HR Change and Transformation 2014

This has to be the most interesting time to be working at the intersection of HR, organisation development and technology. 
 
Leading change in 2014 includes responding to growing markets, geographical expansion, mergers & acquisitions and cross-cultural leadership across 5 generations. The importance of effective leadership, talent management and high employee engagement has never been so great.
 

There is a lot of buzz around technology as a driver for change in areas such as talent identification and development and workforce productivity. Its use can span all areas of HR and management, from working out which candidates are most likely to be our top future sales performers, to providing tools that enable a manager to monitor performance of a global project team. At the same time we have massive changes in our workforce, from the rise of the freelancer economy, to skills shortages and demand for 24 X 7 collaboration.

We can be proud that HR has been a pioneer in adopting many emerging technologies such as Cloud applications like WorkdayOracle Fusion and SuccessFactors. Social Media in HR has in LinkedIn a high profile corporate leader, and the adoption of Mobile is changing the recruitment landscape.   HR also has the advantage of having change management skills to ensure successful implementations.

At the HR Change & Transformation 2014 Conference, we will hear from speakers who will showcase HR innovation happening in their organisations.  Speakers from different industries and sectors will share their insight and expertise in Leadership, Change & Culture, from identifying talent to developing and integrating a new generation of leaders.   Effective change management is a blend of the right change strategy combined with getting the small things right. We will hear examples of how different organisations have achieved this.

We are also at an HR Strategy crossroads, where many of our HR strategies are undergoing radical change. Some of them were developed 50 years ago, when business and society were very different to how they are now. In addition, the set of external drivers which moved us to the HR operating models of the 90s are changing fast, so now is a good time to re-assess.  Many current HR operating models are not fit for the future given the transformational change going on in our economy and workplace.
 
In some organisations, HR needs  to transform itself first before it can lead change and transform organisations. In our Talent & Transformation stream, we will hear examples of how organisations have transformed HR to delivery business goals.   HR Transformation is not really about HR. Although HR is the focus, the outcome is about improving People Management in organisations. HR is well positioned at the crux of workforce, productivity and human beings.  HR Transformation is really about “Workforce Transformation” with HR making the rallying call.  With new agile HR operating models, we need to think about what skills capabilities HR will need for better performance Management and business integration.
 
For successful HR Transformation, the trick is for HR to empower managers, in Technology, Tools & Insight. We will hear about the rise of Mobile, Social and Gamification and the benefits of Analytics in HR. Fundamentally, HR does not yet need Big Data; it needs Big Questions. What problems do we need to solve in HR? We will hear from speakers who have solved business problems using analytics and a new set of tools.
 
Over time, Software-as-a-Service will make us standardise our HR processes – because we will have to use the systems as they are, not configure them to our existing processes.
 
This is an important time in the  history of people management with the convergence of technology innovation, workforce demographics and  economic restructuring.
 
In 2014, we are too busy to care about being invited to the top table. We now have an opportunity to create our own table and invite who we want!
 
This conference will showcase many examples of HR innovation some of which you will adopt in the future. Enjoy the sharing and let us know what examples of HR innovation you will be speaking about in 2015.
 
I am chairing one of the streams at this event and will also be facilitating a Pre-Conference Workshop “7 Steps to Transform HR” – a pragmatic and practical approach to transformation using strategies that have worked with real HR case studies.   A 10% discount code is available for our HR Transformer Blog readers, CT14AS9.  Be great to see you there! #HRCT14
 
Andrew Spence
HR Transformation Director
Glass Bead Consulting
June 2014
 
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Will HR in the Cloud kill HR Outsourcing ?

Will HR in the Cloud destroy HR Outsourcing ? HR Transformer Blog
 
 
 
 
 
 
 
 
 
 
Will ‘HR in the Cloud’ kill the HR Outsourcing industry  ?
 
Or, are the claims of the HR Technology industry in ‘Cloud Cuckoo Land’ ?
 
In Aristrophanes play, ‘The Birds’, written in 414 BC, “Cloud Cuckoo Land” was an unrealistically idealistic state where everything is perfect.
 
In our 2013 HR play, Ms HR Vendor helps the trusting Ms HR Director erect a perfect HR operating model in the clouds.
 
For HR Directors, this has the appeal of ‘killing two birds with one stone’.
 
Firstly outsource chunks of your HR services on a standardised platform.  Secondly, hand over responsibility for your HR systems to the same vendor.  
 
This service has been called BPaaS or ‘HRO in the cloud' and this report from Gartner, is worth reading on the topic –  From ‘BPO to BPaaS: HR Outsourcing calls for the cloud.
 
Will SaaS melt HR processes ? 
At the recent 2013 HRO Today Forum, in London, Mike Ettling, former CEO of largest global HR Outsourcing company, NGA HRcommented that the demand for HRO will decrease over the next few years.  In Mike’s view this is because  :-
 
“In the last 2 years we have seen the phenomenal rise of enterprise ready SaaS solutions in the HR industry.  The game changing impact of SaaS is the fact that SaaS is melting Business Processes.

In the past we designed our system around the process, now we have to design our process around the system.  There will be less scope for customisation.”
 
From this perspective, there will be less HR work in general and less outsourced work.  Not a good signal for the growth of the HRO industry.
 
For those interested, Matt Charney from Recruiting Blogs covered this panel debate well, in Transaction to Transformation: The Next Generation of Outsourcing  
 
HR SaaS – Practical Lessons from HR Buyers
In a separate session, Julie Fernandez from analysts ISG, provided some insights from HR Buyers, typically clients with > 10,000 employees. 
 
 
Amongst the trends and themes I picked up from Julie, were :-
 

- HR Buyers are cautious, ‘letting the dust settle’ on SaaS providers as they review their current HR Operating Models and future needs. 

