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Getting Strategic with HR Technology

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Harold G. Ford III, SPHR
Harold G. Ford III, SPHR

This document discusses getting strategic with HR technology. It provides an overview of current trends in HR technology including web 2.0, workforce mobility, employee self-service, talent management, and HR analytics. These trends present opportunities for HR to become more strategic and influence the business by creating analytics, improving company performance, and reducing costs. The document advocates leveraging HR technology to reduce administrative tasks and better serve business goals in order to position HR as a strategic partner.

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Getting Strategic with HR Technology Dresser & Associates, Inc. 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 Dresser & Associates, Inc. 1
Getting Strategic with HR Technology Dresser & Associates, Inc. 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 Efficiency Better Compliance Better Talent Management Improved Labor Relations Dresser & Associates, Inc. 2
Getting Strategic with HR Technology Dresser & Associates, Inc. Strategic HR Technology • Key Economic Data Create • HR Decision-Making Analytics • Business Impacts • Start with End in Mind • Improve Company Performance Influence • Reduce Costs “C”-Suite • Budgeting/Planning • Manage Change 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 Dresser & Associates, Inc. 3
Getting Strategic with HR Technology Dresser & Associates, Inc. What Was Web 1.0? Information PUSH Consumption Trend #1 – Web 2.0 Collective Intelligence User Content Trend #1 – Web 2.0 Blogs & Wikis RSS Feeds Aggregate Sites Social Networking Dresser & Associates, Inc. 4
Getting Strategic with HR Technology Dresser & Associates, Inc. Social Media in Business Business Human Resources • Branding • Recruiting • Marketing • Onboarding • Public Relations • Sourcing • Customer Service • Scheduling • Loyalty Building • Learning • Customer Acquisition • Thought Leadership • Networking • 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 Dresser & Associates, Inc. 5
Getting Strategic with HR Technology Dresser & Associates, Inc. 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 Alerts/Triggers Social Media Work/Life Balance Dresser & Associates, Inc. 6
Getting Strategic with HR Technology Dresser & Associates, Inc. Trend #3 – Self Service Self Service – HR Opportunities Recruitment Time Off Requests Open Enrollment Personal Info Updates Onboarding Training Time Reporting Talent Management Pay Statements Performance Appraisals W-2’s Succession Planning Electronic Forms 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 Dresser & Associates, Inc. 7
Getting Strategic with HR Technology Dresser & Associates, Inc. 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 Abstraction Level of Information Data Analytics – HR Opportunities Organizational Bottom Line Impact of Strategic Planning HR Best Practices Be More Strategic! Empower Managers to Align HR Strategy with Make Better Decisions Corporate Dresser & Associates, Inc. 8
Getting Strategic with HR Technology Dresser & Associates, Inc. Strategic HR with Technology - Professor Jon Boudreau, USC’s Marshall School of Business Strategic HR with Technology • Why Aren’t We? – HR Administrivia • Transactional duties • ‘Social work’ activities • Comfort zone – HR Skill Set – Data Accuracy Strategic HR with Technology 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 khammonds@fastcompany.com Dresser & Associates, Inc. 9
