APAC 0919 BG pp17

You might also like

Download as pdf or txt
Download as pdf or txt
You are on page 1of 17

Buyer’s guide to human

capital management
Home
Home

Human capital
management:HR’s
newest recruit
More Asia-Pacific
organisations are
turning to HCM
software to recruit
employees

Listen to staff to
prepare for the future
Technologies
and programmes
amplifying employees’
voices are gaining
popuarity

Can work allocation


algorithms play fair?
Allocating work
by algorithm has
its advantages for
workers as well as
employers, but can it
be done fairly?

In this handbook, focused on human capital management


(HCM) in the Asia-Pacific region, Computer Weekly
looks at the advantages of HCM software in recruitment,
the importance of listening to staff and the considerations
A PUBLICATION FROM that should be made when using work algorithms
computerweekly.com buyer’s guide 1
IMAGES: JANE KELLY/ADOBE
BUYER’S GUIDE TO HUMAN CAPITAL MANAGEMENT

Human capital management:


HR’s newest recruit A t Indonesian interior design and furnishing firm PT
Gema Graha Sarana Tbk (Gema), automating recruit-
ment and employee onboarding processes has slashed
the average time it takes to fill vacant positions by
20%, while employee requisition requests are now approved
within a day instead of three days, as was the case previously.
These improvements, resulting from the use of a cloud-based
More Asia-Pacific organisations are turning to HCM software to
human capital management (HCM) service, have lowered the
recruit, engage and retain a new breed of employees who increasingly firm’s staff turnover rate, enabling it to attract and retain talent in
expect personalised services from HR teams, writes Aaron Tan a highly competitive job market.
Across the Asia-Pacific (APAC) region, more organisations
such as Gema are turning to HCM software to improve efficien-
cies in attracting and managing talent, and to reduce costs.
According to IDC, the HCM market in APAC, excluding Japan, is
expected to grow at a compound annual growth rate of 19.4% by
2023, with China, Australia and India contributing almost 70% to
overall revenues.
Starting from 2016, there has also been strong uptake of HCM
software in Singapore, Taiwan and Thailand, says Srinivas Sameer
Javvadi, market analyst for IDC’s APAC software research group
based in Bangalore, India.

Cloud-based offerings
The availability of cloud-based HCM offerings is one of the key
growth drivers of the HCM market, says Javvadi, noting that
these services offer a good user experience, along with analyt-
DJVSTOCK/ADOBE

ics and application programming interface (API) capabilities. In


addition, organisations are looking to move away from legacy HR

HOME

computerweekly.com buyer’s guide 2


Home

Human capital
management:HR’s
systems that have been customised for years and are costly to When evaluating HCM software, organisations should draw up
newest recruit maintain and upgrade. Instead, they are looking to adopt technol- an in-depth map of their current systems and, from there, estab-
More Asia-Pacific ogies that require less custom code and offer more configuration lish what data is being received, how the data flows and where
organisations are
turning to HCM options, he adds. this data sits.
software to recruit Oracle’s Khanna says this starts from the foundation of the soft-
employees
Changing jobs ware – the database.
From a business perspective, the increasing competition for tal- Any modules deployed must sit on the same platform and share
Listen to staff to
prepare for the future
ent, skills shortages and availability of social recruiting tools are common data, integrating well with each other and allowing for
Technologies making it easier than ever for workers to change jobs. a seamless employee experience. This will reduce administration
and programmes These challenges are driving HR leaders to align their HCM, inefficiencies linked with overlapping systems.
amplifying employees’
voices are gaining data and talent strategies to create
popuarity great employee experiences that Business growth
best serve their customers and busi- “O rganisations need an HCM It is also crucial to have a complete
Can work allocation ness, says Shaakun Khanna, head of solution that scales as the busi-
algorithms play fair?
HCM applications at Oracle APAC. solution that provides visibility ness grows.
Allocating work
by algorithm has
its advantages for
“Research from Oracle and the
WHU-Otto Beisheim School of
to one source of truth ” The chosen HCM software, says
Khanna, should be able to handle
workers as well as
employers, but can it
Management has shown that many Shaakun Khanna, Oracle APAC the needs of a growing organisation
be done fairly? organisations have invested in the that is changing its organisational
right technologies, but are lacking the culture, skills or behaviours structure and reporting requirements. “Ultimately, organisations
necessary to truly reap their benefits,” says Khanna. need an HCM solution that is able to provide visibility to one
“Adaptability and agility are extremely important for organi- source of truth that is updated in real time,” he says.
sations if they want to get ahead of the competition and offer Rob Wells, president of Workday Asia, says investing in a new
market-leading propositions. Being adaptable is also a big factor HCM platform is a delicate process that affects people in a very
in any company attracting and retaining employees with the skills human way. “It’s usually a once-in-a-lifetime opportunity, so they
to drive them forward.” will naturally want to get it right,” says Wells. “This is why we view
HCM applications have a range of functionalities in the employee onboarding clients onto the Workday platform as more of an imple-
lifecycle – from talent management to payroll and expenses. mentation partnership rather than a traditional client-supplier