- The rise and rise of Workday has actually breathed life into the HRO market – NGA HR, IBM and AON Hewitt are implementing or have HRO contracts using Workday software.

- HRO Buyers want both SaaS and services together, however are not willing to lose portal, chat, contact centre solutions that have been developed over last 10 years.  Expect HRO providers to develop solutions in this space. 

- There is a 15-20% HRO penetration level for orgs with >10,000 employees and there has been more new buyers in last 8 months than previous 2 or 3 years

- According to ISG, it seems HRO is not dead yet and in fact SaaS will actually stimulate market.

One of the HRO vendors told me that the Workday (SaaS) HRO deals are certainly smaller in size, which does tend to support Mike’s view on the impact of SaaS – it does reduce the HR work required.
 
Are the claims of the HR Technology industry in ‘Cloud Cuckoo Land’ ?
It is natural to have some healthy scepticism about the claims of the HR Technology providers on the latest generation of HR systems. (especially if you’ve had as many sleepless nights as me working on Transformation Programmes over the last 20 years!).
 
Haven’t we heard these promises from the HR Technology industry before ?    The claims are remarkably similar to the promise of ERP systems back in the 1990s.
 
That the new generation of software will be rolled out to willing managers enabling them to be more productive, more self-sufficient and  will help them manage their teams more efficiently.
 
Did the technology deliver the promises? Well generally, no.
 
One of the reasons that HR is no more strategic than back in 1995 is that HR Technology has not delivered the promises.  There are lots of other reasons why, and I refer to them in other posts “How to avoid HR Technology bogeys” and “Is your operating model fit for the future?”.
 
Part of the problem is that the software ultimately has to be used by those pesky human beings.  So we need good communications, training and support.
 
Isn’t SaaS or HR in the Cloud, just the ‘next wave’ of HR systems I hear you say?  We expect better functionality and usability in each new release, and HR Directors or managers don’t really care where the servers are located.
 
What is it about SaaS in particular that will drive such process standardisation compared to just another release of software ?  We still need to persuade employees to work differently. 
 
One of the great benefits of going with a SaaS solution is we do not have the expensive and time-consuming customisation fudges.
 
You get what you are given in terms of functionality and then configure for your organisation.  There will be a need to use the system provided for your HR Processes, and so there will still be change management required.  This will reduce the HR Service cycle times and the HR administration support needed – which is all good news as these savings can be spent on more value add activities.
 
Is SaaS a catalyst for more or less HRO ?
In my opinion, The 'size of the pie' will decrease (not as much as tech firms say) but the HRO slice will increase
 
In other words, there will be less work overall due to the benefits of implementing standard process, however, the proportion of work outsourced will stay the same or increase.
 
The drivers for RPO and HR Outsourcing will still be there.  Standard software will make transitions easier with consistent service levels – increasing the appeal of outsourcing.
 
Over the next couple of years we will see lots of activity with reviews of HR Operating Models, implementation of new HR systems, and more HR Outsourcing contracts. (and hopefully roughly in that order!)
 
The Workday marketing machine will get to your Board and you will need to have worked out your plan.
 
So as the 2013 HRO Today Forum ended, the HRO industry could be heard to mutter a collective breath of relief and echo Mark Twain,
 
"The reports of my death have been greatly exaggerated". 
    
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Why HR Need to Be Technology Champions

This has to be the most interesting time to be working at the intersection of HR, organisation development and technology. 
 
There is a lot of buzz around technology as a driver for change in areas such as talent identification and development, or workforce productivity.  From working out which candidates are most likely to be our top future sales performers, to providing tools that enable a manager to monitor performance of a global project team.  At the same time we have massive changes in our workforce from the rise of the freelancer economy, to skills shortages and demand for 24 X 7 collaboration.
 
With this techno buzz comes heightened expectations on HR from shareholders, employees and the Executive.
 
HR technology solutions and HR strategy are intertwined, so that every HR Director needs to know the opportunities and challenges of new and emerging technology.  In 2010, Professor Ulrich said HR must master 6 competencies, including being a Technology Proponent.  In other words, HR needs to be a Technology Champion in our organisations.
 
Not necessarily understanding the nuts and bolts of configuration, but ensuring that the solutions will ultimately delivery our business goals and then successfully embed into the organisation.
 
With this in mind I am excited about attending the HR Technology Europe Conference in Amsterdam next week to see some of the technology solutions we will all be using in the next few years.
 
 
Now this may get the HR Technology Sales Teams excited, but not necessarily for HR Directors who do not want to go through the pain, and expense of divorcing their current HR Technology.    What we don’t want is – a lengthy courting process (i.e. sales pitches), where you show your colleagues the new 9 Box Talent Grid, only to realise that your HR Tech spouse is not quite what you signed up for.  For some large global projects, by the time the system is fully operational, the HR Strategy and HR Operating Model required to support it might have changed.  
 
We increasingly need to be looking at the HR Operating Model required to deliver our HR Strategy now and in the future.  A key part of that future HR Road Map is Technology.   So before you make technological changes, ask yourself – “Is your HR Operating Model fit for the future?”  
 
There is another very real reason why HR need to be Technology Champions – a staggering 68% of Technology Projects Fail.  However we define that failure, be it over budget, over time or outcomes not delivered, my belief is HR has valuable skills to prevent this failure.  HR has experience in change management, training, communications plus sourcing the right people to Avoid the HR Technology Bogeys  
 
Any technology that can give us predictable behavioural measures, can be a potentially powerful transformative tool. For example look at How Google Uses Data to Build a Better Worker.  However, for most organisations the reality is we do not have Google’s capabilities.  Research by Josh Bersin shows that only 14% of organisations have done any significant “statistical analysis” of employee data at all.
 
