An essential roadmap to embedding best practices into your HR function that enable organizational growth. Join us for a deep dive into the secrets of how "best-in-class" organizations align HR processes with business goals.

1. JANUARY
2014
BUILD A WINNING
ORGANIZATION FROM THE
GROUND UP How to implement best practices
into your HR function to enable
organizational growth
A Guide to Developing Best-In-Class Strategies
that Position HR as A Valuable Business Partner
1 | JANUARY 2014 BUILDING A WINNING ORGANIZATION FROM THE GROUND UP - HR BEST PRACTICES

2. Introduction
This report has been compiled to share learnings on how “best-in-class” organizations align end-to-end HR processes to
support organizational targets and growth objectives. Chazey Partners has carried out these assessments on a wide range of
client organizations, to establish a baseline for HR practices.
This report provides a framework for best-in-class:
• Talent Acquisition
• Reward strategies
• Learning and Development
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3. TALENT ACQUISITION
Talent Acquisition is critical to a company’s future growth. The key components of a
successful recruitment strategy are: an automated candidate screening process; accurate
corporate forecasting of recruitment needs; tracking of key recruitment measures; and
strategies for advancing the recruitment process.
BEST-IN-CLASS
TALENT ACQUISITION
ORGANIZATION STRUCTURE
Traditionally an integral part of the HR function, recruitment
processing has, in the past, been paper based and
administrative. Today’s advances in technology and the
Internet have streamlined the process, and made it more
cost-effective. Companies that excel in recruitment typically
emphasize the critical roles of full-time recruitment staff
and line management. These companies frequently employ
Recruitment Business Partners to serve as consultants and
to train line personnel.
• Recruitment Business Partners – based within the
local organization and acting as consultants to the line
managers in the recruitment process.
• Recruitment Centers of Excellence – create
economics of scale; manage relationships with third
parties; run the end-to-end process from requisition
through on-boarding; and shift as much as possible of
the recruitment process to the Internet.
• Shared Services or Outsourcing – recruitment
processes are transactional and administrative, and
lend themselves well to delivery through shared
services or outsourcing, freeing up corporate
recruiting experts and line mangers for more valueadded work.
Best-in-class organizations emphasize three distinct
functions within the recruit-to-retain process:
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4. ENABLING TECHNOLOGIES
The impact of the Internet is particularly felt in three areas
of the recruitment process:
1. Identification of a larger number of candidates than
previously possible;
2. Automation of the screening process; and
3. Advertising to potential targets.
The Internet also accelerates the capture and processing
of candidate information, review of information, and
standardization of applicant data. In addition, automation
and self-service allow for increased visibility, transparency
and compliance.
BEST PRACTICE TALENT
ACQUISITION PROCESS
1. Create and Develop Employee Requisitions
Best practices include Workforce Planning collaborating with business units to forecast and define
staffing requirements; forecasting supply/demand gaps
for critical positions and taking action to fill these; and
using staff turnover and other metrics to anticipate
future levels of vacancies.
2. Sourcing Candidates
Best practices include establishing a strong employment
brand to attract potential recruits; optimizing Internetbased recruitment and social media; and leveraging
internal employee referral programs.
3. Screening and Selecting Candidates
Best practices include automated candidate
screening tools - using document imaging and content
management solutions to structure applications and
electronically evaluate them using key word search; and
implementing a competency-based selection program
that includes pre-employment assessment.
4. Pre-Employment Verification
Best practices include following standardized safe
hiring procedures - conducting background and
reference checks; leveraging shared services or
outsourcing for background and reference checks; and
requiring contractors to undergo the organization’s
pre-placement verification process.
5. Managing New Hires
Best practices include automating new hire processes
to ensure consistency and reduce cycle time; keeping
candidates informed throughout the hiring process and
focusing on candidate and new hire satisfaction; and the
automated issue and tracking of paperless offer letters
received/outstanding.
6. Tracking Candidates
Best practices include a paperless recruiting process
where all candidate data is entered into an electronic
candidate record; external candidates are leveraging a
self-service portal to enter personal data, work history,
and education; and recruiters are notified electronically
of other positions for which a candidate might be
qualified.
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5. REWARD MANAGEMENT
Best-in-class companies ensure that they apply a fair reward strategy based on standard policies and
procedures across the board, while safeguarding transparency, equality, integrity and fairness. An
effective reward or compensation program is business driven, market competitive, and performance
sensitive.
Business driven
• Budget is set at group/corporate level reflecting the
overall business environment
• Review managers make recommendations within the
agreed budget
• Local salary budgets take into account local price and
wage inflation
Market competitive
• The compensation review is targeted at performing
employees
• Budget permitting, there will be a material difference
between various levels of individual performance
ratings
• Individuals with performance ratings below a standard
rate are not normally eligible to receive a salary
increase, equity or bonus
Performance sensitive
The challenge lies in effectively aligning employee goals
with organizational objectives, automating performance
management processes, and linking them with complex
compensation policies or time-based incentive plans at an
enterprise level. A best-in-class compensation strategy
supports excellence through attracting the best staff, and
rewarding high levels of performance and contribution.
Reward principles should be guided by:
• Fair pay rates
• Pay and grading structures that support organizational
needs, and meet requirements for flexibility and staff
career development
• Payments to staff in accordance with their grade salary
as defined by job evaluation, and a fair assessment using
agreed procedures
• Necessary adjustments made to pay to take account of
market rates in accordance with agreed procedures
• Harmonized terms and conditions of service applied to
recognize value (both explicit and implicit)
• Communicating value of total reward package to staff
Analysis of market data divides employees into three groups:
• ‘Market competitive’ - employees whose salary is within
range of the competitive market midpoint for their job
• Above the market competitive range
• Below the market competitive range
BEST-IN-CLASS REWARD
MANAGEMENT
ORGANIZATION STRUCTURE
Traditionally, the Reward function (Compensation &
Benefits) has been an integral part of the HR function and
was paper based (worksheets). Today, the process is part
of the MSS (web-based) functionality, minimizing demands
on line managers. Leading organizations generally focus on
Business Partnering, leverage Centers of Excellence, and use
Shared Services or Outsourcing delivery models to manage
the administrative elements of the process.
Best-in-class practices include a performance-driven
rewards system that compensates individual contributors
proportionate to their contribution to the bottom-line.
5 | JANUARY 2014 BUILDING A WINNING ORGANIZATION FROM THE GROUND UP - HR BEST PRACTICES

