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Page 1: Phenix Management Int'l -  Back to the Future of HR Leveraging e-HR Al Doran, CHRP Phenix Management Int’l

Phenix Management Int'l - www.pmihrm.com 1

Back to the Future of HR

Leveraginge-HR

Al Doran, CHRPPhenix Management Int’l

Page 2: Phenix Management Int'l -  Back to the Future of HR Leveraging e-HR Al Doran, CHRP Phenix Management Int’l

Phenix Management Int'l - www.pmihrm.com 2

Question:

• Bank tellers

• 8 track machines

• Beta format videotapes

• IBM selectric typewriters

• Switchboard operators

What do these items have in common:

Page 3: Phenix Management Int'l -  Back to the Future of HR Leveraging e-HR Al Doran, CHRP Phenix Management Int’l

Phenix Management Int'l - www.pmihrm.com 3

Answer:

They have all been changed or replaced by new technology

Page 4: Phenix Management Int'l -  Back to the Future of HR Leveraging e-HR Al Doran, CHRP Phenix Management Int’l

Phenix Management Int'l - www.pmihrm.com 4

Today’s Agenda

Why Bother with e-HR ?

What is e-HR Anyway?

How do I leverage my investment in HRMS?

• Utilizing Technology

for Workforce Management

Page 5: Phenix Management Int'l -  Back to the Future of HR Leveraging e-HR Al Doran, CHRP Phenix Management Int’l

Phenix Management Int'l - www.pmihrm.com 5

Providing HR Content and Transaction Delivery to all stakeholder groups (internal & external) using a common delivery interface, open interoperable systems and standard network transport. e-HR incorporates best of breed software supported by an ERP backbone HR system.

Defining e-HR

Page 6: Phenix Management Int'l -  Back to the Future of HR Leveraging e-HR Al Doran, CHRP Phenix Management Int’l

Phenix Management Int'l - www.pmihrm.com 6

What is the new technology in HR?

24 / 7 access Includes automation and

workflow Advances with HRMS,

Imaging and call centers Internet

• Mixture of computer, software and system changes

• Response to changing needs of employees

Page 7: Phenix Management Int'l -  Back to the Future of HR Leveraging e-HR Al Doran, CHRP Phenix Management Int’l

Phenix Management Int'l - www.pmihrm.com 7

Why Technology?

Reduce Costs

HR Metrics – Headcount

Instant Access – Real Time

Business Decisions and Communications

Global Economy

Page 8: Phenix Management Int'l -  Back to the Future of HR Leveraging e-HR Al Doran, CHRP Phenix Management Int’l

Phenix Management Int'l - www.pmihrm.com 8

•The payback on these investments is 25% to 30% cost reductions—some from headcount reductions and some from printing and distribution cost reductions.

•Respondents further report ROI of 100% within 12 to 18 months, along with improved service levels, better decision making, and increased employee satisfaction.

•Companies who report they are successful with self service have the highest (HR) ratio (1/106) followed by those reporting somewhat successful (1/99), and those who report they are less than successful (1/60).

Source: The Hunter Group's 1998-1999 Human Resources Self-Service Survey

Why Do Clients Want e-HR Anyway…

Page 9: Phenix Management Int'l -  Back to the Future of HR Leveraging e-HR Al Doran, CHRP Phenix Management Int’l

Phenix Management Int'l - www.pmihrm.com 9

Automation: Measures of Success -Demonstrable ROI

Quantitative Results Achieved: North America

Cost per transaction

Cycle time

Headcount changes

ROI/payback

Employee satisfaction

Inquiries to service center

Usage

Intangibles

Results Averages

Average 43% reduction in 2003 plus 7% more in 2004

Average 50% reduction reported in 2003/04

Average 37% reduction in HR staff

Average 1.8 years payback in 2003

Average 50% improvement in 2003 plus 10% in 2004

Average 43% reduction in 2003/04

Steadily increasing, up to 100% in some firms

Better information, data quality and user experience

Source: Cedar 2003/2004 Workforce Technologies Surveys

Page 10: Phenix Management Int'l -  Back to the Future of HR Leveraging e-HR Al Doran, CHRP Phenix Management Int’l

Phenix Management Int'l - www.pmihrm.com 10

What Are The Quantitative Results You've Achieved Through Your HR Self-Service Initiatives?

