HCM TECHNOLOGY: EVOLUTION AND TRENDSInterview with

LEON VERGNESSenior Vice President & General Manager EMEAADP

HCM TECHNOLOGY:EVOLUTION AND TRENDS

Leon Vergnes. Leading the EMEA operations within ADP, Leon has been working in the business outsourcing space for more than 20 years. He believes that human resources is much larger than administration and compliance, and at its heart, it is about helping the

people who make your business grow and succeed.

HCM TECHNOLOGY: EVOLUTION AND TRENDS

“In the past, HCM systems were designed primarily for compliance, automation, and trans-actions. But HCM systems should not solely be about transactions – they should be about

giving people the tools and technology they need to be more successful at work while driving employee productivity and engagement.”

CHARACTERISTICS OF THE HCM TECH EVOLUTION OVER

THE PAST 5 YEARSAccelerated globalization. Generational transition and co-existence by the so-called Baby Boomer

and Millennial generations. Rapid technology adoption and disruption with the advent of cloud, mobile, and social technologies. A holistic approach to managing talent pools that comprise em-ployees, contractors, freelancers, etc. HR´s evolving role as “marketer” and HR brand evangelizer.

…which, in turn, have spurred innovations in technology such as:

Mobile and social platforms to keep HR practitioners, employees and candidates connected and to accelerate communication. Talent networks and crowd sourcing that improve talent sourcing, peer performance reviews, personnel development, mentoring and coaching. Data-driven HR that leverages predictive analytics and machine learning to improve the accuracy and impact of business

decisions. Integrated, unified solutions that address clients’ needs for cost reduction and ease of use.

EVOLUTION IN GLOBAL HCM TECHNOLOGY IN THE NEXT 5 YEARS

As a major player and thought leader in the HCM space, ADP has strong visibility into where the HCM technology marketplace is going

Re-focus on people. HCM providers will move away from tech-only HR solutions and re-focus on people and value-added

services that will help them and their companies succeed.

HCM PROVIDERS WILL HAVE TO:

RE-FOCUS ON PEOPLE.

Today, being competitive means playing in a global arena. This, however, poses serious challenges to many local or regional HR functions. To help their

clients meet these critical business issues, HCM providers will have to support global compliance, compensation, disbursement, and talent management.

HCM PROVIDERS WILL HAVE TO:

BE GLOBAL.

HCM PROVIDERS WILL HAVE TO:

RELY ON PREDICTIVE ANALYTICS AND BENCHMARKING.

Mature HR organizations will increasingly rely on data-driven recommendations for talent acquisition, succes-sion planning, and engagement strategy design. This will only be possible with embedded analytics solutions that leverage cross-functional data (e.g. HR + Finance + Sales) and provide industry- or peer-level benchmark-

ing.

Engagement will remain one of the hottest topics for HR in the coming years. Major vendors may begin to acquire gamification providers and

technology, or embed this type of functionality into their HCM solutions.

HCM PROVIDERS WILL HAVE TO:

GET SERIOUS ABOUT GAMIFICATION

Software delivery has changed dramatically with the advent of the cloud. Today, HR leaders can find and try solutions faster and cheaper than ever before. In the next five years, major software vendors may consider

consolidating into online solution marketplaces, or exchanges. HCM-specific marketplaces that offer clients a comprehensive portfolio of HR solutions will continue to succeed as this concept gains worldwide adoption.

HCM PROVIDERS WILL HAVE TO:

SUPPORT EXCHANGES

MACHINE LEARNING AND PREDICTIVE ANALYTICS IN THE TALENT MANAGEMENT SPACE

“Both technologies can transform the effectiveness of HR practices and hasten the evolution of HR leaders into HR strategists -- changing mostly

static and backward-looking insight into forward-looking action.”

1.