computerweekly.com buyer’s guide 3


Home

Human capital
management:HR’s
relationship. We constantly seek feedback throughout the process
newest recruit and tailor the platform to address their issues prior to going live.”
More Asia-Pacific
organisations are
turning to HCM Need for analysis
software to recruit Jill Popelka, senior vice-president and head of SAP SuccessFactors
employees
in APAC and Japan, says enterprises should first understand
their goals and challenges when evaluating HCM software.
Listen to staff to
prepare for the future
“Are they faced with an ageing workforce and now challenged
Technologies with attracting talent? Is the organisation in hyper growth mode
and programmes with multiple acquisitions in the next two to three years? What is
amplifying employees’
voices are gaining the digital readiness of the organisation?”
popuarity Understanding these goals, Popelka says, will set the framework
It’s important
for what is required and what is nice to have. for companies to
Can work allocation Overall, taking a pragmatic approach with a long-term vision is establish their
algorithms play fair?
the best way to determine an organisation’s needs. In addition, objectives when
Allocating work
by algorithm has interview people in the organisation, ask what they need to be evaluating HCM
its advantages for successful and to get their jobs done. software
workers as well as
employers, but can it
“A lot of the time HR can operate in a silo and focus on the
be done fairly? organisational needs over those of the people,” says Popelka.
“Be inclusive, be thoughtful and be honest – if you take this
approach you will have a good framework for determining what
you really need.”

IMAGES: ONTSUNAN/ADOBE
Key functionalities
IDC’s Javvadi notes that compliance with local regulations, such
as those related to payroll and security, cloud migration capabil-
ities and HR best practices, are the common criteria that APAC
buyers use to evaluate an HCM system.

computerweekly.com buyer’s guide 4


Home

Human capital
management:HR’s
“At SAP SuccessFactors, we’re seeing a variety of functionalities instance, many companies are starting to see more hourly-based
newest recruit deployed across Asia-Pacific,” says Popelka. or field workers who don’t usually reside in an office with a desk
More Asia-Pacific “In Asia-Pacific, in part because of the maturity of the market and computer.”
organisations are
turning to HCM and partly because of the age of the traditional tools out there, Besides enterprise mobility, Wells points to other megatrends
software to recruit we see more companies adopting our core HR solution, SAP that are shaping the HCM market: the rise of artificial intelligence
employees
SuccessFactors Employee Central, an integrated yet modular (AI) and machine learning; the growth of the gig economy; the
solution which allows customers to start anywhere,” she adds. changing definition of a worker; and the growing use of advanced
Listen to staff to
prepare for the future
While deployment of HCM functionalities is “generally bal- analytics in decision-making.
Technologies anced across the board”, Workday sees more companies AI and machine learning, in particular, has made its way into
and programmes investing in features that improve employee experience and HCM suites as more suppliers and organisations alike realise that
amplifying employees’
voices are gaining workplace engagement. relying on third-party AI solutions via integration is not a viable
popuarity “Perhaps this may be due to changing mindsets on how best option that degrades the user experience.
to create a productive workforce,” says Wells, adding that
Can work allocation there is now a renewed focus on employee engagement with Combining data
algorithms play fair?
more research demonstrating the impact of doing so on the Oracle’s Khanna points out that because AI and machine learn-
Allocating work
by algorithm has bottom line. ing requires accurate, precise and relevant data to deliver opti-
its advantages for mum results, Oracle is particularly attentive to the data it feeds
workers as well as
employers, but can it
Personalised experiences into its so-called adaptive intelligent applications, and uses a
be done fairly? Malaysia’s AirAsia, for example, is using Workday to deliver combination of first- and third-party data.
personalised experiences for more than 22,000 employees. “Tuning requires the appropriate data records to be fed into
AirAsia’s Workday platform keeps information on each Oracle’s machine learning models, using training data and
employee and their employment record, including career path, machine learning algorithms specifically selected for a particular
technical skills level and professional development, as well as use case, such as a process or outcome that we are optimising,”
standard information that employees need to do their jobs. he says.
That includes support for employees to do their jobs while on “Over time, the models are continuously refined using the cus-
the go. “We’re starting to see a rise in the use of HCM software tomer’s unique data so that the outcomes continuously improve.
on mobile platforms,” says Wells. “This is, in part, thanks to the The idea behind pre-tuned data models means no data scientists
constantly evolving dynamics of the modern workplace. For are required.”