Task Manual Cost Self Service Cost % SavedView benefit profile $6.00 $.50 92%Access policy handbook $4.00 $1.00 75%Change home address $10.00 $2.00 80%Provide 401(k) statement $50.00 $.60 99%View paycheck $3.00 $.50 83%Job posting $8.00 $.50 94%View skill profile $1.50 $.50 67%Employee change action $12.00 $4.00 67%

Source: The Hunter Group's 1998-1999 Human Resources Self-Service Survey

The Numbers Speak For Themselves…

Page 11: Phenix Management Int'l -  Back to the Future of HR Leveraging e-HR Al Doran, CHRP Phenix Management Int’l

Phenix Management Int'l - www.pmihrm.com 11

Key FindingsRecent CedarCrestone Survey

Workforce technologies and service delivery approaches growth enable HR transformation All workforce technologies use continue to grow Outsourcing usage is growing Organizations blend high-touch and high-tech service delivery

Results are significant Transaction and compliance cost reductions of 25% to 75%

Success factors A solid business case Business process improvement Change management

Page 12: Phenix Management Int'l -  Back to the Future of HR Leveraging e-HR Al Doran, CHRP Phenix Management Int’l

Phenix Management Int'l - www.pmihrm.com 12

CedarCrestone HCM Blueprint

Self Service Transactions • Native ERP • Third-party Vendors

Self Service Transactions • Native ERP • Third-party Vendors

HR KnowledgebaseHR Knowledgebase

Portal FrameworkPortal Framework

Identity Management• Single Sign-onIdentity Management• Single Sign-on

Help Desk• Call Tracking• Case Management

Help Desk• Call Tracking• Case Management

Strategic HCM Apps • Recruiting• Competency Mgmt• Learning Mgmt• Compensation Mgmt• Performance Mgmt

Strategic HCM Apps • Recruiting• Competency Mgmt• Learning Mgmt• Compensation Mgmt• Performance Mgmt

SCM

CRM

FIN Core HRMS/ERP foundationData for Roles, Personalization,

Position Mgmt

Core HRMS/ERP foundationData for Roles, Personalization,

Position Mgmt

Data WarehouseData Warehouse

AnalyticsAnalytics

Performance Excellence

Service Delivery Excellence

Administrative Excellence

CedarCrestone HCM Blueprint

Page 13: Phenix Management Int'l -  Back to the Future of HR Leveraging e-HR Al Doran, CHRP Phenix Management Int’l

Phenix Management Int'l - www.pmihrm.com 13

All Applications Grow In UseMany Up 50% or More

Trend in Application Usage, Budgeted, and Planned Worldwide

Source: CedarCrestone 2005 Workforce Technologies/Service Delivery Approaches Survey

0% 20% 40% 60% 80% 100%

2004

2005

Measure/Plan Talent

2004

2005

Strategic HR Applications

2004

2005

Manager Productivity Applications

2004

2005

Employee Productivity Applications

In Use

Budgeted within Next 12 Months

Planned for Next 36 Months

Page 14: Phenix Management Int'l -  Back to the Future of HR Leveraging e-HR Al Doran, CHRP Phenix Management Int’l

Phenix Management Int'l - www.pmihrm.com 14

Outsourcing Will Increase

#27: HR Outsourcing Components: Processes, Technology, and People – Worldwide

Source: CedarCrestone 2005 Workforce Technologies/Service Delivery Approaches Survey

0% 20% 40% 60% 80% 100%

Processes – Today

Processes – 12 months from now

Technology – Today

Technology – 12 months from now

People – Today

People – 12 months from now

0 Not outsourced, will never be outsourced

1 Not outsourced today or for next 12 months, but may be someday

2 Partially outsourced

3 Fully outsourced

Page 15: Phenix Management Int'l -  Back to the Future of HR Leveraging e-HR Al Doran, CHRP Phenix Management Int’l

Phenix Management Int'l - www.pmihrm.com 15

Years to Achieve Payback Faster than Expected with Most Solutions

Source: CedarCrestone 2005 Workforce Technologies/Service Delivery Approaches Survey

YearsAchieved Years to Not Yet When

Years in ROI Achieve Achieved Payback isPlace % Payback ROI Expected

YearsAchieved Years to Not Yet When

Years in ROI Achieve Achieved Payback isPlace % Payback ROI Expected

Core HR Record Keeping System

HR Management System

HRMS Upgrade

Service Delivery Solutions and Applications

Call Center Technologies

Employee Self Service

Manager Self Service

Time and Attendance

Strategic HR Applications

Web-based Recruiting

Web-based Learning Management (excludes content)

Performance Management (appraisals, goal alignment)

Succession Planning

Compensation Management

Measurement Solutions and Applications

Data Warehouse (for HR)

Workforce Analytics (including scorecard)

6.6

1.8

3.4

2.7

2.3

5.5

2.4

2.4

3.9

2.5

3.3

3.5

1.4

35%

24%

16%

42%

31%

36%

22%

15%

28%

9%

24%

29%

11%

3.1

1.1

1.1

1.3

1.2

1.6

1.6

2.5

1.6

1.0

1.7

2.1

0.6

22%

27%

18%

20%

31%

18%

24%

18%

17%

17%

18%

20%

21%

4.1

2.4

1.9

2.3

2.4

1.2

1.8

5.0

4.0

3.0

3.3

2.9

3.0

#33: In-house Solutions: Payback Achieved/Payback Expected – Worldwide

Page 16: Phenix Management Int'l -  Back to the Future of HR Leveraging e-HR Al Doran, CHRP Phenix Management Int’l

