17th Annual HR Systems Survey FindingsSpecial LEHRN Presentation

Presenter:

Stacey Harris, Vice President, Research and Analytics

@StaceyHarrisHR

2

2000 +Employees

2014 merger of

4 companies with

decades of experience

7Service & Solution Areas

Application Services

Business Intelligence

Host & Managed Services

Infrastructure Services

Integration & Cloud Solutions

Research

Strategy

Training

Delivering industry-focused client success by providing consulting,

technical, and managed services for the deployment, management and

optimization of next-generation applications and technology.

5Industry Focus

Commercial

Healthcare

Higher Education

Public Sector

Justice & Public Safety

Sierra-Cedar Fast Facts

17Years of Leading

HR Systems Survey &

Research

3

Stacey HarrisVice President Research and Analytics

Passions:

Background:

• HR and OE Practitioner for over 10 years in finance, retail, and franchised

businesses.

• Direct of Research Bersin & Associates, Launched the HR research practice

• VP of Research for Brandon Hall Group

• Major Research and Papers: The High Impact HR Organization, The HR

Framework, Employee Engagement: A Changing Marketplace, and

Relationship Centered Learning

• Feel free to connect at: www.linkedin.com/in/staceyharris/

Research

4

Sierra-Cedar Annual HR Systems Survey

Over 17 years of continuous data gathering

The most comprehensive survey in the industry:

● Strategy, Process, and Structure

● Administrative and Service Delivery Applications

● Workforce Management Applications

● Talent Management Applications

● Business Intelligence/Analytics/Workforce

Planning Applications

● Integration and Implementation

● Emerging Technologies and Innovations

● Vendor Landscape

● Workforce and HR Expenditures

● Workforce Usage and Perception

Please, Register to Participate!

http://www.sierra-cedar.com/annual-survey/

Next Years Launch is May 12th, 2015!

5

Sierra-Cedar 2014–2015 HR Systems SurveyDemographics: All Respondents

Organizations

1,063 Large 10,000 +

Medium 2,500–10,000 Small

100–2,500

Organization Sizes

Represented

28%

29%43%

Total Workforce

Represented

Employees + Contingent

(in millions)

19 Million

Avg. number of Employees =

16,053

20.5%

Other Services

14.9%

Healthcare

14.9%

Financial Services

12.5%

Higher Ed./

Public Admin.

12.1%

Manufacturing

7.9%

Trans., Comm.

Utilities

7.3%

Retail

Wholesale

6.8%

High-techAgriculture/

Mining/

Construction

3%

6

Key Themes for 2014–2015 Survey Results

FoundationStrategy and Culture Innovation

Cloud HRMS

User Experience

Enterprise

Integration Strategy

Culture of Change

HR Tech Strategy Social

Mobile

Quantified OrganizationWFM + TM + BI

7

Sierra-Cedar HCM Application Blueprint

Backlog, Pipeline, Customer Satisfaction

General Ledger, Purchasing, Budgeting, T&E Vendor Management

Project Costing, Contracts, Grants

Projects

FIN

CRM

VMS

Talent Management Excellence

Service Delivery Excellence

Administrative Excellence

Workforce Management Excellence

Workforce Optimization Excellence

SOA, API, ETL

Enterprise Content Enterprise Workflow

Network Security

Enterprise Social

Mobile Access Integration Platform

Workforce OptimizationWorkforce Planning, Workforce

Analytics, Predictive Analytics

Service DeliveryHR Help Desk, Portal, Workforce

Lifecycle Management (Onboarding)

Self Service/Direct AccessEmployee Self Service

Manager Self Service

Workforce ManagementTime & Labor, Absence & Leave

Management, Labor Scheduling, Labor Budgeting, WFM Analytics, Social

Talent ManagementRecruiting, Performance, Learning, Compensation, Succession, Career,

Talent Profile, Talent Analytics, Social

Business Intelligence FoundationReporting/visualization and BI tools

Administrative Apps Core HRMS, Roles/Competencies (Profile Mgt.), Payroll,

Benefit Admin, Embedded HR Analytics, Embedded HR Social

8

● Which areas of the HCM

Application Blueprint will your

organization spend at least 25% of

your internal resources?