❯Click here for more information about business IT in Asia-Pacific.


computerweekly.com buyer’s guide 5
Home

Human capital
management:HR’s
The result of this is AI-infused HCM applications that provide
newest recruit hiring managers with the ability to process a large number of job
More Asia-Pacific TechTarget/CW ASEAN
candidates, streamline employee screening procedures and mon-
organisations are 55 B/C Tanjong Pagar Road
turning to HCM itor and improve employee performance.
Singapore 088476
software to recruit Employees can also use the built-in intelligence to find specific
employees
career advice and networking opportunities.
“From there, they can reach out to these new connections and
Listen to staff to
prepare for the future
receive helpful learning points they would not otherwise have
Technologies noticed or only realised much later,” says Khanna. Editor: Aaron Tan
and programmes Production editor/design: Claire Cormack
amplifying employees’
voices are gaining Other considerations Sub-editors: Bob Wells, Jaime Lee Daniels, Ryan Priest
popuarity Some organisations may choose to keep their legacy HR sys- Vice-president APAC: Jon Panker
tems even after rolling out new HCM software for reasons such
Can work allocation as maintaining access to historical data, compliance and report-
algorithms play fair?
ing requirements, as well as verifying information on terminated
Allocating work
by algorithm has employees when faced with lawsuits. © 2019 TechTarget Inc. No part of this publication may be transmitted or
its advantages for When deciding if legacy systems should be retained, organisa-
workers as well as reproduced in any form or by any means without written permission from the
employers, but can it
tions will need to consider if supplier support is still available and
publisher. TechTarget reprints are available through The YGS Group.
be done fairly? at what cost, the risks of data loss or data corruption, as well as
the possibility of storing the data on an archival system.
About TechTarget: TechTarget publishes media for information
When determining the return on investment of a new HCM
implementation, the cost of keeping a legacy system, as well as technology professionals. More than 100 focused websites enable quick

licensing, implementation and support costs of the new system access to a deep store of news, advice and analysis about the technologies,
should be weighed against expected business outcomes such as products and processes crucial to your job. Our live and virtual events
manpower savings and productivity improvements. give you direct access to independent expert commentary and advice.
Also, factor in the cost of new hardware or any hardware upgrades At IT Knowledge Exchange, our social community, you can get advice
in the case of on-premise implementations, as well as costs associ- and share solutions with peers and experts.
ated with training, data integration and software customisation. n

computerweekly.com buyer’s guide 6


BUYER’S GUIDE TO HUMAN CAPITAL MANAGEMENT

Listen to staff to
prepare for the future
Technologies and programmes amplifying
T he notion of employee experience is all the rage these
days. As skills shortages continue to bite and a combi-
nation of digital technology and disruptive Millennial
attitudes continue to reshape corporate culture, how
to keep staff loyal and motivated has risen higher up the human
resources (HR) agenda. As a result, ensuring that workers have
a positive experience from the time they join the organisation
employees’ voices are gaining interest
until the day they leave has become a key topic of focus.
among companies keen to keep staff loyal
“It’s about working in a company that people want to be in;
and motivated. Cath Everett reports that has the right tools, processes and practices in place to show
them they are set up to succeed; that their managers care about
them and their career goals and general wellbeing; and that they
can trust the organisational decisions being made,” says Sharon
Looney, HR director at human capital management software
provider CoreHR. “We’re talking about a golden triangle of cul-
ture, physical environment and leadership.”
Traditional employee measurement tools have been used to
understand workers’ views in the shape of annual employee sur-
veys and the more recent online pulse surveys. But other, more
indirect, methods of gleaning input have also emerged over the
past few years. Although less commonly deployed, these include
the use of employee sentiment and tension analysis tools across
internal social media networks, email systems and communities
of practice, as well as the tracking of external data sources, such
as posts on job sites such as Glassdoor or Indeed.
ZENZEN/ADOBE

