HR AS A SERVICE: Driving Workforce Competitive Advantage. Drive Workforce Competitive Advantage with HR as a Service

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1 Drive Workforce Competitive Advantage with HR as a Service

2 Drive Workforce Competitive Advantage with HR as a Service 1 Executive Overview What would the transformative impact be in your organization if HR were truly a strategic business partner? HR leaders have long recognized the potential benefits in engagement, intelligence, innovation and more in all levels and aspects of the organization. However, in Effective Human Resource Management: A Global Analysis, Edward E Lawler III and John Boudreau provide compelling evidence that HR spends less than 15 percent of its time as a strategic business partner and most of its time dealing with implementation and administration of HR policies and practices. 1 Ultimately, however, HR departments can achieve significant benefits for their organizations if they spent more of their time partnering with the C-suite to drive workforce competitive advantage, that is taking their most important asset, human capital, and generating game-changing competitive returns on that investment for the organization. The strategic value from this collaboration is immense, with transformation by: Optimizing company resources and performance to eliminate waste, re-invest operational excellence savings, and increase efficiencies with intelligent uses of technology. 2 Proactive use of organizational data to transform information into insights that drive sound decision-making across the organization. 3 Engaging employees for stewardship of innovation, brand and culture so they become the driving force for growth. 4 As HR departments find themselves challenged by the continued focus on administrivia and the ongoing shift to cloud-based solutions, a new model is evolving to overcome these obstacles HR as a Service (HRaaS). HRaaS delivers human capital management and benefits services in the cloud so HR organizations can provide the technological and organizational impetus to: Create an unmatched employee experience Optimize and better manage HR costs and resources Establish a strategic partner role driving success around business goals

3 Drive Workforce Competitive Advantage with HR as a Service 2 Challenges Hindering Strategic Value from HR What is preventing a more strategic role for HR? Most HR departments today clearly endeavor to add strategic value to their organizations, or at least realize the need. HR leaders understand the critical role they need to play for the organization to optimally deliver on growth, financial and shareholder value goals. But, HR departments are challenged more than ever by current issues in organizational technology, changing workforce characteristics and resource limitations which inhibit HR leaders and their teams from providing more significant strategic value to their organizations. Disparate, disconnected systems Seismic changes in Human Resources Management Systems (HRMS) delivery have occurred in the last 10 years, especially in the move from on-premises software to cloud-based systems. However, multiple siloed, highly customized legacy systems are still in place and in wide use by HR departments. Compounding this problem is cumbersome implementation of additional systems due to mergers and acquisitions. A recent IDG Research survey 5 underscores the severity of the problem. Some 31 percent of respondents currently use two or three solutions, while another 33 percent use four or more. Multiple, disparate systems result in HR and the entire workforce being forced to function inefficiently at best. Additionally, the employee experience is negatively impacted by having to deal with different systems to perform what should be simple tasks. Perhaps most significantly, these technology limitations prevent HR personnel from having an accurate, comprehensive view of data across the organization. Workforce expectations Organizations are often dealing with a workforce now comprising five generations with different expectations, needs and work styles. Older workers are staying in the workforce longer, while younger employees are coming in equipped with skills and expectations that set them apart from their predecessors. Beyond generation and location, as employees interact more and more with technology in every facet of life as consumers outside the workplace, they re demanding the same fast, high-quality user interaction with HR technology systems. Resource limitations Doing more with less has become a standard operating procedure for HR departments. Limited budgets and resource constraints are the norm while expectations increase to meet changing demands and conditions. An additional resource gap HR is facing in providing strategic value is around the skill sets of HR professionals. According to Jason Geller, national managing director for U.S. human capital consulting at Deloitte Consulting LLP. Today s HR departments are not equipped to face the challenges of this new role. When you add to this the rapidly changing landscape of HR technologies and their impact on attracting, retaining and developing talent, it becomes clear that reskilling HR teams is arguably the most critical mission for organizations today. 5 Given these significant challenges for HR leaders and teams, how can HR professionals be freed to focus on the more strategic aspects of their business and drive workforce competitive advantage?

4 DrivE WOrkfOrcE competitive ADvAntAgE With hr As A service 3 HR as a Service: Set HR Free from Administrivia A new paradigm, enabled by increasingly ubiquitous and cost-effective cloud technology, is now in place to empower HR to make the workforce a competitive advantage HR as a Service. By providing cloud-based human capital management and benefits services to address the challenges mentioned above, HR is freed through a unified solution from a single partner to collaborate in more meaningful ways with the C-Suite and provide a greater contribution towards business performance. The workforce is aligned and engaged to be the steward of brand and strategy. Resource and budget waste is identified and eliminated with reengineered best practices for operational excellence. Optimized resources and better managed costs drive greater success around business goals. When freed from a compliance-driven, burdensome administrative focus, HR can truly become the strategic partner the business needs with effective organization-wide analytics, better decision-making and results. HR as a Service Set HR free from administrivia so they can focus on driving workforce competitive advantage.