Let’s face it most of us struggle with the challenge of reconciling headcount data with Finance reporting! 
 
To make the most of ‘Big Data’, we need ‘Big Hypotheses’ from HR driven by our Business Goals.  Technology should not be about the art of the possible but the art of solving specific workforce problems.
 
….and talking of art….
 
For all those who like to combine cutting edge new technology with old Dutch Masters, another good reason for visiting Amsterdam is the reopening of The Rijksmuseum following a 10 year refurbishment programme, yes 10 years!  Hopefully your HR Data & Systems won’t need a ‘10 year refurb’ after this conference!
 
I will be blogging and tweeting as part of the Blog Squad at #HRTechEurope, so hopefully will see a few of you Amsterdam!   There are tickets still available with a special discounted rate for HR Transformers, so do get in touch for what promises to be an engaging event.
 
And follow @AndySpence and #HRTechEurope next week.
 

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Is your HR Operating Model Fit for the Future ?

HR Strategy Glue - Glass Bead Consulting
 
 
Current HR Operating Models are not fit for the future.  The implementation of the Ulrich model in the 1990s was driven by changes in technology, the need to demonstrate value for money, development of the HR Services landscape and a focus on more HR Strategy.  Ulrich’s research was built on trends which were transforming the IT and Finance sector at the time; including shared services, outsourcing,  manager self-service, and ERP technology enablement.  The ultimate goal was to spend a higher proportion of HR resources on delivering HR Strategy, and less on HR administration.
 
The Ulrich model delivered some benefits, but patchy implementation gave mixed results.  So after all the effort, the question remains - why is HR no more strategic now than in 1995?
 
The HR Business Partner (BP) role was introduced as a strategic partner and account manager for HR Services, however there have been challenges with the timing of the introduction of the role.  Launching BPs before HR Shared Service Centres have started leaves them with an impossible task of balancing transactional workload with the strategic expectations of customers.  In my experience of training BPs, I observed the ‘rule of thirds’ in larger organisations; a third are excellent, a third would be excellent with time and development, and a third will never be ‘strategic’ BPs.     The Business Partner is stuck between a rock and a hard place in a mismatch of expectations. 
 
In my view the great promise of HR ERP Technology has not delivered. Most organisations do not have one interconnected system for HR records, recruitment, learning, payroll, compensation management, succession planning tools and performance management.  Many multi-million dollar transformation initiatives based on HR Technology, have not delivered their goals, been late or over budget damaging the credibility of HR to transform organisations. 
 
HR has built a set of specialist functions that work well in silos, for example in Talent, Learning, Reward, Recruitment, Employee Relations, but don’t often work together as a whole to deliver HR Strategy.  There is evidence that we are not spending a higher proportion of our time on delivering HR Strategy as we did in the 1990s, from research carried out by Professor Edward Lawler of the University of Southern California. We have not made progress in improving the productivity of managers through enabling self-service tools. According to Towers Watson, 56% of organisations now require HR to approve transactions, which was certainly not the original vision of the Ulrich model.
 
The Ulrich model was developed from external drivers relevant in the 1990s but we now have a different set of drivers in place, and should re-evaluate our current structures.  Now is a good time to review our HR Operating Model, with over 50% of organisations with more than 5,000 employees in the process of re-organising their HR department from bringing in a new leadership team to redesigning HR services from the bottom-up. 
 
Technological innovation has provided big changes in the workforce.  It has also provided more opportunities to deliver better HR Services to a mobile, and more global workforce.  McKinsey estimate that the automation of knowledge work will have an economic impact of $5-7 trillion dollars, displacing workers with technology.  Workforce changes mean we have high youth unemployment in some areas, a jobless recovery, an ageing workforce that will need to work into its 60s and 70s and localised skill shortages, for example in science and engineering.  The demand for Talent is constant.
 
So where do we locate our businesses in an economy with high unemployment? Do we need a core set of employees on permanent contracts and flexible contractors who provide the right skills at the right time? Which employee services can we deliver through mobile devices?
 
HR is becoming increasingly fragmented and hived off into HR Services and specialist advice.  There is a growing need for more HR Strategy, yet there is less capability to deliver it.  There is a demand for support to transform organisations, yet HR has struggled with change management, technology deployment and Organisation Design required to transform itself.  The HR Services market is moving every quarter with new entrants, mergers and acquisitions.  New skills are required in analytics, influencing behaviour change, vendor management, and for HR to be workforce technology 'evangelists'.
 
So what can we do?  We can learn from the experiences of implementing the Ulrich model, but challenge parts of the model that are no longer applicable. 
 
1. Understand the changes in your workforce now and in the future, and assess the likely impact on your organisation
2. Challenge current and future HR skills you have and will need in the future 
3. Review technology innovations and partner with organisations that have a passion for improving workforce productivity
 
By focusing on the journey and not the end destination, you can move towards a HR model that will provide the 'HR Strategy Glue' enabling you to adapt and respond to future drivers of change. 
 
Join in the discussion on HR Transformer Blog or at the Tucana HR Change & Transformation Conference where Andy Spence is delivering his keynote speech on Future Trends in HR Operating Models.
 
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What will you Stop, Start and Continue in 2013 ?

 

This is the time of year when the turkey is a recent plump memory, the mince pies are all gone, the Christmas recycling is on an industrial-scale, and the champagne is in the fridge ready to bring in the New Year.  

A question I usually ask myself is What will I Stop, Start and Continue doing the following year?

I find this is a useful exercise to carry out both personally and professionally.

So why not get some of that old Christmas present wrapping paper out, write down those activities and ask yourself the following :
 

What activities will I Stop doing ?