Phenix Management Int'l - www.pmihrm.com 16

Service Delivery Applications

#12: Service Delivery Applications Usage and Source – Worldwide

UsageUsage

In UseIn Use

Simple Management Reporting

Time Management Self Service

Benefits-related Self Service

Employee Self Service

Pay-related Self Service

Total Benefit Statements

HR-oriented Help Desk

Manager Self Service

Simple Management Reporting

Time Management Self Service

Benefits-related Self Service

Employee Self Service

Pay-related Self Service

Total Benefit Statements

HR-oriented Help Desk

Manager Self Service

74%

62%

62%

60%

57%

46%

42%

34%

74%

62%

62%

60%

57%

46%

42%

34%

Budgeted for Next

12 Months

Budgeted for Next

12 Months

11%

11%

13%

17%

15%

12%

5%

21%

11%

11%

13%

17%

15%

12%

5%

21%

Within Next 36 Months

Within Next 36 Months

6%

11%

16%

16%

13%

16%

3%

21%

6%

11%

16%

16%

13%

16%

3%

21%

SourceSource

Home-grownHome-grown

SoftwareLicensedSoftwareLicensed OutsourcedOutsourced

20%

15%

10%

11%

8%

18%

40%

21%

20%

15%

10%

11%

8%

18%

40%

21%

56%

69%

49%

73%

66%

30%

29%

57%

56%

69%

49%

73%

66%

30%

29%

57%

1%

5%

32%

4%

14%

38%

8%

4%

1%

5%

32%

4%

14%

38%

8%

4%

BlendedBlended

22%

10%

9%

12%

12%

14%

22%

17%

22%

10%

9%

12%

12%

14%

22%

17%

Source: CedarCrestone 2005 Workforce Technologies/Service Delivery Approaches Survey

Page 17: Phenix Management Int'l -  Back to the Future of HR Leveraging e-HR Al Doran, CHRP Phenix Management Int’l

Key FindingsRecent CedarCrestone Survey

Workforce technologies and service delivery approaches growth enable HR transformation All workforce technologies use continue to grow Outsourcing usage is growing Organizations blend high-touch and high-tech service delivery

Results are significant Transaction and compliance cost reductions of 25% to 75%

Success factors A solid business case Business process improvement Change management

www.pmihrm.com

Page 18: Phenix Management Int'l -  Back to the Future of HR Leveraging e-HR Al Doran, CHRP Phenix Management Int’l

All Applications Grow In UseMany Up 50% or More

Trend in Application Usage, Budgeted, and Planned Worldwide

Source: CedarCrestone 2005 Workforce Technologies/Service Delivery Approaches Survey

0% 20% 40% 60% 80% 100%

2004

2007

Measure/Plan Talent

2004

2007

Strategic HR Applications

2004

2007

Manager Productivity Applications

2004

2007

Employee Productivity Applications

In UseBudgeted within Next 12 MonthsPlanned for Next 36 Months

www.pmihrm.com

Page 19: Phenix Management Int'l -  Back to the Future of HR Leveraging e-HR Al Doran, CHRP Phenix Management Int’l

www.pmihrm.com

                                                                                      

* = Gartner estimates

Source: Gartner (February 2008) 

Figure 1. Licensed Customer Share for Companies With More Than 10,000 Employees

* = Gartner estimates

Source: Gartner (February 2008)

Page 20: Phenix Management Int'l -  Back to the Future of HR Leveraging e-HR Al Doran, CHRP Phenix Management Int’l

Years to Achieve Payback Faster than Expected with Most Solutions

Source: CedarCrestone 2005 Workforce Technologies/Service Delivery Approaches Survey

Years

Achieved Years to Not Yet When

Years in ROI Achieve Achieved Payback is

Place % Payback ROI Expected

Years

Achieved Years to Not Yet When

Years in ROI Achieve Achieved Payback is

Place % Payback ROI Expected

Core HR Record Keeping SystemHR Management SystemHRMS Upgrade

Service Delivery Solutions and ApplicationsCall Center TechnologiesEmployee Self ServiceManager Self ServiceTime and Attendance

Strategic HR ApplicationsWeb-based RecruitingWeb-based Learning Management (excludes content)Performance Management (appraisals, goal alignment)Succession PlanningCompensation Management

Measurement Solutions and ApplicationsData Warehouse (for HR)Workforce Analytics (including scorecard)