Ron Hanscome, a research vice-president at market research


firm Gartner, says: “This combination of active solicitation and

HOME

computerweekly.com buyer’s guide 7


Home

Human capital
management:HR’s
indirect or inferred methods of gathering senti- VoE software is adopted widely – although it will
newest recruit ment is now called the ‘voice of the employee’ ❯As staff at tech giants have a key role to play in optimising the employee
More Asia-Pacific [VoE]. Although you can’t buy a single VoE soft- continue to speak out about experience in future.
organisations are pressing social issues, pressure
turning to HCM ware suite today, most of the capabilities exist in is growing on firms to better
“Employee experience is the sum of someone’s
software to recruit an early form and work is in progress to enable align with employees’ ethics. experiences from the time they’re recruited to the
employees
users to pull data together from the different time they leave, which includes all of the touch
sources so they can analyse and act on it.” points and interactions in between,” he says.
Listen to staff to
prepare for the future
Although the market for such tools is still nas- “Where VoE software helps is that it provides a
Technologies cent, with VoE suites unlikely to appear in fully fledged form wider view into all of those interactions – not just how people
and programmes for another three years or so, the sector is nonetheless “evolv- interact with workplace technology.”
amplifying employees’
voices are gaining ing rapidly” as suppliers pitch into it from all directions, says Although CoreHR’s Looney sees the value of such a propo-
popuarity Hanscome. Such providers include enterprise feedback platform sition, she also warns that VoE “should not just be about the
suppliers such as Questback, employee monitoring and wellbe- software”. Instead, it should always be treated as a full HR pro-
Can work allocation ing tools distributors such as Humanyze, and work engagement gramme that is simply underpinned by technology. For example,
algorithms play fair?
platform companies such as HighGround. while machines have a useful role to play in collecting and aggre-
Allocating work
by algorithm has “While a number of offerings exist in the market, none yet gating data and undertaking first-level analysis, Looney consid-
its advantages for deliver all the needed data collection and analytical methods,” ers traditional approaches to gathering information – such as
workers as well as
employers, but can it
says Hanscome. “The market has yet to coalesce around a more brainstorming sessions and focus groups – to be vital too.
be done fairly? standardised set of capabilities for VoE processes, enabling tech- “No technology can replace that,” she says. “There will always
nologies and services.” be a point where software just doesn’t pick things up. For exam-
In other words, if employers wish to go down this route, it ple, in pulse surveys, different words means different things to
would be necessary to find, select and weigh the importance of different people, so there’s linguistic ambiguity, but there’s also
different data sources, before either integrating the underlying the importance of body language and human interaction.”
systems or aggregating the information into reporting or analyt-
ics tools to understand correlations and patterns. Responding to feedback
Another key concern would be defining appropriate informa- Another consideration is ensuring the organisation has the
tion security, data privacy and anonymity requirements. As a right processes to respond to any feedback that emerges. “The
result, Hanscome believes, it will be at least five years before question is how ready are you organisationally and structurally

computerweekly.com buyer’s guide 8


Home

Human capital
management:HR’s
to digest the data and move from facts to acts,” says Looney. While the firm, which now employs 72 staff, had previously
newest recruit “The right change management activities need to be in place, conducted an annual employee satisfaction survey, it
More Asia-Pacific and expectation management is part of that, so technology was widely considered a box-ticking exercise. By way of
organisations are
turning to HCM by itself simply isn’t enough.” contrast, the new system is open for feedback during two
software to recruit Felicity Winkley, HR manager at Totally Money, says: weeks of every month, which means that any issues can
employees
“Using a feedback platform sends a strong message be picked up more quickly.
to staff that you’re interested in what they have to say Anonymised workers are asked a series of questions
Listen to staff to
prepare for the future
and want to know what their experience is, which ZEN/ADOBE
that vary on a month-by-month basis, but all link
ZEN
Technologies helps make them feel more valued.” back to key engagement drivers, such as
and programmes The company, which provides consum- mental wellbeing, freedom of opinion and
amplifying employees’
voices are gaining ers with a range of products and ser- peer relationships. Engagement driver
popuarity vices to help improve their credit and Netpromoter scores are then
score, first introduced Peakon’s calculated every three months, and
Can work allocation
algorithms play fair?
employee engagement applica- “U sing a feedback platform the engagement driver scores are
tions four years ago. The aim was ranked, benchmarked and ana-
Allocating work
by algorithm has to reduce staff turnover rates, sends a strong message to lysed to understand the impact
its advantages for
workers as well as
which then stood at around 64%
per annum, with workers staying