By this, I don’t mean the post-Christmas detox activities, like drinking horrible tea and running round the block.  In a work context, list the activities and ask yourself – what would happen if you stopped doing this?  

This is your New Year spring clean, clearing out the clutter to free up space to focus on better things.

So once you have done this, and crossed out a chunk of activities, (you will still need to pay people, so payroll stays on the Continue list, nice try!).  Of course, most of what you do is valuable so will stay on the Continue list.

Now the fun bit, you have now created some space and energy, so think about What are the activities that you will Start doing in 2013 ?

Download our Stop, Start, Continue Worksheet below:

 

Here are some of our HR candidates to consider Stop and Start doing in 2013, we look forward to hearing yours.

HR Candidates to STOP
1.    The Annual Performance review – is this a meaningless paper chain, with low-value conversations with no discernible increase in productivity? If so, then dump it.
2.    Engagement Survey and Action Plan.  Can you really demonstrate that this activity improves productivity, happiness or just improves the survey results every year?  Cause and effect is too difficult to discern, so is time to do something more effective instead?
3.    Doing ‘line-managers work’ with basic employee performance issues. You have rolled out the training, had a ‘hand-holding period’ of 6 months to help less confident managers.  Is now the time to take the hard decision and ask yourselves, if a Line Manager can’t do this now, then do they need to move on?
4.    Creating reports that add no value whatsoever. Unless there is a business reason, stop producing them and see what happens…

HR Candidates to START
1.    Conduct a “meaningful work” review.  Ensure every employee understands how their work fits into the "Why" of your organisation.  Get this right and you will have much more productivity, satisfaction and better results than putting free fresh fruit in the canteen!
2.    Review your HR Strategy to ensure it aligns with the latest Organisation Strategy (which has the habit of changing every quarter)
3.    Conduct a HR Assessment – do you know how much it costs to delivery your HR Services, compared to leading outsourcers or even your competitors?
4.    Check the HR Technology market for Talent Management tools and ditch those awful spreadsheets.
5.    Make more of an effort with Finance and IT…you will always need them, they will always need you…..surprise the CFO and take them out to dinner.
6.    Find out what your Managers really think about HR service – conduct a HR Importance vs Effectiveness Survey to help you hone in on what the priorities should be in 2013.
7.    Ring up your HR Transformation Consultant to help you set-up a successful HR Change Programme in 2013

Whatever you Stop, Start and Continue in 2013, I hope it is a happy and prosperous year for you professionally and personally.

 

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Top HR Transformation Articles from November 2012

In November we found out who will be the leaders of the United States and China for the next few years.  In the world of HR Transformation, we start with two articles which slay two old HR dragons, Performance Reviews and Employee Engagement.  We highlight the most important HR outsourcing contracts of the last couple of years, and finish with a book recommendation on Negotiation.  A skill we all need to be very good at in HR!

 

 

Before we put on the armour and go HR dragon slaying, we have been looking at the best way to share our favourite HR Transformation articles with you, so its worth checking out our new HR Transformation Magazine format below.   All our recent articles are featured here in addition to the HR Transformer Blog.  Bookmark this for your daily scoops on HR Strategy, Recruitment, HR Shared Services, Change Management, Business Transformation, Leadership, Learning, HR Outsourcing, HR Technology and other randomness.
 

 
 
We are now getting towards the end of the year, so it is a good time to look at what we should Stop, Start and Continue in 2013 both personally and professionally.  At the top of our STOP list are the dreaded annual Performance Reviews……
 
Why Performance Reviews Don't Improve Performance

You know we like to peek at what our Academic siblings are up to, and Ray Williams has written a good article in Psychology Today, Why Performance Reviews Don't Improve Performance. (incidently Ray has also written a novel called Dragon Tamer)
 
When we hear the phrase "would you mind if I give you some feedback?" what that actually means to most of us is "would you mind if I gave you some negative feedback?" wrapped up in the guise of constructive criticism, whether you want it or not. According to Williams,
 
“constructive feedback, which is usually critical, rarely helps anyone, and certainly rarely improves employee performance on the job.”
 
The prevailing theory is that criticism, which invariably is part of the performance review, will improve the employee's performance, and in addition the employee will positively welcome it. Nothing can be further from the truth.
 
The reality is that the traditional performance appraisal as practiced in the majority of organisations today is often incongruent with our values-based, vision-driven and collaborative work environments,yet Performance reviews have become institutionalised.
 
Samuel Culbert, a professor at the UCLA Anderson School of Management "this corporate sham is one of the most insidious, most damaging and yet most ubiquitous of corporate activities."
 
If you can look your Executive in the eye and tell them that the annual performance review is worth the effort, then fine.  However, if you have ever wondered whether they really do increase the performance levels in your organisation – then read this article for a different perspective.
 
Our view is, If your appraisal doesn’t improve performance then do something else with the time and energy this will free up.

 
The second HR dragon to be slayed this month is the Employee Engagement Survey. This article was written by Jacque Vilet at TLNT.  Most people recognise that engaged and motivated employees are more productive, however are we getting the murky lines between correlation and causation mixed up?
 
A typical quote from the those selling the merits of Engagement Surveys is :
 
“high engagement firms have a shareholder return that is 19% higher”
 
But isn't this a bit like saying :-
“more intelligent firms have a shareholder return that is 19% higher”
OR
“healthier firms have a shareholder return that is 19% higher”
 
All possibly true, but the question for me is, is the shareholder return higher because of higher engagement or is higher engagement just correlated with higher shareholder returns?
 
Of course successful organisations have higher engagement levels, profit margin and productivity.  They are possibly healthier and more intelligent too.  In these organisations, The Executive is getting something right on strategy and management.
 