6.61.8

3.42.72.35.5

2.42.43.92.53.3

3.51.4

35%24%

16%42%31%36%

22%15%28%9%

24%

29%11%

3.11.1

1.11.31.21.6

1.62.51.61.01.7

2.10.6

22%27%

18%20%31%18%

24%18%17%17%18%

20%21%

4.12.4

1.92.32.41.2

1.85.04.03.03.3

2.93.0

#33: In-house Solutions: Payback Achieved/Payback Expected – Worldwide

www.pmihrm.com

Page 21: Phenix Management Int'l -  Back to the Future of HR Leveraging e-HR Al Doran, CHRP Phenix Management Int’l

Phenix Management Int'l - www.pmihrm.com 21

HR Skill sets are Changing

Hiring organizations will no longer consider applicants without technology skills

The days of the data entry clerk, clerk typist or pure “secretary” are gone

When the CEO asks “What is my cost per…”, you can’t say “we don’t track it”

Technology is changing all jobs!

Pace of change will accelerate

Page 22: Phenix Management Int'l -  Back to the Future of HR Leveraging e-HR Al Doran, CHRP Phenix Management Int’l

Phenix Management Int'l - www.pmihrm.com 22

Strategic Issues

Cultural

Cost and efficiency

Maintenance and support

Data integrity

Lead / lag

Integration and interfaces

Privacy and access

Page 23: Phenix Management Int'l -  Back to the Future of HR Leveraging e-HR Al Doran, CHRP Phenix Management Int’l

Phenix Management Int'l - www.pmihrm.com 23

A Brief History

• 1950 - 1960

• 1960 - 1970

• 1970 - 1980

• 1980 - 1990

• 1990 – 2000

• 2000 - 2010

Batch Data Processing

Large Scale Mainframe Oriented

Personal Computing

Lans/Wans

Distributed Computing - Internet

Interconnected Environments

Payroll

Personnel Systems

Database Systems - 4th GL

Client Server

Web Enabled Applications

Best Of Breed Integration

Decade Environment HRMS

Page 24: Phenix Management Int'l -  Back to the Future of HR Leveraging e-HR Al Doran, CHRP Phenix Management Int’l

Phenix Management Int'l - www.pmihrm.com 24

Evolution -Application Technology

MainframeApplicationsMainframe

Applications

Client-ServerApplicationsClient-ServerApplications

InternetApplications

InternetApplications

Service Oriented

Applications

Service Oriented

Applications

Page 25: Phenix Management Int'l -  Back to the Future of HR Leveraging e-HR Al Doran, CHRP Phenix Management Int’l

Phenix Management Int'l - www.pmihrm.com 25

HR System

Payroll

Time Management

HR Data Warehouse/Mart

LegacySystems

Components Of e-HR

HR Communities Of Interest

Mid

dlew

are

WebRecruiting

Cor

pora

te P

orta

l

HR

Por

tal

MSS

ES

SWeb

TrainingOutsourced

HR Functions

Pos

itio

n M

gmt

Thi

rd P

arty

Rep

orti

ng

Workflow & Business Rules DirectoryTransactions & Information Flows Within a TCP/IP Web Environment

Page 26: Phenix Management Int'l -  Back to the Future of HR Leveraging e-HR Al Doran, CHRP Phenix Management Int’l

Phenix Management Int'l - www.pmihrm.com 26

Intranet ApplicationsReal time communications with employees

Newsletters

Job posting

Training

Employee data to managers

Sign up events, training, etc

Polls and surveys

Policies online

Forms

Benefits enrollment

Page 27: Phenix Management Int'l -  Back to the Future of HR Leveraging e-HR Al Doran, CHRP Phenix Management Int’l

Phenix Management Int'l - www.pmihrm.com 27

Internet Applications for HR

Company home pages

Webcruiting

Employment searching and applications

Professional associations online

Research

Page 28: Phenix Management Int'l -  Back to the Future of HR Leveraging e-HR Al Doran, CHRP Phenix Management Int’l

Phenix Management Int'l - www.pmihrm.com 28

Main Trends Driving HCM

Increased linkage to business objectives

Growing focus on skills, competencies and knowledge

Tighter link between performance and pay

Multifaceted organizational development

Succession and leadership development

Raising workforce productivity

Rise in Healthcare Costs

Measuring Contribution of Human Capital

Certifications / Compliance

Page 29: Phenix Management Int'l -  Back to the Future of HR Leveraging e-HR Al Doran, CHRP Phenix Management Int’l

Phenix Management Int'l - www.pmihrm.com 29

Day to Day changes

All areas affected

Staffing

Training

Legal

•HRMS•Compensation•Benefits

Page 30: Phenix Management Int'l -  Back to the Future of HR Leveraging e-HR Al Doran, CHRP Phenix Management Int’l

Phenix Management Int'l - www.pmihrm.com 30

Staffing

WorkflowTestingElectronic job posting and internal applicationsSkill set trackingApplicant flow and trackingResume scanning

• Electronic requisitions, postings etc.