● Which areas of the HCM

Application Blueprint require more

industry data and education?

What are your 2015 Initiatives?

9

2014–2015 Three-Year Look at HR InitiativesEnergy on BPI, Service Delivery, Global; Declining Focus on Talent Mgt.

64%

40%37%

35% 35%31%

25% 23% 20%

Major Initiatives – Three Year View

2012–2013

2013–2014

2014–2015

* Global Organizations Only

26%

44%

*

24%

n=823

10

An Enterprise HR Systems Strategy Our Top Performers Do. Do You Have One?

36%

35%

8%

21%

Percentage of Organizations With a Current Enterprise HR Systems Strategy

Regularly updated strategy

In development strategy

Rarely updated strategy

No strategy/Not aware

HR organizations with an Enterprise HR Systems

Strategy are 38% more likely to be viewed by all

levels of management as contributing strategic

value to the organization.

11

HR System Integration ApproachesEarly Indication that Enterprise Integration Strategy (EIS) is Valuable

17%

22%

13%15%

33%

Primary Approach for HR Application Integration

Integrate into HRMS

Integrate into ITM

Enterprise integration strategy/platform

Case by case integration

No approach/not aware

Respondents with an Enterprise Integration Strategy Are Using

• 45%: on-premise solution (Oracle SOA, WebSphere)

• 23%: platform as a service solution (PasS – Dell Boomi, MuleSoft, Informatica)

• 20%: hybrid solutions

• 12%: not aware

n=494

12

2014–2015 HR Tech Spending OutlookOver 50% of Survey Respondents Will Increase Spending Next Year

5%

4%

8%

45%

44%

35%

51%

51%

58%

Small

Medium

Large

Spending Plans for Next Yearby Employer Size*

Increase

Stay the same

Decrease

Small

Medium

Large

*Large = 10,000+; Medium = 2,500–10,000; Small = <2,500

n=924

13

Change Management Practices 27% of Respondents Report a Culture of Change Management

27%

34%

22%

17%

Level of Change Management forHR Technology Projects

Consistent culture of change mangement

Key projects that meet criteria

Sporadically, with no criteria

Never

15%

23%

27%

43%

59%

72%

100%

Incentives

Readiness assessment

Formal CM: Six Sigma etc.

Champions

Usability testing

BPI

Basics*

Change Management Practices for HR Technology Projects

*Basics: Senior sponsorship, communications, documentation, training, and

project management.

14

Benefits of Change ManagementReduces Costs and Increases Perception of HR as Strategic

57%

2 X Organizations with a Culture of Change Management are twice as likely to be

viewed by all levels of management as contributing strategic value, versus at

organizations that never uses change management.

Change Management Increases Strategic Value of HR

$691

$461

$344

$302

Never

Sporadic

Key projects

Culture of CM

Total HR Technology Costs/Employee

15www.domain.com

Contingent

Workforces

84% of organizations have a

contingent workforce

Contingent workers are 20% of the

average company’s workforce

Types of contingent workforces:

Independent contractors – self employed, 1099’s, legal limitations

Temporary workers – employed by temporary service agencies

On-call workers – report to work when needed

Contracted employment – on location, but employed by a third party

Short-term contractors – agreed upon short term contracts

43%

25%

32%

Contingent Workforce Management Tools

Primarily HRMS

Combo HRMS/OtherTools

Non-HRMS Tools

n = 854 (excluding staffing agencies with 100% contingent workforces)

16

43%

25%

32%

Systems Currently Used to Manage Contingent Workforces

Primarily HRMS

Combo HRMS/Other Tools

Non-HRMS Tools

Beyond the HRMS,Other Systems Managing Contingent Workforces

32%

33%

53%

Stand-Alone, C-WFM

Outsourced

Procurement/VMS System

Other than the HRMS, What Systems are Used to Manage Contingent Workforces

*Chart does not equal100%

as organizations have

multiple solutions in use

17

● What is included in your Enterprise

HR Systems strategy?

● How do you define “workforce”?

● Do you have an HR application

deployment Roadmap?

