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17th Annual HR Systems Survey FindingsSpecial LEHRN Presentation
Presenter:
Stacey Harris, Vice President, Research and Analytics
@StaceyHarrisHR
2
2000 +Employees
2014 merger of
4 companies with
decades of experience
7Service & Solution Areas
Application Services
Business Intelligence
Host & Managed Services
Infrastructure Services
Integration & Cloud Solutions
Research
Strategy
Training
Delivering industry-focused client success by providing consulting,
technical, and managed services for the deployment, management and
optimization of next-generation applications and technology.
5Industry Focus
Commercial
Healthcare
Higher Education
Public Sector
Justice & Public Safety
Sierra-Cedar Fast Facts
17Years of Leading
HR Systems Survey &
Research
3
Stacey HarrisVice President Research and Analytics
Passions:
Background:
• HR and OE Practitioner for over 10 years in finance, retail, and franchised
businesses.
• Direct of Research Bersin & Associates, Launched the HR research practice
• VP of Research for Brandon Hall Group
• Major Research and Papers: The High Impact HR Organization, The HR
Framework, Employee Engagement: A Changing Marketplace, and
Relationship Centered Learning
• Feel free to connect at: www.linkedin.com/in/staceyharris/
Research
4
Sierra-Cedar Annual HR Systems Survey
Over 17 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
● Business Intelligence/Analytics/Workforce
Planning Applications
● Integration and Implementation
● Emerging Technologies and Innovations
● Vendor Landscape
● Workforce and HR Expenditures
● Workforce Usage and Perception
Please, Register to Participate!
http://www.sierra-cedar.com/annual-survey/
Next Years Launch is May 12th, 2015!
5
Sierra-Cedar 2014–2015 HR Systems SurveyDemographics: All Respondents
Organizations
1,063 Large 10,000 +
Medium 2,500–10,000 Small
100–2,500
Organization Sizes
Represented
28%
29%43%
Total Workforce
Represented
Employees + Contingent
(in millions)
19 Million
Avg. number of Employees =
16,053
20.5%
Other Services
14.9%
Healthcare
14.9%
Financial Services
12.5%
Higher Ed./
Public Admin.
12.1%
Manufacturing
7.9%
Trans., Comm.
Utilities
7.3%
Retail
Wholesale
6.8%
High-techAgriculture/
Mining/
Construction
3%
6
Key Themes for 2014–2015 Survey Results
FoundationStrategy and Culture Innovation
Cloud HRMS
User Experience
Enterprise
Integration Strategy
Culture of Change
HR Tech Strategy Social
Mobile
Quantified OrganizationWFM + TM + BI
7
Sierra-Cedar HCM Application Blueprint
Backlog, Pipeline, Customer Satisfaction
General Ledger, Purchasing, Budgeting, T&E Vendor Management
Project Costing, Contracts, Grants
Projects
FIN
CRM
VMS
Talent Management Excellence
Service Delivery Excellence
Administrative Excellence
Workforce Management Excellence
Workforce Optimization Excellence
SOA, API, ETL
Enterprise Content Enterprise Workflow
Network Security
Enterprise Social
Mobile Access Integration Platform
Workforce OptimizationWorkforce Planning, Workforce
Analytics, Predictive Analytics
Service DeliveryHR Help Desk, Portal, Workforce
Lifecycle Management (Onboarding)
Self Service/Direct AccessEmployee Self Service
Manager Self Service
Workforce ManagementTime & Labor, Absence & Leave
Management, Labor Scheduling, Labor Budgeting, WFM Analytics, Social
Talent ManagementRecruiting, Performance, Learning, Compensation, Succession, Career,
Talent Profile, Talent Analytics, Social
Business Intelligence FoundationReporting/visualization and BI tools
Administrative Apps Core HRMS, Roles/Competencies (Profile Mgt.), Payroll,
Benefit Admin, Embedded HR Analytics, Embedded HR Social
8
● Which areas of the HCM
Application Blueprint will your
organization spend at least 25% of
your internal resources?
● Which areas of the HCM
Application Blueprint require more
industry data and education?
What are your 2015 Initiatives?
9
2014–2015 Three-Year Look at HR InitiativesEnergy on BPI, Service Delivery, Global; Declining Focus on Talent Mgt.
