April, 11th 2017

Data, Talent, and Performance Driven Organizations

Survey Says: Embrace Your Cultures

Employees Service & Solution Areas Application Services

Business Intelligence

Host & Managed Services

Infrastructure Services

Integration & Cloud Solutions

Research

Strategy

Training

Delivering industry-focused client success by providing consulting, technical, and managed services

for the deployment, management and optimization of next-generation applications and technology.

Industry Focus Commercial

Healthcare

Higher Education

Public Sector

Justice & Public Safety

Sierra-Cedar Fast Facts

Years of Leading

HR Systems Survey &

Thought Leadership

7 19 950+

5

2

Consulting

Projects

1,500+

Sierra-Cedar 2016–2017 HR Systems Survey

Over 19 years of continuous data gathering

The most comprehensive survey in the industry:

● Strategy, Process, and Structure

● Administrative and Service Delivery Applications

● Workforce Management Applications

● Talent Management Applications

● BI/Analytics/Workforce Planning Applications

● Integration and Implementation

● Emerging Technologies and Innovations

● Vendor Landscape

● Workforce and HR Expenditures

● Workforce Usage and Perception

Participate in the 20th Annual Survey Download the 19th Annual White Paper

3

High Tech Health Manu-

facturing

Sierra-Cedar 2016–2017 HR Systems Survey Demographics: All Respondents

4

Trans./Comm.

Utilities

Higher Ed Finance Retail Ag. Mining.

Const.

16% 15% 14% 14% 11%

9% 8% 7% 7%

Other

20.6 Million Employees/Contingents

Avg. number of Employees = 13,551

1,528 Organizations

Industries

56%

21%

23%

Culture Strategy Technology

Key Themes for 2016–2017 Survey Results

Relationships

HR Technology Strategy

SMB Opportunity

Enterprise HR Cloud

EE Trust & Transparency

Pathways Forward

Intelligent Systems

Outcome-Focused HR

5

Constant Change

Backlog, Pipeline, Customer Satisfaction

General Ledger, Purchasing, Budgeting, T&E Vendor Management

Project Costing, Contracts, Grants Projects

FIN

CRM

VMS

Talent Management Excellence

Service Delivery Excellence

Administrative Excellence

Workforce Management Excellence

Workforce Optimization Excellence

SOA, API, ETL

Enterprise Content Enterprise Workflow

Network Security

Enterprise Social

Mobile Access Integration Platform

Workforce Optimization Workforce Planning, Workforce Analytics,

Predictive Analytics

Service Delivery HR Help Desk, Portal

Self Service/Direct Access Employee Self Service

Manager Self Service

Workforce Management Time & Labor, Absence & Leave Management, Labor

Scheduling, Labor Budgeting, WFM Analytics,

Talent Management Recruiting, Performance, Learning, Compensation,

Succession, Career, Talent Profile, Onboarding, TM Analytics

Business Intelligence Foundation Reporting/Visualization and BI tools

Administrative Apps Core HRMS, Roles/Competencies (Profile Mgt.), Payroll,

Benefit Admin, Embedded HR Analytics,

Sierra-Cedar HCM Application Blueprint

66% Adoption

90% Adoption

60% Adoption

51% Adoption

39% Adoption

PaaS

Enterprise Data Privacy

7

Sierra-Cedar

Outcome Based

Organizations

66%

14%

42%

7%

66%

28%

43%

4%

Data-Driven & Talent-Driven Organizations Seen as Strategic Business Partners that Rock the Numbers

8

64%

8%

46%

4%

Strategic Value

Talent-Driven Organizations

Everyone Else

2X

Δ53%

Return on Equity

Data-Driven Organizations

Everyone Else

Top-Performer Organizations Everyone Else

Δ39% Δ57%

2X

6X

Strategic Value

Return on Equity

Strategic Value

Return on Equity

Achieving Outcomes Requires Focus Talent- and Data-Driven Organizations Achieve Sustainable Outcomes

9

TD DD TP Agg

Talent Outcomes HR Outcomes Business Outcomes

Imp

rov

ed

N

eu

tral

Declin

ed

15%

Higher

13%

Higher

6% Higher

Organization Sizes and Types

10

Data-Driven

Talent-Driven

Top Performers

Aggregate Small <2,500

Medium 2,500–10,000

Large 10,000+

Lessons from Outcome Based Organizations

We looked at the differences across these organizations in five ways:

● Strategy

● Culture

● Innovations

● Service and Efficiency

● Technology Approaches

11

Top Performing, Data-Driven, & Talent-Driven Strategies Make a Difference

Enterprise Integration Strategy

Updated HR Systems Strategy

Enterprise Workforce Plan

46%

67%

37%

47%

29% 35%

50%

40%

53%

33%

21% 27%

56%

38%

47%

31%

19%

24%

12

Talent-Driven Organizations

Everyone Else

Data-Driven Organizations Top-Performer

Organizations

11%

5%

3%

3%

24%

12%

5%

13%

10%

19%

10%

11%

25%

20%

33%

19%

30%

44%

49%

54%

I don't know No Strategy Rarely Updated Developing Regularly Update

Regularly Updated Enterprise HR System Strategy It Makes a Difference in Outcomes

13

Creating Your HR Systems Strategy

1. Benchmark – Current State & Benchmark of HR Technology

Environment

2. Blueprint – Enterprise Business Goals & HR Strategies, Enterprise

System Strategies

3. Roadmap – Action Plan, Communication, Measures and KPIs

4. Governance – Decision Making, Maintenance, Change Management

5. Budgets & Resources – Required, Contingency plans, Outsourcing

Diagnosis – Guiding Policy – Coherent Action

10% 7%

10% 7% 6% 5%

7% 8% 4% 3% 5%

14% 15% 12%

16% 16%

21% 23% 23%

29% 33%

37%

Payroll HRManagement

HR Generalist HR BusinessPartner

Benefits WorkforceManagement

HR ITInfrastructure

HR SystemSupport

TalentManagement

HR DataAnalytics

Learning &Development

n = 1,304 Increase Decrease

Tomorrow’s HR is More Focused and Analytical What HR roles does your organization plan to increase or decrease this year?

15

Workforce Planning Realities Rip & Replace Orgs More Likely to Conduct Enterprise Workforce Planning

30% 23% 21% 19% 18%

Rip &Replace

Hosting Parallel Hybrid Patchwork

Enterprise Workforce Planning

16

66% More Likely

22% of all organizations are conducting

Enterprise Workforce Planning

Workforce Planning

Approaches

Top Performing, Data-Driven, & Talent-Driven Culture is Critical for All Outcomes

Rewards & Recognition

Top Social Responsibility

Change Management Culture

19%

44%

30%

11%

38%

25%

15%

50%

43%

8%

25% 20%

15%

44%

35%

6%

25% 19%

17

Talent-Driven Organizations

Everyone Else

Data-Driven Organizations Top-Performer

Organizations

8%

3%

11%

27%

9%

34%

8%

38%

55%

9%

33%

27%

36%

53%

47%

Never Sporadically Key Projects Consistent Culture

2016 A Culture of Change Management Data and Talent Driven Orgs Support a Culture of Change Management

18

Continuous Culture of Change Management Making It Stick!

19

The move from CM for finite projects into continuous Change Management Models

Continuous Change Management From the Field

● Different communication mechanism for “critical” messages as opposed to

“informational”

● Bundle informational communications into batches sent less frequently

● Develop a “pull” culture based on notices posted at the job site that something is going

on, then have a centralized communication center

● Coordinate communications from different parts of the organization

● Build a technical solution that remedies the problem creatively in a way that is

consumable by a modern workforce. (e.g. for very select critical communications that are

time sensitive, use alerts on your phone similar to other alerts that you might get for news)

● Consistent communication strategy applied across the organization, so it is expected

and understood how and when communications come out

20

Social Responsibility Initiatives By Regulation

21

29%

47%

52%

58%

54%

55%

64%

69%

62%

66%

73%

74%

27%

23%

33%

23%

27%

27%

22%

21%

22%

27%

19%

20%

17%

16%

13%

15%

15%

13%

12%

4%

9%

6%

6%

5%

Outplacement

Tuition Assistance

Employee Engagement

Community/Volunteer

Retirement Planning

Wellness

Flex Schedules

Employee Assistance

Paid Family Leave

Comp/Pay Equity

Diveristy & Inclusion

Healthcare

Excellent/Good Average Poor/Terrible

High Regulation

Some Regulation

Not Regulated

80%

62%

7%

62% 68%

12%

76% 71%

49% 51%

64%

9%

80% 80%

46% 51%

65%

6%

Top Performing, Data-Driven, & Talent-Driven A Focus on Efficiency and Services Creates Possibilities

