HR Trends in TELCO

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Companies with high employee engagement and enablement

can have net profit margins 4 times greater than companies

with low engagement and enablement.

Source: Towers Watson, The Power of Three: Taking Engagement to New Heights

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Dynamics in the telecommunications industry

affecting HR

Real-Time Requirements

Declining Revenues

Change in Buying Behavior

Increased Cost Pressures

• Facilitate the online buying journey

• Fleeting customer loyalty

• Create transparency in all channels

for customers

• Support mobile device proliferation

• Lower customer acquisition costs

• Drive to reduce cost of sale

• Focus on reducing TCO

• Shift towards flexible, fully configurable software

• Get rid of rigid, legacy IT systems built and

managed in silo’s

• Enable new business models,

including cloud, mobile commerce

and machine-to-machine

• Enable new sales channels

• Maximize revenues with

intelligent bundling

• Enable Big Data driven business

opportunities

• Compete with new market entrants

• Become more customer-centric

• Fight customer churn

Undergoing massive transformation with pressure to invest in new

business models and become more customer centric

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HR Trends- Workforce Trends

- HR Practice Trends

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Workforce Trends

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Change is in the air for HR

Five

generations

Simplify and

standardize

Just-in-time

workforce

Talent

management

and impact of

millennials create

new workforce

dynamic

to increase HR

flexibility

pools of talent

with >33%

contingents

still a top 3 CEO

priority

78% of employees say it is very important to work for a

digitally enabled company or a digital leader.

Source: MIT Sloan Management Review, Is Your Business Ready for a Digital Future?

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Global 27-country Twin Surveys5,400 People; 2,700 executives and 2,700 employees

conducted by Oxford Economics

Oxford Economics, The 2020 Workforce, 2014

SuccessFactors An SAP Company

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9Confidential

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The Looming Talent Crisis in Telecommunications

The 2020 workforce will be increasingly flexible, as alternatives to the traditional relationship between

employer and employee grow in popularity. A hefty 80% of executives say they are increasingly using

consultants, intermittent employees, or contingent workers. These new relationships will require the

Telecommunications Industry to operate in new ways.

In addition, labour market shifts are predicted to have an impact on two key areas:

Impact on workforce strategy*

51% Globalization of labor supply

51% Millennials entering the workforce

48%Difficulty recruiting employees with base-level

skills

43%Increasing number of intermittent/seasonal

employees

42% Increasing number of contingent employees

41% Employee expectations are changing

41% Aging workforce

40%Changing work models (e.g., telecommuting, flex

time)

39% Increasing number of consultant employees

32% Difficulty recruiting specialized employees

Obstacles meeting workforce goals

35% Lack of employee longevity/loyalty

34% Lack of adequate technology

34% Lack of adequate leadership

28% Lack of skilled talent

23%Lack of internal resources (e.g.,

competitive pay)

21% Lack of available employees

13% Lack of engaged employees

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HR Practice Trends

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The Future of Work Conducted by Wharton

The following document includes insights from the “Future Of Work” survey conducted on

Knowledge @ Wharton’s 2 million+ online subscribers

In all 692 respondents participated in the survey. The participation was spread across a

good mix of industries & revenue clusters.

For this specific aggregate insights presentation, we focused on responses from Small and

Medium Enterprises*, of which there were 433

*Small and Medium Enterprises are defined as companies whose revenues are less than USD 1 Billion

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Key Takeaways

Need for

Simplification 49%Senior leaders believe that business

simplification is of significant

strategic importance today65%

Senior leaders believe that

business simplification is of

significant strategic

importance in next 3 years

Alignment of

Day-to-Day Actions 26%Believe day-to-day actions of senior

leaders are strongly aligned with

stated importance of business

simplification

33%Believe day-to-day actions of

immediate team are strongly

aligned with stated importance

of business simplification

Efforts at Business

Simplification 16%Believe efforts at business

simplification have been very

effective today43%

Believe efforts of business

simplification will be strongly

effective in 3 years

Complexities

Inhibiting

Businesses'72%

Articulate business process or

decision-making complexity have

strongly inhibited their business’

ability to meet goals

58% Articulate technology

complexity has strongly

inhibited their business’ ability

to meet goals

Relationship

between Leadership

& IT19%

Leaders access information

through self-service tools to

support quicker decision-making

today

47%

Leaders will have access to

all information through self-

service tools to support

quicker decision-making in

next 3 years

Must Have

Capabilities for

Business Leaders# 1

Must Have capability to develop and

retain leaders is more effective

talent management & performance

tools

# 2Must have capability to develop

and retain leaders is to have

comprehensive learning and

development processes

1

2

3

4

5

6

Source: Knowledge@Wharton Future of Work Study Survey 2014 - SME, N=433

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Talent Readiness Drive growth and

success

Simplified ProcessesRealize HR efficiency

and ensure compliance

Engaged WorkforceGain higher productivity

and profitability

Actionable InsightPredict, plan, take

action, and measure

To execute successfully, rethinking HR strategies is a must

To drive engagement and productivity

you must have a single, holistic view of

the workforce allowing for global

workforce management and insightful,

intelligent decision making.

Only 38% of execs say they

have enough data about their

workforce to understand their

strengths and weaknesses and

potential vulnerabilities

Workforce 2020

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73% of CEOs believe the lack of employees with key

technical skills is a threat to their company's growth. Source: PwC, 18th Annual Global CEO Survey

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Technology plays a key roleBut must change also

Business

Strategies

Business

Outcomes

HR Systems/

Technology

Process Automation

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Executive Summary Solution Overview Value and References Next Steps

SuccessFactors, an SAP companyDelivering one set of HR solutions across the entire employee lifecycle

Succession and

Development

Core HR & Payroll: Employee Central

Employee Record | Organizational Management | Payroll | Shared Services

Time Sheet | Absence Management | Global Benefits

CompensationPerformance

and GoalsLearningRecruiting and

Onboarding

Competencies, Skills, Best Practices

Analytics

SAP HANA In-memory Computing Platform

Mobile and Social

SuccessFactors is a “Leader” in Gartner’s Magic Quadrant and a “Leader” in Forrester’s Wave

SuccessFactors delivers

Complete global solution across all

HR functions

Business applications designed for how

people work

Data analysis, insight, and guidance

across the enterprise to help drive

maximum business impact

Flexible and extendable architecture to

start anywhere, go everywhere

“Generation Z is mobile first and mobile only, and they are

nothing like Millennials”

Source: Brian Solis, 25 Disruptive Technology Trends 2015 - 2016

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Bonus: Top questions CIOs need to ask HR Cloud Vendors

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Contact information:

Damon C. O’Neill

SAP Cloud CEE Business Development Manager

damon.oneill@sap.com

+48 602 712 891