“While many see machine learning as glorified statistics, there is great potential in embedding such technologies in talent management and other HCM business processes. As major vendors start integrating these technolo-

gies, HR leaders will increasingly rely on data-driven recommendations concerning employer brand improvement, retention strategies, personnel development investment, global mobility, etc.”

MACHINE LEARNING AND PREDICTIVE ANALYTICS IN THE TALENT MANAGEMENT SPACE

2.

“Machine learning will help companies retain a stronger talent pool -- from sourcing to hiring to off-boarding – and help HR organizations build a reputation for effective and fast talent brokerage.”

MACHINE LEARNING AND PREDICTIVE ANALYTICS IN THE TALENT MANAGEMENT SPACE

3.

“Using predictive analytics, HR data can provide valuable insights to workforce management, such as who will leave or stay and why, or engagement drivers, such as how to boost performance and where. Thus, its impact

on talent management can be enormous, and potentially give its users a competitive edge. Ideally, an integrated HCM solution with predictive analytics should be able to provide organizations with predictions and recommen-

dations combined with industry benchmarks on key HR metrics.”

MACHINE LEARNING AND PREDICTIVE ANALYTICS IN THE TALENT MANAGEMENT SPACE

4.

“ADP‘S PORTFOLIO OF GLOBAL SOLUTIONS HAS EVOLVED OVER THE PAST 66 YEARS TO SUPPORT OUR CLIENTS WORLDWIDE. OUR 625,000 CLIENTS AND THE 55 MILLION PEOPLE WITH WHOM WE CONNECT BEAR WITNESS TO OUR RELENTLESS FOCUS ON HELPING CLIENTS BUILD BETTER WORKFORCES IN

THREE FUNDAMENTAL AREAS

PERMANENT GLOBAL FOCUSAccording to leading analyst firms, ADP is one of the leading MPHRO

(multi-process HR outsourcing) providers in the world, offering global solutions including core HR, payroll, benefits, recruiting, and time and labor. Our integrated

global HCM solutions are designed to meet the needs of global HR leaders.

CLIENT-DRIVEN INNOVATIONADP takes pride in our history in innovation. Still, our HCM innovation

effort must continuously deliver value to clients – and we do that as both as a software and a service company. We don’t just design the platforms; we implement them for our clients. This philosophy permeates the work

that we do.

TECHNOLOGY-ENABLED SERVICESProviding meaningful solutions that deliver value to our clients means going beyond just software. At

ADP, we do this by wrapping our solutions in advisory services for risk mitigation, compliance and regu-latory adherence. That’s why even though companies may choose us for our services and systems; they

stay with us because they trust us.

FORECAST ON FUTURE TRENDS IN HCM SERVICES / HRO / BPO

As a recognized leader in the HRO and MPHRO space, ADP has been shaping both for decades. Today, the growing global HRO market (sized at approximately $72 billion

according to Nelson Hall) is still largely dominated by payroll and benefits (+50%). From a geographic standpoint, the United States represents nearly two-thirds of the business, while EMEA accounts for approximately one-fifth. Overall, purchasing decisions are still largely driven by cost, global standardization and the desire to establish shared service

centers or concentrate on core business areas.

More importantly, there seems to be a growing trend towards the globalization of payroll and benefits. At the same time, MPHRO has started showing the cost and efficiency

benefits of simultaneously outsourcing various related HR functions.

Over time, we see SaaS platforms slowly emerging in the HR BPO space.

EVALUATION OF TALENT ACQUISITION MARKET TRENDS

Talent acquisition is expected to grow at double digits in 2015 and beyond. An effective HCM solution provider should

offer services ranging from onboarding to background screening to comprehensive RPO.

EMERGING TRENDS IN TALENT ACQUISITION

Inclusion of employer branding tools.Implementation of a mobile-first strategy.

Expanded open/social sourcing and background checking.Support for open talent pools.

Workforce planning integration.

MAKE SURE TO VISIT ADP AT BOOTH #108 AT THE

HR TECH WORLD CONGRESS!