Next Generation HR Model

A discussion document for the University of California

December 2011

Scott Bolman

Chicago - North Wacker Drive

 This presentation
Thi t ti describes
d ib a
service delivery model for HR

It is
i intended
i t d d to
t foster
f t discussion
di i
at UC

It should not be interpreted as the

agreed-upon
g direction for UC
MERCER December 14, 2011 1
The 3-legged stool model of HR Service Delivery

HR business
partners
t
(Broker HR services)

HRIS HRIS
HR
Strategic HR Strategic HR
leadership

Operational HR (Strategy Operational HR

HR shared and governance) HR
service centers of
centers HRIS expertise
(Deliver HR (Design HR
services) programs)

MERCER December 14, 2011 2

 The key elements of the
3-legged
3-legged stool
stool remain
fundamental to HR
organizations,
i ti but
b t there
th
are other factors to
consider for the future of
the function includingg

MERCER December 14, 2011 3

 the proportional size of each service delivery component

HR
Fewer, more strategic HR
Fewer HR centers of expertise
business
business partners partners and HR leadership will
become slightly smaller

HRIS HRIS
HR
Strategic HR leadership Strategic HR
HR leadership
Operational HR Operational HR

HR shared
HRIS HR centers
service
Larger, more
L off expertise
ti
centers
functional shared
services

MERCER December 14, 2011 4

 the role that HR leadership plays in governance

HR leadership plays a
key role in directing the
nature of the services
delivered by the three HR
other components, business
providing governance partners
and controls

HRIS HRIS

Strategic HR Strategic HR
HR leadership

Operational HR Operational HR

HR
HR
HR shared
shared HRIS
centers
service
service of
centers
centers expertise

MERCER December 14, 2011 5

 the part played by technology

HRIS and related

technologies are a key
enabler for effective service
delivery, and should be the HR
direct responsibility of the business
HR shared service center partners

HRIS HRIS

Strategic HR Strategic HR
HR leadership
Operational HR Operational HR

HR
HR shared centers of
service
i centers
t HRIS
expertise

HRIS

MERCER December 14, 2011 6

 the importance of shared services in making the model work

Shared Services will become HR centers of expertise will use

multi-functional outsourcing to handle special
projects and annual peaks
Outsourcing of select activities HR b
business
i
partners
will continue to be a part of the
shared services model

Strategic HR Strategic HR

HR leadership
Operational HR Operational HR

HR
centers of
HR shared expertise
service

Outsourced
Outsourced

HRIS

MERCER December 14, 2011 7

 customer interactions HR provides strategic services to the business
and operational services to employees

The business

The primary . but they also design

customer
t off th
the HR programs for
f th
the business
b i
business partner is HR business
partners
the business . and should be viewed
as more strategic

Strategic HR Strategic HR
HR leadership
Operational HR Operational HR

HR
HR shared centers of HR centers of
service centers expertise
p expertise
p design
g
deliver services HR programs to
to employees Outsourced
be delivered by
shared services
HRIS

Employees
MERCER December 14, 2011 8
 employee interactions with HR operations

The business

Employees can readily HR business

access HR information online partners
via a portal, supported by
HRIS

Strategic HR Strategic HR
HR leadership
HR
HRIS centers of
Operational HR Operational HR
expertise
p

HR Service Outsourced
HR case
manager
manager

If queries are not Tier 3

Tier 2
resolved, they can Escalated matters are dealt
Tier 1
contact a call center with by in house resources,
Tier 0
(e.g., SSC, HR case managers
or HR service managers)
Employees
MERCER December 14, 2011 9
 the importance of line managers in delivering people management

The business

Line managers need to

be identified as an HR business
explicit part of the partners

service delivery model

Strategic HR HR Strategic HR
HR leadership centers of
Operational HR expertise Operational HR

HR case
HR service Outsourced
manager
People development manager People
Dev
managers will support Ti 3
Tier managers

their colleagues Tier 2 Line

managers Line Managers will
Tier 1
also be supported
Tier 0
HRIS
by HR case / service
managers
Employees
MERCER December 14, 2011 10
The complete picture - next generation HR

The business

HR business
partners

HR
Strategic HR Strategic HR
centers of
HR leadership
expertise
Operational HR Operational HR

Outsourced
HR
HR case
country
manager People
manager
Dev
Tier 3 managers

Tier 2 Line
managers
Tier 1
Tier 0

HRIS

Employees
MERCER December 14, 2011 11
The Outcome

The role of HR will continue to shift and be more:

Strategic developing,
developing managing and operationalizing the human capital
strategy

Focused on metrics and measurement providing the business with

information and tools to guide fact
fact-based
based decisions

Enabled to execute the fundamentals via technology using co/outsourcing

or internal shared services

Effective in supporting line managers providing enhanced HR operational

support and easy-to-use tools

Efficient in delivering services at the right cost providing ALL transactional

services work from the shared services function should optimize the cost model

MERCER December 14, 2011 12 12