HR Systems Survey Results

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1 Debut of the HR Systems Survey Results 18 th Annual Edition

2 Sierra-Cedar Fast Facts Service & Solution Areas Application Services Business Intelligence Host & Managed Services Infrastructure Services Integration & Cloud Solutions Research Strategy Training Years of Leading HR Systems Survey & Research merger of companies with decades of experience Employees Industry Focus Commercial Healthcare Higher Education Public Sector Justice & Public Safety Delivering industry-focused client success by providing consulting, technical, and managed services for the deployment, management and optimization of next-generation applications and technology. 5 2

3 Sierra-Cedar HR Systems Survey Over 18 years of continuous data gathering The most comprehensive survey in the industry: Strategy, Process, and Structure Administrative and Service Delivery Applications Workforce Management Applications Talent Management Applications BI/Analytics/Workforce Planning Applications Integration and Implementation Emerging Technologies and Innovations Vendor Landscape Workforce and HR Expenditures Workforce Usage and Perception Participate in the 19 th Annual Survey Download the 18 th Annual White Paper 3

4 Sierra-Cedar HR Systems Survey Demographics: All Respondents 1,204 Organizations 21 Million Employees/Contingents Avg. number of Employees = 17,709 Large 10, % Industries Medium 2,500 10,000 24% 15% 14% 13% 13% 13% 10% 9% 7% 5% `` Small <2,500 49% Other Higher Ed Finance Health Manu- Trans./Comm. Retail High Tech Ag. Mining. facturing Utilities Const. 4

5 Key Themes for Survey Results Strategy and Culture HR Technology Strategy Foundation Enterprise HR Cloud Innovation Data-Driven HR Pathways Forward Back to Basics Talent-Driven HR Outcome-Focused HR Service Delivery Wearables 5

6 FIN Sierra-Cedar HCM Application Blueprint General Ledger, Purchasing, Budgeting, T&E Enterprise Data Privacy 66% Adoption Self Service/Direct Access Employee Self Service Manager Self Service Enterprise Content Service Delivery HR Help Desk, Portal 93% Adoption Enterprise Social Vendor Management Enterprise Workflow Administrative Excellence Service Delivery Excellence Workforce Management Excellence Talent Management Excellence Workforce Optimization Excellence Administrative Apps Core HRMS, Roles/Competencies (Profile Mgt.), Payroll, Benefit Admin, Embedded HR Analytics, VMS 58% Adoption Workforce Management Time & Labor, Absence & Leave Management, Labor Scheduling, Labor Budgeting, WFM Analytics, 39% Adoption Workforce Optimization Workforce Planning, Workforce Analytics, Predictive Analytics Business Intelligence Foundation Reporting/Visualization and BI tools 55% Adoption Talent Management Recruiting, Performance, Learning, Compensation, Succession, Career, Talent Profile, Onboarding, TM Analytics CRM Network Security Mobile Access SOA, API, ETL PaaS Integration Platform Backlog, Pipeline, Customer Satisfaction Project Costing, Contracts, Grants Projects

7 Outcomes and Impact Top Performers, Talent-Driven, and Data-Driven Organizations Top Performers Talent Driven Data Driven Top Quartiles Revenue/Employee Profit/Employee OIG (1 year) Return on Equity Mature Career Planning Succession Mgmt Metric Outcomes Employee engagement Workforce readiness Retention risks Top talent Mature Workforce Analytics 3+ Metrics 20%+ Managers/BI 3+ Data Sources 7

8 Data-Driven & Talent-Driven Organizations Seen as Strategic Business Partners that Rock the Numbers Strategic Value 66% Return on Equity Strategic Value Return on Equity 1.4 Xs Higher Revenue/ Employee Δ70% 41% 27% Δ61% 15% 60% Δ53% 39% 16% Δ33% 12% Data-Driven Organization Everyone Else Talent-Driven Organization Everyone Else 8

9 Achieving Outcomes Requires Focus Talent- and Data-Driven Organizations Achieve Best Outcomes 5 Talent Outcomes HR Outcomes Business Outcomes TD DD TP Agg 9

10 Top 5 HR Technology Initiatives Click to edit Master title style Where are you spending 25% of your Time and Resources? 30% Increase in 3 Years 64% 43% 41% 37% 36% Business Process Improvement n=1,102 HR Systems Strategy Talent Management Service Delivery BI/Workforce Metrics