I do vaguely remember torturous statistics modules at University – and it was drummed into our heads by exasperated Psychology Professors that  Correlation does not imply Causation
 
Making the assumption that higher employee engagement improves shareholder value is a bit like saying that
 
"Sleeping with one's shoes on is strongly correlated with waking up with a headache.
Therefore, sleeping with one's shoes on causes headache."

As Vilet explains “Every HR department wants to believe that high employee engagement causes company performance. But that is not true. Many in HR mistake correlation with causality and therefore don’t understand what drives what.”

We just do not know enough about the specific causes of high employee engagement.

Again if the activity conducting Engagement Surveys and associated reporting is only neutral on productivity, then it is not worth doing. You could be doing something better instead – like analysing specific performance issues.
 
So, why are engagement surveys so fashionable ?  This is another topic for another day, but a quick answer is (1) they are much easier than doing a proper root cause analysis  (2) they are pushed by a powerful sales effort.  Enough said for now.
 
To some, HR Outsourcing is another dragon that should be slayed, but we think there is still some puff in this dragon for the time being….

Our latest HR Transformer Blog article has a look at the The Most important HR outsourcing contracts from last 2 years.   Although there have not been too many blockbuster deals, there has been plenty of HR Outsourcing activity in smaller deals and single process outsourcing.  Find out which company has created an "HR Ice-Cream Sundae" by mixing up its HR vendors.

The Future of HR & Competencies

The new HR Competencies, have been issued from SHRM and highlighted by Cathy Missildine. You might remember from last year, Professor Ulrich's  What's next for HR? The six competencies HR needs for today's challenges which are:-

Capability Builder, Change Champion, HR Innovator/Integrator, Technology Proponent, Credible Activist and Strategic Positioner. 

We would both be interested to know which set do you prefer and why ?

 
Some other great articles from November

A Revolutionary Approach to Strategic Change  In this hour long Harvard Business Review webinar, John Kotter, foremost expert on leadership and transformation discusses a new approach to accelerate the achievement of their strategic initiatives in a rapidly changing environment.

BigData in HR: Why it's Here and What it Means

Given the global recession and talent imbalances in the world, companies are focusing on replacing their legacy HR systems to help apply analytics reasoning to HR and talent.  Josh Bersin provides his analysis, and for the visual thinkers provides a useful diagrammatic history in The inevitable Shift to HR and Analytics.

9 Ways HR & Recruiting Technology Will Evolve in Next 4 Years

"Most of the 10 million Millennials entering the job market during the next three years will expect a far better candidate experience than today’s." An interesting article on TLNT, from Heather Huhman.

The Amazonification of Recruiting

Bob Corlett creates a new word AND provides insight into current recruitment trends.

"The Amazonification of recruiting is accelerating. Sites like Yelp and Glassdoor are pulling back the curtain on candidate experience. LinkedIn has found a way to rapidly accelerate the endorsement process, and apparently will start to weigh your endorsements in their search results.  It’s a brave new world of accountability coming. Are your recruiting practices ready for it? "

Negotiate your L&D budget successfully  Why do people buy ? Apparently, there are 'good' reasons vs the 'real' reasons.  If you like what Simon has to say, we recommend his new book,  Negotiation Mastery: Tools for the 21st Century Negotiator. This might make a good Christmas gift for that special HR Business Partner in your life.

And finally, What Colours mean in different Cultures, with thanks to Tom @TomWHaak for this link.

We hope you have enjoyed our latest HR Transformation articles, a big thank you to those who contribute with fresh ideas and suggestions to share with the HR community. Do keep in touch with any of your future articles and suggestions @AndySpence on Twitter.

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Top HR Transformation Articles from October 2012

The HR Transformer Blog is back – we have been trawling the web to pull out the best HR Transformation related articles from October 2012.
 
There have been two big HR Technology Conferences either side of the Atlantic this month, filled with talk of ‘big mobile gamification in the data cloud’, or something similar.  After being initially dazzled for a moment, I rubbed my eyes and remembered, “It’s all about the People” and found some great articles on managing change.  I’ve taken a brief look at HR’s past and it’s future, finishing with some useful tips from HR Metrics to running your HR Shared Service centre like a Gordon Ramsay restaurant (but obviously without the expletives!).
 
Big mobile gamification in the data cloud  – and other disruptions at the HR Technology Conferences
The HR Technology Conferences in Chicago and Amsterdam made a big splash online. The jargon can get a bit confusing, so XpertHR have provided a very helpful guide for those who only dabble in HR Technology. The industry is buoyant after record conference turnouts, the successful Workday IPO and a flurry of takeovers including; SuccessFactors, Taleo and Kenexa. According to the press releases, new services in SaaS, mobile and big data will transform the way we manage people in organisations. The fact is many large scale HR Technology programmes do not always deliver intended goals. At a Technology Conference, funded by the technology companies – this is unlikely to be a theme with the speakers and bloggers.
 
Which begs the question, where are the unbiased, independent voices to support HR buyers of technology and services?
 
It is well known, that some analysts work for both the buyers and the vendors. According to an article by analyst, Mark Smith, Industry Exposé: Technology Vendors Skew Analysts and Influencers
“The dirty secret is that some of the largest technology vendors have forced industry analyst firms to contractually agree to the right to review, edit and approve any written research that references their name or products before it is published.”
 
With nearly two out of every three IT projects failing, I think there should be more focus on good governance, solid requirements and the people elements involved in change. See our article on How to avoid HR Technology Bogeys, inspired by the Ryder Cup.
 
“Nice interface, it even looks a bit like Facebook! Great, I can view on my phone. But how will this really help my organisation achieve its goals?”
 