Page 31: Phenix Management Int'l -  Back to the Future of HR Leveraging e-HR Al Doran, CHRP Phenix Management Int’l

Phenix Management Int'l - www.pmihrm.com 31

Staffing, con’t

Applicants filing out job applications on terminals

Webcruiting

Relocation info Internet

Company home pages

Electronic resumes

Employment verification

Employee orientation

Page 32: Phenix Management Int'l -  Back to the Future of HR Leveraging e-HR Al Doran, CHRP Phenix Management Int’l

Phenix Management Int'l - www.pmihrm.com 32

Winning the War for Talent

Be an Employer of ChoiceUnderstand Demographic changesMake every employee a recruiterStreamlining the process

Page 33: Phenix Management Int'l -  Back to the Future of HR Leveraging e-HR Al Doran, CHRP Phenix Management Int’l

Phenix Management Int'l - www.pmihrm.com 33

Winning the War for TalentCheaper to retain than hireWhy people stay: Career growth and

development Challenging and

meaningful work Flexible HR processes

Why people leave Poor leadership and

communications Better opportunities

Creative compensationand rewards

Page 34: Phenix Management Int'l -  Back to the Future of HR Leveraging e-HR Al Doran, CHRP Phenix Management Int’l

Phenix Management Int'l - www.pmihrm.com 34

The Workforce is Shrinking

Page 35: Phenix Management Int'l -  Back to the Future of HR Leveraging e-HR Al Doran, CHRP Phenix Management Int’l

Phenix Management Int'l - www.pmihrm.com 35

Shrinking Around the World

1

A Shrinking Workforce

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%

120%

140%

160%

180%

200%

Russia

Italy

Japan

Spain

Sou

th K

ore

a

Germ

any

Chin

a

Neth

erl

an

ds

Fra

nce

Sou

th A

fric

a

UK

Canada

Austr

alia

Bra

zil

Mexic

o

US

India

1970-2010 2010-2050

Projected Change in Working Age Population (15-64) 2010-2050

Page 36: Phenix Management Int'l -  Back to the Future of HR Leveraging e-HR Al Doran, CHRP Phenix Management Int’l

Phenix Management Int'l - www.pmihrm.com 36

Workforce Gap

Page 37: Phenix Management Int'l -  Back to the Future of HR Leveraging e-HR Al Doran, CHRP Phenix Management Int’l

Phenix Management Int'l - www.pmihrm.com 37

Flexible Business Processes

Recruiting Example

BudgetCheck

AuthorizeNew Hire

BackgroundCheck

SelectCandidate

Assess Candidates

ConductInterviews

ContactCandidates

FilterCandidates

CollectApplications

Post Job toCo Website

Post JobSpecification

Create JobSpecification

Create JobRequisition

3rd party check via Web Services

Post to Job Board:

ExtendOffer

Page 38: Phenix Management Int'l -  Back to the Future of HR Leveraging e-HR Al Doran, CHRP Phenix Management Int’l

Phenix Management Int'l - www.pmihrm.com 38

Training Training is more accessible, faster and can be adapted to different learning styles

Immediate feedback

Pre-post testing

Maximize software / systems investment with training

Rapid advances, ongoing learning

On line course enrollment

Education / Skill set tracking on HRMS

Page 39: Phenix Management Int'l -  Back to the Future of HR Leveraging e-HR Al Doran, CHRP Phenix Management Int’l

Phenix Management Int'l - www.pmihrm.com 39

Distance LearningWhat is distance learning? Satellite Link Internet Online Technology Video Links

It’s not just for mail order diplomas 55% of regionally accredited universities offer

some type of technology based distance learning Reduce costs

Page 40: Phenix Management Int'l -  Back to the Future of HR Leveraging e-HR Al Doran, CHRP Phenix Management Int’l

Phenix Management Int'l - www.pmihrm.com 40

People: Skills Development

Geography

Leader

Geography

Leader

ManagerManager

FunctionalLeader

FunctionalLeader

Provide Ease-of-Use Development ToolsHelp People Operate

in a More Complex Matrix World

Talent and Skills Development

Ca

ree

r P

lan

nin

g

Re

wa

rds

Performance ManagementPerformance Management

Page 41: Phenix Management Int'l -  Back to the Future of HR Leveraging e-HR Al Doran, CHRP Phenix Management Int’l

Phenix Management Int'l - www.pmihrm.com 41

Legal Issues

Is Email “mail”?Privacy LegislationUniform enforcement of policyLibel Email is legally “discoverable” and may be recovered even after “deleted”Establish clear policy and communicate frequently

