YOUR SUCCESS IS OUR FOCUS Whitepaper IT Strategies for HR Transformation Published on: Feb 2006 Author: Madhavi M 2009 Hexaware Technologies. All rights reserved.
Table of Contents 1. Executive Summary 2. HR morphs from Support to Strategic advantage 3. In school yet on the job: e-learning makes headway 4. Its your data working for you: Analytics for global HR decisions 5. Conclusion 03 03 04 05 05 Author s Bio Madhavi M, Senior Consultant Global HR Strategy Centre, Hexaware Madhavi leads Hexaware center for Global HR strategy and has worked with HR teams at over 25 Global corporations. Her experience and specialization includes architecting Global HR strategies for core HRMS, Payroll Globalization and Implementation of global HR products such as PeopleSoft. 2009 Hexaware Technologies. All rights reserved. 2
1. Executive Summary With the rapid onset of globalization, business processes within global organizations have experienced immense pressure to go beyond boundaries. One of the first victims of this trend has been the Human Capital Management function. As Corporations move beyond boundaries, the Global Sourcing of talent and skills has become paramount to survival and growth as well as the source of competitive advantage. This trend is driving owners of the HR processes towards adopting technology strategies that transform HR from an operational role to a tactical role. We are in an age of globalization of core business processes. Innovative technologies and methods are today available for any organization, anywhere in the world to deliver products/services to a customer anywhere in the world simply because core organizational processes (functions) have gone global, enabled by technology. In a world characterized by international mobility, intense global competition and race for resources, innovative technology strategies offer immense opportunities to achieve significant improvements in the performance of the Human Capital function. Organizations can leverage technology to capitalize on their human capital by building HR processes on robust technology foundations. Human Capital management cuts across industries and locations and this makes the concept of a technology driven HR function all the more attractive as a business proposition. Although globalized industries such as Banking and Financial services were the early adopters of technology led strategies for HCM, the trend is rapidly spreading to a multitude of other industries where operational efficiencies, competitive HR strategies and tactical management of employees is becoming an imperative. HR Transformation can be achieved by implementing one or more of these best practices, currently followed by leading organizations across the world. Building superior efficiencies, leveraging global skills through HR BPO Implementing a globally consolidated HRMS and Payroll with Global rules - local compliance and centralized analytics for decision making Enabling learning across the enterprise in line with corporate strategic objectives Portal Implementation & Integration HR Shared services This White Paper is intended to familiarize executives who are charged with managing Human Capital at their organizations, with best of breed technologies and concepts used today to enable an efficient, tactical HR function. 2. HR morphs from Support to Strategic advantage In the past year HR organizations worldwide have graduated to becoming savvy technology users- evolving from a largely service delivery organization to one that focuses on strategic HR programs. HR staff is freed from repetitive and mundane administrative tasks to concentrate on human resource development programs that emphasize employee productivity, performance and retention. Companies are today maximizing the value of their most important asset -- employees -- aligning their skills, activities, and incentives with business objectives and strategies. Over the last 15 years the HR function in corporations has been investing a great deal into technology without realizing a significant ROI. Frequently, HR technology projects don t deliver the expected results. A key factor in this is a failure to define functional requirements clearly. By not basing these requirements in a solid HR strategy, organizations spend too much money on ad hoc software purchases or, even worse, under-use multi-million dollar HR software suites by not implementing modules that could be of significant value. The modules most likely to be left on the shelf are those considered key to operational human capital management, including competency and career development, recruitment, performance management and succession planning. Along with the right software, clean data and tight integration are critical success factors which are often overlooked. Key stakeholders must have access to accurate, consistent, integrated data which cannot happen unless HR and IT objectives are fully aligned. This successful alignment requires an understanding that changing technology alone will achieve little. Change starts to deliver its value only when supported by and integrated with other elements of the infrastructure, which are part of an explicit HR strategy. 2009 Hexaware Technologies. All rights reserved. 3