staff that you re interested on employee engagement rates.
The system is also used in col-

employers, but can it
be done fairly? at the company for less than two in what they have to say laboration with other forums for
years on average. collecting feedback, which include
“There’s a cost involved in replac-
Felicity Winkley, Totally Money an employee advisory board. This
ing people very regularly and there’s advisory board consists of members
also the huge amount of time that of each internal team, who meet regu-
recruiting and onboarding takes in terms of larly with Winkley and chief executive
time and effort,” says Winkley. “It’s important Alastair Douglas to discuss any issues
to build skills in-house, otherwise you have to start that arise.
from scratch each time and it has a palpable effect on morale If it comes to their attention that something is not working,
and atmosphere.” Winkley accesses the Peakon system to see if the situation is

computerweekly.com buyer’s guide 9


Home

Human capital
management:HR’s
being reflected in the data, with the aim of taking swift action “Using this kind of system means you know what people are
newest recruit – something she believes is very important. “If people feel thinking at a glance, which is great for HR action planning and
More Asia-Pacific they’ve given feedback and it’s not been acted on, it’s worse setting a strategic people policy.”
organisations are
turning to HCM than not asking for any feedback at all,” she says.
software to recruit Using insights gleaned from Peakon’s software, the Case study: FIS
employees
company has improved its long-term staff develop- Around three years ago, after having grown swiftly both
ment capabilities and created a more cohesive culture organically and by acquisition, FIS decided it was time
Listen to staff to
prepare for the future
by introducing a weekly internal newsletter and to embark on a programme to boost its employee
OBE
Technologies opening up Thursday morning breakfast meet- EN
/A D engagement levels.
and programmes NZ
ings to allow everyone, rather than just the Z E In general terms, the company, which
amplifying employees’
voices are gaining usual departmental heads, to speak. employs 47,000 people across more
popuarity Junior employees are also expected than 200 locations worldwide and pro-
to host at least one meeting on their vides software and services to the
Can work allocation
algorithms play fair?
own to ensure that everyone knows “A nything that keeps financial services sector, focused on
what people in other teams are four areas. These were: developing a
Allocating work
by algorithm has doing and why. As a result of such channels of communication open clear narrative about the firm’s iden-
its advantages for moves, staff turnover has almost and helps with transparency tity and where it was going; organi-
workers as well as
halved to 23%, while staff tenure sational integrity, which includes

employers, but can it
be done fairly? has doubled to four years. has to be a good thing values and guiding principles; lead-
The next step, meanwhile, will be ership training; and employee voice
to integrate the employee engagement
Felicity Winkley, Totally Money to ensure people felt their views were
system with 7Geese’s performance man- being heard.
agement applications to set “meaningful At the technology level, meanwhile, there
work goals”, understand how motivated were three key considerations, each of which
staff are in terms of achieving them and was underpinned by a requirement for effective data
any other hurdles that may need to be crossed. analysis. These were: self-service, which involved making sys-
“Anything that keeps the channels of communication open and tems easy to use; real-time performance management; and
helps with transparency has to be a good thing,” says Winkley. enabling dialogue and feedback.