Charlie Judy reminds us that “it ain’t a HR Strategy without technology” in a good post with some useful tips. HR Strategy should determine your HR Tech requirements, not the other way round, so don’t let the Tail wag the Dog.
 
A development I think will make a big impact is Salesforce’s entry into the market, with Work.com. If this sounds strange, read this excellent article by Appirio The Future of Work : Employees as Customers showing the parallels between HR and Marketing. I will be watching this develop with interest over the coming months.
 
For the visual thinkers, this caught my eye, HR technology on Pinterest from Deb Maher, spotted on #HRTech hashtag on Twitter.
 
Talking of Twitter, we have recently updated our lists of HR Transformers on Twitter for you to use, so let us know if we have missed anyone, and connect with me @AndySpence
 
People first
One of my mantras is that for technology investment to be worthwhile, we need to focus more on the people who will use it, these two articles on Change Management were clear and insightful.  Ten Reasons People Resist Change from a true teacher, Rosabeth Moss Kanter, and a golden oldie with some useful lessons, from Harvard Business Review – The Hard Side of Change Management.
 
HR Operating Models – Ulrich Model 2012
The evolution of HR operating models over the past two decades has been slow in some areas.  In the article, HR's Future Looks Strategic—or Does It?  University of Southern California professor Edward Lawler has tracked the amount of time HR managers spent on working as a strategic partner since 1995. He recently released the results of his latest research, from 2010, and found nothing has changed.

"When we ask them: 'What is their role in developing business strategy for their companies?' we're getting the same answers as we've always gotten," Lawler says.

Why is HR no less strategic than in 1995?

My view is the move to a simpler Ulrich model has generally aligned HR better to organisational goals, focused more on the customer, enabling economies of scale and economies of skill.  However the transition to this model has not always been successful and the interpretation of HR roles such as the Business Partner have not been wholly successful. 

Which leads me to an interesting article Has the Ulrich model narrowed HR career paths?   
 
My observation is that we have some great HR Specialists in Reward, Pensions, OD, Learning – however we are slowly losing those who have the big picture of the HR Strategy.  This is retained with those with more of a generalist background – currently in leadership positions, but I have concerns about succession when they retire. 
 
Another question for HR Operating models related to demographics,   in 2020, one third of workers will be over 50, so how will this impact HR?  We ask the question of the Impact of the Ageing Workforce on HR.
 
Ulrich’s original work on HR Operating Models was influenced by what was going on in other functions such as Finance and IT.  I was interested to read that there are similarities between HR and IT in the challenges the leaders face. (e.g. struggles for the CIO to become a true partner to their business  -  sound familiar?).  Time for the CIO to jump on the wave of change from Outsourcing Magazine.
 
Some other useful articles for HR Transformers
HR Shared Services: What works well for a restaurant could help HR Shared Services function. Simon Brown, writing in SSON, suggests Restaurant-style Service (Tier-0 and Tier-1) “Tier 0 – to ensure your menu is well laid out, easy to search, navigate and read.” Great article, but be careful with following Gordon Ramsay’s style too closely!
 
HR Metrics of Note: Revenue Per Employee VS. Profit Per Employee  A good example of using HR Metrics that matter, in this case to the investor community, who use Revenue per Employee to analyse retail giant Amazon. Who else could this come from but the HR Capitalist?
 
Powerpoint use and abuse – Few pieces of office software have simultaneously been so used and abused even causing ‘death by PowerPoint’. Find out about Cognitive Dissonance, Noise & Overload from Donald Clark.
 
The Top Social Tools For 21st-Century HR Humans, communication, work etc, makes HR the ideal spot from which to harness changes in work habits for the benefit of the company – good read from FastCompany.
 
And finally, Live language translation. Now this is a disruptive technology! Remember Babel Fish from Hitch hickers Guide the Galaxy.  I did a Masters in Cognitive Science in the mid-90s and some of these technologies are starting to emerge – very exciting developments indeed! Hat-tip to Graeme Codrington for this link on Twitter.
 
We hope you enjoy our latest HR Transformation articles, a big thank you to those who contribute with fresh ideas and suggestions to share with the HR community. Do keep in touch with any of your future articles and suggestions @AndySpence on Twitter.

 
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Impact of an Ageing Workforce on HR

In our article on Working Late – The Impact of an Ageing Workforce we highlighted some research initiatives in this area.

A key question for us is:

“What is the future impact of an ageing workforce on HR?”

For HR departments, the ageing workforce is a very current topic with a focus on developing retirement policy in line with regulations, pay and pension reviews and recruitment policy to avoid complex age discrimination cases. This research on the ageing workforce also raises longer-term questions for future HR Operating Models.  In HR, how do we ensure structures, services and tools are reasonably future proof to deliver organisational goals today and in the future?

An ageing workforce will impact current Talent Strategy, for example attracting applications from older workers and supporting recruiters to change their perception of older workers.  A clear theme from the Working Late interviews was “homeostasis of career” – workers happy to do their role with no prospect of promotion.  It is a challenge for organisations to manage the uncertainty around the end of employees working lives.  What will be the impact on the Talent pool?  Line Managers need support in managing performance and improving productivity of older workers to build diverse inter-generational teams.

Our view is we need to rethink our change management approach when dealing with different generations of workers. Even though the change management principles may remain the same, it is clear that different tactics are required with older workers than when dealing with Generation Y.

Some challenging questions for HR professionals are “How do we ensure we have a good understanding of our own workforce, so we can anticipate changes?”, “How robust is your HR data, are you able to conduct analysis on your workforce, including age and skills profiling?”  For some, this puts an uncomfortable spotlight on current HR Systems.