Today Future 5% 25% % Time, Effort Strategy Performance Enhancement HR Function Morphs Strategy Performance Enhancement 20% 40% 30% Transactions Transactions 20% 40% Administration Administration 20% Operate global act local For the global corporation, a unified data model provides a single, accurate view of HCM parameters. For example, such a model for payroll would support worldwide payroll processing with BPO, maintenance, global deployment and management across borders. Choosing the right service provider with requisite domain knowledge will allow installation and operation of payroll that fully complies with local requirements on a worldwide basis. Portals are the key Through the use of intuitive web interfaces companies can use portals to communicate HR information to employees across the companynot just knowledge workers but mobile workers, maintenance, field and ground staff. Lack of standard conventions, standardization and compliance for content and graphics has been the primary challenge of corporate portals. However, increasingly, portals require integration with packaged or custom applications, such as an ERP, recruiting software, expense management or travel software, etc. As integration with these solutions becomes more seamless, the line where portal standards begin and end will become less clear. Self help is the best help By using personalized self services- web based transactional tools employees can self manage their HR information for updating their payrolls and benefits selection and skill profiles. HR professionals can now move from being transaction processors to consultative partners. A new trend in Self Service systems include MSS or Manager Self Service Systems in which managers can carry out administrative tasks surrounding employee payroll changes, job transfers and scheduling of training. 3. In school yet on the job: e-learning makes headway A company's most sustainable competitive advantage is... the ability to learn and act on that learning. - Jack Welch, Former CEO, GE There is a direct correlation between an organization's investment in training and its performance in the marketplace. Companies are using enterprise learning Management initiatives to turn learning into a business advantage. Through the selection and deployment of effective tools, companies can couple effective knowledge transfer and efficient learning techniques with corporate strategy and business objectives. E-Learning will serve as the only effective way of training a widely dispersed staff in a consistent manner. Combined with personalization, e-learning will become targeted, just-in-time help that is available 24 x 7. Corporate guidelines and standards will have to evolve to handle elearning and other types of online, multimedia tools. In Hexaware s experience the following corporate requirements need to be met in order to implement an effective E-learning solution. The solution must be very responsive to changing business needs The solution must be ubiquitous and easy to use The delivered training should match the quality of one-on-one training The solution developed must be open, flexible and expandable It must be designed to support both backward and forward compatibility with existing and future systems and standards The deployed solution must be designed to communicate with other enterprise systems 2009 Hexaware Technologies. All rights reserved. 4
Going Global with HR Portals 4. Its your data working for you: Analytics for global HR decisions Questions like, how far in advance of hiring should you begin recruiting for new hires? How can you reduce hiring lag times? With HR Analytics, you can analyze your hiring cycle to ensure you have the people you need, when you need them. HR Analytics provides the tools for policy development and decision-making. Design, implement, and monitor corporate strategies, analyze workforce data, and continuously evaluate how various scenarios affect business goals. Typically HR Analytics will help gain visibility by providing best-practice methodologies in hiring, training, benefits, and performance analysis, KPI (key performance indicator) benchmarks, metrics and analysis techniques. These provide the power and path to root-cause analysis across the Enterprise. Answers to hundreds of key business questions providing a complete view of employee resources and costs across all areas of your organization. Deploying such systems involves bringing disparate data sources together and feed them back to answer your business questions. No longer confined to a limited, silo view of your data, HR analytics integrates data with other views transforming operational data into powerful and actionable information designed for the agile corporation. 5. Conclusion 85% of US enterprises will outsource at least one component of HR by 2006 Gartner With mounting pressure on strategic functions such as Human Capital Management to perform to increased efficiency, agility, flexibility and globalization, more organizations are rethinking the way the HR works. Outsourcing HR technology, which is a crucial business process enabler today, has caught on as one of the biggest trends globalization has witnessed. Gartner predicts that 85 % of enterprises in the US will outsource HR Technology in 2006. Connect with Hexaware s HR-IT team to realize real results from HR Technology outsourcing. Hexaware s extensive experience with a myriad of HR Products and Technologies as well as rich functional skills in the areas of payroll, benefits, training and recruitment has placed Hexaware as a leader in enabling the next wave of innovation in HR through Consulting, HR IT, and HR BPO Services. 2009 Hexaware Technologies. All rights reserved. 5
To learn more, visit http:///new_hr.htm Address 1095 Cranbury South River Road, Suite 10, Jamesburg, NJ 08831. Main: 609-409-6950 Fax: 609-409-6910 Safe Harbor Certain statements on this whitepaper concerning our future growth prospects are forward-looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, intense competition in IT services including those factors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, the success of the companies in which Hexaware has made strategic investments, withdrawal of governmental fiscal incentives, political instability, legal restrictions on raising capital or acquiring companies outside India, and unauthorized use of our intellectual property and general economic conditions affecting our industry. 2009 Hexaware Technologies. All rights reserved. 6