HRIS: Trends &
Products
National Conference of State Legislatures
Randy J Di Bernardo, Principal
Today’s Agenda
■
Pressures facing Human Resources (HR) Today
■
The Evolution of HR
■
Emerging Trends in HR
■
HR Technology Trends
■
Global HR Transformation Survey (Highlights)
Pressures facing HR
Today
Technical
Capabilities
War for Talent
Globalization
Localization
Leadership
Pipeline
Waning
Capabilities
of HR
Cloud HR
Systems
BigData
Analytics
Disruption of
the CHRO
400 LMS and
TM vendors
Social
Recruiting
Employment
Brand
Retention and
Engagement
Millenials
The
“Overwhelmed”
employee
Global
HR as Decision
Science
Social
Everything
Global
Payroll
The world has gotten
complicated
What HR Leaders are saying…
How can I retain and
engage my top talent?
Our company has
capability gaps in new
technology areas across
the organization.
We are shifting our
business to a services
business. How do I
transform the workforce?
We compete for engineers with
some of the most successful
silicon valley companies? How
can I attract and retain the
brightest in our company?
How do we create more
collaboration and
knowledge sharing across
the company?
Our performance
and comp process
is obsolete and not
We are still having
trouble attracting
millenials and younger
workers.
Our mid-level and
entry leadership gaps
How can we globalize
our employment brand
and talent programs??
We need to restructure
The skills of our HR
business partners and
specialists need
improvement.
Our training organization
is too expensive and not
driving enough value.
How do we more
rapidly move talent
from early leadership
to senior leadership?
We need to accelerate
hiring of senior and
mid leadership in Asia
and Middle east.
How do we
increase women
and diversity in
leadership?
How do we drive
greater innovation into
The Evolving Role
of HR
The Evolution of HR since the ‘90s
Builds on 1
st
Generation foundation by
improving the efficiency of service delivery,
focusing on the effectiveness of strategic HR
services that support the business, and
measuring business performance targets.
Focused on establishing and improving new
HR service delivery models with strong
emphasis on rationalizing infrastructure to
deliver transactional HR services – utilizing
core HR systems (e.g., ERP), standardized
processes, and consistent organizational
designs.
1st Generation HR
2
nd
Generation HR
1990s
2000s
2010s
ERP Systems
Shared Services
Outsourcing
Process
Standardization
MSS
ESS
?
Ulrich
Model
Workforce
Analytics
The Evolution of HR Transformation
Emerging HR
Market Trends
Emerging HR Trends
“The 21st Century Workforce” is different – and
engagement and
retention
are now top issues on the minds of CEOs and CHROs
HR is falling behind
in structure, skills, analytics, technology, and
the development of world-class recruiting and L&D programs
Technology, analytics, and the “overwhelmed employee”
are
acute focus areas for HR
Skills gaps
, the rapid obsolescence of skills, the need for
next-generation learning, and talent mobility will differentiate companies
Leadership
continues to be the biggest challenge companies face
around the world
Today’s workforce demands a whole new set of leadership, talent, recruiting,
and engagement strategies and HR organizations are struggling to keep pace
Trends we see in the marketplace
What we see in the marketplace:
•
Business leaders view delivery of HR services in
an efficient, effective and compliant manner as
“table stakes”
•
Operational efficiency is fundamental to a more
effective HR function and no longer the primary
focus of HR Transformation. With so many
companies having already accomplished big
improvements. The real value today involves
leveraging those operational improvements to
support the broader business strategy.
