the realities of hr tech in europe

3/18/2016 1© Copyright Fosway Group Limited. All Rights Reserved.

HR in Europe: Critical Realities ResearchDavid Perring, Director of Research / [email protected] / @davidperring

in association with

mailto:[email protected]


Overview / Context

Rapid Walkthrough of Key Research Headlines• Including … overall drivers, HR Tech, Cloud, Analytics

Next Steps …


A EUROPEAN ENTERPRISE PERSPECTIVE

62% Respondents from Organisations > 5000 Employees

94% of

respondents

European

Over 260 survey respondents overallOver 400 respondents over 2 years…


have a role with Global Responsib

ility

2/3rd EUROPEAN INSIGHTS - BUT WITH A TRULY GLOBAL INFLUENCE


What did they tell us?

HR


CENTRALISED HR – IS NOT THE DOMINANT OPERATING MODEL

64% are using either a Decentralised or Federated HR Operating Model

This has massive implications for HR Tech choices, approaches to change management and the effort / impact / opportunities / success of standardisation


EUROPEAN HR - OPERATING IN PERFORMANCE AND PROFITABILITY FOCUSED ORGANISATIONS

Currently, what are your organisation's most significant business challenges?

Increasing Organisation Performance

& Profitability

92%

For 63% this is a Major

Challenge

€

Reducing Costs

89%

For 43% this is a Major Challenge

€

86%Improving Customer

Satisfaction & Service

Quality

For 44% this is a Major Challenge


The same level as Improving Customer Satisfaction & Service Quality

seeBusiness

Agility as a

Major Challenge

44% =

EUROPEAN HR – KEY BUSINESS CHALLENGES


European HR’s Top Priority as an HR Organisation is to be a Strategic Business Partner (Still No. 1)53

% 40% Improving Employee Engagement (up 12% from 2014)40% Increasing the Consistency of HR Processes40% Better Leadership & Management34% Enhancing the Talent Pipeline30% Improving HR Service Quality and Provision

HR’S TOP HR PRIORITIES


1. High Quality Data &

Analytics

2. Quality HR

Systems

3. Next Gen Technologies

4. Integration of HR & Business Systems

5. HR Influencin

g Skills

but.. Outsourcing HR Processesonly seen as Critically or Very Important for

<20% of respondents

TOP 5 LEVERS for Future Success

of European HR Operations

41% Critically

Important

70% Critically or Very

Important


Important

38% Critically Important

89% Critically or

Very Important



Important

79% Critically

or Very Important




FUTURE SUCCESS = CHANGING HR ?

69%believe Future HR Success is dependent on New or Enhanced Processes

72%believe Future HR Success is dependent on Upskilling HR Teams

54% believe Future HR Success is dependent on Re-organisation to create better business alignment


FUTURE INVESTMENT IN HR#1 HR Tech & Innovation

4% 75%

3% 64%

#2 Develop HR Expertise

ExpectIncrease

ExpectIncrease

ExpectDecrease

Expect Decrease


HR HEADCOUNT IS THE BIGGEST FOCUS FOR REDUCING INVESTMENT IN HR

35% Expect to see a Reduction in Investment in HR Headcount71% Expect investment in Headcount to Stay the Same or Reduce


Research Insights

What about HR Technology?


67% have Partially Standardised

HR Systems, but less than 25% have Very Standardised HR Systems in their

organisation

There is a significant overall market opportunity to

consolidate HR Systems Suites.

FRAGMENTED HR SYSTEMS APPROACH


BUT less than half have

Very Standardised Solutions in

Performance & Core HR

The HIGHEST LEVELS OF HR TECH CONSISTENCY ARE FOUND IN

1. Performance Management2. Core HR


LEAST CONSISTENCY IN HR TECH 1. Onboarding (40%)2. Collaboration & social (39%)3. Workforce planning & organisational

design (38%)4. Analytics (33%)5. Succession planning (29%)


SIGNIFICANT OPPORTUNITY AND RISKS FOR VENDORS OVER THE NEXT 3 YEARS…

Close to 60% envisage

changing their Analytics, Talent Acquisition, Onboarding, Performance or solutions

within the next 3 years


MAJOR SHIFTS IN HR TECH ON THE WAY…around

50% envisage changing their Core HR, Learning, Succession, Reward or Workforce Planning solutions within

the next 3 years


PAYROLL CLEARLY MOST SENSITIVE HR SOLUTION…

1/3rdenvisage changing their

Payroll solutions within the

next 3 years


1. Quality of End User Experience2. Lack of Business Agility and Flexibility3. Lack of Analytics4. Reducing Resource and Operating

Costs5. Level of Innovation

THE TOP 5 DRIVERS FOR CHANGING HR SYSTEMS


THE SUPPLIER WAKE UP CALL!