Getting Strategic with HR Technology Dresser & Associates, Inc. Strategic HR with Technology • Key Economic Data Create • HR Decision-Making Analytics • Business Impacts • Start with End in Mind • Improve Company Performance Influence • Reduce Costs “C”-Suite • Budgeting/Planning • Manage Change Leverage HR Technology ONE: Reduce ‘Social Work’ • Utilize Technology – ESS – Alerts – Reporting Leverage HR Technology TWO: Serve the Business • M, V, G, O • HR Goals Corporate Goals • HR Metrics Business Decisions • Data Integration Dresser & Associates, Inc. 10
Getting Strategic with HR Technology Dresser & Associates, Inc. Leverage HR Technology THREE: Measure the Right Things • Baby Steps • K.I.S.S. • Few, But Layered • Start With the End in Mind Leverage HR Technology FOUR: Make Value, Not Activity • Key Performance Indicators • Scorecards Training Attendees/Month Training Effectiveness • Analysis Leverage HR Technology 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 Dresser & Associates, Inc. 11
Getting Strategic with HR Technology Dresser & Associates, Inc. HR Analytics – Examples Revenue Factor • Total Revenue / Total Headcount Net Income/FTE • Revenue – Operating Expense / FTE’s Absence Factor • Absence Hours / Pay Rate Turnover Ratio • Total Terms / Total Headcount HR Analytics – Examples Turnover Ratio Turnover 20% 18% 16% 14% 12% 10% Turnover 8% 6% 4% 2% 0% HR Analytics – Examples Time to Fill • Number of days to fill position Cost per Hire • Cost involved with new hire Benefit Cost/EE • Total cost / # employees Human Capital • Salaries / Overall operating expense Cost Dresser & Associates, Inc. 12
Getting Strategic with HR Technology Dresser & Associates, Inc. HR Analytics – Examples • 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” Dresser & Associates, Inc. 13
Getting Strategic with HR Technology Dresser & Associates, Inc. 10 Steps to Obtaining Tech 1. Expand Your HR Technology Knowledge – Webinars – IHRIM – Follow HR Tech Experts 10 Steps to Obtaining Tech 2. Determine Your Current Reality – Technology – Processes – Workflow 10 Steps to Obtaining Tech 3. Develop “Needs” and “Wants” List Dresser & Associates, Inc. 14
Getting Strategic with HR Technology Dresser & Associates, Inc. 10 Steps to Obtaining Tech 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 10 Steps to Obtaining Tech 5. Calculate ROI and Rate of Return Hard Costs Soft Costs Employee Outsourced Ongoing Accuracy of Transaction Fee Reduction Maintenance Information Cycle Time Reduced Administrative Process Mailing Costs Work Reduction Standardization Paper Costs Improved Fines / Customer Compliance Service 10 Steps to Obtaining Tech 5. Calculate ROI and Rate of Return Tactical Benefits Strategic Benefits Form Improve FTE Reduce Reduce Reduction Tracking Hiring Costs Absenteeism Improve Reduce Improve Improve Compliance Litigation Retention Budget Automate Better EE Improve Reduced Risk Recruiting Service Productivity Dresser & Associates, Inc. 15
Getting Strategic with HR Technology Dresser & Associates, Inc. 10 Steps to Obtaining Tech 6. Determine Budget – Use Business Case – Use ROI 10 Steps to Obtaining Tech 7. Research Software & Companies 8. Evaluate Systems – Flexibility – Scalability 10 Steps to Obtaining Tech 9. Set Implementation Expectations 10.Make Purchase Decision Dresser & Associates, Inc. 16
Getting Strategic with HR Technology Dresser & Associates, Inc. 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 Dresser & Associates, Inc. 17