• Laws not keeping pace with technology

Page 42: Phenix Management Int'l -  Back to the Future of HR Leveraging e-HR Al Doran, CHRP Phenix Management Int’l

Phenix Management Int'l - www.pmihrm.com 42

Workforce ComplianceManage and mitigate risk across the organization

Enable legal, regulatory, and statutory compliance, globally

Document and track critical business processes

Ensure global process accuracy and consistency

Develop training to ensure compliance

Deliver a single version of the truth for all global workforce information

Provide HR transaction auditability

Leverage global HCM presence

Page 43: Phenix Management Int'l -  Back to the Future of HR Leveraging e-HR Al Doran, CHRP Phenix Management Int’l

Phenix Management Int'l - www.pmihrm.com 43

Comply: Raising Awareness via LMS

Page 44: Phenix Management Int'l -  Back to the Future of HR Leveraging e-HR Al Doran, CHRP Phenix Management Int’l

Phenix Management Int'l - www.pmihrm.com 44

Scheduled Sessions / Activities

Webcast – Live &

Recorded

Assignment / Tasks

QuizTests /

Assessment

Web-BasedContent /

Self-paced

Learning Components

= Multi-Modal Delivery

Activities

Multi-Modal Delivery

Comply: Raising Awareness via LMS

• Supports complex learning models

• Enables multiple forms of verification

• Easy Administration

Page 45: Phenix Management Int'l -  Back to the Future of HR Leveraging e-HR Al Doran, CHRP Phenix Management Int’l

Phenix Management Int'l - www.pmihrm.com 45

HRMS

Single source of employee data Staffing issues (vacancy, approvals, hiring dates) Sharing of data Reporting Data access Skill set tracking Applicant tracking Data analysis

Better, faster, more accurate data Data securityFeeds to finance, budget, payroll, security, etcCustomized reports

• Comprehensive data

Page 46: Phenix Management Int'l -  Back to the Future of HR Leveraging e-HR Al Doran, CHRP Phenix Management Int’l

Phenix Management Int'l - www.pmihrm.com 46

Second Generation HRMS

User friendly

Web enabled

Employee self service and workflow enabled

Open enterprise architecture

Addresses global workforce

Modular

Multiple vendor products

Integrated solutions

Page 47: Phenix Management Int'l -  Back to the Future of HR Leveraging e-HR Al Doran, CHRP Phenix Management Int’l

Phenix Management Int'l - www.pmihrm.com 47

The Challenge: Reinvent the

Information Environment

Access to information is difficult

o Simple reports and rosters not readily availableo Relating fragmented information to form

conclusions and drive decisions often labor intensive

o Analysis frequently requires manual collection and subjective interpretation

o Information highly secured

Page 48: Phenix Management Int'l -  Back to the Future of HR Leveraging e-HR Al Doran, CHRP Phenix Management Int’l

Phenix Management Int'l - www.pmihrm.com 48

The Challenge: Reinvent the Information Environment

Complex data and process administrationo Administration of data frequently

people- and time-intensiveo HR Managers often handle all data

change requestso No effective means to track status of

changes o Iterative processing of information

produced inconsistent results

Page 49: Phenix Management Int'l -  Back to the Future of HR Leveraging e-HR Al Doran, CHRP Phenix Management Int’l

Phenix Management Int'l - www.pmihrm.com 49

The Needs of the Employee

I need information to:

o Manage my worko Manage my careero Manage my life and healtho Manage my moneyo Make informed decisions

Page 50: Phenix Management Int'l -  Back to the Future of HR Leveraging e-HR Al Doran, CHRP Phenix Management Int’l

Phenix Management Int'l - www.pmihrm.com 50

o Support the work of my teamo Support the careers of my

employeeso Support others in managing their

life eventso Reward my organizationo Make informed decisions and help

others to do the same

The Needs of the Manager

I need information to:

Page 51: Phenix Management Int'l -  Back to the Future of HR Leveraging e-HR Al Doran, CHRP Phenix Management Int’l

Phenix Management Int'l - www.pmihrm.com 51

o Develop and evaluate employee programs

o Analyze and report on compensation

o Analyze and report on organizational effectiveness

o Develop policies and procedures

o Develop strategic recommendations

The Needs of the HR Professional

I need information to:

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Effective Human Capital Management Requires an Integrated Approach

Human Capital

Practices

• Candidate selectionCandidate selection

• Leadership profile Leadership profile

• Succession planSuccession plan

• RecruitmentRecruitment• Resource libraryResource library• Candidate selectionCandidate selection

• Performance appraisalPerformance appraisal• Individual developmentIndividual development• Performance history Performance history