•
Many companies are shifting to globally integrated
HR service delivery models
•
Leading organizations are creating increased
capacity for strategic and consultative activities by
streamlining operational HR activities first
Global HR
Transformation
Trends
Business
Driven HR
Case for
Change
Next
Generation
HR Service
Delivery
HR in the
Cloud
Talent
Operations,
Process and
Technology
HR
Benchmarks
&
Leading
Practices
Evolution of
HR
Outsourcing
HR
Technology
Business Driven HR Case for Change
What we see in the marketplace:
•
Business leaders understand the value of people
and expect HR to play a more central role in
executing the business strategy
•
The business is willing to invest in HR services that
it sees as valuable (e.g. new market entry,
business transformation, and M&A/divestitures)
•
Leading organizations are using quantifiable
measurements to reflect HR’s contribution to
business outcomes
•
Most HR organizations focus too much attention on
operational excellence — and not enough on
creating business value. Both are essential for
making the case for change in today’s market
Global HR
Transformation
Trends
Business
Driven HR
Case for
Change
Next
Generation
HR Service
Delivery
HR in the
Cloud
Talent
Operations,
Process and
Technology
HR
Benchmarkin
g &
Leading
Practices
Evolution of
HR
Outsourcing
HR
Technology
Next Generation of HR Service Delivery
What we see in the marketplace:
•
Increased usage and breadth of self service
beyond simple transactions which impacts the HR
service delivery model
•
Larger focus on defining and implementing shared
services for transactional activities and redefining
the role of the HR Business Partner and Centers of
Expertise
•
Moving to a more effective service delivery model
requires significant behavioral change and
capabilities. Strategic activities require different
skills. For example, HR Business Partners must
have broad HR knowledge and consultative skills
and are not required to perform traditional
administrative HR activities.
•
Leading organizations are developing a roadmap
for HR transformation, including the priorities,
business cases and the future solution
Global HR
Transformation
Trends
Business
Driven HR
Case for
Change
Next
Generation
HR Service
Delivery
HR in the
Cloud
Talent
Operations,
Process and
Technology
HR
Benchmarkin
g &
Leading
Practices
Evolution of
HR
Outsourcing
HR
Technology
HR in the Cloud
What we see in the marketplace:
•
Emergence of Software as a Service (SaaS)
technology for HR and point solutions
•
Increasing number of customers are leveraging
SaaS as a key HR Transformation enabler as a
result of faster implementation, lower total cost of
ownership, intuitive usability and an accelerated
time to value
•
Changing need of the HR Portal to integrate SaaS
and other technology/sourcing solutions
Global HR
Transformation
Trends
Business
Driven HR
Case for
Change
Next
Generation
HR Service
Delivery
HR in the
Cloud
Talent
Operations,
Process and
Technology
HR
Benchmarkin
g &
Leading
Practices
Evolution of
HR
Outsourcing
HR
Technology
Talent Operations, Process and Technology
What we see in the marketplace:
•
The ability to improve talent management more
than cost or efficiency is driving an increasing
number of HR decisions around talent process and
technology
•
HR and Talent strategies vary based on geography
•
Talent management is one of the key drivers for
the business to fund HR technology initiatives
•
Increased competition in talent technology: growth
and proliferation of point solutions at same time HR
systems are upgrading their capabilities
•
Some organizations are failing to realize the full
value of their investments by trying to implement
Talent strategy solely through technology without
addressing Talent operations and process
Global HR
Transformation
Trends
Business
Driven HR
Case for
Change
Next
Generation
HR Service
Delivery
HR in the
Cloud
Talent
Operations,
Process and
Technology
HR
Benchmarkin
g &
Leading
Practices
Evolution of
HR
Outsourcing
HR
Technology
HR Benchmarking & Leading Practices
What we see in the marketplace:
•
Consistent requests for benchmarking data and
leading HR business practices to understand
where organizations fall within their peer groups
•
HR Leadership values benchmarking data as
important inputs into the business case for HR
Transformation
•
Need to go deeper into benchmarking than the
traditional HR metrics and FTE ratio’s
•
HR Business Partners and HR Shared Services
require specific data that cannot be found in the
typical benchmark data set
•
Leading organizations are using benchmark data
