HR Shared Services / HR Operations

Models and Trends

Danielle Collier
Catarina Levita Schallenbach
December/2017 1
 Methodology

HR
Centers of HR Shared
Business
Excellence Services /

Research • 3 legged stool HR Partners

(COEs) Operations
operating model (HRBPs)

39
Survey
• 9 questions
• Understand HRSS structures
Companies

• 45 minute interviews
44
Interview
• Deep dive into
Employee Experience,
15
Tech and HR HRSS
Organization Industries
Executives

2
 Presentation Overview

1. Areas of Evolution
1. The Model
2. The Focus of HRSS Centers
3. Process and Technology

2. HR Organization and Future Trends

3
AREAS OF EVOLUTION

4
 HRSS: Three Areas of Evolution

How HRSS is organized to provide

Model HR services to the organization

Center What are the main drivers of HRSS 46% of companies are currently
going through a large HRSS /
Operations change!

How has HRSS structured process

Process and technology

Overview Model Evolution Process Evolution Center Evolution HR Organization 5

MODEL EVOLUTION

6
 HRSS: Model Evolution

Decentralized Centralized & Complex & Global

Standardized

• No true shared services • One structured area • Provide many HR functions

• Services are provided by providing some HR Services (i.e. compensation,
COEs and HRBPs • Provide few HR functions recruitment)
(i.e. benefits, payroll, etc.) • Provide global processes
• Services are standard to all • All repeatable transactions
employees & more complex functions

21% 46% 33%

Overview Model Evolution Center Evolution Process Evolution HR Organization 7
 Survey Data by Company

Which functions are included in your HRSS?

Where are your HRSS centers located?

HRSS Functions 97%

Center Locations

Benefits 85%
39% of companies have 31%
Reporting 85% HRBPs and Managers access
26%
reports through self-service. 23%
Job Leaves 82%
18% 15%
74% 10% 8% 8% 8% 8%
Payroll
Recruiting 74%
Unemployment 69%
Compensation 69%
Relocation 64% Other Countries
Performance Management 59% Canada Belgium France Netherlands
Employee Relations 49% Germany Brazil Hong Kong Panama
Onboarding 46%
Japan Costa Rica Korea Slovakia
T&D/Learning 46%
Australia Czech Republic Malaysia Spain

Overview Model Evolution Center Evolution Process Evolution HR Organization 8

 HRSS Model: Trends and Insights

• 39% of the companies are • 21% of the companies are • 15% of the companies have
Tailored

GBS

focusing on tailoring their
services to employees
• Focus on customizing
services (even companies
that do not have complex
HRSS model)
Outsourcing
inside a Global Business their HRSS fully outsourced
Services (GBS) model • Variety of industries
• Variety of industries • Half are focusing on
• Most of them are tailoring efficiency and cost
services to employees reduction, the other half in
• Most of them provide many tailoring services
HR functions • Some are leveraging their
vendors Artificial Intelligence
(AI) capabilities

Overview Model Evolution Center Evolution Process Evolution HR Organization 9

CENTER EVOLUTION

10
 HRSS Center Evolution

High Touch Efficiency Customer Experience

High Cost Cost Reduction Digital Evolution

• HR Generalists • Transactional • Portal for self-

performing tasks work in centers service / direct
• One contact • Outsourcing access
person • Call center / • Focus on the end
• Time-consuming ticketing model user
and individual

Overview Model Evolution Center Evolution Process Evolution HR Organization 11

 HRSS Center Evolution: Employee
Experience
The HR service center is the face of
HR to employees

Interest in Employee Emphasis on Employee

Exploring Customer Centric
Experience Experience
• Just beginning to think • Understand importance of • Employees at the center
about employee as employee experience • Creating consumer grade
customer • Making changes or experiences
• May not have investment investments based on • Collecting employee
or time to dedicate employee experience feedback
• Model may not support • Considering employees in • Involving employees in the
design and implementation design process
focus
15% 44% 41%
Overview Model Evolution Center Evolution Process Evolution HR Organization 12
 Employee Experience

Moments
that
matter Employee =
Personas Customer
Driving
self-
service
User
journeys
Employees Seamless

Consumer
grade Material
experiences Design personalized /
thinking relevant to me

Overview Model Evolution Center Evolution Process Evolution HR Organization 13

 Employee Experience: Best-in-Class
Practices, Challenges, and Trends

• Business level • Controlling the pace • 25% of companies

Trends
Best-in-Class

customer service
• Head of employee Challenges of change – 50% of
companies
highlighted
onboarding and
experience candidate
• Self-service kiosks experience as areas
of focus
• Direct access

Overview Model Evolution Center Evolution Process Evolution HR Organization 14

 HRSS Center: Metrics

75% of companies are using traditional customer service metrics

Not Yet Implementing Interest in Service Level Emphasis on Continuous

Metrics Metrics Improvement
• Model may not support • Call volumes • Measuring qualitative
strong metrics • Response times and quantitative data
• Service surveys • Reviewing feedback as a
• Trending topics team
• Changing in response to
feedback

11% 46% 33%

Overview Model Evolution Center Evolution Process Evolution HR Organization 15
 HRSS Center Metrics: Best-in-Class
Practices, Challenges, and Trends

• Functionality or • Taking time to • “Doing

Trends
Best-in-Class

policy issue Challenges determine the

correct metrics
something” with
the data
• Goal % or target
• Following up • Moving to
with customers predictive
• Pulse surveys analytics