Discuss Enterprise HR Systems Strategies

18

2014–2015 Three-year Adoption OutlookLooking Forward, Workforce Optimization Will Be Hot!

92%

49%

46%

55%

41%

41%

12%

96%

76%

65%

80%

68%

65%

44%

Administrative

Service delivery

Workforce management

Talent management

Social media tools

BI (reporting and tools)

Workforce optimization

Three-year Application Outlook

In Use Today

In Use within 3 Years

268%

n=648

55%

19

Embedded Analytics Solutions2 to 3x Growth Anticipated

28%

15%

13%

70%

52%

58%

Administrative embedded analytics

Workforce management embeddedanalytics

Talent management embedded analytics

Embedded Analytics Three-year Application Outlook

In Use Today

In Use within 3 Years

n=733

20

BI/Analytics Overview

Workforce Optimization

Applications

Reporting,

Visualization, and

Statistical Tools

BI

Foundation

HR Warehouse

Middleware (ETL)

Automatic Report Distribution

Sim

ple

Ma

nag

em

en

t an

d

Op

era

tio

nal R

ep

ort

ing

Insig

ht-

Dri

ll D

ow

n a

nd

A

d H

oc T

oo

ls

Sta

tisti

cal A

naly

sis

To

ols

Oth

er

Vis

ualizati

on

s

Dash

bo

ard

s

Workforce Analytics,

Workforce Planning and Predictive Analytics

21

BI/Analytics Deployment ApproachesAdoption is Less Important than Deployment. We Must Learn from the Past!

8%

13%

33%

47%

7%

9%

30%

53%

Standalone HR Analytics Tool

Combination Solutions

Embedded HR

Enterprise BI

Business Intelligence/HR Analytics Approach

Today 12 Months

Predominantly

Standalone Apps2007

2012

With experience,

organizations moved

to adopt

Enterprise Solutions

2014Currently, an

emerging trend of

Embedded HR Analytics

Going forward, we will see

44% growth in adoption of

Combinations

12

Mo

Caution: consider past learning as you develop your BI/analytics strategy.

While embedded analytics solutions that provide transactional and operational analytics

will not go away, they are not the end solution. Enterprise solutions will be needed.

n=488

22

46%

13%

28%

10%

3%

2%

31%

9%

47%

11%

1%

1%

Licensed software – on premise

Licensed software – hosted

SaaS – subscription-based

Combinations

In-house developed/bespoke

Outsourced (process andsoftware)

HRMS Application Deployment Only

Today

12 Months

2014–2015 HRMS Deployment ModelsSaaS HRMS Deployments Will Overtake Licensed Next Year

n=602

23

2014–2015 HRMS Deployment ModelsLarge Organizations* Will Double Their SaaS HRMS Adoption Next Year

15%

25%

40%

31%

46%

59%

HRMS SaaS Application Deployment Only by Employer Size*

Today

12 Months

Medium

Small

Large

106%

*Large = 10,000+; Medium = 2,500–10,000; Small = <2,500

n=602

24

More HRMS Replacement Initiatives With Variations by Industry

Upgrade vs. Replacements by Industry

29%

26%

20%

16%

9%

13%

16%

9%

12%13%

8%

16%14%

15%14%

23%

19% 18%

21%20%

15%

Upgrade HRMS

18%

Replace HRMS

All Respondents

n=823

25

HRMS Replacement Initiatives With Variations by Region

14%

Upgrade HRMS

10%

Replace HRMS

Europe

Respondents

21%

Upgrade HRMS

17%

Replace HRMS

APAC

Respondents

15%

Upgrade HRMS

18%

Replace HRMS

All

Respondents

31%

Upgrade HRMS

26%

Replace HRMS

Canada

Respondents

26

Legacy HRMS Respondents Change PlansToday’s HRMS Environment

Single Legacy HRMS Changes(avg. employee size 7,592)

1/3 Moving to Workday

1/3 Evaluating cloud slate

Multi-vendor HRMS Changes(avg. employee size 22,043)

22% of all HRMS Respondents are Changing their HRMS

• 35% Single Legacy HRMS environment

• 32% Multi-vendor HRMS environment

• 33% Cloud to Cloud, Homegrown to Vendor, etc.