Over a 3rd identified User Experience, Analytics or Lack of Business Agility & Flexibility as

a CRITICAL DRIVER behind changing HR systems!


User Experience is the most Critical Driver for changing HR Tech

44%


“IT’S NOT YOU, IT’S THE USER EXPERIENCE!”

<10% cited Dissatisfaction with current provider as a Critical Driver!


HOW SATISFIED ARE C-SUITE WITH YOUR HR SYSTEMS? Extremely Satisfied Very Satisfied SOME WHAT SATISFIED Not Satisfied(The most common rating across all HR Systems… consistently 40%-50%)


Research InsightsWhat about Cloud?


90% ACCEPT Cloud based HR

Systems


HR SOLUTIONS MOST LIKELY TO BE DEPLOYED IN THE CLOUD?

1.Performance Management – 39%

2.Talent acquisition / recruitment – 38%

3.Learning & development – 35%

4.Collaboration & social – 28%5.Assessment & 360 – 21%6.Onboarding – 20%

Active Now - 2015 1.Talent acquisition / recruitment – 56%

2.Performance management - 54%

3.Learning & Development - 50%

4.Collaboration – 39%5.Core HR – 35%6.Succession planning &

Onboarding – 34%

Active Now & Implementing 2016…


HR CLOUD - NOT FOR PAYROLL!

Payroll - Active in the Cloud 17% - Moving to the Cloud 6% - Planning to Move to the Cloud 12%

- Not Applicable 65%


GROWING IMPORTANCE & DARK CLOUDS FOR CLOUD ADOPTION


MAIN BENEFITS OF CLOUD HR?

… in your experience…

Anywhere access / mobility – 54%Ease of use – 54%

Ease of deployment – 51%Speed of innovation- 48%

Solution flexibility – 47%


THE MAJOR CHALLENGES OF MOVING HR SYSTEMS TO THE CLOUD

32% Managing Solution Flexibility



THE MAJOR CHALLENGES OF MOVING HR SYSTEMS TO THE CLOUD

Lack of customisation and alignment to our organisation

Influence over future Roadmap

Systems PerformanceSecurity, Disaster Recovery



Research InsightsWhat about Analytics?


HOW MUCH OF A PRIORITY IS HR ANALYTICS TO YOUR ORGANISATION

1%Not a

Priority

51%High

Priority

85%High or Medium Priority


KEY DRIVERS FOR ANALYTICS

76% Major Driver is toEnable HR to be a stronger strategic business partner



58%Optimise HR Service Quality & Provision


58% Enable better leadership & management



WHERE ARE YOU USING HR ANALYTICS TODAY?


WHERE ARE YOU PLANNING TO USE ANALYTICS NOW?


WHERE ARE YOU PLANNING TO USE HR ANALYTICS NOW?


WHERE WILL YOU BE USING ANALYTICS? TODAY + TOMORROW?

FOR EVERYTHING! 80% aim to be using Analytics across all Talent Management (12 disciplines) – Except Career Planning (only 73%) and Onboarding (only 67%)

A STRETCH GOAL… NOT NECESSARILY A SMART GOAL!!!!


THE BIGGEST CHALLENGES TO TAKING HR ANALYTICS FORWARD IN YOUR ORGANISATION?

Nearly 90%cite

Poor Data Quality as a

Major Challenge


Nearly 90% SEE LACK OF SKILLED RESOURCES AS A CHALLENGE IN PROGRESSING WITH HR ANALYTICS IN THEIR ORGANISATION


85% SEE

CURRENT SOLUTION AS A CHALLENGE IN PROGRESSING WITH HR ANALYTICS

Data Analytics


IT NEEDS TO BE PART OF THE EXISTING PACKAGE!LOW INVESTMENT IN ANALYTICS is a challenge for nearly 80%


>80% see

Lack of Data Integration acrossHR Silos and with Business Data asa Challenge

Can your be a Business Partner without BUSINESS DATA?


LOWEST CHALLENGES WITH ANALYTICS


What’s Next …


NEXT STEPS

HR in EuropeSeries of Reports1. European HR Drivers &

Challenges2. The State of HR Technology in

Europe3. HR in the Cloud Drivers &

Challenges4. HR Analytics in EuropeInfographic- FREE TO DOWNLOAD -

www.fosway.com


WHAT’S NEXT?

Further research for 2016

OUR SURVEY NEEDS YOU!

In association with


OTHER FOSWAY RESEARCH

Fosway 9-Grid™ Analysis- Talent Management (October 2015)- LMS & Other Learning- Cloud HCM (Target March 2016)

Vendor Reports NEW

Deeper Corporate Research / Analysis Next Gen HR, Talent & Learning


Fosway GroupEurope’s #1 HR Analyst

www.fosway.com

David Perring, Director of Research / [email protected] / @DavidPerring

THANK YOU

mailto:[email protected]

the realities of hr tech in europe

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