and leading practices as a comparative guide to
determine what makes sense for their organization
and cultural identity
Global HR
Transformation
Trends
Business
Driven HR
Case for
Change
Next
Generation
HR Service
Delivery
HR in the
Cloud
Talent
Operations,
Process and
Technology
HR
Benchmarkin
g &
Leading
Practices
Evolution of
HR
Outsourcing
HR
Technology
Evolution of HR Outsourcing
What we see in the marketplace:
•
There is no longer a “one-size-fits-all” solution for
the HR Outsourcing space
•
Buyers are taking control of the evolving HR
outsourcing (HRO) provider landscape with
custom-designed solutions that take advantage of
different vendor and technology options
•
Total HR Outsourcing (BPO) providers have
struggled to deliver global solutions consistently
causing some clients to take services back in
house
•
There is a greater need for the integration of HRO
solutions — both across providers and within the
HR Service Delivery Model
Global HR
Transformation
Trends
Business
Driven HR
Case for
Change
Next
Generation
HR Service
Delivery
HR in the
Cloud
Talent
Operations,
Process and
Technology
HR
Benchmarks
&
Leading
Practices
Evolution of
HR
Outsourcing
HR
Technology
HR Technology
What we see in the marketplace:
•
Focus on driving out operational costs via an
integrated service delivery, process improvement
and HCM technology strategy
•
Accessing personal and workplace information
24/7 via self service applications is improving
operational efficiency and is now expected practice
•
The integration of HR applications with wireless
and mobile technology is evolving at a rapid pace
•
U.S. based companies are trending towards a
global consolidation of Core HR technology to a
single HR provider (supporting analytics and lower
total cost of ownership (TCO))
•
The HR technology landscape has matured into
fully integrated systems that link recruiting,
learning, talent management, and compensation
systems
•
EMEA based companies continue to trend towards
a best of breed of approach
Global HR
Transformation
Trends
Business
Driven HR
Case for
Change
Next
Generation
HR Service
Delivery
HR in the
Cloud
Talent
Operations,
Process and
Technology
HR
Benchmarkin
g &
Leading
Practices
Evolution of
HR
Outsourcing
HR
Technology
The Top-7 HR Technology Trends we see in the marketplace:
HR Tech Trend
Overview
Innovative Application User
Interface
HR software applications are moving from
capturing transactional data to a higher quality,
intuitive user experience (i.e., no training
required)
Leveraging Wireless and
Mobile Technology
The integration of HR applications with
Wireless and Mobile technology is evolving at
a rapid pace – smartphones, tablets – allowing
portable access to info and transactions
Embracing Social Media
Use of Social Media (Web 2.0 Tools) has
exploded in popularity – and considered
mainstream today. Facebook and Linkedin are
common sources of business exchange.
Enhanced Flexibility in HR
Applications
ERP systems such as SAP, PeopleSoft and
Oracle have seen dramatic increase in
deployments since the
90’s and the flexibility is
adopting to business practices drives selection
HR Tech
The Top-7 HR Technology Trends we see in the marketplace:
HR Tech Trend
Overview
Increased Focus on HR
Analytics
Given the importance of Talent and People,
organizations have moved beyond gut instinct
and tribal wisdom in making workforce
decisions. Analytics are fast becoming critical
in making informed business decisions.
Embracing Software as a
Service (SaaS)
Cloud computing and SaaS are the next big
disruptive HR technologies. SaaS has already
demonstrated value in terms of scalability and
flexibility while reducing support costs and
expensive and disruptive upgrades.
Selecting Best-of-Breed
Solutions
Best-of-Breed HR Point solutions will remain a
force in HRM vendor selections, particularly in
the Talent Management space – learning,
recruitment, performance, succession
planning, and onboarding.
HR Tech
Global HR
Transformation
Survey Highlights
y
y
Survey Participant Demographics at a Glance
*HR Service Delivery and Technology Survey
Shared Services Survey
798
participants for the
HR Service Delivery
and Technology
Survey
50%
are global
organizations
37
countries
198
participants for the
Shared Services
Survey
28
countries
60%
are global
organizations
What Makes HR Successful
as an Operator and Project Leader?
Operator
Project leader
■
HR Technology
■
Operational
Effectiveness
■
Structure and
Responsibility
■
Relative Level
of Satisfaction
■
Contributing
Factors
HR focus
Global Highlights at a Glance
40
%
88
%
will
spend the same or
more on HR technology.