1/3 Moving to other single

cloud solution

1/3 Moving to all major

single cloud solutions

1/3 Evaluating cloud slate

1/3 Consolidating (most

often keeping an existing

on premise solution)

59% are legacy solutions (licensed on premise and hosted)

66% of legacy HRMS’s are NOT on the current version

The average time since upgrade for legacy HRMS’s is 4 years

27

Overall

Large

10,00+

Employees

Medium

2,500–10,000

Employees

Small

200–2,500

Employees

Today

In 12

Months Today

In 12

Months Today

In 12

Months Today

In 12

Months

Oracle PeopleSoft 27% 24% 47% 41% 28% 23% 9% 8%

ADP 20% 16% 15% 11% 15% 10% 28% 25%

Ultimate Software (UltiPro) 11% 11% 1% 2% 16% 16% 15% 14%

Kronos 11% 9% 15% 13% 12% 8% 7% 5%

SAP* 9% 8% 15% 12% 9% 8% 4% 5%

Infor/Lawson 9% 8% 13% 11% 13% 9% 4% 4%

Workday 6% 15% 9% 21% 6% 18% 3% 6%

Oracle (EBS)/JD Ewards 7% 7% 11% 11% 6% 5% 6% 6%

Ceridian HR 5% 3% 2% 2% 5% 1% 7% 4%

SumTotal/Softscape/Accero 4% 4% 3% 3% 5% 5% 4% 1%

SuccessFactors Employee Central 3% 6% 3% 7% 4% 6% 2% 4%

Oracle Fusion (HCM Cloud) 2% 4% 3% 5% 1% 3% 2% 4%

Ceridian Dayforce HCM 2% 3% 1% 1% 2% 3% 3% 5%

Other 13% 13% 9% 7% 9% 8% 21% 22%

HRMS Vendor Landscape12 Months Plans Indicate Increased SaaS Adoption

HRMS Vendor Outlook Overall and by Size

+5% gain+5% loss

* SAP adoption underrepresented

Columns do not add to 100% as organizations have multiple solutions in use

Colored cells indicate greater than 5% gain or loss projected in 12 months.

n=497

28

#1 Reason For Moving is User Experience! How Are Vendors Doing?

1 = Poor: not user friendly, excessive steps, limits use

2 = Acceptable: workable but requires training to use

3 = Excellent: intuitive, user centered design, effectively promotes use

And, why is it is such a big deal?

It’s about driving user adoption,so both employees and the organization

get the most value from the solution!

29

User Adoption Level by User Experience ScoresHigher User Experience Scores with Newer Cloud Solutions

HR Management System

Manager User Adoption and User Experience

30

35

40

45

50

55

60

65

70

75

1.60 1.85 2.10 2.35 2.60

User

Ad

op

tio

n P

erc

en

tag

e

UltiPro

Kronos

Infor/Law

PSFT* Ceridian DF

User Experience Scores

Oracle, EBS

* Sample Size Small,

Indicative Data Only

SAP (HCM)

Ceridian HR

Multiple

Vendors

n=389

UltiPro: Manager adoption,

increased by 47%

from last year.

Organizations with

new cloud solutions

will see increased

adoption levels

quickly. * Oracle HCM

Cloud (Fusion)

Workday

* SF/Employee

Central

ADPUltiPro (2013)

30

HRMS Customers Continue to be Dissatisfied

Net Promoter Score

Promoters Detractors

Overall -35 18% 53%

Licensed on Premise -47 11% 58%

Licensed Hosted -39 21% 60%

Software as a Service -9 31% 40%

Net Promoter Score by HRMS Deployment Approach

Net PromoterScore

% Detractors(0 through 6)

% Promoters(9s & 10s)= –

DETRACTORS PASSIVES PROMOTERS

(0 through 6)

0 1 2 3 4 5 6 7 8 9 10Not at all

likelyNeutral Extremely

likely

n=418

31

Vendors Pay Attention! Implementation Time Matters and Yields Highest NP Score

Average Net Promoter Score by Vendor Benefit

-30-23 -23

-10 -4

4 8 8 11

27

Avg

. N

P S

co

res

Question: Which vendor benefits have the greatest positive impact for

your organization today with your current core HR Management system?n=558

32

Low Industry Net Promoter Scores Actions to Take from HRMS Scores

● Plan for faster implementations, upgrades, or release deployments

Don’t try and boil the ocean. Piloting and phased rollouts can help reduce project

time. Complete process re-engineering before technology work, not during.