11 HR Tech Spending Trends Outlook Large 10, % 40% 49% 8% 35% 58% 7% 41% 52% Medium 2,500 10,000 5% 46% 49% 4% 51% 44% 10% 47% 44% Small <2,500 4% 41% 55% 5% 51% 45% 5% 42% 53% n = 924 Increase Stay the Same Decrease 11

12 Tomorrow s HR is More Focused and Analytical What HR roles does your organization plan to increase or decease this year? 29% 31% 10% 11% 7% 13% 18% 15% 17% 5% 3% 19% 23% 23% 6% 6% 3% 2% Payroll HR Management HR Generalist HR Business Partner Workforce Management HR IT Infrastructure HR System Support Talent Management HR Data Analytics n = 1, Decrease Increase

13 The Enterprise HR Cloud Conversation Movement to the Cloud is about transforming the User Experience SaaS/Cloud Deployments 37% WFM Cloud 46% On Premise Deployments 62% WFM Licensed 55% Payroll Cloud 38% 41% Today Payroll Licensed 59% 55% Today HRMS Cloud 50% 57% 12 Months HRMS Licensed 58% 51% 12 Months TM Cloud 83% 96% TM Licensed 22% 6% 3.5 Average User Experience Scores 3.0 Average User Experience Scores n = 900 Note these include combination and hosted environments 13

14 Deployments by Size Organizations Under 2,500 Employees are Moving the Fastest HRMS Payroll WFM Large 10, % 33% 69% 20% 14% 66% 16% 18% 68% Medium 2,500 10,000 13% 43% 57% 32% 15% 56% 18% 31% 56% Small <2,500 13% 28% 61% 26% 15% 58% 16% 31% 46% n = 900 On Premise SaaS Hosted 14

15 Multiple Pathways to an HR Tech Transformation There is no right or wrong way to move to the Cloud Rip & Replace Move everything all at once to the Cloud Hybrids Move ONLY TM or WFM applications to the Cloud Hosting/Outsource Single Tenant Hosting or BPO Parallel/Patchwork Combination Licensed and Cloud Solutions High Risk Low Risk Focused Reactive 15

16 HR Technology Costs Vary Little by Deployment Large 10,000+ SaaS Average HRMS Tech Costs $116 per Employee Licensed Average HRMS Tech Costs $114 per Employee Medium 2,500 10,000 $210 per Employee $199 per Employee Small <2,500 $394 per Employee $444 per Employee n = HRMS Other HR Modules SaaS vendor fees, or BPO fees HRMS Other HR Modules License plus maintenance, & annual hosting

17 Updates and Upgrades The Big Change is Moving to Constant Change SaaS HRMS Update Average # of Weeks Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Large = 5.8 Weeks Medium = 3.1 Weeks Small = 3.3 Weeks Licensed HRMS Upgrade Average # of Months JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Large = 9.3 Months Medium = 7.0 Months Small = 3.3 Months n =

18 Benefits of Change Management 2 nd year in a row we ve found Cost and Perception Outcomes! Total HR Technology Costs/Employee Culture of CM $243 Key projects $253 Sporadic 57% Never $341 $572 n = X Change Management Increases Strategic Value of HR Organizations with a Culture of Change Management are twice as likely to be viewed by all levels of management as contributing strategic value, versus organizations that never use Change Management. 18

19 Total HCM Legacy Solutions The Future is Inevitable, but The Timeline is Unknown Adoption Today Planned Adoption in 12 Months Oracle (PS) -Δ5% Kronos* Δ6% SAP (HCM) -Δ16% Oracle (EBS/JD) -Δ20% Infor/Law/WB -Δ6% ADP (GV/E) -Δ10% * Kronos is not split into its two primary solutions for this analyses, which includes both a legacy solution and new solution Core HRMS Payroll WFM Suite TM Suite 19

20 Total HCM Cloud Solutions Growth Across All New Platforms Adoption Today Planned Adoption in 12 Months ADP (WN)* -Δ7% UltiPro Δ21% Workday Δ66% SuccessFactors (EC) Δ11% Ceridian Dayforce Δ31% Oracle (HCM Cloud) Δ66% ADP Vantage Δ18% *ADP Workforce Now has a large population below 50 employees, which we do not track in our research at this time Core HRMS Payroll WFM Suite TM Suite 20