64%
40%37%
35% 35%31%
25% 23% 20%
Major Initiatives – Three Year View
2012–2013
2013–2014
2014–2015
* Global Organizations Only
26%
44%
*
24%
n=823
10
An Enterprise HR Systems Strategy Our Top Performers Do. Do You Have One?
36%
35%
8%
21%
Percentage of Organizations With a Current Enterprise HR Systems Strategy
Regularly updated strategy
In development strategy
Rarely updated strategy
No strategy/Not aware
HR organizations with an Enterprise HR Systems
Strategy are 38% more likely to be viewed by all
levels of management as contributing strategic
value to the organization.
11
HR System Integration ApproachesEarly Indication that Enterprise Integration Strategy (EIS) is Valuable
17%
22%
13%15%
33%
Primary Approach for HR Application Integration
Integrate into HRMS
Integrate into ITM
Enterprise integration strategy/platform
Case by case integration
No approach/not aware
Respondents with an Enterprise Integration Strategy Are Using
• 45%: on-premise solution (Oracle SOA, WebSphere)
• 23%: platform as a service solution (PasS – Dell Boomi, MuleSoft, Informatica)
• 20%: hybrid solutions
• 12%: not aware
n=494
12
2014–2015 HR Tech Spending OutlookOver 50% of Survey Respondents Will Increase Spending Next Year
5%
4%
8%
45%
44%
35%
51%
51%
58%
Small
Medium
Large
Spending Plans for Next Yearby Employer Size*
Increase
Stay the same
Decrease
Small
Medium
Large
*Large = 10,000+; Medium = 2,500–10,000; Small = <2,500
n=924
13
Change Management Practices 27% of Respondents Report a Culture of Change Management
27%
34%
22%
17%
Level of Change Management forHR Technology Projects
Consistent culture of change mangement
Key projects that meet criteria
Sporadically, with no criteria
Never
15%
23%
27%
43%
59%
72%
100%
Incentives
Readiness assessment
Formal CM: Six Sigma etc.
Champions
Usability testing
BPI
Basics*
Change Management Practices for HR Technology Projects
*Basics: Senior sponsorship, communications, documentation, training, and
project management.
14
Benefits of Change ManagementReduces Costs and Increases Perception of HR as Strategic
57%
2 X Organizations with a Culture of Change Management are twice as likely to be
viewed by all levels of management as contributing strategic value, versus at
organizations that never uses change management.
Change Management Increases Strategic Value of HR
$691
$461
$344
$302
Never
Sporadic
Key projects
Culture of CM
Total HR Technology Costs/Employee
15www.domain.com
Contingent
Workforces
84% of organizations have a
contingent workforce
Contingent workers are 20% of the
average company’s workforce
Types of contingent workforces:
Independent contractors – self employed, 1099’s, legal limitations
Temporary workers – employed by temporary service agencies
On-call workers – report to work when needed
Contracted employment – on location, but employed by a third party
Short-term contractors – agreed upon short term contracts
43%
25%
32%
Contingent Workforce Management Tools
Primarily HRMS
Combo HRMS/OtherTools
Non-HRMS Tools
n = 854 (excluding staffing agencies with 100% contingent workforces)
16
43%
25%
32%
Systems Currently Used to Manage Contingent Workforces
Primarily HRMS
Combo HRMS/Other Tools
Non-HRMS Tools
Beyond the HRMS,Other Systems Managing Contingent Workforces
32%
33%
53%
Stand-Alone, C-WFM
Outsourced
Procurement/VMS System
Other than the HRMS, What Systems are Used to Manage Contingent Workforces
*Chart does not equal100%
as organizations have
multiple solutions in use
17
● What is included in your Enterprise
HR Systems strategy?
● How do you define “workforce”?
● Do you have an HR application
deployment Roadmap?
Discuss Enterprise HR Systems Strategies
18
2014–2015 Three-year Adoption OutlookLooking Forward, Workforce Optimization Will Be Hot!
