New Trends in HR Technology

David B Turetsky Vice President, Aon Consulting

New Jersey Compensation Association 12th November, 2002

What is your Companys Technology Appetite?

This session will present best in practice examples designed to:

Using current technology to full capacity; How to plan for the future; Communication of an HRIS system's value beyond HR; Thinking about new ways of using data to help move your business forward; and, Effectively budget and manage your HR Technology resources.
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How to be a better business partner using Technology

Use systems that are appropriate for your company Contact your audit and legal departments Trust Managers and Employees Its all about the data or data is power

Act as if your HRIS group is a Center of Excellence

Agenda
Overview Evolution
Technology HRMS

Plan for the Future Getting Religion on Strategy The Future Questions
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Overview

Overview

What is HR?
human resources n. Abbr. HR (used with a pl. verb) The persons employed in a business or organization; personnel. (used with a sing. verb) The field of personnel recruitment and management.

Recruit, Hire, Train, Sustain, and Reward the Right People. Source: The American Heritage Dictionary of the English

Language, Fourth Edition Copyright 2000 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved.

Overview

What is IT?
information technology n. Abbr. IT
The development, installation, and implementation of computer systems and applications.
Source: The American Heritage Dictionary of the English Language, Fourth Edition Copyright 2000 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. <business, jargon> (IT) Applied computer systems - both hardware and software, and often including networking and telecommunications, usually in the context of a business or other enterprise. Often the name of the part of an enterprise that deals with all things electronic. The term "computer science" is usually reserved for the more theoretical, academic aspects of computing, while the vaguer terms "information systems" (IS) or "information services" may include more of the human activities and non-computerised business processes like knowledge management Source: The Free On-line Dictionary of Computing, 1993-2001 Denis Howe

Turning data into knowledge

Overview

HR and IT
Human Resources Growth Overtime Salaries Executive Comp Recruiting Reward & Perqs Job Promotions Documentation Succession Manager Development Planning Self Service Benefits COBRA Communications FLSA/ Measurement Job Compliance EEOC Evaluation Training Incentives Expatriation/ Severance Employee Moving Success Self Service Information Technology

Excel
PowerPoint

Access

HRIS
Payroll

Overview

Bring HR and IT Together

HRIT, HRIS, HRMS, etc. Major HRIS Vendors:
Oracle, PeopleSoft, SAP, etc. Lawson, ADP, Best, Ultimate, etc.

Payroll
PeopleSoft, Lawson, SAP, Oracle ADP, ProBusiness, Ceridian

Other systems
Compensation Mgmt - AIM, Kadiri, Workscape, etc. Planning Aon, Mercer, Watson Wyatt, Towers Perrin, etc. Incentives - Centive, Synygy, Westport Software, etc. Benefits Aon, PeopleClick, Workscape, SynHRgy, etc. Portals, Recruiting, Learning Management, Talent Management, etc.
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Evolution

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Evolution

A Short History of Computers

The Early Years

Rotating Slide Rule 1622

Jacquards Loom Machine 1801 Pascals Adding Machine 1642

Zuses Z-1 Machine 1938 Babbages Difference Engine 1801 Colossus 1943

Abacus 3000 B.C.

Source: IEEE

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Evolution

A Short History of Computers

1950s 1970s 1990s

Mainframes Storage COBOL(1959)

Calculators Microcomputing Apple II

User Interface Networking Email/The Internet

1960s Pascal Fortran Basic

1980s Software Processing power CDs

2000s Wireless Miniaturization Convergence

Source: IEEE

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Evolution

History of HRMS
DBMS Payroll HRIS
Storage

Transactions

Analysis

Enterprise Resource Planning

Access
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Evolution

Rainbow of Choices

Payroll
Access/Excel
Next Gen Payroll

HRIS
ERPs

eHR
HR Portals

Transactions entered manually and centrally Stores data and transactions Calculations are done outside of the system Simple exports to benefit providers

Transactions entered manually and centrally Stores data and transactions Performs simple calculations Provides feeds to other systems and providers via export

Transactions are initiated by employees or managers All calculations are parameterized for easy changes Other systems use ODBC, automated feeds or other integrated linkages

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What do you need in your HR systems to support business strategies?

Evolution

(Check all that apply) Manager Self Service Employee Self Service Executive Information System Payroll feeds Benefit calculations Reporting (including Managerial/Legal) Compensation Program Administration History Globality Budgeting/Planning Headcount Recruiting Skills Inventory, Career Development, Succession Planning, Training, Competencies Job History and Employee Background Market Pricing/Matching/Survey Management
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Evolution

System Design

IT/Infrastructure Recruiting Managers/ Employees History

Compensation Benefits

Finance

Calculations

Security

Data
Legal/ Audit Reporting HR Strategy & Planning

Training Executives Headcount

Payroll

Facilities

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Evolution

Manager Self Service

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Evolution

Employee Self Service

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Plan for the Future

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Plan for the Future

Where do I start?
Corporate HR audit What are your companys?
Business Goals Acquisition Strategies Understanding of timeframes

What are the HR priorities for systems? Whats your BUDGET?

ROI
Business Plans are not only for dotcoms anymore!

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Plan for the Future

What does that mean for your HRMS?

New System or a makeover? Highly customized or configured?

How old is your current system?

Are there plug-in solutions out there for your needs? Think ahead
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How to save time and money or Implementation Strategies 101

What do you want your HR processes to be? Clean data = money savings

Plan for the Future

Make sure you get a specification from your vendor Keep the data clean Manage the implementation carefully Remember your ROI requirements and business plan goals
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Plan for the Future

Post-Implementation Strategies
Now that your system is built, keep it running smoothly Remember to stay true to the processes designed into your system Create plans for renewal of your vows Reporting and analyzing off of your new data goldmine Ensure ROI goals have been met
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The Top 10 Lessons Learned of Every Technology Buyer

1. It always takes more time and more money than you thought!

Plan for the Future

2.
3. 4. 5. 6. 7.

Review your processes first

Map out step by step who does what and how it will work prior to design (workflow is key) Think globally at the beginning Exceptions are the rule flexible designs are key Get detailed specs in writing before programming Usability or user testing early in the design

8.
9. 10.

Dont underestimate the training required for the program fundamentals

Do ONE thing right first! TESTING, TESTING, TESTING
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Getting Religion on Strategy

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What is Strategy?

Getting Religion on Strategy

PARADIGMS
paradigm
n. 1. 2. 3. One that serves as a pattern or model. A set or list of all the inflectional forms of a word or of one of its grammatical categories: the paradigm of an irregular verb. A set of assumptions, concepts, values, and practices that constitutes a way of viewing reality for the community that shares them, especially in an intellectual discipline. Source: The American Heritage Dictionary of the English Language, Fourth Edition Copyright 2000 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved.

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What is your HRIT strategy?

Getting Religion on Strategy

HR is a cost center - provide a service that business leaders need Anticipate needs Ask executives for their knowledge wish list Turning information into knowledge Be bold think creatively
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Strategic Analyses
Headcount
Statistics Metrics

Getting Religion on Strategy

Turnover Total Costs Recruiting

Metrics Guidelines

Turn data into knowledge

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How to be a better business partner using HRIT

Getting Religion on Strategy

1. Build systems that are appropriate for your company 2. Contact your audit and legal departments 3. Trust Managers and Employees 4. Its all about the data or data is power

5. Act as if your HRIT is a Center of Excellence

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The Future

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The Future

Where is it going?
Integrated ERP Systems Advanced IVRs

Portals
PDA Access to Data Decentralization

Personalization

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Questions

?
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