30
%
will
replace their core
HR system
in 2015 —
an all-time high.
66
%
provide an HR portal.
40
%
will replace their existing, on-premise
HR system with a
software-as-a-service solution.
are using or planning
to use
mobile
technology
, up from
61
%
Improving line manager
effectiveness
is the
second most popular HR
#2
are looking to change
the HR structure in
Anticipated Changes to HR Structure in 2015 or 2016
(Americas cut)
52%
45%
17%
11%
10%
6%
3%
1%
7%
Bringing additional services into our shared services environment
Moving to a shared services environment with HR centers of excellence
(COEs) and HR business partners
Outsourcing some/more functions
Combining our HR shared services with other corporate functions (e.g.,
Finance)
Bringing some/more outsourced functions back in-house
Have not finalized the exact nature of the changes
Moving to a single HR function for the entire enterprise
Decentralizing HR, allowing HR to be run by business unit or geography
Moving away from a shared services environment
Other
Half of organizations that
anticipate changes are adding
additional scope to their shared
services function.
Top Three Initiatives Undertaken in Previous 18 Months
(Americas cut)
40%
29%
27%
25%
24%
20%
16%
16%
15%
12%
12%
7%
7%
4%
7%
Reengineered key HR processes
Implemented initiatives for improving line managers’ people management capabilities
Refocused the role of the HR business partners
Built or further invested in an HR analytics function
Implemented and/or further leveraged manager self-service
Implemented a new talent management system
Implemented a new core HR system
Outsourced activities previously handled internally
Implemented a new HR portal
Implemented a shared services model
Changed the scope of the COEs within HR
Introduced new types of collaboration tools for the delivery of HR services
Built or further invested in an HR project management office (PMO) function
Brought back services previously outsourced to a vendor
Other
Focus on: HR Technology
Software-
as-a-Service
Focus on: HR Technology
Everyone is changing, but the changes vary by region.
Asia Pacific — Oracle/PeopleSoft
EMEA
— SAP/SuccessFactors
Americas
— Workday
Investment in HRMS
continues to
grow
and
is now doing so at
an
exponential rate.
Organizations are
replacing their
core HRMS more
frequently
than
ever before.
Primary HRMS
(Americas cut)
29%
17%
12%
7%
7%
6%
4%
4%
3%
Oracle/Peoplesoft
SAP
Workday
Infor/Lawson
Oracle (Legacy Oracle HRMS)
ADP/Enterprise
Ultimate Software/Ultipro
Custom/In-House
Ceridian
Responses of less than 2% for the
Americas:
SAP/SuccessFactors
Employee Central
ADP/Globalview
ADP/Vantage
Infor/Infinium
SumTotal
Sage
Is Your Organization Implementing or Planning to Implement a New
Primary HRMS? (Americas cut)
40%
13%
8%
6%
6%
5%
2%
17%
3%
Workday
SAP/SuccessFactors Employee Central
Oracle/Peoplesoft
ADP/Enterprise
Infor/Lawson
Ceridian
Ultimate Software/Ultipro
Currently evaluating new HRMS options
Other
New HRMS Chosen
Yes
29%
No
71%
(n = 252)
Focus on: HR Technology
mobile
content
searchable
Mobile HR apps
are
effective
85%
of the time.
HR portals
meet or
exceed expectations
69%
of the time.
Keys to a
successful
portal
Current Portal Technology
(Americas cut)
39%
25%
23%
8%
4%
1%
Promote employee/manager
self-service
Single point of communication for
HR to employees
One-stop shop for access to all
HR systems
Information sharing/Knowledge
management
Ensure compliance/Policy
communication
Social/Collaboration across
enterprise
Other
What Is the Primary Reason You Deployed
an HR Portal?