computerweekly.com buyer’s guide 10


Home

Human capital
management:HR’s
After implementing Workday’s cloud-based HR applications Performance management
newest recruit as its system of record, FIS then tackled the dialogue element. To provide a more rounded view of what is happening, FIS also
More Asia-Pacific It introduced Glint’s staff survey platform, which enables users integrated Glint, its recruitment and real-time performance
organisations are
turning to HCM to drill down into the data to understand employee sentiment management system, as well as Microsoft’s Yammer enter-
software to recruit and its drivers. prise social network into the Visier cloud-based analytics tool
employees
Isabel Naidoo, the company’s head of people, strategy and to help inform decision-making.
analytics, explains the benefits: “Engagement is tricky as it’s “It allows you to correlate data from all parts of the employee
Listen to staff to
prepare for the future
a very personal thing – there are lifecycle,” says Naidoo. “We use
different levers for each individ- it for most things, so we link it to
Technologies
and programmes ual, but they change at different “E ngagement is tricky as it s ’ other results to form part of our
amplifying employees’
voices are gaining
popuarity
points in their life. But why Glint is
so good is that it allows managers
a very personal thing there – business scorecards and we inte-
grate it into our leadership dash-
to pinpoint specific engagers and are different levers for each board and use the information to
then identify suitable actions.” shape activity.”
,
Can work allocation
algorithms play fair?
Although each individual’s individual but they change at With the firm’s leadership devel-
Allocating work
by algorithm has
its advantages for
response to any given survey is
anonymous, if the findings are
different points in their life ” opment programme, for example,
it became possible to compare
workers as well as
employers, but can it
taken in aggregate, managers can Isabel Naidoo, FIS the before and after engagement
be done fairly? see how engaged their team is, score of teams whose managers
what is likely to make it more engaged and what they should had received training and those who had not to understand
do to make it happen, says Naidoo. its effectiveness.
“It links directly to action planning and takes you to 10 things “In the past, we made the investment, people said, ‘Great’ and
to do differently as a leader, so you can use the results imme- went back to work,” says Naidoo. “Now we can track popula-
diately and follow through, which means there’s no ‘say-do’ tions to see if they’ve become more effective managers, which
gap,” she adds. brings insights to the table about the bottom-line impact of
“Glint allows you to be more self-aware and to know your investment. It gives HR a level of credibility when speaking to
team as you can see their drivers – it’s about real-time, trans- the business that wasn’t there before, and puts us in the place
parent information being in the hands of leaders.” we need to be.” n

computerweekly.com buyer’s guide 11


BUYER’S GUIDE TO HUMAN CAPITAL MANAGEMENT

Can work allocation


algorithms play fair? O ver the course of six months in 2016, writer James
Bloodworth worked for four companies: Amazon, in
one of its warehouses; a home-care provider; insurer
Admiral’s call centre; and Uber.
Drivers for taxi operator Uber are self-employed contractors
with no employment rights, but even so, Bloodworth thought
working this way might be an improvement on his previous expe-
Allocating work by algorithm riences, giving him control over when he drove and leaving time
might have advantages for to write a book.
workers as well as employers. Control is not what he got. Uber drivers are offered work through
SA Mathieson asks if it an app which does not tell them anything about the next job, either
its duration or destination. A driver accepting too low a proportion
can be done fairly and with of jobs will effectively be fired, while refusing two or three in a row
respect for human capital? will result in them being locked out of the app for a period of time.

User ratings
A dip in user ratings can also lead to a driver being barred, but
higher fares are available during unsociable hours – when cus-
tomers are more likely to leave poor ratings. Bloodworth also
experienced Uber’s attempts to nudge him into continuing to
drive, even if he had been on the road for hours, by telling him he
had nearly earned a certain amount.
“All in all, it was a peculiar sort of freedom,” he sums up in Hired:
six months undercover in low-wage Britain, the resulting book.
Allocating work by algorithm is not an inherently bad idea,
according to James Farrar, chair of United Private Hire Drivers, a
ALLA72/ADOBE

branch of the Independent Workers Union of Great Britain, who


has co-led legal action against Uber for drivers’ rights.

HOME

computerweekly.com buyer’s guide 12


Home

Human capital
management:HR’s
Many drivers working for conventional minicab companies pay a reflected in the way the company’s algorithms allocate jobs and
newest recruit fee for the privilege (Uber takes a percentage, typically 20-25%), influence driver behaviour.
More Asia-Pacific only to see controllers giving the best jobs to their friends, order- “These companies thrive on their ambiguity in nudging and
organisations are
turning to HCM ing them to collect their takeaway food and even demanding exercising control while denying they have that control,” he says.
software to recruit bribes. “People didn’t just walk away from those operators, they “They are trying to dance on this fine line between triggering
employees
ran to Uber,” Farrar says. workers’ rights claims and controlling their businesses.”
There are significant financial benefits for “gig economy” com-
Listen to staff to
prepare for the future
No office and no boss panies in keeping workers as self-employed, and Farrar thinks this
Technologies But the company’s algorithms create their own problems. Uber is part of the reason companies rely on algorithms rather than
and programmes tells prospective drivers that “there’s no office and no boss”, explicit instructions. “It’s management control nonetheless, but
amplifying employees’
voices are gaining adding that “with Uber, you’re in charge”. Farrar says this is not it’ll be brought behind the curtain,” he says.
popuarity

ICO MAKER/ADOBE
Can work allocation
algorithms play fair?
Uber tells prospective drivers that “there’s no office and no boss” and that “with Uber,
Allocating work you’re in charge”, but James Farrar, chair of United Private Hire Drivers, says this is not reflected
by algorithm has in the way the company’s algorithms allocate jobs and influence driver behaviour
its advantages for
workers as well as
employers, but can it
be done fairly?