92%
49%
46%
55%
41%
41%
12%
96%
76%
65%
80%
68%
65%
44%
Administrative
Service delivery
Workforce management
Talent management
Social media tools
BI (reporting and tools)
Workforce optimization
Three-year Application Outlook
In Use Today
In Use within 3 Years
268%
n=648
55%
19
Embedded Analytics Solutions2 to 3x Growth Anticipated
28%
15%
13%
70%
52%
58%
Administrative embedded analytics
Workforce management embeddedanalytics
Talent management embedded analytics
Embedded Analytics Three-year Application Outlook
In Use Today
In Use within 3 Years
n=733
20
BI/Analytics Overview
Workforce Optimization
Applications
Reporting,
Visualization, and
Statistical Tools
BI
Foundation
HR Warehouse
Middleware (ETL)
Automatic Report Distribution
Sim
ple
Ma
nag
em
en
t an
d
Op
era
tio
nal R
ep
ort
ing
Insig
ht-
Dri
ll D
ow
n a
nd
A
d H
oc T
oo
ls
Sta
tisti
cal A
naly
sis
To
ols
Oth
er
Vis
ualizati
on
s
Dash
bo
ard
s
Workforce Analytics,
Workforce Planning and Predictive Analytics
21
BI/Analytics Deployment ApproachesAdoption is Less Important than Deployment. We Must Learn from the Past!
8%
13%
33%
47%
7%
9%
30%
53%
Standalone HR Analytics Tool
Combination Solutions
Embedded HR
Enterprise BI
Business Intelligence/HR Analytics Approach
Today 12 Months
Predominantly
Standalone Apps2007
2012
With experience,
organizations moved
to adopt
Enterprise Solutions
2014Currently, an
emerging trend of
Embedded HR Analytics
Going forward, we will see
44% growth in adoption of
Combinations
12
Mo
Caution: consider past learning as you develop your BI/analytics strategy.
While embedded analytics solutions that provide transactional and operational analytics
will not go away, they are not the end solution. Enterprise solutions will be needed.
n=488
22
46%
13%
28%
10%
3%
2%
31%
9%
47%
11%
1%
1%
Licensed software – on premise
Licensed software – hosted
SaaS – subscription-based
Combinations
In-house developed/bespoke
Outsourced (process andsoftware)
HRMS Application Deployment Only
Today
12 Months
2014–2015 HRMS Deployment ModelsSaaS HRMS Deployments Will Overtake Licensed Next Year
n=602
23
2014–2015 HRMS Deployment ModelsLarge Organizations* Will Double Their SaaS HRMS Adoption Next Year
15%
25%
40%
31%
46%
59%
HRMS SaaS Application Deployment Only by Employer Size*
Today
12 Months
Medium
Small
Large
106%
*Large = 10,000+; Medium = 2,500–10,000; Small = <2,500
n=602
24
More HRMS Replacement Initiatives With Variations by Industry
Upgrade vs. Replacements by Industry
29%
26%
20%
16%
9%
13%
16%
9%
12%13%
8%
16%14%
15%14%
23%
19% 18%
21%20%
15%
Upgrade HRMS
18%
Replace HRMS
All Respondents
n=823
25
HRMS Replacement Initiatives With Variations by Region
14%
Upgrade HRMS
10%
Replace HRMS
Europe
Respondents
21%
Upgrade HRMS
17%
Replace HRMS
APAC
Respondents
15%
Upgrade HRMS
18%
Replace HRMS
All
Respondents
31%
Upgrade HRMS
26%
Replace HRMS
Canada
Respondents
26
Legacy HRMS Respondents Change PlansToday’s HRMS Environment
Single Legacy HRMS Changes(avg. employee size 7,592)
1/3 Moving to Workday
1/3 Evaluating cloud slate
Multi-vendor HRMS Changes(avg. employee size 22,043)
22% of all HRMS Respondents are Changing their HRMS
• 35% Single Legacy HRMS environment
• 32% Multi-vendor HRMS environment
• 33% Cloud to Cloud, Homegrown to Vendor, etc.
