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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