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1 Change the way work is done: HR anywhere, anytime with Infor HCM Kelvin Lovely, SPHR Infor HCM LEHRN March 7,

2 Shared services glossary Shared Services a model, virtual or physical, for leveraging mutually funded and resourced functions to support the organization; internal service provider with systems to support HR, IT, Finance SaaS/Cloud delivering computing apps as a service vs a product; ondemand applications whose data and architecture are hosted and shared via a web browser or online device, not installed or maintained by the organization CSR customer service representative; can be a help desk resource or generalist; not necessarily an HR specialist 2

3 Shared services glossary HR Business Partner professional who helps design/implement the programs to achieve HR s goals COE Center of Excellence; group of resources that promote collaboration and best practices around a focused area SME Subject matter expert; someone with domain expertise Cedar Crestone th Annual HR Systems Survey Gartner Group 3

4 Why change? Dare to dream 4 4

5 What is HR transformation A popular HR blog defines HR Transformation as any concerted effort to change and improve HR operations, whether through outsourcing, shared services, internal reengineering, or a combination of these strategies. Another definition. Successful HR Transformation needs to align all the components in the HR operating model including Business Partners, Service Centers, Centers of Excellence, HR Strategy, Managers and Employees. 5

6 HR transformation model HR shared service delivery model HR Business Partner Aligned with business units Provide strategic and consultative services Center of Expertise: Program Owner Design policy, plans, programs and procedures Subject Matter/Process Expert Handles 5-10% of transaction volume Coordinate resolution of higher level issues Customer Service Center Handles 10-20% of transaction volume Customer Service Reps assist employees with direct access and HR inquiries Employee Direct Access Handles 70-80% of transaction volume Reduces manual processes and interventions 6

7 Typical model Who s Contacting Shared Services Tier 0 Tier 1 HRSC Tier 2 HRSC, COE, HR BP Tier 3 COE Employee Retiree Spouse Applicant HR Management Self Service Service Desk Case Resolution Shared Service Center Policy 7

8 Why are employers moving to a new model of HR service delivery? More with less without sacrificing quality Maximize fix investments Get transformation on track Fund initiatives Re-align talent mix 8

9 HR management benchmarks Metric With Service Center Without Service Center HR Expense per Full Time Employee $2,017 $2,403 Employee to HR staff ratio 104:1 82:1 Percentage of time devoted to program administration 22% 31% Percent of time devoted to answering request 12% 17% Hewitt Associates, Is HR Stuck in the Middle? Hewitt.com 9

10 How to change? Don t live in the past 10 10

11 Channel mix drives service cost Who s Contacting Shared Services Channel s They Are Using Time / $$s to for HR Staff Knowledge Cost T0: Portal Employee Retiree Spouse Applicant T1: CSRs T2: SMEs 5% 50% 30% T3: Who You Know 15% 0 Mins 15 Mins 25 Mins 2 HRS Pennies $15 per $35 per $130 per GOAL: Move knowledge up the Tiers Moving resolution up Tiers reduces operating cost ** Metric estimated by the Help Desk Institute, Forrester Research 11

12 Information What Percentage of Job Knowledge Do You Store In Your Mind? % 15-20% 8-10% Robert Kelly, Carnegie-Mellon University 20 Year Longitudinal Study of Knowledge Workers Copyright Infor. All Rights Reserved. 12

13 Technology trends transforming HCM Decision making v transactions (HR Portals are the drivers) User-experience is a focus SaaS is a reality cloud is cheaper, more accessible HRSSO is losing ground too expensive, customer service suffers 13

14 CedarCrestone HCM Blueprint 14

15 Better HR service delivery with fewer resources, lower costs 0 Minutes Pennies 15 Minutes $15 per 25 Minutes $35 per Best In Class: Infor Results 66% Tier 0 28% Tier One 80-90% 90+% First Call Resolution 6% Tier Two = Fewer Resources; Better Efficiency 15

16 New model for HR service delivery Current State Tier 0 Tier 1 Tier 2 Future State Tier 0 Tier 1 T I er 2 Initial Inquiries Source: Mercer Current state has most HR inquiries at Tier 1 / Contact Center Develop robust self-service portal Reduce contacts into call center and to Tier 2 resource Escalations, Exceptions 16

17 Return on capability Provide more effective HR operations through simplified solutions. Free your people up! Drive HR transformation through lower cost HR service delivery and integrated talent management programs Identify and focus on critical talent pools, maximizing their value Drive breakthrough talent management programs that deliver measureable business value 17

18 Do your homework 18 18

19 Do your homework Know your current operation Assess current operations The Good, The Bad and The Ugly Benchmark Other HR Shared Service Centers Internal Shared Services 19

20 Benchmark Metrics Company Countries Hits/Month Cases/ month Tier 0 Resolution ROI Unisys NA, Europe, Asia, LATAM 25, % 3:1 labor arbitrage; reallocated $3M in talent Kellogg NA/LATAM % Not Reported Pepco US only % 40% Reduction in Staffing in HR supporting employees Nissan US/Canada % ROI achieved within 4 months of deployment. SSC staffed with 50% fewer CSRs than 42% reduction in spending per employee on HR service delivery 20

21 Gaining Executive Buy-In How does this proposal: Connect to a larger business strategy? Impact the workforce? Separate itself from other fad initiatives? Do we understand the full implications of the costs of this initiative? How will we measure ROI? As a CEO, is this the most important thing I should stand behind in this department? Source: Doug Wilwerding, What Makes the CEO Say Yes 21

22 Technology trends that transform HR Decision making v transactions (HR Portals are the drivers) User-experience is a focus HRSSO On-Boarding/Off-boarding Knowledgebase-Employee & Manager Portal Case Management Total Rewards self service 22

23 Unified Talent Forecast Budget Schedule Timekeeping Human Resources Absence Benefits Payroll Mobile* Business Intelligence* Service Dashboard 23

24 HR Service Delivery Suite Answers in 2 Clicks or Less HR Help Desk Issue Tracking & Reporting HR Portal/Knowledgebase HR Shared Services/ Case Management Enwisen HR Service Delivery Onboarding/ Offboarding Total Rewards Engage New Hires & Increase Retention Total Value of All Forms of Compensation 24

25 Technology type does make a difference Good HR Technology Transforms Process Great HR Technology Transforms your Organization Good HR Technology makes it easier for HR Great HR Technology makes it easier for the Employee 25

26 Human Capital Management Your largest asset your largest opportunity for competitive advantage 26 26

27 5 Ws of HCM Shifts Workforce Geographical Allocation Skillsets Payroll Attract, retain, develop, promote the right workforce to flexibly meet business goals 27

28 Key to a Solid HCM Strategy Transform the way people and organizations perform and unify any content, process, software, service and device to raise Return on Capability 28 28

29 For More Information For a free ROI calculation, copy of today s slides, recording link, pricing or additional product information: Look for next 24 hours from to make request Upcoming webinars and events: and infor.com Healthcare wage and hour issues March 14 Romancing the New Hire with live ROI calculator March 21 29

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