1/3 Moving to other single
cloud solution
1/3 Moving to all major
single cloud solutions
1/3 Evaluating cloud slate
1/3 Consolidating (most
often keeping an existing
on premise solution)
59% are legacy solutions (licensed on premise and hosted)
66% of legacy HRMS’s are NOT on the current version
The average time since upgrade for legacy HRMS’s is 4 years
27
Overall
Large
10,00+
Employees
Medium
2,500–10,000
Employees
Small
200–2,500
Employees
Today
In 12
Months Today
In 12
Months Today
In 12
Months Today
In 12
Months
Oracle PeopleSoft 27% 24% 47% 41% 28% 23% 9% 8%
ADP 20% 16% 15% 11% 15% 10% 28% 25%
Ultimate Software (UltiPro) 11% 11% 1% 2% 16% 16% 15% 14%
Kronos 11% 9% 15% 13% 12% 8% 7% 5%
SAP* 9% 8% 15% 12% 9% 8% 4% 5%
Infor/Lawson 9% 8% 13% 11% 13% 9% 4% 4%
Workday 6% 15% 9% 21% 6% 18% 3% 6%
Oracle (EBS)/JD Ewards 7% 7% 11% 11% 6% 5% 6% 6%
Ceridian HR 5% 3% 2% 2% 5% 1% 7% 4%
SumTotal/Softscape/Accero 4% 4% 3% 3% 5% 5% 4% 1%
SuccessFactors Employee Central 3% 6% 3% 7% 4% 6% 2% 4%
Oracle Fusion (HCM Cloud) 2% 4% 3% 5% 1% 3% 2% 4%
Ceridian Dayforce HCM 2% 3% 1% 1% 2% 3% 3% 5%
Other 13% 13% 9% 7% 9% 8% 21% 22%
HRMS Vendor Landscape12 Months Plans Indicate Increased SaaS Adoption
HRMS Vendor Outlook Overall and by Size
+5% gain+5% loss
* SAP adoption underrepresented
Columns do not add to 100% as organizations have multiple solutions in use
Colored cells indicate greater than 5% gain or loss projected in 12 months.
n=497
28
#1 Reason For Moving is User Experience! How Are Vendors Doing?
1 = Poor: not user friendly, excessive steps, limits use
2 = Acceptable: workable but requires training to use
3 = Excellent: intuitive, user centered design, effectively promotes use
And, why is it is such a big deal?
It’s about driving user adoption,so both employees and the organization
get the most value from the solution!
29
User Adoption Level by User Experience ScoresHigher User Experience Scores with Newer Cloud Solutions
HR Management System
Manager User Adoption and User Experience
30
35
40
45
50
55
60
65
70
75
1.60 1.85 2.10 2.35 2.60
User
Ad
op
tio
n P
erc
en
tag
e
UltiPro
Kronos
Infor/Law
PSFT* Ceridian DF
User Experience Scores
Oracle, EBS
* Sample Size Small,
Indicative Data Only
SAP (HCM)
Ceridian HR
Multiple
Vendors
n=389
UltiPro: Manager adoption,
increased by 47%
from last year.
Organizations with
new cloud solutions
will see increased
adoption levels
quickly. * Oracle HCM
Cloud (Fusion)
Workday
* SF/Employee
Central
ADPUltiPro (2013)
30
HRMS Customers Continue to be Dissatisfied
Net Promoter Score
Promoters Detractors
Overall -35 18% 53%
Licensed on Premise -47 11% 58%
Licensed Hosted -39 21% 60%
Software as a Service -9 31% 40%
Net Promoter Score by HRMS Deployment Approach
Net PromoterScore
% Detractors(0 through 6)
% Promoters(9s & 10s)= –
DETRACTORS PASSIVES PROMOTERS
(0 through 6)
0 1 2 3 4 5 6 7 8 9 10Not at all
likelyNeutral Extremely
likely
n=418
31
Vendors Pay Attention! Implementation Time Matters and Yields Highest NP Score
Average Net Promoter Score by Vendor Benefit
-30-23 -23
-10 -4
4 8 8 11
27
Avg
. N
P S
co
res
Question: Which vendor benefits have the greatest positive impact for
your organization today with your current core HR Management system?n=558
32
Low Industry Net Promoter Scores Actions to Take from HRMS Scores
● Plan for faster implementations, upgrades, or release deployments
Don’t try and boil the ocean. Piloting and phased rollouts can help reduce project
time. Complete process re-engineering before technology work, not during.
● If your organization is on an older release, consider changing!
Those on older releases are the most unsatisfied by 40 points lower than the
average. Those on newest releases are 8–20 points higher than the average.
● Customize as a last resort!