● If your organization is on an older release, consider changing!

Those on older releases are the most unsatisfied by 40 points lower than the

average. Those on newest releases are 8–20 points higher than the average.

● Customize as a last resort!

Those with high levels of customization (over 25%) are 20 points lower than

those with moderate and low customization, and 50% lower than those with no

customization. Those with no or low customization give the highest scores, 62

points higher than those with high levels of customization.

● Develop an enterprise integration strategy

Those with an Enterprise Integration Strategy and Platform have scores 10

points higher than the average, and 14 points higher than those that integrate on

a case by case basis.

33

SaaS Takes Less Time to Deploy

Length of Time for New HRMS Deployments

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Licensed On Premise = 15.3 months

Licensed Hosted = 11

SaaS = 9.0 months

18.7

14.4

11.0

14.2

13.6

8.3

14.3

10.0

7.1

Large

Medium

Small

Time for New Deployment for an HRMS by Size of Organization*in months

Licensed On Premise

Licensed Hosted

SaaS

n=536*Large = 10,000+; Medium = 2,500–10,000; Small = <2,500

34

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Average Time for Upgrades and ReleasesSaaS Continues to Provide Faster Speed to Benefit

Length of Time for HRMS Upgrades/Releases

Licensed On Premise Upgrades = 7.3 months

Lic. Hosted Upgrades = 5.17 months

SaaS Release = 4.2 months

8.7

6.3

5.0

5.8

4.9

4.6

-

3.9

3.8

Large

Medium

Small

Time for HRMS Upgrades/Releases by Size of Organization*in months

Licensed On Premise Upgrade

Licensed Hosted Upgrade

SaaS Release

* Not sufficient data

n=536*Large = 10,000+; Medium = 2,500–10,000; Small = <2,500

35

SaaS Takes Less ResourcesRequires Fewer Total HR Technology Headcount than Licensed Solutions

Licensed on premise SaaS

5.0

4.04.9

3.0

4.3

2.8

Head

co

un

t

Functional HRMS

Application Support HRMS

Infrastructure

*All Licensed on premise and SaaS respondents from organizations with

average of ~11,000 employees plus contingents served by the HRMS

n=85

HRIT/IT Headcount by Deployment Type*

SaaS advantage holds true across small, medium, and large organizations.

It is best to benchmark for your size and industry.

36

Expenditures are ComplicatedBenchmarking is Necessary!

*License plus maintenance for licensed on premise; annual amount paid to vendor for SaaS**From licensed on premise and SaaS respondents with an average of ~11,000 employees plus contingents served by the HRMS*** Implementation, upgrade, and/or change management**** Ongoing support for HRMS

Licensed On Premise

Current Year

Licensed On Premise

Next Year

SaaS

Current Year

SaaS

Next Year

$134 $148 $132 $132

HRMS Technology Costs * (per employee)**

Licensed On Premise

Current Year

Implementation ***

Licensed On Premise

Next Year

Implementation ***

SaaS

Current Year

Implementation ***

SaaS

Next Year

Implementation ***

$41 $39 $47 $67

External Costs Paid to Consultants/or Vendor (per Employee)** for Implementation Costs

Licensed On Premise

Current Year

Ongoing Support****

Licensed On Premise

Next Year

Ongoing Support****

SaaS

Current Year

Ongoing

Support****

SaaS

Next Year

Ongoing Support****

$34 $14 $22 $24

External Costs Paid to Consultants/or Vendor (per Employee)** for Ongoing Support

n=85

37

With

Self Service*,

and Help DeskWith

Self Service*

224

No or Low Tech

204

Value of Service Delivery TechnologiesEnable Serving More Workforce per HR Administrative Staff

*With Self Service: Employee and manager self service applications serve 60% or more of employees and 50% or more of manager populations

***HR Administration is calculated with headcount

268

10%

31%

Employees Served by

HR Administrative Headcount***

n=160

38

With

Self Service*

and Help Desk

2.2

With

Self Service*

2.1

No

or Low Tech

1.75

Why Add Mobile to Service Delivery Tech?Higher HRMS User Experience Scores

*With Self Service: Employee and manager self service applications serve 60% or more of employees and 50% or more of manager populations

**User experience scores based on a three point scale: 1 = Poor, 2 = Acceptable, 3 = Excellent

49% increase in user experience scores with combined

self service, help desk, and mobile technologies.