21 Total Talent Management, HRMS Suites 12 Month Adoption Favors Enterprise Platform Suites SuccessFactors (EC) Oracle (PS/EBS) Oracle (HCM Cloud) Workday UltiPro ADP (WN/VAN) SAP (HCM) Silkroad Infor/Law/WB Ceridian Dayforce Adoption Today Planned Adoption in 12 Months Δ13% -Δ9% Δ51% Δ80% Δ13% Δ26% Δ0% -Δ23% -Δ13% Δ120% ITM Recruiting Onboarding Learning PM SP Compensation 21

22 Total Talent Management, TM Suites Talent Suites Need to Differentiate to Compete Cornerstone OnDemand Adoption Today Planned Adoption in 12 Months Δ2% SumTotal/SS -Δ20% Halogen Δ31% Kenexa/IBM -Δ16% PeopleFluent Δ10% Saba Δ0% ITM Recruiting Onboarding Learning PM SP Compensation 22

23 HRMS Vendor Satisfaction and User Experience Greatest Impact on Vendor Satisfaction = s User Experience Very Satisfied Workday Vendor Satisfaction Satisfied Ceridian HR SAP (HCM) Oracle EBS Oracle PS ADP GV/E SuccessFactors (EC) SilkRoad ADP (Vantage) Infor/ Lawson Kronos ADP (WN) UltiPro Ceridian DF Oracle (HCM C) Dissatisfied Poor Good User Experience Excellent 23

24 ITM Vendor Satisfaction and User Experience Talent Suites Achieve Highest Scores, but Overall TM Satisfaction is Lower Very Satisfied Vendor Satisfaction Satisfied SAP (HCM) ADP (Vantage) Ceridian DF ADP (WN) Oracle Cloud UltiPro Oracle PS N/A Saba Kenexa/ IBM Workday Halogen CSOD PeopleFluent SilkRoad SuccessFactors (EC) Dissatisfied Poor Good User Experience Excellent 24

25 High and Low Vendor Satisfaction Drivers Out of 13 Choices the Same Issues Showed Up On Both Charts Top Benefits Correlated with High Vendor Satisfaction Top Challenges Correlated with Low Vendor Satisfaction 47% 27% 33% 35% 36% 37% 26% 27% 35% 36% Ease of Upgrade Good Relationship User Experience Service & Support Best Practice Functionality High Costs Lack of Innovation Services & Support Poor Relationship Poor User Experience 25

26 Voice of the Customer: Benefits & Challenges Customers Are More Aligned on Legacy Platform Benefits/Challenges Average Benefit Alignment Average Challenge Alignment ADP GV/E Infor/Lawson Kronos Oracle (EBS) Oracle (PeopleSoft) SAP (HCM) = 20% = 20% Top Benefits: Ability to Customize Industry Specific Solutions Good Vendor Relationship Good Service and Support Top Challenges: Lack of Innovation Poor User Experience High Costs Poor Upgrade Handling 26

27 Voice of the Customer: Benefits & Challenges Customers are Generally Less Aligned on Cloud Solutions Average Benefit Alignment Average Challenge Alignment ADP WFN/Vantage Ceridian Dayforce Oracle (HCM Cloud) SuccessFactors EC Ultimate Workday = 20% = 20% Top Benefits: Best Practice Functionality Positive User Experience Good Vendor Relationship Ease of Configuration Top Challenges: High Costs Poor Service & Support Lack of Integration Lack of Customization 27

28 Checklist To High User Experience Scores Order of Impact! Mobile Access Admin Applications Enterprise Integration Strategy HRMS and Talent Management = Same Solution Central Shared Services Model Stay Current on Licensed Software Customize Less Actually Roll out: Employee and Manager Self Service Get your own Processes in Order 28

29 What Is HR Analytics? DESIGN IMPLEMENT Identify Need/ Question Identify Data/ Analysis Plan Collect Data Clarify Data & Actionable Insights Share Results & Solutions Start Again

