People in the Cloud: Trends in Human Capital Management. May 8, 2013

Transcription

1 People in the Cloud: Trends in Human Capital May 8, 2013

2 About ADP One of the world s largest providers of business outsourcing solutions and services for Employers ($9B*) Human Resources Payroll Benefits Retirement Administration Tax Payments & Compliance Vehicle Dealers ($1.7B*) The granddaddy of SaaS Computerworld * Fiscal Copyright 2013 ADP, Inc.

3 Financial Strength and Capital Allocation 1 of 4 non-financial companies rated AAA by both leading U.S. rating agencies Large recurring revenue base; consistent cash flow Low capital requirements Committed to shareholder-friendly actions of returning excess cash to shareholders through dividends and share buybacks ROE of over 20% the last 5 years 3 Copyright 2013 ADP, Inc.

4 Agenda Understanding the HCM Market Exploring Four Key HCM Trends Your Questions 4

5 The Human Capital Spectrum On-Boarding, Learning Recruiting: Sourcing, Screening, Selection Benefits Administration Recognition, Merit, Compensation Career and Individual Development Performance Engagement, Goal Alignment Time & Labor Retirement, Succession Planning 5 Copyright 2013 ADP, Inc.

6 HCM Market: Large and Growing HCM U.S. market size in $ billion $90 billion global market Insurance 10 Retirement 8 BPO Benefits Talent Payroll Service Bureau Payroll Software HRIS Time and Labor Accountants Tax Credit Services Expense Total Sources IDC, Nelson-Hall, Gartner, Everest, Bersin, Census Bureau, BLS, ADP and competitor filings, and ADP 6 Copyright 2013 ADP, Inc.

7 Agenda Understanding the HCM Market Exploring Four Key HCM Trends Your Questions 7

8 Four Critical Trends for Today s Business Pressure to be more Strategic 8

9 Trend #1 - Compliance Intensifying Compliance Burden Pressure to be more Strategic ~20K new pieces of legislation worldwide annually Affordable Care Act American Taxpayer Relief Act Less time to implement state / federal employment tax regulations Days vs. months 9

10 ADP Research Institute: Addressing HCM Shifts 10

11 Trend #2 Talent Attracting / Growing and Retaining People Pressure to be more Strategic 83% of CEOs list talent management as their #1 priority* Managing skills shortage Driving engagement and productivity Retaining your people Managing the entire employee life cycle is critical * Price Waterhouse Coopers 14 th Annual CEO Survey, June

12 The Pillars of Talent Talent Acquisition Performance Compensation Succession Learning 12

13 The Pillars of Talent Talent Acquisition Performance Compensation Succession Learning Interface with job boards Resumé management Background Screening Candidate management New Hire Reporting Electronic I-9 Screening On-boarding Drug Testing 13

14 The Pillars of Talent Talent Acquisition Performance Compensation Succession Learning Competency management Year-round comments Goal weighting Goal setting and alignment Competency self-evaluation Talent profile Aligning goals to bonus plans Team performance dashboards 14

15 The Pillars of Talent Talent Acquisition Performance Compensation Succession Learning Compensation statements Ad-hoc reporting Visual soft and hard guidelines Compensation history and data Multi-currency, multi-language Multi-parameter compensation guidelines Planning with auto-adjusting budgets 15

16 The Pillars of Talent Talent Acquisition Performance Compensation Succession Learning Career preferences Tag key skills and talents Approval routing Competencybased successor search Candidate comparison with ranking algorithms ID highpotential employees 16

17 The Pillars of Talent Talent Acquisition Performance Compensation Succession Learning Manage classrooms & resources Manage online learning libraries Learning discussion forums Employee transcripts ecommerce learning content Manager- and employeedriven learning 17

18 Trend #3 - Integration Integrate, Simplify, and Unify Pressure to be more Strategic On average companies have to manage over 8 HR and Payroll systems and/or vendors* 58% of HR staff time spent on administrative tasks** 19% of time spent on feeding data into multiple systems Globalization compounds challenges systems, languages, compliance, compensation, etc. * ADP MNC Market Study, May 2011 ** ADP Research Institute Achieving Strategic HR 18 Copyright 2013 ADP, Inc..

19 End-to-End Human Capital Cloud based Software Talent Mobile Portal HR System of Record Time and Labor Reporting Analytics Payroll Benefits Processing Managed Comprehensive Delivered as a Service Seamless integration. Complete End to End Suite. Cloud Based Delivery 19

20 Industry Vision: Comprehensive HCM with Robust Multi-Channel User Experience One source of truth for full spectrum of stakeholders Unique user interactions and intuitive interface Rich analytics Personalized dashboard Search Business Intelligence Workflow / Inbox Talent profiles Org charts Calendar Reporting Employee self service 20

21 Trend #4 - Demographics Evolving Workforce Demographics Pressure to be more Strategic 47% of all employees today were born after Implications: Consumerization Mobile Social Big Data analytics * Frost and Sullivan, 2010 ** SHRM Research Spotlight: Social Networking Websites and Staffing, August

22 Big Data: ADP National Employment Report Monthly U.S. nonfarm private employment via ADP transactional payroll data Launched in 2006 Data back to 2001 Segmented by industry and company size Unique data set Regional reporting begins this Friday

23 What to Look For in an HCM Provider Global reach Local knowledge Compliance expertise Cloud-based access to full HCM suite Scaleability Ease of use Ability to provide big data analytics Service strength 23

24 Your Questions & Impressions 24