With

Self Service*,

Help Desk,

and Mobile

2.6

HRMS User Experience Scores**

by Service Delivery Model

n=158

39

Strategy for WFM Solution Adoption

WFM Suite15%

HRMS Suite40%

ITM Suite13%

Point Solutions13%

No Strategy19%

PLEASE CHARACTERIZE THE PRIMARY APPROACH TO SELECTING WORKFORCE MANAGEMENT APPLICATIONS?

* WFM Suite – Not part of the HRMS or ITM Suite

n=580

40

40%

18%

21%

13%

4%

2%

26%

16%

38%

16%

1%

1%

Licensed software – on premise

Licensed software – hosted

SaaS – subscription-based

Combinations

In-house developed/bespoke

Outsourced (process andsoftware)

WFM Application Deployment Only

Today

12 Months

2014–2015 WFM Deployment ModelsWFM Deployment is Quickly Moving to the Cloud

n=580

41

Time and Attendance Tracking Solutions

* WFM Suite – Not part of the HRMS or ITM Suite

n=580

13%

54%

52%

8%

Manual - paper based

Individual PC

Company device(biometric, card-swipe,

code)

Mobile device

Percent of Organizations Using these Time Tracking Tools Currently

42

Top Adopters of WFM, TM, and BI Achieve Higher Outcome Scores and Higher ROE

Top Workforce Management, Talent Management, and Business Intelligence Adopters:

• Have across the board higher HR, talent and business outcome scores

• Achieve higher Return on Equity (31% higher than lower adopters)

Workforce

Management

Talent

Management

Business

Intelligence

They integrate WFM, TM, and HRMS data

three times as often as lower adopters.

43

67%

63%

62%

64%

69%

78%

86%

44%

45%

50%

59%

60%

63%

84%

Succession

Career

Learning

Compensation

Acquisition

Talent Profile

Performance

Integrated Talent Management Components

Today 12 Months

Integrated Talent ManagementAll ITM Components Will Grow in Adoption in Next 12 Months

Integrated Talent Management

Approach

Organizations with higher than

average TM components (4)

have 6% higher ROE.

ITM Suite29%

HRMS-ITM suite

42%

Point Solutions

15%

None/Not Aware14%

44

Integrated Talent Management Vendors31% of Respondents Report They Will Change Solutions!

Overall

Large

10,000+

Employees

Medium

2,500–10,000

Employees

Small

200–2,500

Employees

Today

In 12

Months Today

In 12

Months Today

In 12

Months Today

In 12

Months

Oracle (PeopleSoft, EBS) 25% 18% 41% 30% 23% 17% 11% 10%

SuccessFactors/Plateau 20% 19% 21% 23% 27% 23% 12% 12%

Oracle (HCM Cloud, Taleo) 14% 18% 26% 30% 9% 13% 7% 11%

Cornerstone OnDemand 11% 15% 10% 14% 9% 10% 15% 19%

Ultimate (UltiPro) 9% 10% 0% 1% 13% 14% 14% 14%

ADP 9% 7% 5% 4% 3% 2% 20% 13%

Workday 6% 13% 7% 15% 8% 17% 3% 8%

SumTotal/Softscape 5% 4% 6% 3% 8% 8% 2% 1%

SAP* 4% 3% 6% 6% 3% 3% 2% 2%

Halogen 3% 4% 0% 1% 5% 3% 6% 6%

Other 28% 29% 34% 39% 25% 27% 25% 30%

Integrated Talent Management Vendor Outlook Overall and by Size

* SAP adoption underrepresented

Columns do not add to 100% as organizations have multiple solutions in use

Colored cells indicate greater than 3% gain or loss in 12 months.