Those with high levels of customization (over 25%) are 20 points lower than
those with moderate and low customization, and 50% lower than those with no
customization. Those with no or low customization give the highest scores, 62
points higher than those with high levels of customization.
● Develop an enterprise integration strategy
Those with an Enterprise Integration Strategy and Platform have scores 10
points higher than the average, and 14 points higher than those that integrate on
a case by case basis.
33
SaaS Takes Less Time to Deploy
Length of Time for New HRMS Deployments
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Licensed On Premise = 15.3 months
Licensed Hosted = 11
SaaS = 9.0 months
18.7
14.4
11.0
14.2
13.6
8.3
14.3
10.0
7.1
Large
Medium
Small
Time for New Deployment for an HRMS by Size of Organization*in months
Licensed On Premise
Licensed Hosted
SaaS
n=536*Large = 10,000+; Medium = 2,500–10,000; Small = <2,500
34
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Average Time for Upgrades and ReleasesSaaS Continues to Provide Faster Speed to Benefit
Length of Time for HRMS Upgrades/Releases
Licensed On Premise Upgrades = 7.3 months
Lic. Hosted Upgrades = 5.17 months
SaaS Release = 4.2 months
8.7
6.3
5.0
5.8
4.9
4.6
-
3.9
3.8
Large
Medium
Small
Time for HRMS Upgrades/Releases by Size of Organization*in months
Licensed On Premise Upgrade
Licensed Hosted Upgrade
SaaS Release
* Not sufficient data
n=536*Large = 10,000+; Medium = 2,500–10,000; Small = <2,500
35
SaaS Takes Less ResourcesRequires Fewer Total HR Technology Headcount than Licensed Solutions
Licensed on premise SaaS
5.0
4.04.9
3.0
4.3
2.8
Head
co
un
t
Functional HRMS
Application Support HRMS
Infrastructure
*All Licensed on premise and SaaS respondents from organizations with
average of ~11,000 employees plus contingents served by the HRMS
n=85
HRIT/IT Headcount by Deployment Type*
SaaS advantage holds true across small, medium, and large organizations.
It is best to benchmark for your size and industry.
36
Expenditures are ComplicatedBenchmarking is Necessary!
*License plus maintenance for licensed on premise; annual amount paid to vendor for SaaS**From licensed on premise and SaaS respondents with an average of ~11,000 employees plus contingents served by the HRMS*** Implementation, upgrade, and/or change management**** Ongoing support for HRMS
Licensed On Premise
Current Year
Licensed On Premise
Next Year
SaaS
Current Year
SaaS
Next Year
$134 $148 $132 $132
HRMS Technology Costs * (per employee)**
Licensed On Premise
Current Year
Implementation ***
Licensed On Premise
Next Year
Implementation ***
SaaS
Current Year
Implementation ***
SaaS
Next Year
Implementation ***
$41 $39 $47 $67
External Costs Paid to Consultants/or Vendor (per Employee)** for Implementation Costs
Licensed On Premise
Current Year
Ongoing Support****
Licensed On Premise
Next Year
Ongoing Support****
SaaS
Current Year
Ongoing
Support****
SaaS
Next Year
Ongoing Support****
$34 $14 $22 $24
External Costs Paid to Consultants/or Vendor (per Employee)** for Ongoing Support
n=85
37
With
Self Service*,
and Help DeskWith
Self Service*
224
No or Low Tech
204
Value of Service Delivery TechnologiesEnable Serving More Workforce per HR Administrative Staff
*With Self Service: Employee and manager self service applications serve 60% or more of employees and 50% or more of manager populations
***HR Administration is calculated with headcount
268
10%
31%
Employees Served by
HR Administrative Headcount***
n=160
38
With
Self Service*
and Help Desk
2.2
With
Self Service*
2.1
No
or Low Tech
1.75
Why Add Mobile to Service Delivery Tech?Higher HRMS User Experience Scores
*With Self Service: Employee and manager self service applications serve 60% or more of employees and 50% or more of manager populations
**User experience scores based on a three point scale: 1 = Poor, 2 = Acceptable, 3 = Excellent
49% increase in user experience scores with combined
self service, help desk, and mobile technologies.