5 DrivE WOrkfOrcE competitive ADvAntAgE With hr As A service 4 HCM and Benefits in the Cloud HCM as a Service HCM as a Service provides an integrated platform for efficient management of core HR, talent, and payroll. This is undergirded by actionable analytics to facilitate a comprehensive and proactive approach to effective workforce management. Elements include: Talent Management strategically source and acquire the skills for growth now and in the future Payroll manage costs and risk, and deliver timely business intelligence Core HR enable seamless compliance, self-service and a great employee experience Time & Attendance generate insight across the workforce to cost-effectively resource the organization and track employee engagement Overall, this [freedom to focus] will change the whole perception of HR as a function, but also change the impact people have in the business, and contribute to the sustained performance and growth of Harte Hanks. Gavin Pommerelle, EVP, Chief Human Resources Offi cer, Harte Hanks, Aasonn HCM Customer Benefits as a Service Benefits as a Service includes comprehensive, fully integrated benefits offerings, analytics and supplier management. Detailed, actionable reporting and analytics help organizations identify and manage health/well-being cost drivers. Elements include: Benefit Essentials comprehensive enrollment, compliance, annual reporting and change management with personalized messaging and tools producing a great consumer experience with manageable costs Health & Welfare offer best practices and suppliers for medical, pharmacy, dental, and wellbeing to improve health as a fundamental priority Absence & Leave Management enhance the overall benefit offering with STD, LTD, FML, Leave Management, ADA/ADAAA and Workers Compensation Voluntary Benefits engage the workforce by offering Life, AD&D, and full suite of additional voluntary products

6 Drive Workforce Competitive Advantage with HR as a Service 5 4 Key Areas for HR Transformation using HR as a Service The following four areas highlight prime transformation opportunities for HR as the HRaaS model is utilized: Implementation deep expertise in cloud-based implementation and extensive experience to ensure that the technology aligns with your business goals HR Operations full-service HR operations with dedicated onshore call centers powered by bestpractice process standardization to streamline HR processes Experience Innovation innovative self-service technologies enhance the employee experience with guided access to answering questions and completing processes Actionable Analytics consultatively configured analytics to create prescriptive solutions to real business issues Aasonn HR as a Service : Now HR Can Drive Workforce Competitive Advantage Overcoming existing challenges that prevent HR from truly providing strategic value to the organization is a critical need. HR as a Service is a foundational, next evolution. When provided with the comprehensive services and tools they need, HR can break free from the status quo that impedes greater collaboration with C-Suite. Engaged employees as culture and brand stewards become the driving force for growth, empowered by better business intelligence for informed business decisions. HRaaS optimizes resources by eliminating administrative and process waste, freeing these resources to focus on business goals and human capital investment. Holistic data access provides the insight to contemplate different scenarios and make good decisions, driving process improvement and deployment of best practices. This freedom to focus on strategy will enable HR departments to drive competitive advantage in their workforces and in every aspect of the organization. 1 Effective Human Resource Management: A Global Analysis, Edward E Lawler III, John Boudreau - sites/edwardlawler/2014/02/11/hr-should-own-organizational-effectiveness/ 2 A North Star for HR Executives, Chris McSwain and Dr. Bruce Sherman, 8/11/ view/story.jhtml?id= Ibid. 4 Ibid. 5 HR skills inadequate? Research details challenges for 21st century employers, 4/6/ articles/2014/04/16/hr-skills-inadequate-research-details-challenges-for-21st-century-employers/

7 DrivE WOrkfOrcE competitive ADvAntAgE With hr As A service 5 ABOUT AASONN Aasonn is providing industry leadership in HR as a Service, with a comprehensive offering unique in the marketplace. Aasonn HR as a Service provides human capital management and benefits services in the cloud so HR organizations can impact workforce competitive advantage and business performance. The Aasonn HR as a Service offerings comprise unmatched experience and best practice expertise with cloud-based implementation; full-service HR Operations with on-shore call centers; innovative self-service technologies for an enhanced employee experience; and actionable insights to optimize your investment in your workforce. Aasonn HR as a Service is the industry leader in the transformation of SAP HR systems, processes and employee experience. For more information about Aasonn, visit or call (888)

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