ICO MAKER/ADOBE
computerweekly.com buyer’s guide 13
Home

Human capital
management:HR’s
It’s difficult to know exactly how Uber and many other gig econ-
newest recruit omy companies use their algorithms to manage workers, as their
More Asia-Pacific workings are not usually disclosed.
organisations are
turning to HCM Farrar says the 2011 Autoclenz case, where the UK supreme
software to recruit court decided that supposedly self-employed workers for a car-
employees
cleaning provider were entitled to the minimum wage, has given
companies incentives for secrecy, as the judges used Autoclenz’s
Listen to staff to
prepare for the future
actions rather than its stated policy in deciding the case.
Technologies He and his legal team have previously used Uber’s own data as
and programmes evidence, but the company now releases much less, given this
amplifying employees’
voices are gaining could be used against it. However, Farrar says Uber gathers data
popuarity about its drivers, including braking and acceleration rates and Uber gathers data
how fast they accept or decline jobs. about its drivers,
Can work allocation including braking
algorithms play fair?
Allocating work
Empowered and flexible planning for workers and acceleration
Some drivers attempt to fight back, according to Amany Elbanna, rates and how fast
by algorithm has
they accept or
its advantages for associate professor of information systems at Royal Holloway,
workers as well as decline jobs
employers, but can it
University of London.
be done fairly? Through her research with Uber drivers, she has found that
some use software on their phones to say they have completed
a job before they arrive or to accept incoming jobs automati-
cally. Others stay just outside “virtual taxi rank” zones at airports,
where drivers are placed in a queue before being allocated jobs,
aiming to get work faster.
Even so, Uber retains most of the power. Elbanna says the
company could give drivers more control of how they work by

KIT8/ADOBE
providing the approximate start and end points of the next job
offered, which would allow a driver who wants to stop working

computerweekly.com buyer’s guide 14


Home

Human capital
management:HR’s
shortly to refuse a long trip. Instead it punishes those who reject Danish technology company Planday goes some way towards
newest recruit too much work. providing such flexibility for shift-based workers. Through an app,
More Asia-Pacific “This is a critical question, whether it is using data for surveil- it allows them to say when they are and are not available and to
organisations are
turning to HCM lance and punishment or for empowering and to encourage peo- swap or give up shifts to other workers.
software to recruit ple,” says Elbanna. For the latter, the system checks a receiving worker is happy to
employees
She adds that a data watchdog could also help empower driv- accept a transferred shift and lets employers set rules, to ensure that
ers, such as by investigating complaints over measurement, with the right skills are available and even to prevent named individuals
Listen to staff to
prepare for the future
some drivers claiming differences between distances recorded on working together. It also provides a communications channel for
Technologies vehicle milometers and those used workers who are outside an organisa-
and programmes by Uber to calculate fares. She also tion’s email system, a way to manage
amplifying employees’
voices are gaining
popuarity
thinks there should be guidelines on
how work performance data is used,
“T here is going to be a power
holidays and information on earnings.

to stop managers using data to carry shift in the market between Unhappy workers
Can work allocation out surveillance of individuals. Planday CEO Christian Brøndum
algorithms play fair?
Allocating work
businesses and workers ” says that at present, many employ-
by algorithm has Improving worker conditions Christian Brøndum, Planday ers focus only on cutting costs,
its advantages for Elbanna also believes algorithms resulting in unhappy workers.
workers as well as
employers, but can it
can improve conditions for workers, “There is going to be a power shift
be done fairly? such as by ensuring they take breaks and helping them to plan in the market between businesses and workers,” he says. In the
their schedules. future, the company plans to incorporate other sources of data
She previously worked for a university where one colleague liked such as weather forecasts, so employers can change staffing
to walk his dog every day at midday, while another wanted to be requirements based on these.
home by 5pm to make dinner for her children. Avondale Care Scotland, which runs four 24-hour nursing care
The university worked this out manually, but software could homes in Falkirk and Fife, has to ensure a legally set mix of staff
allow workers to enter their availability and then work out sched- at each site at all times. Director Adrian Hendry says Planday has
ules from that. made it easier to produce compliant rotas, which it now does six
“Work allocation systems provide an excellent opportunity to to eight weeks in advance rather than as little as a fortnight previ-
integrate ideas we have always wanted,” says Elbanna. ously, saving around £500 a month in staff time.