With
Self Service*,
Help Desk,
and Mobile
2.6
HRMS User Experience Scores**
by Service Delivery Model
n=158
39
Strategy for WFM Solution Adoption
WFM Suite15%
HRMS Suite40%
ITM Suite13%
Point Solutions13%
No Strategy19%
PLEASE CHARACTERIZE THE PRIMARY APPROACH TO SELECTING WORKFORCE MANAGEMENT APPLICATIONS?
* WFM Suite – Not part of the HRMS or ITM Suite
n=580
40
40%
18%
21%
13%
4%
2%
26%
16%
38%
16%
1%
1%
Licensed software – on premise
Licensed software – hosted
SaaS – subscription-based
Combinations
In-house developed/bespoke
Outsourced (process andsoftware)
WFM Application Deployment Only
Today
12 Months
2014–2015 WFM Deployment ModelsWFM Deployment is Quickly Moving to the Cloud
n=580
41
Time and Attendance Tracking Solutions
* WFM Suite – Not part of the HRMS or ITM Suite
n=580
13%
54%
52%
8%
Manual - paper based
Individual PC
Company device(biometric, card-swipe,
code)
Mobile device
Percent of Organizations Using these Time Tracking Tools Currently
42
Top Adopters of WFM, TM, and BI Achieve Higher Outcome Scores and Higher ROE
Top Workforce Management, Talent Management, and Business Intelligence Adopters:
• Have across the board higher HR, talent and business outcome scores
• Achieve higher Return on Equity (31% higher than lower adopters)
Workforce
Management
Talent
Management
Business
Intelligence
They integrate WFM, TM, and HRMS data
three times as often as lower adopters.
43
67%
63%
62%
64%
69%
78%
86%
44%
45%
50%
59%
60%
63%
84%
Succession
Career
Learning
Compensation
Acquisition
Talent Profile
Performance
Integrated Talent Management Components
Today 12 Months
Integrated Talent ManagementAll ITM Components Will Grow in Adoption in Next 12 Months
Integrated Talent Management
Approach
Organizations with higher than
average TM components (4)
have 6% higher ROE.
ITM Suite29%
HRMS-ITM suite
42%
Point Solutions
15%
None/Not Aware14%
44
Integrated Talent Management Vendors31% of Respondents Report They Will Change Solutions!
Overall
Large
10,000+
Employees
Medium
2,500–10,000
Employees
Small
200–2,500
Employees
Today
In 12
Months Today
In 12
Months Today
In 12
Months Today
In 12
Months
Oracle (PeopleSoft, EBS) 25% 18% 41% 30% 23% 17% 11% 10%
SuccessFactors/Plateau 20% 19% 21% 23% 27% 23% 12% 12%
Oracle (HCM Cloud, Taleo) 14% 18% 26% 30% 9% 13% 7% 11%
Cornerstone OnDemand 11% 15% 10% 14% 9% 10% 15% 19%
Ultimate (UltiPro) 9% 10% 0% 1% 13% 14% 14% 14%
ADP 9% 7% 5% 4% 3% 2% 20% 13%
Workday 6% 13% 7% 15% 8% 17% 3% 8%
SumTotal/Softscape 5% 4% 6% 3% 8% 8% 2% 1%
SAP* 4% 3% 6% 6% 3% 3% 2% 2%
Halogen 3% 4% 0% 1% 5% 3% 6% 6%
Other 28% 29% 34% 39% 25% 27% 25% 30%
Integrated Talent Management Vendor Outlook Overall and by Size
* SAP adoption underrepresented
Columns do not add to 100% as organizations have multiple solutions in use
Colored cells indicate greater than 3% gain or loss in 12 months.