Top Process Maturity HR Help Desk

22

Manager Self Service

Talent-Driven Organizations

Everyone Else

Data-Driven Organizations Top-Performer

Organizations

With

Self Service*,

and Help Desk

No or Low Tech

223

Value of Service Delivery Technologies 60% More Employees Served with Mobile + Help Desk Technology

*With Self Service: Employee and manager Self Service applications serve 60% or more of employees and 50% or more of manager populations

47%

60%

Employees Served by HR Administrative Headcount

23

327

With

Mobile

With

Self Service*,

and Help Desk

356

Where Are Shared Service Centers Located? Primarily in HQ Nations until Organizations Globalize

51%

2%

8%

1%

2%

2%

1% 2%

4%

2% 41% Organizations Shared Services

are part of an Enterprise

Shared Services Model

24

4%

Functions Included in HR Shared Services

52%

79%

80%

82%

Employee Relations

HR Records

Payroll

Benefits Admin

21%

33%

61%

67%

Labor Sched

Labor Compliance

Time & Attendance

Absence/Leave

29%

31%

41%

53%

61%

55%

63%

68%

Career Dev

Succession Plng

Rewards & Recognition

Learning

Performance Mgmt

Onboarding

Recruiting

Compensation

21%

33%

41%

Workforce Plng

HR Analytics

Data privacy

25

Administrative

Talent

Management

Workforce

Optimization

Workforce

Management

Process Maturity Data- and Talent-Driven Organizations are Effective or Transformational

● Transformational: unique, stands above

others, contributes to competitive advantage

financially and as an employer of choice.

● Effective: aligned, best practice, strategically

focused

● Efficient: transaction-focused

● Manual: paper-based, non-standardized, ad

hoc, or reactive

Non-Data or

Talent Driven

Data &

Talent Driven

26

47%

30%

37%

27% 23%

37% 34%

32%

48%

Parallel

Top Performing, Data-Driven, & Talent-Driven Approaches to Technology Differ Greatly

Top HR Tech Transformation Approach

Total HR Tech Adoption

Top Cloud Adopters

27

Patchwork Hybrid

15.4 15.2

21.6

16

21.9

16.1

Talent-Driven Organizations

Everyone Else

Data-Driven Organizations Top-Performer

Organizations

52%

43%

54%

31%

44%

35%

38%

24%

WFM Licensed

Payroll Licensed

HRMS Licensed

TM Licensed

On Premise Deployments

2016 The Enterprise HR Cloud Conversation Movement to the Cloud is about transforming the User Experience

n = 980

72%

63%

59%

50%

66%

51%

53%

41%

TM Cloud

HRMSCloud

PayrollCloud

WFM Cloud

SaaS/Cloud Deployments

28

3.46 Average User Experience Scores

2.99 Average User Experience Scores

Note these include combination and hosted environments

Today

12 Months

Ve

nd

or

Sa

tis

fac

tio

n

User Experience

Good Enough

Zone

We Expect More!

Zone

29

Workday

Ceridian DF

UltiPro

SF (EC)

Oracle

(HCM C)

SilkRoad

Kronos

WFC

Oracle PS

ADP

(WN)

Infor/Lawson

SAP (HCM)

Oracle EBS ADP (V)