• Career road mapsCareer road maps• Competency modelsCompetency models• Development course Development course

offeringsofferings

• Org structureOrg structure• Work flowWork flow• Job ArchitectureJob Architecture

• CompensationCompensation• BenefitsBenefits• RecognitionRecognition

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The “Killer Apps” for HRMS

MSS

ES

S• Huge Paybacks• Repositions HR• Drives data integrity and

responsibility

• MSS requires workflow and position management more than straight ESS

• Remove unnecessary approvals

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Employee Self Service75-80% of all data is “employee owned”Employee is responsible for data accuracyEmployee has access to information and can change fieldsUse IVR, Intranet and Internet to access“Error proof” itGraphicsMake it interesting and easy to useCall Center optionsDirect access to forms

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Manager Self Service

Allows access control by person, position or span of control

Automated performance review notification

Promotion

Pay increase

Employee actions - hiring, transfers, terminations

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Self service examplesTransaction based events Birth, death, new hire, promotion, marriage

Open enrollment pension changes and balance inquiryBenefit statementsPension estimatesSend question to HRHR policy manualsSign up for company picnicOpinion survey

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The Portal for the Employee – All About Me

Employees access the portal through the Company intranet (@KO)

Features include:

• My Career

• My Life

• My Money

• My Health

• My Workplace

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The Portal for the Manager – Manager’s Toolbox

Workflow automatically reminds managers of pending, “in process,” or closed transactions and those requiring additional action

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Full employee data profile

Clicking on Name provides a full picture of employee data

Home

Employee Profile

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Freeform data entry is minimized

Clearly identifies the employee to be transferred

Standardized values are selected from drop-down

pick lists

Critical information is defaulted

SAP Manager Self-Service

Home

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Reports using SAP BW

Employee lists are driven from organizational data structure inside SAP HR

No user ID or password prompt

All reports download to Excel

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Job Posting (PeopleClick)Internal and External

postings use same engine

Home

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Total Compensation

Doe, LisaDoe, Lisa0000748500007485

Thomson, HarryThomson, Harry00012550001255

Doe, LisaDoe, Lisa0000748500007485

Thomson, HarryThomson, Harry00012550001255

Manager inputs recommendations and can track vs. budget/funding pool

Can analyze pay vs. performance consistency

Home

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Is ERP Dead or is it just sleeping…?

HR System

Payroll

Time Management

Pos

itio

n M

gmt

• Database system is critical

• Provides the core functionality

• Integration of core system reduces cost of ownership and maintenance costs

• Key to data integrity

“The System of Record”

Position Management allows Role-based personalization

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What does the Future hold?

Dramatic shift away from data input and maintenance toward data interpretationShift to technology applications for most employee needs, questionsIncreased outsourcingMore demands on HRShorter time framesCall center operationsHighly customized communications

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Future (con’t)

Portable employee communicationsLinkage with cellular, digital and PC systemsTraining on-line vs. classroomHR as champion of changeWork / Life issues will be prominentMore employees working remotelyInstant access to data by management

Click on name and it happens (phone dials, approval granted, transmission)

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Through the looking glass…C

orpo

rate

Por

tal

HR

Por

tal

• Transactions & content (applications?)• Single sign on and authorization• Single interface – common look & feel• Intuitive (Web-like)• Connects internal & external• Push & Pull content• Personalized for me & my roles• Customizable (within limits) to my interests• Organized by event & process not

department

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Typical Web Based Application

www.pmihrm.com

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Typical Webserver Interface

www.pmihrm.com

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So what are our options in 2008?

Traditional Web based Hosted internally

Need IT support around the clock You own the servers Ongoing cycle of major upgrades

And,

www.pmihrm.com

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New Options

Not on your serversASPSaaSHosted

www.pmihrm.com

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What is SaaS?

Software as a service (SaaS) is a model of software delivery where the software company provides maintenance, daily technical operation, and support for the software provided to their client. SaaS is a model of software delivery rather than a market segment; it assumes the software is delivered over the internet. Software can be delivered using this method to any market segment, from home consumers to corporations. The term "SaaS" was coined by John Koenig for the SDForum Software-as-a-Service Conference in March of 2005 and has become the industry adopted reference term, clarifying and replacing the earlier terms "On-Demand" and ASP (Application Service Provider).

www.pmihrm.com

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Drivers for SaaS

Everyone has a computer

Applications are standardized

Many SaaS providers allow a wide range of customization within a basic set of functions.

A specialized software provider can target a global market

Web systems are reliable enough

Security is sufficiently well trusted and transparent

www.pmihrm.com

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Drivers continued

Availability of enablement technology

Wide Area Network's bandwidth has grown drastically

Lower total cost of ownership

Focus on core business and not IT

www.pmihrm.com

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SaaS – Gartner Definition

The application is owned, delivered, and managed remotely by one or more providers

The application is based on single set of common code and data definitions which are consumed in a one-to-many model by all contracted customers at any time.