+3% gain+3% loss
n=363
45
Social Continues to Grow
27%
30%
36%
52%
62%
7%
4%
5%
9%
10%
6%
13%
15%
17%
13%
10%
8%
9%
6%
10%
16%
18%
4%
3%
38%
28%
17%
9%
19%
Enterprise social netowrk (behindfirewall)
Collaboration tools/repository
Social Tools Use and Plan
Used strategically todayWill be used strategically in next 12 monthsAllowed for individual use onlyEvaluating useNot allowed
46
Social-enabled Process Adoption Recruiting Staff and Hiring Managers Have the Highest Levels of Use
Workforce Using
Major Social-enabled HR Processes Today
In 12
Months
Administrative – HR management/record keeping 14% 21%
Workforce Management – Time and labor/time and attendance 8% 14%
Talent Management
Recruiting 23% 29%
Performance management/Goal management 10% 16%
Learning and development 14% 22%
Compensation 5% 11%
Recruiting (recruiting/talent acquisition staff) 67% 74%
Recruiting (hiring managers) 26% 36%
Business Intelligence/Workforce Analytics 8% 13%
Average workforce adoption across all mobile-enabled processes 12% 18%
n=186
47
Mobile-enabled Process Adoption Mobile Adoption Will Grow by Over 100%
Workforce Using
Major Mobile-enabled HR Processes Today
In 12
Months
Administrative 15% 33%
HR management/record keeping 11% 31%
Payroll 19% 35%
Workforce Management 8% 25%
Time and labor/time and attendance 7% 24%
Leave management 8% 27%
Absence management 8% 26%
Workforce scheduling/Labor scheduling 7% 23%
Talent Management 20% 37%
Recruiting 17% 31%
Performance management/Goal management 25% 40%
Learning and development 24% 37%
Compensation 20% 39%
Succession planning/management 13% 32%
Business Intelligence/Workforce Analytics 4% 13%
Average workforce adoption across all mobile-enabled processes 13% 27%n=568
48
53%
41%
71%66%
< 20% Mobile Process Enablement
> 20% Mobile Process Enablement
Mobile & Social enabled ProcessesHigher Levels of Adoption Lead to Higher Levels of Use
Employee
Direct Access
Manager
Direct Access
60%34%
n=188
58%
46%
73%67%
< 20% Social Process Enablement
> 20% Social Process Enablement
Employee
Direct Access
Manager
Direct Access
46%
26%
49
● Does your organization require a
business case for HR Technology
adoption?
● What type of data does your
organization require for a business
case:
– ROI
– Savings
– Engagement
– Business Goals
– Etc.
● Do you have an HR application
What is the Value of HR Systems?
50
Value Chain Factors and Outcomes
HR Outcomes
HR alignment with business strategy
HR cost efficiency
Employee engagement
Talent Outcomes
Ability to develop a highly qualified workforce
Availability of workforce data for decision making
Talent mobility
Ability to attract top talent
Retention of top talent
Business Outcomes
Market share
Organizational profitability/Cost efficiency
Customer (constituent) satisfaction
Competitive advantage
Innovation
Employee and manager productivity
Scale of 1–5
Strongly
Declined
Declined
Neutral
Improved
Strongly
Improved
51
Top Adoption of WFM, TM, and BI Across the Board, Higher Adoption Yields Higher Outcome Scores
4.1 4.0 4.13.9
3.9 3.8 3.8 3.9 3.8 4.0 4.1 4.03.8 3.6 3.6 3.6 3.5 3.5 3.3 3.5 3.6 3.7 3.8 3.7
Top Adoption WFM/TM/BI Lower WFM/ITM/BI
Over the past year, how have the following changed across the organization?
1 = Strongly Declined and 5 = Strongly Improved
HR Outcomes Business Outcomes
Outcomes By Top WFM, TM, and BI Application Adopters
Compared To Low Adopters
Talent Outcomes
n=526
52
Predicts
BRImproved
Business Results
Predicts
HRImproved
HR & Talent
Outcomes
HR Technology Adoption Value Chain ModelLinking HR Tech to HR/Talent and Business Outcomes to Financial Value
HR Technology application adoption is indirectly related to improved organizational results
(Competitive Advantage and Market Share) through improved HR and talent outcomes
(improved Cost Efficiency, Decision Making, Employee Engagement, Developed
Workforce, Talent Retention) and linked to improved financial performance (ROE).
