Mega Trends Impacting the Future of HR and Payroll · 2018-04-19 · strategy development, operating model design and development, workshop design, organizational design, process

1© 2018 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.

27 March 2018

Mega Trends Impacting the Futureof HR and Payroll

Felicia Cheek, Global Time to Pay Advisory Program, Practice Leader

Franco Girimonte, North American HR Executive Advisory Practice Leader


Content ▪ Introductions & Overview

▪ Next-Generation Digital

Capabilities

▪ Organization Structures and

Service Delivery Models

▪ Evolution of Job Roles

▪ Open Discussion


Today’s Hackett Presenters

FRANCO GIRIMONTE– NORTH AMERICAN HR EXECUTIVE ADVISORY PRACTICE LEADER

GLOBAL HUMAN RESOURCES EXECUTIVE ADVISORY PROGRAM

Mr. Girimonte has over 26 years of experience of combined consulting and practitioner experience. He has led a wide-range of HR

transformation programs, with a goal of better aligning the function to the business strategy and improving overall performance across a range

of comparative factors. With a concentration in functional transformation, his experiences include large-scale program management, vision and

strategy development, operating model design and development, workshop design, organizational design, process improvement and change

management solutions

FELICIA CHEEK–GLOBAL TIME TO PAY ADVISORY PRACTICE LEADER

For more than 25 years, Ms. Cheek has worked as a payroll advisor for ADP, Time Warner and Xerox. In her role, she works closely with HR

and Finance professionals who own the payroll process providing strategic insight, metrics and guidance about best practices. In addition, she

has fostered strategic relationships with payroll associations in the United States, Europe and Australia. Ms Cheek is a frequent speaker at

HCM events around the globe and a regular writer for the GPA Magazine, various payroll organizations and industry publications. She is a

member of the American Payroll Association, the Global Payroll Association and was inducted into the APA Hall of Fame in 2009.


93% of Dow Jones Industrials

87% of Fortune 100

88% of Dow Jones Global Titans

87% of DAX

58% of FTSE 100

53% of CAC 40

13 Global offices

We served

1,150+ Clients

Our Clients

A global strategic business advisory and operations

improvement firm

We help companies establish and implement

sustainable business performance improvements

▪ SG&A benchmarking “gold standard” since 1992

▪ We start with “why not”, fact-based, research &

intellectual capital

▪ Senior practitioner model, results focused

▪ Assist our clients in designing and implementing

World-class Service Delivery execution capabilities

▪ Long term transformation journey assistance

through executive advisory membership HACKETT DEFINES AND ENABLES

WORLD-CLASS PERFORMANCE

The Hackett Group

Next-generation

Digital Capabilities


Digital technologies are impacting different industries at different rates

Source: “The Digital Business Imperative”, Forrester Group, Feb. 15, 2017

70%

60%

50%

40%

30%

20%

10%

0%

10% 20% 30% 40% 50% 60% 70%

Retail

Insurance

HealthcareTechnology products

Transportation and travel

Pharmaceuticals and

medical equipment

Professional and business services

Consumer packaged

goods

Oil, gas, mining and chemicals

Telecommunications

Banking and

financial services

Industrial productsConstruction and

engineering

Pe

rce

nt

be

lie

vin

g b

us

ine

ss

will b

e m

as

siv

ely

dis

rup

ted

Percent saying digital technology is a major driver of their business strategy


Digital Transformation: business services functional executives believe it will have a profound impact, BUT the vast majority are not ready for it

Believe digital transformation will fundamentally change the way business

services are delivered in their function over the next 3-5 years

… but only91%36%

Source: 2017 Key Issues Study, The Hackett Group

Finance

report having resources and competencies in

place to execute a digital transformation strategy

86%34% HR

92%32% IT

84%25% Procurement

84%25% GBS Organizations


The digital transformation landscape

Intensifying Competition Disruptive Innovation

Digital Operations Digital Insight

Customer centricity

Global competition Margin pressure M&A Digital disruption Product and service

innovation

Business model

innovation

Big data Predictive

modeling

Data

visualization

Mobility

Internet of

things

Digital

workforce

Social

technologiesRPA

Cognitive

computing

AnalyticsData

integration

Design thinking Digital customer

engagement

Customer journey

mapping

Segmentation Individualization Omnichannel

Cloud


11.2x1.9x

4.6x

1.4x2.1x2.1x*


44%

93%

38%

80%

38%

53%

13%

60%

25%

47%

6%

67%

50%

7%

56%

20%

50%

40%

56%

33%

38%

33%

56%

27%

94%

100%

94%

100%

88%

93%

69%

93%

63%

80%

63%

93%

Currently 2-3 Years Currently 2-3 Years Currently 2-3 Years Currently 2-3 Years Currently 2-3 Years Currently 2-3 Years

Cloud-based applications/SaaS Mobile computing Social media/collaboration Data visualization tools Master data managementtechnologies

Advanced analytics

Broad adoption Limited adoption*Growth rate for mainstream adoption

Technologies with highest projected mainstream adoption rates

Cloud based applications, RPA and advanced analytics are expected to lead emerging technology adoption


2.2x*

5.2x

5.2x

2.1x

In emerging technologies, most overall adoption growth is expected for AI and virtual assistants/chatbots


* Growth represents limited adoption + mainstream adoption

** Including machine learning, natural language processing, speech recognition, expert systems, augmented reality

47%

13%

27% 27%

7% 7%

31%

20%

13%

27%

13%

40%

13%

60%

33%

31%

67%

25%

53%

13%

67%

13%

67%

0%

40%

Current 2-3 years Current 2-3 years Current 2-3 years Current 2-3 years Current 2-3 years

Internet of things Robotic process automation Cognitive computing/artificialintelligence**

Virtual assistants/chatbots Blockchain

Broad adoption Limited adoption

Emerging technologies adoption rates


Smart Automation focuses on Digital Operations

▪ Mimics human actions

▪ RPA is software (i.e.