+3% gain+3% loss

n=363

45

Social Continues to Grow

27%

30%

36%

52%

62%

7%

4%

5%

9%

10%

6%

13%

15%

17%

13%

10%

8%

9%

6%

10%

16%

18%

4%

3%

38%

28%

17%

9%

19%

Enterprise social netowrk (behindfirewall)

Twitter

Facebook

LinkedIn

Collaboration tools/repository

Social Tools Use and Plan

Used strategically todayWill be used strategically in next 12 monthsAllowed for individual use onlyEvaluating useNot allowed

46

Social-enabled Process Adoption Recruiting Staff and Hiring Managers Have the Highest Levels of Use

Workforce Using

Major Social-enabled HR Processes Today

In 12

Months

Administrative – HR management/record keeping 14% 21%

Workforce Management – Time and labor/time and attendance 8% 14%

Talent Management

Recruiting 23% 29%

Performance management/Goal management 10% 16%

Learning and development 14% 22%

Compensation 5% 11%

Recruiting (recruiting/talent acquisition staff) 67% 74%

Recruiting (hiring managers) 26% 36%

Business Intelligence/Workforce Analytics 8% 13%

Average workforce adoption across all mobile-enabled processes 12% 18%

n=186

47

Mobile-enabled Process Adoption Mobile Adoption Will Grow by Over 100%

Workforce Using

Major Mobile-enabled HR Processes Today

In 12

Months

Administrative 15% 33%

HR management/record keeping 11% 31%

Payroll 19% 35%

Workforce Management 8% 25%

Time and labor/time and attendance 7% 24%

Leave management 8% 27%

Absence management 8% 26%

Workforce scheduling/Labor scheduling 7% 23%

Talent Management 20% 37%

Recruiting 17% 31%

Performance management/Goal management 25% 40%

Learning and development 24% 37%

Compensation 20% 39%

Succession planning/management 13% 32%

Business Intelligence/Workforce Analytics 4% 13%

Average workforce adoption across all mobile-enabled processes 13% 27%n=568

48

53%

41%

71%66%

< 20% Mobile Process Enablement

> 20% Mobile Process Enablement

Mobile & Social enabled ProcessesHigher Levels of Adoption Lead to Higher Levels of Use

Employee

Direct Access

Manager

Direct Access

60%34%

n=188

58%

46%

73%67%

< 20% Social Process Enablement

> 20% Social Process Enablement

Employee

Direct Access

Manager

Direct Access

46%

26%

49

● Does your organization require a

business case for HR Technology

adoption?

● What type of data does your

organization require for a business

case:

– ROI

– Savings

– Engagement

– Business Goals

– Etc.

● Do you have an HR application

What is the Value of HR Systems?

50

Value Chain Factors and Outcomes

HR Outcomes

HR alignment with business strategy

HR cost efficiency

Employee engagement

Talent Outcomes

Ability to develop a highly qualified workforce

Availability of workforce data for decision making

Talent mobility

Ability to attract top talent

Retention of top talent

Business Outcomes

Market share

Organizational profitability/Cost efficiency

Customer (constituent) satisfaction

Competitive advantage

Innovation

Employee and manager productivity

Scale of 1–5

Strongly

Declined

Declined

Neutral

Improved

Strongly

Improved

51

Top Adoption of WFM, TM, and BI Across the Board, Higher Adoption Yields Higher Outcome Scores

4.1 4.0 4.13.9

3.9 3.8 3.8 3.9 3.8 4.0 4.1 4.03.8 3.6 3.6 3.6 3.5 3.5 3.3 3.5 3.6 3.7 3.8 3.7

Top Adoption WFM/TM/BI Lower WFM/ITM/BI

Over the past year, how have the following changed across the organization?