ADP GV/E

Paycor

Kronos WFR

SumTotal SS

Administrative

Good Excellent

Dis

sati

sfi

ed

V

ery

Sati

sfi

ed

Poor

30

EE + Cont.* EE/HR % Global # Countries* # Int. Non-HR

Systems* Vol. Turnover* Time owned*

% Shared Service Center

Imp. in Months*

Aggregate 13,551 122 36% 25 0.88 19% 6.65 69% 8.31

SAP (HCM) 45,371 122 74% 32 1.03 11% 9.85 83% 10.25

SumTotal SS 43,065 123 40% 44 0.67 11% 4.43 100% 8.00

Oracle (PSFT) 30,056 143 42% 36 1.42 19% 10.78 80% 11.63

ADP (GV/E) 25,641 118 75% 26 1.03 18% 7.22 67% 7.40

Kronos WFC 22,580 159 33% 19 1.00 20% 8.12 67% 9.44

Oracle (EBS) 21,853 126 60% 30 1.54 16% 9.08 79% 13.33

SuccessFactors (EC) 21,100 116 68% 15 0.90 13% 3.39 71% 9.13

Oracle (HCM C/Fusion) 20,288 102 53% 48 1.21 19% 4.17 81% 10.00

SilkRoad 13,570 136 27% 13 1.60 27% 4.15 75% n/a

Workday 11,255 96 59% 22 1.05 17% 3.16 76% 8.70

Infor/Lawson 10,955 132 21% 14 0.91 19% 9.54 71% n/a

ADP (Vantage) 5,589 206 39% 11 0.38 16% 4.40 71% 8.67

Ultimate (Ultipro) 5,487 115 34% 7 0.36 17% 5.74 73% 6.45

Ceridian Dayforce 4,149 163 26% 17 0.30 23% 3.39 77% 7.71

Kronos WFR 3,623 112 27% 12 0.25 25% 6.36 57% n/a

ADP (WFN) 2,331 91 37% 14 0.36 18% 5.43 70% 6.33

Paycor 423 103 13% 6 0.42 19% 2.65 33% 4.83

* Average

9% 16% 8%

10% 11% 17% 20% 22% 29%

12% 20% 16%

48% 30% 30%

Reactive Focused

Multiple Pathways to an HR Tech Transformation Approach to Replacing Existing HR Technology By Size

Hybrids Move ONLY TM or WFM apps to Cloud

Rip & Replace Move everything all at once to the Cloud

Patchwork Replace as License Ends

Hosting/ Outsource Single Tenant, or BPO

31

Parallel Combo Licensed and Cloud Solutions

Hig

h R

isk

Lo

w R

isk

29%

11% 14%

7%

37%

18%

7% 9%

18% 20%

7% 7%

Top Performing, Data-Driven, & Talent-Driven Innovations Play a Role in Long Term Outcomes

Top adopters of WFM, TM, and BI

Early adopters of wearable tech

Mobile Adoption HR Tech Modules

32

3.6

4.4

6.1

4.1

6.4

3.6

Talent-Driven Organizations

Everyone Else

Data-Driven Organizations Top-Performer

Organizations

38%

10% 29%

23%

In Use 12 Months Evaluating No Plans

Mobile Adoption for HR Solutions By Size Only 16% of Large Organizations Have No Plans for Mobile

40%

14%

30%

16%

33

39%

7% 19%

35%

No Mobile Correlates to No Credibility Organizations with no plans to implement Mobile enabled HR technologies

are twice as likely to be viewed as having no credibility within their

organizations.

2X

APAC

Mobile-enabled HR Process Adoption Globally Mobile Adoption Varies Greatly

39% 43%

22%

44% 47% 52%

33%

56%

Organizations that Use Mobile-enabled HR Technology

34

2016 12 Months

Aggregate USA Only Non-India APAC India Only

USA

24%

14%

32%

16%

14%

4%

31%

66%

Top and Not Top Cloud Mobile Use

No Plans Evaluating Budgeted for 12 Months In Use Today

2016 Mobile and the Cloud High Cloud More Mobile

35

Emerging Technologies The Emergence of Active Technology – Requires Your Input

Workforce Using

Today 12 Months Evaluating No Plans

Wearable Technology 8% 1% 8% 86%

Machine Learning 6% 1.5% 10% 83%

36

Wearable Technology Data- and Talent-Driven Organizations

2X as Likely to be Early Adopters

Machine/AI Learning Data- and Talent-Driven Organizations

1 1/2X more likely to be using Today

Emerging HR/BI Analytics Trends The Emergence of Active Technology – Requires Your Input

Workforce Using

Today 12 Months Evaluating No Plans

Benchmarking Databases 17% 4.0% 18% 61%

Sentiment Analysis 4% 1.5% 10% 84%

37

Benchmarking 40% more likely to be used

by both Data- and Talent-

Driven Organizations

Sentiment Analysis Talent-Driven Organizations

are 3X more likely to be

Using Today or in 12 Months.

