Salarycom HRcom PPTTemplate Mar2609 FINAL

7/31/2019 Salarycom HRcom PPTTemplate Mar2609 FINAL

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Is Disjointed Data Blurring YourView of Who to Retain or Fire?

5 Steps to Gaining Application Clarityand Better Decision-Making

Expert Advice from Paul D. Hamerman,

Nora Costa and Nick CamelioMarch 26, 2009


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Agenda

Introduction: Our Team of Experts

The Situation

The HR Dilemma

Common Pitfalls and Causes

5 Steps to Fixing the Problem

Getting Executive Buy-In


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Salary.com presents the HR Dilemma Series

Fictional cases that present common managerial

dilemmas

...and,

Offer concrete solutions from experts on how to

resolve them

Introduction


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Director of compensation at IronMountain, with over 25 years ofexperience as a business & practiceleader in corporate HR, with proficiency inmarket pricing and skill- or competency-based salary structure design. Industriesinclude business services, higher

education, financial services, healthcare,and software.

Expertise: Compensation Management

Vice President of Human Resourcesand Talent Development atSalary.com, with over 16 years ofexperience providing HR leadershipto technology companiesspecifically in recruiting,compensation and benefits, learning

and development, and employeeretention.

Expertise: Strategic HR Functions

Leading industry analyst at Forresterwith nine years of experience specificto business technology, evaluating:software vendor mergers andacquisitions, next-generationarchitectures, industry-specificstrategies, & packaged application

deployment models (includingsoftware-as-a-service).

Expertise: Enterprise Applications

Our Experts

Paul HamermanForresterResearch

Nora CostaIron Mountain

Nick CamelioSalary.com


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Source: Current Employment Statistics Highlights, Bureau of Labor Statistics, March 6, 2009

(http://www.bls.gov/web/ceshighlights.pdf)

The Situation: Drastic Loss in Jobs2008 US Job Losses Totaled 3 Million

Entire contents 2008 Forrester Research, Inc. All rights reserved.


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Rising unemployment levels shine spotlight on HR

Personnel costs represent 35% of total operating

expenses, on average.*

RIFs, hiring freezes, deferred raises, and bonus cuts are

cost cutting measures in play.

Companies need to know:

Who to retain top performers and scarce talent.

Which positions are variable for capacity management.

* Source: PricewaterhouseCoopers Saratoga

The Spotlight on HR



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Base: 100 HR decision-makers

0%

9%

12%

37%

39%

3%

Not at all

Below average

Average

Above average

Extremely

Don't know/NA

Importance

3%

23%

34%

29%

9%

2%

Poor

Below average

Average

Above average

Outstanding

Don't know/NA

Capability

Q:We objectively know which employees we need to retain, which employees wewant to promote, and which employees we want to manage out of the organization.

Most Companies Dont Know Which

Employees to Retain, Promote, or Fire


Source: July 2008 Global Talent Management Best Practices Online Survey


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Leading Pharmaceutical Provider

2,500 FTE

3 Global Offices (UK, Singapore, Tokyo) 15 US offices

Annual compensation budget is roughly $250 million

15 Product Lines in US and 10 in Europe/Asia

The Acme Company


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Claire, VP of HR at Acme Co.

Seasoned HR veteran with over 15 years of experience.

Responsible for US and global HR operations for 2,500 FTE

company. Has Team of 20 People. Working on consolidating

two operating divisions via acquisitions; manages multiple

homegrown and packaged point solutions.

Mark, CFO at Acme Co.

Fiscally conservative CFO. Responsible for HR, Legal and

Finance operations. Believes strong balance sheet is crucial to

companys health. Believes in paying for results and strategicuse of technology to improve business operations. Investing in

sales initiatives to drive top-line sales growth inside US.

Our Cast of Characters


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Mark and Claire review corporate objectives and set budget:

Aggressively recruit in new sales positions in US

Integrate 2 new acquisitions and critical sales positions in US

Implement aggressive pay-for-performance plan across globe

Build pipeline of strong leaders for key positions

Manage to specific cash flow targets per quarter

March 2008: Strategic Planning


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Tracking to goals

Market Collapses

Business Environment Changes

Underneath Strategic Plan


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Mark, CFO walks into Claires office:

Implement hiring freeze and reduce payroll by 15%

Must maintain high level of customer service, and...

Stay competitive in our key focal areas

Craft a plan to execute in next 30 days

The New Corporate Objectives


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Claires team scrambles to craft the plan and reviews that data shehas to work with:

3 HRMS systems for headcount, positions and salaries

Excel-based submissions for remaining domestic offices

Multiple performance input across company

Performance ratings, potentials but no historical data

Paper-based job descriptions, development plans with no competency data

The Patch Process


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Compiling Org Charts

Aggregating Disparate Systems

Performance Reviews

Multiple HRMS

directories


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Claire must pull together a recommended methodology and list:

No standard core system of record;

Has to make over 5 phone calls to pull data requests across IT, Legal

Compliances, HRMS directories, performance histories, learning updates &

finance Team works overtime to aggregate, organize and validate data.