55%
54%
50%
48%
41%
40%
38%
34%
28%
25%
22%
Search capabilities are not
effective
Site does not support mobile
(tablet or phone)
Content is difficult or takes too
long to maintain and update
Limited analytics on website
usage
Content is stale
Information is too generic or
lacks enough personalization
Multiple HR websites with
overlapping or competing…
Lack of governance for content
management
Access is limited to only intranet
connections (not Internet)
Sites have inconsistent
branding, look and feel, or…
Too many logins to HR systems
Which Challenges Do You Have With Your
Existing HR Portal?
How Are You Using Mobile Technology?
(Americas cut)
60%
55%
45%
38%
38%
35%
33%
8%
10%
Employee self-service
Manager self-service
Viewing wage/benefit statements
Expense approval
Time card approval
Time entry
Recruiting
Logging issue tickets
Focus on: Operational Effectiveness
of talent management technology
74%
of those using technology
for performance management
say the technology is effective.
Yet 28%
still use
paper.
69%
of those using technology
for
global grading/job leveling
say the technology is effective.
79%
of those using technology
for
core compensation
Yet 42%
still use
paper.
Yet 47%
Primary Delivery System Currently Used for
Talent Management (Americas cut)
64%
49%
35%
35%
33%
33%
29%
29%
28%
27%
25%
25%
24%
19%
11%
15%
17%
54%
32%
57%
14%
23%
34%
18%
33%
53%
26%
29%
27%
42%
9%
14%
7%
16%
4%
21%
16%
26%
21%
15%
16%
15%
16%
17%
12%
11%
19%
4%
17%
5%
32%
31%
11%
33%
25%
6%
33%
31%
37%
34%
Compensation — Base pay (n = 169)
Compensation — Variable pay/Bonus (n = 167)
Recruiting/Staffing — Internal (n = 169)
Performance management (n = 167)
Recruiting/Staffing — External (n = 169)
Workforce planning/Analytics (n = 142)
Compensation — Global grading/Job leveling (n = 141)
Total rewards statements (n = 114)
Compensation — Sales/Incentive (n = 131)
Compensation — Long term/Equity/Stock (n = 125)
Learning management and training (n = 161)
Career development/Planning (n = 173)
Onboarding/Joiner administration (n = 158)
Succession planning (n = 146)
Compensation — Market analysis/Survey management (n = 153)
Focus on: Operational Effectiveness
Companies with shared services
85%
of organizations are
meeting or exceeding
expectations
with
HR shared services
.
Almost
9
out of
10
questions/inquiries are
solved by self-service
General Operating Metrics ― Performance Measures
(Americas cut)
Performance measure
Average target
Average actual
Response time for calls routed to Tier 1 (n = 14 – 15)
82% of calls
within 34 seconds
83% of calls
within 35 seconds
Average time to answer for calls to Tier 1 (n = 17 – 18)
32 seconds
33 seconds
Average hold time during a call (n = 5 – 7)
54 seconds
79 seconds
Abandonment rate (begin counting when call first goes into queue) (n = 22 – 25)
4%
4%
Calls escalated (n = 7 – 10)
29%
23%
Resolution rate on first call (n = 22 – 23)
78% of calls resolved or
closed on first call
73% of calls resolved or
closed on first call
Callback response time for calls unresolved (n = 6 – 7)
93% within 38 hours
89% within 40 hours
Average time to resolve and close open cases (n = 19)
Two days
Two days
Response time for email requests (n = 14 – 15)
96% within 26 hours
91% within 25 hours
Response time for voice-mail requests (n = 7)
95% within 31 hours
90% within 31 hours
HRSS Technologies Used
(Americas cut)
57%
54%
51%
48%
46%
43%
41%
40%
40%
40%
39%
33%
32%
15%
7%
19%
4%
16%
6%
17%
18%
7%
10%
4%
4%
7%
10%
9%
10%
8%
14%
15%
10%
22%
22%
19%
15%
18%
15%
25%
25%
14%
33%
23%
38%
23%
24%
42%
28%
34%
38%
42%
48%
46%
59%
67%
Case management (n = 73)
Quality monitoring (n = 69)
Knowledge base tool — For HR use only (n = 73)
Call transfer/routing (via VRU to external vendor) (n = 71)
Document imaging/management (n = 74)
Knowledge base/Portal tool — For employee use (n = 71)
