the state of hr

Discussion Guide: The State of HR : 

Discussion Guide: The State of HR ASPIRA CONSULTANCY

Today’s Objectives : 

2 Today’s Objectives Provide an “outside view” of the state-of-practice for HR organizations Share case studies and best practices Stimulate discussion around the challenges for HR Questions?

Agenda Topics : 

3 Agenda Topics Today’s Context How the broad HR environment is changing Key Issues Facing HR What people are saying about HR HR Service Delivery How companies are re-aligning/transforming HR New jobs/new skills/new challenges

Emerging Trends in HR : 

Emerging Trends in HR

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5 Integrator Enforcer Administrator Processor Collector Distributor Router People Strategist Consultant Selector of “World Class”: — Vendors — Technology — Data Quality/Financial “Trustee” Program Design Enabled by Shift to shared services delivery Shift to technology Shift to user Shifting to Employees and Line Managers - Information Access - Decision Making - Action Taking Customer Service Case Management Program Administration/ Management Backroom Processing Integration/Vendor Coordination Measurement Analysis Process Integration Workflow (routing/ approvals) Business/WW Rules Data Integration “Supplier” Integration Measurement/Diagnostics Notification Role of HR is Changing

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6 New HR Imperatives Increasing the impact people have on business success Improving the effectiveness of people programs on driving people performance Maximizing the operational efficiency of processes and systems that support people program delivery

Practices that Drive Performance and Value : 

7 Practices that Drive Performance and Value Long-term impact; Focus is on human capital excellence Immediate impact; Focus is on delivering HR products and services with high level of operational efficiency

Organization Design : 

8 Organization Design Strategy, Function Design, Measurement, Operations Aligns with senior management to facilitate strategy execution Supports line operations with workforce planning and management Ensures the health of the employer/employee relationship Operates in the interest of enterprise-level human capital needs Functions as consultants to business partners Provides policy and program design and development Consolidates transactional processes Provides high-quality, cost-effective services to employees and managers Enables business partners to focus on strategy; eliminates the burden of administration Business Partners Centers of Expertise Service Center/ Self Service

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9 HR Organization Structure Business Unit Management Employees HR Planning Advise & Counsel Organizational Effectiveness Employee/Labor Relations Delivery Staffing Delivery Change Management SVP, Human Resources Business Partner Role Typical Functions Customers Focus Liaison to Lines of Business Managers Employees Retirees Families Payroll Benefits/Pension Administration Staffing Support Transaction Processing Comp Administration Training Administration HRIS Maintenance Centralized HR/Payroll Services HR Service Delivery and Transaction Processing Alignment of HR Products & Services to Support Business Unit Cost Effectiveness High Quality Services Board of Directors Executive Leadership Investment Community Pay/Benefits Philosophy and Design Individual & Organizational Effectiveness Talent Management Workforce Relations HR Strategic Planning HR Brand and Communication Special Projects Centers Of Expertise Policy Design and Development Human Capital Program Design and Funding

Key Issues facing Today’s HR Organizations : 

10 Key Issues facing Today’s HR Organizations Ability to be a strategic partner: Growing demand for HR to help grow and manage the business Cost pressure on traditional HR administrative activities: Aggressively eliminate cost in the HR operating model Ability to provide credible and reliable service: HR is expected to establish and continually improve service levels and quality Ability to become more technology savvy: Technology is emerging as the driving force in the efficiency and effectiveness of HR Ability to measure HR’s contribution: There is increasing pressure on HR to demonstrate and measure its value to the organization (eg- ROI, P/L impact, customer satisfaction)

What People Are Saying about HR… : 

What People Are Saying about HR…

How the broad HR environment is changing : 

12 How the broad HR environment is changing Thought Leader… “HR managers Must Play New Roles, Master New Skills to Increase Influence, Guru Says…” Las Vegas—Because the language of business is finance, HR professionals increasingly must be able to read a balance sheet, know what the numbers mean, and then take part in strategic discussions with company leaders, an authority on HR said on June 26 at the Society for Human Resource Management’s annual conference. “Engage in the discussion,” advised Dave Ulrich, a professor at the University of Michigan and a project director of the Human Resource Competency Study (HRCS), and ongoing study of HR that began in 1987. “Ask: Am I pushing the agenda far enough, and is my position data-based?” Ulrich advised. SHRM President Susan Meisinger said during Ulrich’s presentation that SHRM is taking more steps to ensure that HR professionals have access to information that strengthens their business knowledge. “We’re doing more in the business related to strategic literacy.”