computerweekly.com buyer’s guide 15


Home

Human capital
management:HR’s
Hendry adds that the company’s 450 staff love the system, with efficient process for us and a safer process, as we’re guaranteed
newest recruit earlier information on rotas giving them more time to plan and the the skill mix will be correct.”
More Asia-Pacific ability to exchange shifts as long as mandatory staffing ratios are
organisations are
turning to HCM still met. Labour as a service
software to recruit “It gives them much more autonomy and power to speak to a UK-based Broadstone provides organisations with a platform to
employees
colleague,” he says, as they do not have to go through an adminis- find workers, initially in private security, but with plans to expand
trator during office hours. “It’s a quicker process for them, a more to other industries. Chief executive Tom Pickersgill describes
Listen to staff to
prepare for the future
Technologies
and programmes
amplifying employees’
voices are gaining
popuarity

ICO MAKER/ADOBE
Can work allocation
algorithms play fair?
Allocating work
by algorithm has
its advantages for UK-based Broadstone provides organisations with a platform to find workers. It currently has around 10,000

MAKYZZ/ADOBE
workers as well as
people seeking work, and hopes to increase this to more than 40,000 during 2019. Employers list shifts and
employers, but can it
be done fairly? workers apply for them, rather than being offered jobs automatically. An employer can make its own choices
on who to take on, but Broadstone offers an optimised list, based on whether workers have “badges” which
can be won by undertaking three shifts without cancelling or maintaining a certain star rating, for example

computerweekly.com buyer’s guide 16


Home

Human capital
management:HR’s
this as “labour as a service”, akin to what employment agencies collective bargaining agreement which includes holiday pay and a
newest recruit offer, but at a lower price and with greater flexibility. It currently minimum per-hour rate.
More Asia-Pacific has around 10,000 people seeking work, and hopes to increase
organisations are
turning to HCM this to more than 40,000 during 2019. Collective agreement
software to recruit Employers list shifts and workers apply for them, rather than Hilfr, a Danish company that helps people find home cleaners,
employees
being offered jobs automatically. An employer can make its own has similarly decided on a collective agreement with trade union
choices on who to take on, but Broadstone offers an optimised 3F, which covers holidays, sick pay and pension contributions
Listen to staff to
prepare for the future
list. While it doesn’t publish the algorithm used for the latter, it for those who complete 100 hours of work through the platform.
Technologies is based on whether workers have “badges” which can be won However, it does not choose who goes where.
and programmes by undertaking three shifts without cancelling or maintaining a “We let customers decide for themselves,” says Dennis True,
amplifying employees’
voices are gaining certain star rating, for example. Hilfr’s chief executive, through searchable listings. He says that
popuarity “If you get those badges, you should be in a good position,” says the company did not consciously decide against using a job-allo-
Pickersgill. Those who qualify for all five receive a minimum hourly cation algorithm, but adds that Hilfr’s “system works”.
Can work allocation rate of £14, compared with £9 for those starting with the platform. Software can offer casual and shift workers more control while
algorithms play fair?
But most gig economy companies, including Uber, run their own cutting administration for employers, which may find their work-
Allocating work
by algorithm has systems. “One of the problems with these platforms is they are force is more contented and willing to stick around. But it can also
its advantages for not peer-to-peer,” says Pete Robertson, associate professor at the push people into working in ways that are not in their interests.
workers as well as
employers, but can it
school of applied sciences at Edinburgh Napier University. “A lot Publishing gig economy companies’ work allocation algorithms
be done fairly? of it is to do with the employer-employee power balance.” would be a significant step. But while United Private Hire Drivers’
A more equitable model would be a marketplace used by multi- Farrar sees algorithmic transparency as critical, he believes the main
ple employers with channels for workers to exchange information issue is that companies accept responsibility for their algorithms.
freely, he adds. But if companies can get workers onto their own If managers feel there is a psychological distance between them
platform, they are unlikely to give up the power this offers. and the software, Farrar thinks it increases the risk of them abus-
A few such companies are starting to improve what they ing workers as they can claim that they are merely curating a
offer workers, although these have not yet involved algorithms. community rather than running a business.
Following an employment tribunal victory by union GMB, which “An algorithm is just a management instruction,” says Farrar.
found self-employed workers for UK courier Hermes were entitled “What does a good machine-based management system look
to holiday pay and the minimum wage, the company has agreed a like? It looks like a good manager that instructed the machine.” n

computerweekly.com buyer’s guide 17

You might also like