Voice response (VRU, IVR) (n = 72)
eforms (n = 72)
Web chat (n = 74)
Collaborative browsing (n = 73)
Voice over Internet Protocol (VoIP) (n = 72)
Online (audio/video) (n = 71)
Computer telephony integration (screen pop) (n = 72)
Enterprise 2.0 tools (e.g., wikis, forums) (n = 69)
Crowdsourcing (n = 69)
In place now and not planning to change/Deployed in 2014/Deploying in 2015
In place now but planning to change
Focus on: Structure and Responsibility
11% HR leadership
14% HR business partners
22% HR generalists
20% HR operations/
shared services
24% Centers of expertise
9% Other
11%
14%
22%
20%
24%
9%
Percentage of
overall HR head
count
Median Employee to HR Staff Ratios
(Global Data)
Industry
All
Small — Between
1,000 and 4,999
employees
Medium — Between
5,000 and 20,000
employees
Large — Greater than
20,000 employees
n
Ratio
n
Ratio
n
Ratio
n
Ratio
Chemical, Oil and Gas
25
1:86
—
—
—
—
—
—
Insurance
128
1:59
61
1:54
44
1:56
23
1:85
Healthcare (incl. Pharmaceuticals)
53
1:100
—
—
20
1:117
—
—
High Tech (incl. Semiconductor)
78
1:67
41
1:60
20
1:75
—
—
Manufacturing
77
1:94
29
1:93
33
1:94
—
—
Professional and Business Services
45
1:72
23
1:70
—
—
—
—
Property and Construction
22
1:98
—
—
—
—
—
—
Public Sector and Nonprofit
21
1:73
—
—
—
—
—
—
Retail
50
1:107
—
—
21
1:116
Transportation Services
19
1:86
—
—
—
—
—
—
Utilities and Energy
54
1:52
37
1:50
—
—
—
—
Global
278
1:75
90
1:65
99
1:79
89
1:91
Multinational
81
1:83
42
1:64
24
1:98
—
—
Organizations that have successfully transformed
HR have done the following things…
62
%
54
%
65
%
96
%
Of organizations focus on involving HR
professionals in the design and implementation of
the change.
Of organizations have ensured leadership
ownership in the implementation of the change.
Of organizations who failed at their transformation
did not identify measures for success.
Integrated changes to HR process and roles when
Focus on: Operational Effectiveness
Manager self-service
and
shared services
are the enablers for effective
line managers.
Where should HR
Focus?
So, where should HR focus?
Invest in leadership at
all levels and ensure
clear career paths and
succession plans exist
Be bold,
innovate, and
invest in people,
especially
Build your Case for
Change by focusing on
what’s best for the
business
Expand your employee
engagement thinking –
including a revised
Performance Management
Process
Embrace new
technologies that deliver
an improved employee
experience and lower
cost of ownership
Revisit your talent acquisition
strategy to make sure it’s
modern and social, and you
have a compelling and
authentic employment brand
Take a serious look at the
“overwhelmed employee”
and find ways to simplify
his/her work environment
Build an efficient and
scalable operating model
so you invest in building
capabilities that support
the business
Performance
management is broken:
Replace annual ratings
with real-time coaching
About the HR Transformation Survey
The 2015 KPMG HR Transformation Survey, formerly Towers Watson HR Service
Delivery and Technology Survey, is in its 18
th
year and was fielded between the second
week of January and the second week of February 2015. In total, 798 organizations
across 37 countries participated. Half of these participants are global organizations.
During the same survey window, organizations that utilize HR shared services functions
were given the opportunity to complete a follow-up survey: 198 organizations across 28
countries participated; 60% of these organizations are global.
In both surveys, responses came from a broad cross section of industries, with the largest
number concentrated in financial services, high technology, manufacturing, professional
services, healthcare and hospitals, and retail.
© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International