The application is licensed on pay-per-use or subscription basis

www.pmihrm.com

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Gartner on SaaS

With the SaaS approach, the client is responsible for the business process, but the provider is responsible for the technology and its support.  As discussed above, the application runs at the provider's facility and is based on common set of code and data definitions consumed by customers in a one-to-many model.  In addition, SaaS providers use a subscription revenue model.

www.pmihrm.com

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Workday model

On-Demand

On-demand is quickly becoming recognized as the delivery model of choice for business applications. There is no hardware, software, middleware, database or business intelligence tool to buy, install, maintain, and upgrade. IT resources can be redeployed to focus on business innovation and value rather than customization and maintenance.

www.pmihrm.com

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Key difference between SaaS and traditional on-site a applications

Software-as-an-application

User pays up-front for a perpetual license, usually based on the “potential

use” of a server (as measured by MIPS, for example), the numbers of users,

plus ongoing maintenance fees.

A dedicated instance of the software is installed on a PC or server (or those of

the user’s hosting provider).

Users are responsible for deployment, operation, and maintenance of the IT

infrastructure required for the application.

Users are responsible for upgrading the software as vendors issue

new releases.

Users are responsible for ensuring the software will continue to operate as

their computing environment changes.

Users are responsible for configuring software to meet specific vertical or

other business

Software-as-a-Service

Users’ fees are “pay-as-you-go” based on appropriate metrics, such as:

• per seat per month

• per transaction

• per software module

• other metrics and/or combination of the above

The software is managed and maintained by the SaaS provider (or the

vendor’s hosting partner).

For SaaS users the “hoster” is responsible for the IT infrastructure.

SaaS vendors upgrade the software automatically as new features and

functionality are developed.

SaaS vendors (or hosting partners) manage changes to the computing

environment.

SaaS applications are highly configurable and are designed to integrate with

existing applications and infrastructure.

www.pmihrm.com

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Benefits of new tools such as SaaS

Software as a Service (SaaS) for Payroll and HR Management

Allows users Internet access to management tools online -- without warehousing and manual retrieval

Guaranteed 98 percent up-time

Remote disaster recovery centers

Compliance with all federal/state laws and regulations

hosting to eliminate expensive servers, licensing and technical allocations

www.pmihrm.com

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Benefits

Benefit to the Client For the client, there are low upfront costs. Executive

teams, and Company Boards, desire to outsource critical functions that are not deemed part of the organizations’ “core business” address the corporate need to focus on core business. In particular for the HR space the perception of HR as a “cost center”, rather than a strategic partner in the organization – and makes a contrary vote all the more difficult.

www.pmihrm.com

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Trends in SaaS – October 2008

The use of software as a service (SaaS) among small-to-medium businesses is on the rise, according to a report by Access Market International Partners (AMI-Partners). The market intelligence firm surveyed various businesses, defining small businesses as having one to 99 employees and medium ones at 100 to 999 employees.

The study, covering the year 2007, found that 21 percent of small businesses (SBs) and 31 percent of medium businesses (MBs) use SaaS, which are double the rates found in 2004. Adoption of SaaS was spurred by cost factors and ease of use, according to the report. Moreover, businesses are requiring software solutions that are easy to implement and maintain. The lack of infrastructure costs enabled by a SaaS solution can be a benefit too.

MBs were the largest adopters of SaaS, spending six times as much as SBs http://adtmag.com/article.aspx?id=22208

www.pmihrm.com

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In conclusione-Hr is greater than the sum of it’s parts (Gestalt)Each of the parts can contribute independentlyHR is a custodian of data – not an ownere-Hr is not defined as “What we sell”e-Hr requires process re-design, change management, organization alignment and a “big picture” view – it is not a technology solutione-Hr will enable HR to add measurable value to the organization and transform the function

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Extended functionality via best of breed working with ERP

WebRecruiting

WebTraining

• Best of breeds will always offer leading edge• Integration with ERP tables & fields a must• Integration with third parties a must• Global deployment to those who need access

OutsourcedHR Functions

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A Little Caution is a Good Thing…

Putting a web front end onto bad systems and processes only advertises the world how bad your systems and

processes really are.

Dr. Michael Hammer

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Questions?

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Some HRMS Web Sites

HRMSP www.hrmsp.orgIHRIM www.ihrim.orgPhenix www.pmihrm.comHRMS Book www.hrmsbook.comwww.knowledgeinfusion.com/ www.hrtechconference.com Workforcewww.workforcetools.com Magazine www.workforceonline.com

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Further questions:

Al Doran 416-505-6204

[email protected]

www.hrmsbook.com

www.pmihrm.com