How the broad HR environment is changing : 

13 How the broad HR environment is changing Technology Market Research Leader… Bypassing HR: “Faced with the fact that they cannot meet enterprise performance objectives without significant changes in Human Capital Mgmt, managers often take matters into their own hands. When no clear HCM strategy is in place, business leaders formulate departmental plans and adopt the technologies they feel they require. They will build, buy or bootleg to get what they need.” Gartner Group

How the broad HR environment is changing : 

14 How the broad HR environment is changing Business Leaders… “Business Leaders Don’t See HR as Key to People Strategies...” While 60% of senior business executives consider people issues to be a significant factor in corporate strategy, relatively few of them look to their human resources teams for help on those issues, according to a study released Tuesday, May 29, by consulting firm Deloitte Touche Tohumatsu and The Economist Intelligence Unit. “There’s really a question of whether HR is playing the strategic role that they would like to play,” says study co-director Jeff Schwartz. The study found that many business executives have a negative view of their HR departments. Only 4% felt their companies had “world class” HR and people management, while 31% said that significant improvement was needed. 16% of HR leaders feel their function is highly valued by business executives. “HR is being pulled in two directions. One part of the future is a function that’s focused on administrative and operational efficiency, and the other is an emerging people management function that may reside in the HR department or in business operations.”

How the broad HR environment is changing : 

15 How the broad HR environment is changing HR Leaders… “A Dearth of HR Talent: European companies must redefine the skills and capabilities of their human-resources personnel… European companies appear to be struggling to find human resources professionals with the right mix of skills to support business unit managers. HR Directors in 20 global businesses headquartered in the UK were surveyed and identified two inter-related problems: (1) They simply did not have enough HR professionals with the business savvy to support the efforts of business unit leaders to manage people for high performance. (2) The inefficient and ineffective delivery of HR services – HR personnel were too busy propping up poorly-managed service operations and navigating over-engineered processes to add strategic value.”

HR Service Delivery & Challenges for HR : 

HR Service Delivery & Challenges for HR

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17

Where HR is Coming From… : 

18 HR Struggles to Keep Up With Increasing Volume…. …Leaving little time to focus on more “value added” services and activities for the business Spreadsheets Phone Calls Where HR is Coming From… Special projects Latest Project Meetings Performance Reviews E-mails …A day in the life of an HR Professional…Chapter 1

The solution? “HR Transformation” : 

19 Performance Improvement. Implements HR programs to improve the organization’s ability to attract, develop and retain the right number of skilled workers Transaction Processing. Takes care of all employee and operational transactions Source: Adapted from David Ulrich From To The solution? “HR Transformation” Administration. Performs all administrative activities associated with vendor management, budgeting and HRIS Strategy. Aligns HR investments with the organization’s strategic direction and business needs

HR “work” processes : 

20 Human Resources Strategy Time & attendance Organization planning & design Health & welfare Benefits admin Core HR administration Employee & labor relations DB/DC admin Payroll processing Learning administration Employee career planning & development Employee Training & education Recognition program management Base compensation management Incentive management Performance management Succession planning Workforce planning Labor contract negotiation HR Program/process Design & development Applicant tracking Requisition management Candidate sourcing Candidate relationship management Offer management On Boarding Strategic Transactional HR “work” processes

HR TransformationEmerging Practice: Strategic HR Partnership : 

21 HR TransformationEmerging Practice: Strategic HR Partnership Strategy Align HR activities and programs with the strategic directions and business needs of the organization. Develop and deliver programs that enhance the organization’s ability to attract, develop and retain superior performers. Consistently handle employee transactions and inquiries. Reporting, data gathering, budgets and HR Systems. Strategy Performance Enhancement Transactions Admini- stration Today Future HR is transforming from its administrative focus to a strategic value-add plan design and development focus.

HR TransformationPay-off for a more strategic HR : 

22 HR TransformationPay-off for a more strategic HR Higher levels of employee/manager satisfaction HR makes a direct contribution to the bottom-line and overall business success Significant improvement to overall workforce effectiveness and management Greater efficiencies in HR processing Improved partnerships with Business Unit management Balanced focus on quality and cost More rewarding work for the HR professional

Status… : 

23 Status… The “first phase” of HR Transformation – HR process standardization, implementing shared services and technology-aided HR – is either complete or in-process for many companies (most are in-process) The “second phase” of HR Transformation - strategic HR”- is the next challenge Transforming HR has been difficult The benefits from HR transformation have been slow to come – first, HR has to “get its act together” Technology benefits have been less than promised – costs higher, pay-off slower – but beneficial nonetheless Hard to find HR people with right skills for new roles

Example: HR Business Partner Role & Competencies : 

24 Example: HR Business Partner Role & Competencies Role HR planning Workforce planning for assigned business unit Application of HR best practices Conduit or broker for services and expertise from centers of expertise and service centers Change management leader/consultant Human capital measurement and metrics Competencies HR Function Knowledge/Experience “Strategic” HR (HR planning, change management, org design, measurement) Business Acumen Communication Skills Customer Orientation/Relationship Management Organizational Savvy Job Fit Practical Learning Ability

Slide 25: 

Thank You !