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Getting Strategic with HR Technology

  • 1. Getting Strategic with HR Technology Dresser & Associates, Inc. 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 Dresser & Associates, Inc. 1
  • 2. Getting Strategic with HR Technology Dresser & Associates, Inc. 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 Efficiency Better Compliance Better Talent Management Improved Labor Relations Dresser & Associates, Inc. 2
  • 3. Getting Strategic with HR Technology Dresser & Associates, Inc. Strategic HR Technology • Key Economic Data Create • HR Decision-Making Analytics • Business Impacts • Start with End in Mind • Improve Company Performance Influence • Reduce Costs “C”-Suite • Budgeting/Planning • Manage Change 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 Dresser & Associates, Inc. 3
  • 4. Getting Strategic with HR Technology Dresser & Associates, Inc. What Was Web 1.0? Information PUSH Consumption Trend #1 – Web 2.0 Collective Intelligence User Content Trend #1 – Web 2.0 Blogs & Wikis RSS Feeds Aggregate Sites Social Networking Dresser & Associates, Inc. 4
  • 5. Getting Strategic with HR Technology Dresser & Associates, Inc. Social Media in Business Business Human Resources • Branding • Recruiting • Marketing • Onboarding • Public Relations • Sourcing • Customer Service • Scheduling • Loyalty Building • Learning • Customer Acquisition • Thought Leadership • Networking • 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 Dresser & Associates, Inc. 5
  • 6. Getting Strategic with HR Technology Dresser & Associates, Inc. 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 Alerts/Triggers Social Media Work/Life Balance Dresser & Associates, Inc. 6
  • 7. Getting Strategic with HR Technology Dresser & Associates, Inc. Trend #3 – Self Service Self Service – HR Opportunities Recruitment Time Off Requests Open Enrollment Personal Info Updates Onboarding Training Time Reporting Talent Management Pay Statements Performance Appraisals W-2’s Succession Planning Electronic Forms 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 Dresser & Associates, Inc. 7
  • 8. Getting Strategic with HR Technology Dresser & Associates, Inc. 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 Abstraction Level of Information Data Analytics – HR Opportunities Organizational Bottom Line Impact of Strategic Planning HR Best Practices Be More Strategic! Empower Managers to Align HR Strategy with Make Better Decisions Corporate Dresser & Associates, Inc. 8
  • 9. Getting Strategic with HR Technology Dresser & Associates, Inc. Strategic HR with Technology - Professor Jon Boudreau, USC’s Marshall School of Business Strategic HR with Technology • Why Aren’t We? – HR Administrivia • Transactional duties • ‘Social work’ activities • Comfort zone – HR Skill Set – Data Accuracy Strategic HR with Technology 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 khammonds@fastcompany.com Dresser & Associates, Inc. 9
  • 10. Getting Strategic with HR Technology Dresser & Associates, Inc. Strategic HR with Technology • Key Economic Data Create • HR Decision-Making Analytics • Business Impacts • Start with End in Mind • Improve Company Performance Influence • Reduce Costs “C”-Suite • Budgeting/Planning • Manage Change Leverage HR Technology ONE: Reduce ‘Social Work’ • Utilize Technology – ESS – Alerts – Reporting Leverage HR Technology TWO: Serve the Business • M, V, G, O • HR Goals Corporate Goals • HR Metrics Business Decisions • Data Integration Dresser & Associates, Inc. 10
  • 11. Getting Strategic with HR Technology Dresser & Associates, Inc. Leverage HR Technology THREE: Measure the Right Things • Baby Steps • K.I.S.S. • Few, But Layered • Start With the End in Mind Leverage HR Technology FOUR: Make Value, Not Activity • Key Performance Indicators • Scorecards Training Attendees/Month Training Effectiveness • Analysis Leverage HR Technology 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 Dresser & Associates, Inc. 11
  • 12. Getting Strategic with HR Technology Dresser & Associates, Inc. HR Analytics – Examples Revenue Factor • Total Revenue / Total Headcount Net Income/FTE • Revenue – Operating Expense / FTE’s Absence Factor • Absence Hours / Pay Rate Turnover Ratio • Total Terms / Total Headcount HR Analytics – Examples Turnover Ratio Turnover 20% 18% 16% 14% 12% 10% Turnover 8% 6% 4% 2% 0% HR Analytics – Examples Time to Fill • Number of days to fill position Cost per Hire • Cost involved with new hire Benefit Cost/EE • Total cost / # employees Human Capital • Salaries / Overall operating expense Cost Dresser & Associates, Inc. 12
  • 13. Getting Strategic with HR Technology Dresser & Associates, Inc. HR Analytics – Examples • 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” Dresser & Associates, Inc. 13
  • 14. Getting Strategic with HR Technology Dresser & Associates, Inc. 10 Steps to Obtaining Tech 1. Expand Your HR Technology Knowledge – Webinars – IHRIM – Follow HR Tech Experts 10 Steps to Obtaining Tech 2. Determine Your Current Reality – Technology – Processes – Workflow 10 Steps to Obtaining Tech 3. Develop “Needs” and “Wants” List Dresser & Associates, Inc. 14
  • 15. Getting Strategic with HR Technology Dresser & Associates, Inc. 10 Steps to Obtaining Tech 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 10 Steps to Obtaining Tech 5. Calculate ROI and Rate of Return Hard Costs Soft Costs Employee Outsourced Ongoing Accuracy of Transaction Fee Reduction Maintenance Information Cycle Time Reduced Administrative Process Mailing Costs Work Reduction Standardization Paper Costs Improved Fines / Customer Compliance Service 10 Steps to Obtaining Tech 5. Calculate ROI and Rate of Return Tactical Benefits Strategic Benefits Form Improve FTE Reduce Reduce Reduction Tracking Hiring Costs Absenteeism Improve Reduce Improve Improve Compliance Litigation Retention Budget Automate Better EE Improve Reduced Risk Recruiting Service Productivity Dresser & Associates, Inc. 15
  • 16. Getting Strategic with HR Technology Dresser & Associates, Inc. 10 Steps to Obtaining Tech 6. Determine Budget – Use Business Case – Use ROI 10 Steps to Obtaining Tech 7. Research Software & Companies 8. Evaluate Systems – Flexibility – Scalability 10 Steps to Obtaining Tech 9. Set Implementation Expectations 10.Make Purchase Decision Dresser & Associates, Inc. 16
  • 17. Getting Strategic with HR Technology Dresser & Associates, Inc. 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 Dresser & Associates, Inc. 17