6. ENABLING TECHNOLOGIES
Compensation planning systems automate and manage the
planning, modeling, budgeting, analysis, and execution of
enterprise-wide compensation plans. Benefits include:
• Simplifying planning and administration
• Effectively communicating policies
• Managing all forms of employee compensation,
including salaries, bonuses, and long-term incentives
(LTI) such as stock options
• Enabling pay-for-performance (P4P) by rewarding
commensurate with efforts
• Modeling and simulating the budget impact of salary
and compensation actions
• Leveraging flexible and configurable workflows to
define and execute plan reviews and approvals
• Analyzing all aspects of compensation via detailed
reports, analytics, and interactive dashboards to drive
more informed business decisions
REWARD-SETTING PROCESS
Setting the overall budget for compensation should take into
account agreed and defined performance levels in relation
to:
• Annual increment
• Annual bonus
• LT bonus / incentive
• Market trends
In addition, distribution percentages for performance
against peer groups should be complied with at all times.
A best practice process is characterized by the following:
• The overall timetable and framework is distributed
to the HR representatives, who then brief local line
management.
• Performance assessment and reward recommendations
are completed by local management.
• The overall performance assessment distribution and
reward recommendations are reviewed and assessed
centrally and adjustments made.
• Overscale/underscale staff are identified and
compensation rewards adjusted to reflect the position
(in overscale instances, performance is rewarded via a
non-consolidated bonus, while underscale issues may
be addressed over a number of reviews by an increased
level of reward).
• Exceptions are escalated for review and final decision/
sign off.
• Final reward information is provided to line managers
for sign off.
• Workflow management and exception follow up tools
are utilized to ensure that the overall timetable is
achieved.
The COE is responsible for ensuring that rewards reflect
market conditions and that policies are developed to handle
outside scale issues. The local HR acts as liaison between the
COE/SSC and local management.
6 | JANUARY 2014 BUILDING A WINNING ORGANIZATION FROM THE GROUND UP - HR BEST PRACTICES