“robots” or “bots) that

emulate human

execution of routine

tasks on business

application

▪ Application of

technology to primarily

automate

clerical/administrative

work

▪ Performs rule based

task on structured data

RPA

▪ Captures analogue or digital

inputs (document, text, voice,

video, image)

▪ Data can be either in a

structured or a semi-structured

format

▪ Includes technologies such as:

OCR, Handwriting Recognition,

Speech-to-Text, Text-to-Speech,

Structured Pictures, Structured

Language Translation

INTELLIGENT DATA CAPTURE

▪ Augments human intelligence

▪ Predicts events or outcomes

▪ Prescribes or recommends

decisions

COGNITIVE AUTOMATION

RPAMimics Human

Actions

INTELLIGENT

DATA CAPTUREMimics Human

Interpretation

COGNITIVE

AUTOMATIONAugments Human

Intelligence

Impact to Human

Resources


Employee Life CycleAdministration Recruitment

Learning &Development

Compensation &Benefits Payroll

PerformanceManagement

What’s the potential for Robotics Process Automation in HCM?

Recruitment planning

Candidate Sourcing

Candidate Screening &

Assessment

New Joiner Hiring

New Joiner Onboarding Training booking

Registers & record keeping

Personal Development Plans

Compensation Benefits

Strategy

Salary Survey

Strategic Surveys

Strategic Procurement

Compensation Plans

Benefit Schemes

Retention

Contract management

Employee relations

admin

Employee master data

Leave and absence

admin

Employee self-service

management

Exit administrationAuto

mata

ble

Activitie

s

Few

Many

Payroll and strategy policy

Time Management

Payroll calculations

Post payroll

Periodic tax & payroll

Payroll compliance

Shadow payrolls

Payroll Accounting

Goal and objective setting

Performance Appraisals

Succession Plans

Talent Management


What benefit can you expect from RPA?

Source: The Hackett Group’s research; public sources


Chatbots are being leveraged in various ways across HCM

Knowledge Base

• Capture HR Policies

• Benefit Plan Information

• Payroll Rules

Chatbot Connection

• Chat Feature in Application

• Connect to Messaging

• Connect to Alexa, Siri

Engage

• Employees – Provide Immediate Answers

• Candidates – quick response to questions

• Former Employees – Provide Needed Information


Social increases in power by connecting employees to pertinent information faster


Mobile capabilities continue to grow making them an increasingly important part of HCM

Same content on any platform

Mobile Learning

Analytics

Mobile Approvals

Org Structures and

Service Delivery

Models


Trends that cause HCM to change Org model

Add

slide

from

digital

SDM

on

drivers


Typical activity split – future organization view

Key Differences

► Improved Self-

service capability

► Leveraging RPA

within Transactional

CoE

► Strategic services

are less siloed

► Introducing clearly

defined cross-

functional

capabilities

► Interchangeable

B2B network of 3rd

party providers

► Example of WFM

and impact on labor

analytics

Sample List

Evolution of Job

Roles


What skills will a digitally-enabled HCM workforce need most?

Business Acumen

Understand key business drivers

Knowledge of factors, priorities and business demands

Identify problems and prioritize alternatives

Relationship Management

Advanced interpersonal skills; high social and emotional intelligence

Positively influence decisions

Open, approachable, collaborative

Data Savviness

Process data and extract relevant information

Knowledge of analytical tools and methodologies

Translates analyses into actionable plans

Strategic Mindset

Develop strategic frameworks and visions

Anticipates market changes

Address challenges and outline future direction

Agility and Change Orientation

Welcomes change

Comfortable with shifting priorities

Able to deal with ambiguity

Creativity and Innovation

Create diverse and novel ideas, or novel combinations of ideas

Create and recognize new patterns/categories

Curiosity, broad interests, constructive criticism


Disappearing

– Administrative and level 1

support jobs

▪ Payroll clerk

▪ Recruitment clerk

▪ Administrative and

operational support

(recruiting and training

processes)

▪ Direct employee contact

managers

– HR systems development jobs

Changing

– Recruiting Solution Architect

– Employer branding

– Sourcing

– Candidate / Job matching

– Professional Development

Solution Architect

– Employee Development

Coaches

– Learning Module Developer

– Innovative & Agile Organization

Leader

– Culture & Values development

leader

– Collaboration Development

Expert Workspace Design Expert

– Compensation and Benefits

Professional

– HR Business Partner

– Payroll Analyst

What does this mean for HCM Roles?

Appearing

– Workforce business analysts /

insight experts

– Workforce Data Program Leaders

– Assessments/Psychometric

– Communication / data

visualization experts

– Survey specialists / data collection

experts

– Data Solutions Expert

– Solution / Service Architect

– Service / Product Manager

– Customer Relationship Services

Manager

– Robotic Process Automation

Specialist


Questions or comments?


Amsterdam | Atlanta | Chicago | Frankfurt | Hyderabad | London | Miami

Montevideo | New York | Paris | Philadelphia | San Francisco | Sydney | Vancouver

Contact information

Felicia Cheek

Global Time to Pay

Program Practice Leader

+1 404 218 8666| o

[email protected]

Franco Girimonte

North American HR Executive

Advisory Practice Leader

+1 313 909 4187 | o

[email protected]


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Mega Trends Impacting the Future of HR and Payroll · 2018-04-19 · strategy development, operating model design and development, workshop design, organizational design, process