Lack of executive awareness - most executives dont realize they lack the

ability and systems to pull the information together

How can she pull it all together so executive leadership can focus on

the best methodology and process, ensuring they make the best talentdecisions to achieve their business goals?

Claires HR Dilemma & Opportunity


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Expert Commentary

The Challenge: What Should Claire Do?


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Causes and Pitfalls

Multiple core HRMS solutions, lack of global HR data

Outdated HRMS core system with manual processes

Processes optimized around payroll, not HR

Numerous best-of-breed solutions

Paul D. Hamerman


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The pain of patching together a view

Turning the executive dilemma into an aha moment

Window of opportunity to educate and pitch to senior

management and coordinate a plan that saves time

and money

Nora Costa


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Administrative burden, time to patch vs. the focus on

strategic decisions

Pre and post reduction

How does unified data help through the

aftermath?

Nick Camelio


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5 Things You Can Do:

1. Go to CFO with business case

2. Calculate the cost of disjointed data

# of man-hours to pull/aggregate across functions Impact of redeploying resources on strategic talent

decisions

3. Calculate the cost of multiple systems and vendors

# of people and vendors to manage Cost to operate internally vs. leveraging SaaS options

Build Case for HR ROI


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4. Quantify the impact of deploying best practices on CFO-

metrics:

Revenue per employee and net income per employee

Reduction in operating expenses vendor consolidation,(SaaS)

Improvement in reporting

Lower employee turnover and replacement costs (time, $)

5. Develop a coordinated HR ApplicationsRoadmap and ROI

Build Case for HR ROI continued


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Source: December 19, 2008, Building Your HRM Applications Strategy Forrester report

Total Economic ImpactTM (TEI) Frameworkfor HRM Applications Strategy



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1. Develop a comprehensive HRM application strategy andbusiness case.

Anchor this strategy to business drivers.

2. Build around a core system of record and integration

strategy. Put in place a master data management strategy for

people.

3. Supplement the core HRMS with best-of-breed solutionswhere appropriate.

4. Consider SaaS deployments to minimize upgradeheadaches.

HR Strategy & Roadmap Steps



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1. Assess/inventory the applications

2. Analyze alternatives

3. Determine target architecture

4. Build roadmap

5. Develop a business case for executives

5 Steps to HR Roadmap



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Forresters 5-Stage HRM ApplicationsStrategy Methodology



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Review HRM and business strategies.

Assess current apps and technology environment.

Assess process capabilities.

Determine gaps.

No.1: Assess Apps and Processes



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Source: August 1, 2008, Improve Strategic HCM Processes And Technologies Forrester report

Illustration: Succession Planning AssessmentQuestions and Scoring Method



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Categorize application needs into retain, add,

replace, and enhance (RARE) buckets.

Determine candidate suppliers.

Evaluate deployment alternatives.

No.2: Analyze Alternatives



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Retain, Add, Replace, Enhance (RARE)



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Articulate the vision for HRM processes and

technology.

Define functional architecture.

Identify technology characteristics and deployment

methods.

Map integration and data management strategy.

Define reporting and analytics standards.

No.3: Determine Target Architecture



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HRM Apps Functional Architecture



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Define apps and process priorities.

Determine project dependencies and timeframes.

Define the strategic apps road map.

No.4: Build a Roadmap



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Apps Roadmap Illustration



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Determine acquisition and implementation costs.

Estimate on-going ownership costs.

Estimate benefits.

Assess risks and flexibility.

Calculate Total Economic Impact (TEI).

Package results for executive approval.

No.5: Develop a Business Case



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Use a five- to 10-year time horizon.

Understand the usage metrics number of users, frequency and intensity of use.

Model SaaS costs against on-premise deployment, taking intoaccount the full costs of on-premise upgrades, maintenancefees, internal support, and hardware.

Adjust for inflationary increases and the time value of money.

Factor in risks, time-to-value, and flexibility.

Faster deployment and lower up-front costs with SaaS

Higher implementation and obsolescence risk with onpremise

Flexibility depends on specific solution characteristics

Building the ROI Business Case



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Total Economic ImpactTM (TEI) Frameworkfor HRM Applications Strategy



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Thank You for Attending

Questions?

If we do not answer your question during the liveevent, please feel free to send any questions toAlison Kelly: [email protected], with the name ofthe speaker your question is for, and we will behappy to get back to you!

Salarycom HRcom PPTTemplate Mar2609 FINAL

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