30 Business Intelligence/HR Analytics We Might Be Breaking Through the Barriers If they have BI/HR analytics solution, what is in use? 39% of Organizations are doing some form of BI/HR Analytics with one of these tools Embedded Solutions have Doubled in Adoption from last year 98% 10% 23% 24% 27% 31% 43% 48% Dedicated HR/ BI Solutions BI Visualization Tools Statistical Tools Emb TM Analytics Emb WFM Analytics Emb HRMS Analytics Platform BI Solution Microsoft Excel n =

31 Simple HR Analytics Excel Continues to Rule, but Platforms and Embedded Solutions Catching Up Excel 90% 90% 71% Platform BI 76% 67% 50% Emb HRMS 82% 70% 43% Emb WFM 73% 65% 55% Emb TM 80% 66% 47% Statistical Tool 41% 51% 43% BI Visualization 56% 61% 36% Dedicated HR/BI Solution 64% 70% 48% Simple Reporting Simple Analytics Data Aggregation 31

32 Visualizing and Sharing Data Dedicated HR/BI Solutions and Visualization Tools Take the Lead Excel Platform BI Emb HRMS Emb WFM Emb TM 39% 56% 47% 47% 51% 75% 52% 48% 45% 53% Statistical Tool 21% 34% BI Visualization Dedicated HR/BI Solution 76% 76% 70% 64% Dashboards Shareable Charts & Graphs 32

33 No Standard Tools for Complex BI Needs Stand Alone Statistical Tools and HR/BI Solutions Most Likely Used Today Excel 22% 30% 10% 13% Platform BI 32% 22% 19% 24% Emb HRMS 24% 12% 16% 15% Emb WFM 21% 19% 19% 17% Emb TM 18% 12% 10% 12% Statistical Tool 59% 44% 50% 33% BI Visualization 34% 23% 20% 22% Dedicated HR/BI Solution 52% 42% 42% 36% Complex Analytics Scenario/Forecasting Predictive Big Data 33

34 Most Use HR Analytics to Look BACKWARD Compliance Risks Retention Risks HR Benchmarking 52% 50% 56% 46% 68% 61% 34 Data-Driven Organization Non-Data-Driven Organization

35 Some Use HR Analytics to Look FORWARD Workforce Assignments Identify Talent Improve Employee Engagement Workforce Skills/ Readiness 80% 48% 52% 60% 30% 32% 30% 40% 35 Data-Driven Organization Non-Data-Driven Organization

36 Data-Driven Orgs Also Focus on the BUSINESS Customer Satisfaction 28% Increase Innovation/ Agility 36% 36% Increase Competitive Advantage Optimize Workforce Productivity 44% 16% 9% 11% 21% Data-Driven Organization Non-Data-Driven Organization 36

37 Value of Service Delivery Technologies 51% More Employees Served with Mobile + Help Desk Technology Employees Served by HR Administrative Headcount 18% No or Low Tech 51% With Self Service* With Mobile With Self Service*, and Help Desk *With Self Service: Employee and manager Self Service applications serve 60% or more of employees and 50% or more of manager populations 37

38 Emerging Technologies Align with your HR Strategies and Desired Business Outcomes Workforce Using Today Evaluating No Plans Employee Feedback Applications 65% 11% 24% Wearable Technology 10% 6% 84% Rewards & Recognition Applications 25% 15% 60% Talent Acquisition Tools 42% 29% 29% Talent-Driven Organizations Use all of these Extensively 38

39 Going Beyond the Data, Future Walking Unique services will be the differentiators of tomorrow s HR Technology Platform as a Service (PaaS) will re-open the world of customization, and harness the power of Savvy System Integrators Contingent Workforce Management will change the concept of Talent Mobile and Wearables are a stepping stone to Internet of Things (IoT) Data Privacy Movements will become the biggest challenge to creating Individual User Experiences 39

40 Wrapping Up: Take Aways Enterprise HR Systems Strategy, You Need One Multiple Pathways to the Modern HR Tech Environment, but Payroll and Workforce Management Solutions need addressed to reach an Enterprise HR Cloud Vendors and Buyers Need to Build Stronger Relationships in this new HR Future. Emerging Technology is about Achieving Outcomes 40

41 Thank you! THANK YOU! 41

42 Visit Sierra-Cedar Website Get Full Survey Details and Sign Up To Participate Next Year! 42

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