Overview Model Evolution Center Evolution Process Evolution HR Organization 16

PROCESS & TECHNOLOGY EVOLUTION

17
 HRSS: Process and Technology

Overview Model Evolution Center Evolution Process Evolution HR Organization 18

 HRSS Process & Tech Evolution

Process for Integrated system with Process for one global

individual systems heavy customization cloud system

• HR buys the best • HR implements one • Design seamless

system on the market core system (ERP) global processes
for each function • Few systems • Overlay the
• Several different complement the ERP technology that is able
systems with no • Heavy customization to deliver the process
integration to adapt system to • One global cloud
processes and regions system

Overview Model Evolution Center Evolution Process Evolution HR Organization 19

 HRSS Process & Tech: Trends

• 72% of the companies • 62% of the companies • 2 companies are

Cloud

are in the cloud
• 100% of the
executives mentioned
that a move to the
cloud is important
Global Support
Global v. Local have global processes
• Companies mapped
already giving some
centers one specific
processes globally and global process
then localized them responsibility

Overview Model Evolution Center Evolution Process Evolution HR Organization 20

 HRSS: Tech Capabilities

Success
HRIS Workday SAP PeopleSoft
Factors
53% 10% 10% 7%
Other HRIS:
20%

Other
Case Management ServiceNow SalesForce
systems
23% 13% 36%
No system:
28%
Tech Capabilities

Self-service
Automation Chat Mobile Robotics Chat Bots
portal
87% 46% 41% 21% 13% 8%

*All percentages are approximates.

Overview Model Evolution Center Evolution Process Evolution HR Organization 21

 HRSS Process & Tech: Best-in-Class
Practices, Challenges, and Insights

Systems
• Walk Me • Understand the • Simplify IT landscape as
Best-in-Class

Insights
Challenges
• HR data warehouses appropriate use of AI, much as possible – one
robots, and automation cloud system for core HR
Processes • Planning resources: where processes
to invest • Diverse team to look into
• Mapping opportunities to
• Data entry processes
automate
• Customization • Maintenance of robots
• Road-map to all
technology improvements • Be agile
• Protecting data

Overview Model Evolution Center Evolution Process Evolution HR Organization 22

THE HR ORGANIZATION

23
 The HR Organization
The systems are like the roof on your house - you don’t want to spend
money until it starts leaking. Our system is the foundation of the house -
we need to DRIVE profit not just keep the roof on.

HRBPs HRSS
• Face to the business • Execution
• Client relationships • Transactional Work
• Strategy • Employee Experience

COEs Goals of Structure

• Reduce burden on HRBPs and
• Strategy COEs by removing repeatable tasks
• Policy and Program Design • Drive cost savings and add value
• Escalated Questions • Pay for yourself

Overview Model Evolution Center Evolution Process Evolution HR Organization 24

 HR Organization: Execution

You want to be co-developing because you don’t want a policy you can’t
execute in real life

Partnership between COEs and HRSS Governance

• Communicate Early • Monthly committee meetings

• Listen & Consult • Helps fill in gaps and spot potential
Formal Partnership watch-outs
• Direct COE/HRSS partners • Designated global process owners or
• Dedicated team members process team
Informal Partnership • Clearly delineated roles and
responsibilities
• Natural working model

Overview Model Evolution Center Evolution Process Evolution HR Organization 25

 HR Organization: Challenges

Fear that jobs are going away

More services = More staff

Governance post implementation

GBS environment

Vendor management
Overview Model Evolution Center Evolution Process Evolution HR Organization 26
 The Future HRSS Workforce:
Skills & Capabilities

Customer Focus/Service
Problem Solving/Analytical
Orientation/Employee Tech Orientation
Skills/Root Cause Analysis
Experience • Use HRSS as a
56% 49%
starting point for
33%
junior employees
• Breadth and depth
of HR knowledge
Process Execution Continuous Improvement Agility/Adaptability/"Flex”

28% 28% 21%

Overview Model Evolution Center Evolution Process Evolution HR Organization 27

 The Future of HRSS

Change in Technology

Inclusion of more complex functions

Outsourcing Push/Pull

GBS

War for Global SS Talent

Overview Model Evolution Center Evolution Process Evolution HR Organization 28

Q&A

29
Thank you!

30
APPENDIX

31
 Tech Capabilities: Terminology

Terminology
Automation Uses software to carry out tasks which humans usually do
when using computer programs
Robotics A type of automation, uses a software robot to execute
integrated tasks into existing processes
Artificial Intelligence Learn how humans perform tasks when using a computer
(AI) program, allowing software robots to perform more
intelligently than the options above. I.e.: chat bots
Source: https://blog.robotiq.com/whats-the-difference-between-automation-and-robotics 32
 Participating Companies

AbbVie Colgate-Palmolive Macy’s

Accenture Dell MasterCard
American Express Dupont Merck
Amgen Ecolab Polaris
Aon Estee Lauder Procter & Gamble
Boehringer Ingelheim General Electric Protective Life
Boston Scientific General Mills Prudential Financial
Bristol-Myers Squibb The Hershey Company SC Johnson & Son
Cardinal Health Hewlett Packard Enterprises Shell
Caterpillar Johnson & Johnson T. Rowe Price
CDW Johnson Controls Terex
Chevron JP Morgan Chase TIAA
Cigna Lincoln Financial Workday

33