We encourage the periodic review of HR tools and technology to support a productive workforce, but before we “bet the farm” on our new HR Technology Mobile strategy, we need to assess whether this will be successful for all our categories of workers or is a different approach needed.

There is evidence that there is discrimination against both younger and older workers, for example research by the UK Department for Work and Pensions (DWP), Attitudes to Age in Britain 2010.

One issue for HR is how to best fight discrimination and negative attitudes to older workers. Any attempt to change attitudes is complex and part of the solution should be to highlight the benefits of employing older workers.  These include retention of key organisational knowledge and skills, and opportunities for coaching and mentoring.

In summary, the ageing workforce is one factor of many influencing future HR Operating Models, however we do need to think about:

1.    Clarity in roles around what we expect HR and Line Managers to do around key organisational activities such as improving performance and productivity.

2.    Choosing the right tools and technology to enable us to manage our workforce, from excellent analytics, to skills tracking and performance management.

3.    Deciding as an organisation, how you will deliver excellent change management.

We would be very interested to hear examples of how your organisation is dealing with some of these challenges? 


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Working Late – The Impact of an Ageing Workforce

When I get older losing my hair,
Many years from now,
Will you still be sending me a payslip,
Performance review and benefits plan?

*Loosely based on the work of Sir Paul McCartney

In 2020, nearly a third of the UK workforce will be over 50.

The idea of working into our later years is not a new one, but it has significant knock on effects for the future of work.

The UK is not alone – this pattern also continues across much of Europe.  This means that HR Directors and other leaders must recognise the need to explore the challenge of the ageing workforce.

Sir Paul McCartney celebrated his 64th birthday 8 years ago and shows no signs of slowing down.  For every millionaire, there will be millions of workers who are eligible to retire but will not necessarily be financially able to do so.  The number of older workers will only increase as time goes on as retirement age steadily creeps up.

To this end a research project has been created at Loughborough University called simply
Working Late. It aims to explore the various issues and concerns around older workers and develop strategies to ensure we have productive and healthy environments for the older workforce, and is funded by the New Dynamics of Ageing Programme.  The research project is led by Professor Cheryl Haslam, Director of the Work and Health Research Centre.

Since the number of older workers above the age of 50 is more than double the number of younger workers under the age of 25, it’s clear that this research has come at an opportune time.

Aunty Doris attends “Back to Work Training”
Aunty Doris attends “Back to Work Training”

Working Late takes a pro-active view to establishing connections with workers and various other agencies including The Age and Employment Network. Working Late held a series of expert panels involving a range of experts from HR management, employment law, occupational health, transport and academia.  Glass Bead Consulting was invited to provide a perspective on the impact of demographic changes on the design of future HR organisations.

Working Late’s research ranges from influencing government policies to more practical solutions.  For example, one study highlighted that UK workers spend an average of five hours and 41 minutes at their desk in a work day. Dr Myanna Duncan, from Loughborough University, warned that office workers literally “forget to stand” spending nearly as long at their desks as they were sleeping in bed!  Given the musculo-skeletal problems in the workforce, this is a clear warning that we need to get out of our chairs more and talk face-to-face instead of using email.

The researchers from the Working Late Research Group looked into some of the challenges of later life working, and conducted 108 semi-structured interviews with employers, employees, job seekers and recently retired.  Here is a copy of the presentation which formed the basis of discussion at the expert panels, Working Late – Dynamics of Later-Life Working. The quotes from participants make for interesting reading:

“..It’s kind of awful to think that people are going to end their careers going down a capability route of disciplinary because they are no longer capable of doing the role that’s required of them because they are older. No one wants to performance manage out an older worker as they’re reaching the end of their career […] regardless of legislation everyone wants careers to end with dignity.
(Employer, 42)

“They [older workers] tend to stay with us for a longer period of time. So they’ve got to a stage often in their career where the content of their role is just as important as actually being promoted.”
(Employer, 48)

The themes emerging from the interviews included career development, homeostasis of career, new identities of ageing in relation to retirement, pensions, job-seeking and economic outlook.  All of which will eventually have a profound impact on us all.

What does this mean for HR?

For HR, the ageing workforce is a current issue with much on-going work on developing retirement policy in line with regulations, pay and pension reviews and recruitment policy.  In addition, many HR departments are dealing with complex age discrimination cases, see for example this article in Personnel Today, “Cases in point: guidance on retiring employees”.

Managing an ageing workforce is one factor of many influencing future HR Operating Models. It is important to understand your workforce profile now and against where it will be in 5 years’ time against your organisation needs, and also reviewing HR Strategy through the lens of each customer group; from Generation Y to older workers.

Also, read our follow-up article The Impact of an Ageing Workforce on HR.

What you can do

- Follow Working Late on Twitter @workhealth
- Visit www.workinglate.org for more detailed updates
- Get Aunty Doris to update her profile on LinkedIn…?
- Subscribe by email to the HR Transformer Blog
to ensure you read future articles which will look at the changing workforce on HR

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How to Avoid HR Technology Bogeys

It’s only a week after we were gripped by a great sporting comeback in the Ryder Cup in Medinah, Illinois and once again our focus is back in Chicago, this time for the HR Technology Conference and Expo, which starts on Monday 8thOctober.

There is talk of “disruption” in the way we manage the people in our organisations led by new tools and technologies. Plus there are exciting developments with HR in the cloud, Social in the Enterprise, Analytics (including Big Data) and of course, Mobile Technology.

