from us? How do we take that data with us?
● What are the startup costs, resources, and supervision? How much will it take to train?
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2017 Business Systems: On the Move to Cloud40% Increase in Orgs Adopting Cloud for Finance, Marketing, Vendor, and Ops
38%
25%
25%
24%
22%
6%
7%
2%
6%
5%
3%
3%
2%
4%
4%
11%
16%
13%
20%
16%
41%
49%
58%
46%
53%
Sales/CRM
Vendor Management
Marketing Systems
Financial Systems
Operations Systems
Non-HR Systems in the Cloud Today?
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12 Months Evaluating24 MonthsToday No Plans
What We Couldn’t Fit In Today!
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HR Technology Adoption Trends by Vendor – See Who’s Acquiring New Clients
New Insights in Recruiting Technology, BI/Analytics, and Non-Healthcare Benefits Offerings
Vendor-Specific Client Averages and Client Feedback on Vendor Satisfaction Data
New Insights on Implementation and Maintenance Practices, Timelines, Updates, Work Assignments
Lots of Extra Industry, Size, and Organization Type Breakouts of Our Traditional Data
Thank you!
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Visit Sierra-Cedar Website Get Full Survey Details and Sign Up To Participate Next Year!
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www.Sierra-Cedar.com/annual-survey
Why Organizations Participate?
● Obtain a personalized benchmarking snapshot filtered by size, region, or industry
● Value conducting a review of their own enterprise HR system environment annually
● Need data to build their own HR Technology strategy or business case for change
● Believe it is important to support the broader HR technology community
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Having a career passion for enabling technology for HR, I am drawn to the unbiased, objective nature of the Sierra-Cedar HR Systems Survey White Paper. It serves as my voice to the vendors in terms of what we need and where we want to go at Dell. The benchmarking component is also vital in validating the technology and making the case for investment.
Karen CaveneyGlobal HR Business Architecture & Technology
Dell
Why Organizations Participate?
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Why Organizations Participate?
41
The Sierra-Cedar HR Systems Survey White Paper is one of the main sources I use to keep my finger on the pulse of the HR Technology industry. The trending data and future landscape analysis is extremely valuable—I’m not sure I could effectively do my job or remain a thought leader in the industry without it.
Joe AlmodovarSenior Director Global Business Systems
AT Kearney
Why Organizations Participate?
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The real win for our organization is in the actual exercise of completing the yearly Survey. The detailed questions force us to take a good, hard look at what we’re really doing in our business… a real eye-opening experience and well worth the effort.
Jim PettitProgram Manager of HR Systems
Halyard Health
Sierra-Cedar 2017–2018 HR Systems SurveyDemographics: International and Global Organizations
80%
4%10%
5%
Global36%
Non-Global64%
The average global organizationhas operations in over
28different countries.
204Organizations withHQ outside the US
467Global Organizations
43
1%
Who Responds to Our Survey?
69%
11%
8%3%2%7%
Participants by Function
Human Resources Information Tech FinanceLine of Business TM & Learning Other
55%
25%
10%10%
Participants by Role
Manager/Director Individual contributorExecutive Other
44
What Type of Organizations Participate?
45
52%
24%
13%
8%3%
Organizations Types
Privately owned
Publicly traded
Nonprofit
Government Owned
Subsidiary/Other
Survey MethodologySierra-Cedar follows rigorous standards in the form of a nine-step survey methodology, independently validated in 2011 by the Mercer Survey Quality group. Each year, this annual reach provides a wealth of knowledge that is shared openly with the HR systems community. All participants are kept strictly anonymous, and only aggregate data is used.
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