Trends in technology to advance your organization
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1 Trends in technology to advance your organization Mike Anderson Steve Harmon The two worlds of managing your people Strategic Team building, personal development and coaching, culture definition and creation, sourcing top talent Administrative Compliance, payroll, benefits, taxes, FLSA,FMLA, etc 1
2 The strategic value of your people In Senior Living industry your people determine your outcomes Your people need proper care and feeding. Organizations desire to develop their people and improve performance. WHY? And yet this isn t what s happening a lot of time Your HR department is getting buried Your People Plan is getting buried Your organization is not reaching it s full potential 2
3 MA1 3 Challenges for Senior Living Operators HR Challenge #1: Compliance Paper Requirements and rules Deadlines Filling out forms Getting other people to fill out forms Updating information in files Retrieving information from files Creating reports Sending info to agencies, auditors, insurance companies 3
4 Slide 5 MA1 Mike Anderson, 2/8/2015
5 Compliance and administration tasks State audits & regs On boarding compliance (I 9s, W 4s, etc.) Federal, state & local payroll taxes Benefits plan management & enrollment Payroll deductions & earnings setup and maintenance Certifications & trainings tracking Scheduling &labor budgeting Affordable Care Act FMLA/leave/time off Emerging state and local labor regulations Information and data stored in paper files, time clock systems, payroll systems, accounting systems, individual single purpose HR systems, Spreadsheets, Post it notes, different people s heads (including that guy you just fired ) 4
6 Why does compliance consume so much? Dictates deadlines Dictates terms Engenders reactive behavior Inherently inefficient Challenge #2: Baumol s Cost Disease YIKES! You have it, and so does the person sitting next to you. 5
7 Implications of Baumol to Senior Living operators There are limits to direct service labor productivity, so it is essential to get laser focused on labor administration efficiency. Challenge #3: Workforce profile in Senior Living High turnover High touch, less focused on technology usage Care givers and clinicians acting as supervisors High percentage of ESL (English as a Second Language) High percentage of workforce has direct contact with customer Geographical dispersion Time dispersion round the clock operations Low corporate overhead (under resourced HR, IT) 6
8 Possible Solutions A. Find an easier industry B. Call talk radio and complain C. Ignore compliance requirements, double your rates, go workerless D. Grin and bear it E. Take advantage of current trends in technology ANSWER: E There are 4 key trends in technology that are creating a profound shift in the impact technology can have on organizations in general, and on senior living operators in specific. 7
9 Trend #1: The Cloud Requires little to no technical resources Easy to apply to an organization that is spread out geographically Perfect for 24 hour operations More rapid access to innovation 8
10 Trend #2: Mobile Your employees already have it Simplifies usage Extends system beyond your walls Where it happens & Where it s needed High engagement Trend #3: Platform Encompasses more business processes with fewer systems Data in one place, fewer interfaces Ability to share across departments Opportunity to add functionality 9
11 Trend #4: Workflows Beyond data storage and retrieval Sequenced actions with dependencies and contingencies Enforced rules Reminders and notifications Today s new worker is: Digitally connected Very active online/mobile Expecting access to information Expecting Convenience Looking for engagement Transient 10
12 Trends in technology and today s workforce have led to Cue the music The Dawn of Human Capital Management HCM systems have the potential to unlock value in your organization and unleash your people to do better work. So what is HCM? 11
13 Definition of HCM The people processes and systems which make up an organization s entire range of systems. Human Capital Management includes other practices such as HRMS, payroll, workforce management (hourly scheduling), expense management, contingent workforce management, employee leave management, and other more administrative or transactional parts of managing people. Bersin by Deloitte Human Capital Management (HCM) Systems Talent Acquisition Onboarding Payroll & Taxes Benefit Admin HR Core System & Reporting Employee & Manager Self Service Timetracking & Labor Management Absence & Leave Management Scheduling Labor Budgeting & Forecasting Performance Evaluations Learning & Certification Management Compensation Management HR Help Desk Asset Tracking Incident Tracking all under one roof, sitting on one unified data platform 12
14 HCM Software Buyers Deployment Preferences 3% 19% 77% Web based On premise Not Determined The vast majority of the buyers expressed a preference for Web based software. Only 3 percent said they would prefer an on premise system. HR Software BuyerView Report. Software Advice HR Software Buyers Top Requested Applications Applicant tracking Personnel tracking Time & attendance Performance review Benefits administration Payroll On boarding Learning management Employee scheduling Goal management Compensation management Applicant sourcing Number of mentions Whether buyers wanted a best of breed, integrated solution or a combination of products from multiple vendors, an ATS was most commonly requested. Software Advice 13
15 Top Reasons for Replacing Manual Methods Improve efficiency/accuracy Go electronic/automate Company growth Consolidate systems Too expensive Ensure compliance Other Number of mentions Buyers using manual methods cited the need to improve efficiency and decrease errors as the primary reason for evaluating new software. Software Advice Other reasons for replacing manual methods Serve more people with less people To spend time on higher level tasks Better information To get stuff done that isn t getting done Get past dependence on particular individuals 14
16 Cloud Mobile Platform Workflows CHALLENGES Compliance Worker profile Cost disease connected mobile convenience breadth access unified So what does all this point to? Automation of your administration 15
17 The Truth about Automation Its HARD! What does this take? Leadership Someone to champion the effort A Partner Cooperation breaking down the silos Process thinking Change management skills The Truth about Automation What is the payoff? Ability to work on higher value activities Ability to stay compliant Better information Greater consistency (and fairness) Less paper Greater employee satisfaction Greater efficiency 16
18 Best Practices and Top Performers More likely to be on, or planning to move to, cloud Best Practices and Top Performers Identify and then standardize processes first 17
19 Best Practices and Top Performers Move away from data islands Best Practices and Top Performers Change management Be mindful that automating represents change Know your people Know yourself Take your unique culture into consideration Find the things that help change to happen in your organization Come up with rewards, encouragements and motivators 18
20 Best Practices and Top Performers Think Alterations, avoid one size fits all OR custom built Best Practices and Top Performers Get rid of the Silos! 19
21 Best Practices and Top Performers Liberate information Embrace Employee and Manager access and adoption Don t make Administration the sole keeper of information Deliver information where it s needed to who needs it General principles for success Capture information where it happens Capture information electronically from the beginning Capture information only once Store information in only one place Let the system manage the rules, next steps, reminders, deadlines Make information available to who needs it 20
22 Steps to success Get clear on your objectives and outcomes you want Communicate your objectives to senior management List out all your people administrative processes Think about how you are going to manage change Steps to success Talk to vendors look for a good partner Start with administrative core processes. Top targets to start with: Payroll or On boarding Set a timeframe of 2 3 years but have specific process automation goals for every 3 6 months Get your people using the system. If only admin is using it, you haven t gone far enough 21
23 Items to watch out for Sexy single purpose systems that create silos, integration challenges, multiple logins, duplications errors Feeling overwhelmed and that it is too big to accomplish. One Step at a Time! Vendors who can t provide adequate implementation support Saboteurs fear or change, loss of control, loss of advantage Conclusion HR can have a strategic impact on your organization s success. Your organization s and people s development is being held back by the crush of compliance and the cost of simply having employees. Automate as many employee administration processes as possible. Trends in technology and the workplace are favorable for employers who are willing to adapt. Today s HCM systems offer an opportunity for Senior Living operators to meet today s challenges and compete more effectively. 22
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