The HR Technology industry is in ebullient mood after some big trophies have changed hands in the Wall Street clubhouses. These include :-

SAP purchasing Success Factors
Oracle buying Taleo
IBM procuring Kenexa
Plus of course, Workday launching its IPO

But back on the fairway, away from the conferences, the analysts, and the business press – implementing HR Technology successfully does have its challenges. Selecting the right technology platform with the right functionality is hard enough. Guessing where your business and your workforce will be in the next 5 years and then persuading your sceptical Line Managers that this will help them in their job is even harder. If in doubt, see how well you get on with this useful list of HR Technology Questions from Naomi Bloom.

But, for every perfect delivery there is a bogey.

It is all too easy to get bedazzled by exciting innovations and disruptions taking place, whether in the clouds or by ‘belly putters’. The fact that 68% of technology projects fail, because companies forget their ‘basic swing’ hitting a few unexpected Bogeys along the way! The good news is that HR have crucial skills to bring on the people side of the project that are so critical to success.  HR can lead projects with confidence, avoid the bunkers, and ultimately become Technology Champions. (see article on Why HR Need to be Technology Champions)

Although I can’t make the HR Technology Conference Expo this year, we here at Glass Bead Consulting, have played a few tough rounds over the years in the HR Transformation Cup. Here are some reflections from the HR Clubhouse we have come up with to help with your handicap and ensure project success.

1  Agree how decisions will be made during the technology implementation

So the first big decision went OK.  At the beauty parade, the software company wheeled in their best salesperson and your Finance Director and Technology Director were impressed enough with the pitch to go with your recommendation for Fusion/SAP/Workday/other. You didn’t really have to revert to your evaluation criteria and weightings, but they still gave the right answer. First job done – now comes the hard bit…

As you get into delivery, you will have to make a number of decisions along the classic project management triangle of ‘Time vs Scope vs Cost’. Often there will be competing demands on your budget, resistance in unplanned areas and resourcing conflicts. At this point the last thing you need is any delay, with 10 expensive Fusion/SAP/Workday consultants on the project, you’ve calculated their burn rate on the train to work (but didn’t tell anyone).

It is critical to spend time up front working through how decisions will be made on the project, who will make them and what the escalation path will be. Governance is key in any substantial project. Make sure a clear governance structure has been agreed up from the onset, and ensure there is a business sponsor to help iron out issues.  Decide who will be on your Governance Board and what their role will be.

When you get going, on occasions you will hit the ball into the rough, and will need to have some difficult conversations on scope, timings, budgets. You will want to remind everyone the terms they agreed at the beginning of the project.

2  It’s the People, Stupid

Start thinking about the change strategy right at the beginning. The Technology Account Manager will make the deployment sound so easy, if mentioned at all. However, think carefully about all your stakeholders, what they need from this change, what their concerns will be, start rehearsing your messages and arguments because you will need to start them soon.

In our experience, to develop an effective change strategy is a canny mix between the high-level, for example, ensuring the change is couched in your organisational goals, and the low-level, getting out a monthly project update, keeping the intranet portal up to date and so on.

Ensure that when you construct your budget and programme team, you have allocated enough resources to communications, change and training expertise – but you work in HR, so you know this right?

3  Agree the goals of the project

Then ‘tattoo’ them somewhere strategic, well at least get them printed on some nice mouse mats or put some posters up. There are many reasons to put in a new HR System and different stakeholders will have diverse drivers and see the benefits in different places. Irrespective if this is to deliver a transformational change in people management, consolidating different systems of records, or to enable employee self-service. Get consensus up front on the goals of the project, show how these goals links to your overall organisational strategy and your HR Strategy.

The new system is ultimately there to delivery HR goals and ultimately make the organisation more successful.

When you get into the project, a few shots will inevitably be hit in the bunker, and there will be crunchy decisions to make, but make sure you can revert to a compelling vision and goals for the project. Also ensure your sponsors agree with these and communicate them widely.

And finally, make sure that ‘the tattoo’ is temporary.

4  It’s still the People, Stupid  – Identify what skills you will require

The skills needed to run HR are not the same as those needed to transform HR. Review how you will get the skills and experience required in programme management, process design, technical skills, support knowledge, change management. Then work out when these will be needed and for how long those skills are needed. Do a skills audit and work out the gaps – but this should be easy as you run HR.

You will need to fill the gaps, identify all the team members, considered the progression of roles, procured any external contractors or consultants and developed training courses.

Remember, your project team capability has the biggest impact on success not necessarily the software.

5  Define your HR Operating Model and HR Processes

It is important to know what flavour of operating model your new technology will be supporting in the future. Will there be changes to what you expect Line Managers, your workforce, your HR Business Partners to do? What is the scope of the HR shared service centre and how much might be delivered by 3rd parties in the future? It is vital that your new system will support this.

At Glass Bead Consulting, we have developed a HR Process Inventory which details every HR service, and who should be doing what in the new operating model. We found this tool really helps our clients stick to what it really needed in terms of requirements. A HR Process Inventory helps flush out ownership and interface issues at a process level, before it becomes a problem for the System Design.

It is easy to forget that typically a new technology system might not deliver real benefits for many months or years, once you have completed an eye-watering amount of data cleansing and trained the Line Managers to use the technology correctly. Unfortunately, for large global projects, by the time the system is fully operational the HR Strategy, and HR Operating required to support it might have changed anyway.

By clearly articulating your HR Operating Model and HR Process Model you can reduce the risk that they system is not fit for the future.

Finally – don’t let the Tail wag the Dog. The biggest mistake of technology projects is to let the system lead the process you will be delivering to your customers!  Our firm belief is HR has valuable skills in Change Management, Training, Communications, sourcing the right people and resources to drive any projects, including IT system implementation. Increasingly, HR also need to be Technology Champions to avoid those expensive bogeys.

It would be great to let us know what you think, or share lessons learned, on the blog or #HRTechConf

Your loyal HR Transformation caddy,
@AndySpence

 

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