7. LEARNING & DEVELOPMENT
Leading organizations view employee learning and development as an ongoing process, offer training to
employees moving within the organization, and utilize online learning management systems. The focus
is on aligning employees and organizational development needs; developing competencies; analyzing
training needs; and developing, conducting, and managing employee and/or management training
programs.
Best practices include:
• De-emphasizing training (a top-down intervention) and
emphasizing learning (ongoing process initiated by the
individual);
• Providing readiness training for employees transitioning
to different levels or areas of the organization; and
• Building an online, centralized learning/training
management system.
The most effective training and development programs are:
1. Strategy driven: programs cascade down from the
overall strategic goals and they produce results that
are identified as critical to the strategy or business
initiatives.
2. Positive cost/benefit ratio: training is subject to the
same measurements as every other business activity. It
must show a return on the investment. Timeframes are
identified up front, and the programs evaluated at that
point.
3. Learning aligned with, and directly supported by,
organizational structures - such as lines of authority,
decision making, planning, budgeting, career
development, information sharing, compensation,
performance management, rewards and recognition,
staffing, recruiting, and succession planning.
4. Driven through many channels: such as the classroom,
workplace, blended learning, eLearning, technology
support tools, and co-workers. Modalities are selected
to match specific learning styles, business issues,
budgets, and cultures.
5. Maximizing employee ability and potential through
shared accountability for example through self-directed
training and development. Employees are encouraged
to create individual learning plans, and seek learning
opportunities. Strategies are aimed at knowledge
retention and transfer to the workplace.
6. Work-related training: employees only participate in the
programs that will add to their current and future work
effectiveness and that contribute to organizational
success.
7. Learning by doing: training by performing “real” tasks
and projects in a training environment and on-the-job
assignments.
8. Transferability of knowledge and skills back to the
job: maintenance of the new skill or knowledge, once
training has been completed, is important. Skills and
knowledge that are not used constantly will quickly
atrophy.
9. Linked to other people-related programs and
departments: training is conducted by line managers,
who also perform evaluations, set performance
objectives, and draft compensation and promotion
systems for the same employees.
10. Continuous learning: to drive lasting changes in
behaviors and habits, best practice companies ensure
that learning occurs before, during, and after scheduled
learning events.
CONTENT DELIVERY AND
AUTOMATION
The default option for delivery should be via an e-learning
platform to maximize participation and outreach in a cost
efficient manner, and to allow easy amendments. A user
friendly and remotely accessible portal facilitates 24/7
learning, providing an equitable environment for all. Apart
from language, customizations should be kept to a minimum.
When it comes to booking trainings, best-in-class
organizations automate the approval workflow, as well
as the tracking of courses taken and missed, to ensure
consistency and to reduce cycle time. Automated systems
can also manage the reminder process, instigated at
the point of employee record creation or IDP needs
identification.
7 | JANUARY 2014 BUILDING A WINNING ORGANIZATION FROM THE GROUND UP - HR BEST PRACTICES

8. For more articles from Chazey Partners
Please visit www.ChazeyPartners.com/Resources or subscribe to our newsletters
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9. Chazey Partners
Chazey Partners is a practitioners-led global management advisory business. We bring together a unique wealth of
experience, empowering our clients to strive for world-class excellence through Business Transformation, Shared Services &
Outsourcing, Technology Enablement, Process Enhancement and Corporate Strategy Optimization. We pride ourselves in
having built, operated and turned around some of the world’s most highly commended and ground breaking Shared Services
Organizations, and for implementing many highly successful multi-sourced (shared services and outsourced) delivery
solutions. Over the last 20 years, we have delivered numerous programs globally, in the US, Canada, UK, Continental Europe,
Ireland, India, Eastern Europe, South America, Singapore, Australia, China, Middle-East and Africa. Our experience covers
both Private and Public Sectors, providing expertise in a wide spectrum of business functions, including Finance, HR, IT and
Procurement.
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If you would like to speak to a partner about this article, please contact:
Phil Searle CEO & Founder
Chazey Partners
philsearle@chazeypartners.com
David O’Sullivan Co-Founder & Partner
Chazey Partners
davidosullivan@chazeypartners.com
Christina Exarchou Head of HR Practice EMEA
Chazey Partners
christinaexarchou@chazeypartners.com
Grant Farrell Managing Director United States
Chazey Partners
grantfarrell@chazeypartners.com
Esteban Carril Managing Director, Latin America
Chazey Partners
estebancarril@chazeypartners.com
Chas Moore Managing Director, Canada
Chazey Partners
chasmoore@chazeypartners.com
Anirvan Sen Managing Director, Asia, Middle East and Africa
Chazey Partners
anirvansen@chazeypartners.com
Janey Jux Head of Public Sector Practice EMEA
Chazey Partners
janeyjux@chazeypartners.com
Emer O’Kelly Regional Director Europe
Chazey Partners
emerokelly@chazeypartners.com
Robert Towle Regional Director, East Coast, United States
Chazey Partners
roberttowle@chazeypartners.com
9 | JANUARY 2014 BUILDING A WINNING ORGANIZATION FROM THE GROUND UP - HR BEST PRACTICES