PredictsTAHigher Total Apps
Adoption
ROEHigher
Return on Equity
53
Introducing the “Quantified Organization”An Environment of Data-driven Decision Making
Quantified Organization Not Quantified
Better BI Process Maturity BI Process Maturity
3.2Effective
BI Process Maturity
1.8Efficient
More Manager Access to Analytics Managers with BI access
74%Managers with BI access
20%
More Data Sources BI Sources
4.8BI Sources
2.4
More Categories of Metrics Metrics Categories Tracked
4.2Metrics Categories Tracked
2.8
54
Quantified Organizations Outperform!They Have 79% Higher ROE than Non-QOs
Quantified
Organization
79% Higher ROE
Quantified
Organization
Not
Quantified
Return on equity measures an organization’s
success at generating
profits from every unit of
shareholders equity, such
as that allocated for HR
technologies. A company
that earns an ROE in
excess of its cost of equity
capital adds value.
ROE
18%ROE
10.1%
55
HRMS
ITM
QO
3.0
Effective
Lessons from Quantified OrganizationsThey Get the Basics Right
QO
57% Non-QO
42%
QO
62% Non-QO
52%
Non-QO
2.0
Efficient
ITM on HRMS
Process
Maturity
Process
Standardization
56
Lessons from Quantified OrganizationsThey Have Strategies and Culture that Support Performance
Migrate to
Enterprise BIEnterprise
Integration Strategy
Updated HR
Systems StrategyChange
Management Culture
64%
35%
75%
37%37%
11%
61%
26%Non-QO
QO
QOQO
Non-QO
Non-QO
QONon-QO
57
Lessons From Quantified OrganizationsThey Innovate with HR Technologies
Higher level of
Mobile adoption
Higher level of
Social adoption
Adoption of
WFM, TM, and BI
41%
24%
32%
5% 6%
14%Non-QO
QO
QO
QO
Non-QO
Non-QO
HR Technology Seer
59
Emerging TechnologiesGamification the Only One with Sizable Usage
Workforce Using
Today Evaluating No/NA
Gamification of applications 34% 66%
Wearable technology 7% 4% 89%
Social aggregation applications 4% 6% 91%
Fatigue management applications 2% 1% 97%
Robotics/artificial intelligence 1% 3% 96%
Wearables60% of organizations using
wearables believe the benefit
will be “increased workforce
productivity.”
60
Systems of Tomorrow
● Systems of Engagement – a step beyond Talent and Administration
● Workforce Optimization Systems – where data, answers, and actions
come together
● Activity and task management goes beyond operations
● Open input and work design platforms
61
Employee Feedback Survey
● 92% of employees actually completed an
employee self-service task online.
● Employees are most likely to contact their
manager to request vacation and sick leave
time – versus HR.
● 32% of Asia Employees and 35% of Europe
employees did not know that they had the
ability to swap shifts or change withholdings
on-line, compared to 18% of the U.S.
employees.
● The most frequently done task by
employees on a mobile device was to
manage work related connections.
● Submitting job posting had the lowest users
experience from managers.
• Asia-Pacific Millenials
supervisors were the most
likely to call HR versus using
manager self-service HR
tools.
62
Action Planning Exercise
● What were your big takeaways
today?
● What two action items will you take
from todays session?
63
I Need You!
● How can we improve the survey?
● Can we get at least 35
participants?
64
Visit Sierra-Cedar Website Get Full Survey Details and Sign Up To Participate Next Year!
www.Sierra-Cedar.com/annual-survey
65
Reasons for Moving to SaaSImproving the User Experience Continues as #1 Reason to Move
76%
61%
58%
50%
50%
48%
Improved user experience foremployees, managers, as well as HR
Easier upgrades
Best practice functionality
Faster time to implement and achievevalue
Eliminates dependence on IT
Reduces need for internalinfrastructure
Reasons for Moving to a New SaaS Core HRMS Stakeholder Rankings
HR IT Exec.
1
2
3
4
6
5
1
2
3
5
6
4
1
4
3
5
2
1
2
3
5
4
6
Executives Also Focus on Infrastructure and Upgrades
6
n=1,022
66
Concerns With Moving to SaaS HRMSWith High Profile Data Leaks in Press, Security & Control Concerns are Growing
61%
56%
55%
50%
46%
32%
Concerns about service and support
Inability to customize
Integration complexities
Security/data privacy
Loss of control over systems/data
Concern about vendor lock-in
Concerns About Moving to a New SaaS Core HRMSStakeholder Rankings
HR IT Exec.
1
2
3
4
6
5
1
5
2
3
6
3
3
4
1
5
1
6
+25%
+40%
1
2
3
4
6
5
n=1,022