Aon Hewitt

Risk. Reinsurance. Human Resources.

About Aon Aon plc (NYSE:AON) is the leading global provider of risk management, insurance and reinsurance brokerage, and human resources solutions and outsourcing services. Through its more than 66,000 colleagues worldwide, Aon unites to empower results for clients in over 120 countries via innovative and effective risk and people solutions and through industry-leading global resources and technical expertise. Aon has been named repeatedly as the world’s best broker, best insurance intermediary, best reinsurance intermediary, best captives manager, and best employee benefits consulting firm by multiple industry sources. Visit aon.com for more information on Aon and aon.com/manchesterunited to learn about Aon’s global partnership with Manchester United.

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Risk. Reinsurance. Human Resources.

The State of HR Transformation2017 Insights

Businesses are experiencing breakthroughs faster than ever. Life cycles for innovation are shortening. The Nature of Work evolves and revolves around the ability to learn and adapt at the speed of creation.

Aon Hewitt’s State of HR Transformation survey 2016-17 was designed to discover best practices and derive insights on how leading organisations are leveraging technology to reboot and refresh HR to create business impact in a digital world. Now, more than ever, organisations need a journey mind-set with always-on thinking, always-on execution, and #AlwaysOnHR.

4. HR Technology—Sky-high expectations, yet to delivera. Clarity on HR Technology strategy (irrespective of

choice) drives up satisfaction levels among users of the platforms.

b. Omni-channel support and access enables greater satisfaction on current deployments.

c. While highly-satisfied organisations tend to rate On-Premise and Cloud platforms similarly, Cloud deployment scores are very low among highly-dissatisfied organisations. We believe this is due to heightened expectations and mis-selling in the market.

d. Selection of platform partners will become increasingly anchored on User Experience, Configurability, Analytics, and Pace of Innovation.

5. People Analytics needs to get the basics in placea. 7 out of 10 participating organisations plan to

implement more robust people analytics in the next 12 to 24 months, primarily to solve for issues around performance, productivity and retention.

b. Lack of consolidated data, capability of current HR Team, and ability to Link analytics to business outcomes are top issues that organisations are trying to solve.

We’ve only just beguna. In this #AlwaysOnHR journey, HR will continue to

evolve. The year when the cumulative confidence of CHROs exceeds 50% will be the tipping point.

b. Across APAC:

n There is a sense of certainty around greater self-service options offered as organisations explore the deployment of omni-channels (proactively identifying the channel of choice based on user groups).

n Learning is shifting to bite-sized and video-based formats as mobile dominates. This will accelerate with Augmented Reality coming into play.

n Continuous listening is a must in delivering a superlative employee experience and the shifts on this front are clear to see.

Ongoing disruptions will result in a constant change in demand from businesses and their stakeholders.

Organisations set for success are those that design their HR transformation strategy around establishing the right set of capabilities to realise business outcomes on an ongoing basis.

People Analytics will lead the way as HR leaders grow increasingly comfortable with engaging business leaders using data and talent science. Assuming the enablers of HR transformation such as HR Service Delivery, HR Incumbents, and HR Platforms continue to deliver at optimum levels, HR leaders are well-equipped to support the journey through data and insights.

This is the new normal for HR. Or, as we call it, #AlwaysOnHR.

Key Findings1. HR Services are pivotal to success

a. Organisations with clarity on HR Service Delivery Model and HR Technology Strategy are about 4 times more satisfied on Program Design and Execution.

b. Action linked to driving HR effectiveness point towards a sharper focus on strengthening Service Delivery.Almost 8 out of 10 participants are planning to:

n Upskill competencies of current HR incumbents;

n Integrate talent management processes; and

n Implement technology to better support talent management.

2. HR is in the driving seat, but only has half a tank fulla. 63% of the respondents have a solid line to HR

globally (direct or matrix), demonstrating a stronger control on transformation and resource deployment.

b. However, capability of current HR incumbents is a challenge, especially even more so in large APAC enterprises.

c. Among the different HR roles, HR Generalist comes across as a confused one. Yet, field HR/Generalists will have vital roles unique to each organisation’s context.

3. HR’s Operating Model is rapidly maturing, but in transitiona. HR Service Delivery is in the early stages of

maturity; this is based on less than 1/3rd of respondents saying that they have a well-defined HR Service Delivery Model. Of these, only about 45% have a Shared Services Center.

b. As mature organisations think of greater integration and apply outcome-based thinking, User Experience (enabled by end-end process coverage) and Analytics form the guiding principles that define their HR Operating Models.

c. Shared Services Insights:

n For organizations with Shared Services, about 50% of transactions are managed at the Shared Services level. As a result, administrative load at a country level goes down.

n Among respondents who have Shared Services, close to 40% do not have a well-defined HR Service Delivery Model. This will result in the value and impact of these centers being questioned.

n Shared Services have opportunity to increase their footprint, both on process scope and coverage. As HR Shared Services expand in the domain of Talent Management there remains a big opportunity to drive consolidation of administrative tasks (e.g. Performance, Learning and development).

#AlwaysOnHR

Tipping pointsfor 2019

100%Self-service

employee andmanagers

100%of HR processes

on mobile

50%of all learning is

video based

70%of all peopledecisions arepeer driven

50%of performancemanagement is

AI driven

80%

57% 57% 100% 80% 51% 67%

% of CHROsco dent thatthese tipping

points willoccur by 2019

of all employee feedback is

captured and reported in

real-time