Strategic Social Technology Use by Generations One of the Only Areas Where Differences Show Up in Technology Adoption

71%

64% 65%

55%

48%

42%

35%

11% 5%

Older Workforce Equal Generations Younger Workforce

38

What Is HR Analytics?

Most Use HR Analytics to Look BACKWARD

40

46%

51%

59%

44% 41%

58%

Retention Risks

Compliance Risks

HR Benchmarking

Data-Driven Organization Non-Data-Driven Organization

Some Use HR Analytics to Look FORWARD

41

35%

43%

49%

57%

22% 25%

28%

38%

Identify Talent

Workforce Assignments

Improve Employee Engagement

Workforce Skills/ Readiness

Data-Driven Organization Non-Data-Driven Organization

Data-Driven Orgs Also Focus on the BUSINESS

42

24%

30% 30%

44%

11% 8% 9%

21%

Data-Driven Organization Non-Data-Driven Organization

Increase Innovation/

Agility

Customer Satisfaction

Increase Competitive Advantage

Optimize Workforce

Productivity

Top Performers Talent Driven Data Driven

The Important Questions: Outcomes and Impact Top Performers, Talent-Driven, and Data-Driven Organizations

Top Quartiles

• Revenue/Employee

• Profit/Employee

• OIG (1 year)

• Return on Equity

• Mature Career Planning

• Succession Mgmt

• Metric Outcomes • Employee engagement

• Workforce readiness

• Retention risks

• Top talent

• Mature Workforce

Analytics

• 3+ Metrics

• 20%+ Managers/BI

• 3+ Data Sources

43

Performance-Based Decision Making

Talent-Based

Decision Making

Data-Based

Decision Making

Wrapping Up: Takeaways

Enterprise HR Systems Strategy, You Need One

Understand Your Culture and Support it With HR Processes and

Systems

There is No Perfect Technology Mix, but There is an Efficient

Technology Mix

Emerging Technology is about Achieving Outcomes

44

Thank you!

45

Visit Sierra-Cedar Website Get Full Survey Details and Sign Up To Participate Next Year!

46

www.Sierra-Cedar.com/annual-survey

Stacey Harris Vice President Research and Analytics, Sierra-Cedar

Background:

● Oversee the Annual HR Systems Survey and its safekeeping for the Industry

● HR and OE Practitioner for over 10 years in finance, retail, and franchised businesses.

● Director of Research at Bersin & Associates, Launched the HR research practice

● VP of Research for Brandon Hall Group

● Major Research and Papers: The High Impact HR Organization, The HR Framework, Employee Engagement: A Changing

Marketplace, and Relationship Centered Learning

● Feel free to connect at: www.linkedin.com/in/staceyharris

● @StaceyHarrisHR

Metrics tell such a great story and are fabulous for supporting proposed

initiatives. The data provided underscored what we have been hearing and

seeing as trends in HR—especially as they relate to social media.

Leslie Krug HRIT

Why Organizations Participate?

● To obtain a personalized benchmarking snapshot filtered by size, region, or industry

● They like conducting a review of their own enterprise HR system environment annually

● They need data to build their own HR Technology strategy or business case for change

● They believe it is important to support the broader HR technology community

48

Introducing the “Top Performing Organizations” A Focus on Finances and Growth

Top Performing Top Quartile Non-Top Performing

Revenue

Per

Employee 2,000,000 444,000

Profit

Per

Employee 659,173 196,556

Operating

Income

Growth

(1 year)

0.28 -0.06

Return

On

Equity 0.36 0.11

49

Introducing the “Talent-Driven Organization” An Environment of Talent-Based Decision Making

Talent Driven Non-Talent Driven

Better Career

Planning Process

Maturity

3.3 Effective

1.8 Manual

Succession

Planning 100% 14%

HR Analytics

to ID Top Talent 36% 19%

HR Analytics

to ID EE

Retention Risks 41% 30%

HR Analytics

to ID EE

Engagement 31% 22%

50

Introducing the “Data-Driven Organization” An Environment of Data-driven Decision Making

Data-Driven Non-Data-Driven

Better BI

Process

Maturity

3.8 Effective

1.7 Efficient

More

Manager BI

Access to

Analytics

57% 49%

More

BI Data

Sources 4.4 2

More

Categories

of Metrics

Tracked

5.32 4

51