1 = Strongly Declined and 5 = Strongly Improved

HR Outcomes Business Outcomes

Outcomes By Top WFM, TM, and BI Application Adopters

Compared To Low Adopters

Talent Outcomes

n=526

52

Predicts

BRImproved

Business Results

Predicts

HRImproved

HR & Talent

Outcomes

HR Technology Adoption Value Chain ModelLinking HR Tech to HR/Talent and Business Outcomes to Financial Value

HR Technology application adoption is indirectly related to improved organizational results

(Competitive Advantage and Market Share) through improved HR and talent outcomes

(improved Cost Efficiency, Decision Making, Employee Engagement, Developed

Workforce, Talent Retention) and linked to improved financial performance (ROE).

PredictsTAHigher Total Apps

Adoption

ROEHigher

Return on Equity

53

Introducing the “Quantified Organization”An Environment of Data-driven Decision Making

Quantified Organization Not Quantified

Better BI Process Maturity BI Process Maturity

3.2Effective

BI Process Maturity

1.8Efficient

More Manager Access to Analytics Managers with BI access

74%Managers with BI access

20%

More Data Sources BI Sources

4.8BI Sources

2.4

More Categories of Metrics Metrics Categories Tracked

4.2Metrics Categories Tracked

2.8

54

Quantified Organizations Outperform!They Have 79% Higher ROE than Non-QOs

Quantified

Organization

79% Higher ROE

Quantified

Organization

Not

Quantified

Return on equity measures an organization’s

success at generating

profits from every unit of

shareholders equity, such

as that allocated for HR

technologies. A company

that earns an ROE in

excess of its cost of equity

capital adds value.

ROE

18%ROE

10.1%

55

HRMS

ITM

QO

3.0

Effective

Lessons from Quantified OrganizationsThey Get the Basics Right

QO

57% Non-QO

42%

QO

62% Non-QO

52%

Non-QO

2.0

Efficient

ITM on HRMS

Process

Maturity

Process

Standardization

56

Lessons from Quantified OrganizationsThey Have Strategies and Culture that Support Performance

Migrate to

Enterprise BIEnterprise

Integration Strategy

Updated HR

Systems StrategyChange

Management Culture

64%

35%

75%

37%37%

11%

61%

26%Non-QO

QO

QOQO

Non-QO

Non-QO

QONon-QO

57

Lessons From Quantified OrganizationsThey Innovate with HR Technologies

Higher level of

Mobile adoption

Higher level of

Social adoption

Adoption of

WFM, TM, and BI

41%

24%

32%

5% 6%

14%Non-QO

QO

QO

QO

Non-QO

Non-QO

HR Technology Seer

59

Emerging TechnologiesGamification the Only One with Sizable Usage

Workforce Using

Today Evaluating No/NA

Gamification of applications 34% 66%

Wearable technology 7% 4% 89%

Social aggregation applications 4% 6% 91%

Fatigue management applications 2% 1% 97%

Robotics/artificial intelligence 1% 3% 96%

Wearables60% of organizations using

wearables believe the benefit

will be “increased workforce

productivity.”

60

Systems of Tomorrow

● Systems of Engagement – a step beyond Talent and Administration

● Workforce Optimization Systems – where data, answers, and actions

come together

● Activity and task management goes beyond operations

● Open input and work design platforms

61

Employee Feedback Survey

● 92% of employees actually completed an

employee self-service task online.

● Employees are most likely to contact their

manager to request vacation and sick leave

time – versus HR.

● 32% of Asia Employees and 35% of Europe

employees did not know that they had the

ability to swap shifts or change withholdings

on-line, compared to 18% of the U.S.

employees.

● The most frequently done task by

employees on a mobile device was to

manage work related connections.

● Submitting job posting had the lowest users

experience from managers.

• Asia-Pacific Millenials

supervisors were the most

likely to call HR versus using

manager self-service HR

tools.

62

Action Planning Exercise

● What were your big takeaways

today?

● What two action items will you take

from todays session?

63

I Need You!

● How can we improve the survey?

● Can we get at least 35

participants?

64

Visit Sierra-Cedar Website Get Full Survey Details and Sign Up To Participate Next Year!

www.Sierra-Cedar.com/annual-survey

65

Reasons for Moving to SaaSImproving the User Experience Continues as #1 Reason to Move

76%

61%

58%

50%

50%

48%

Improved user experience foremployees, managers, as well as HR

Easier upgrades

Best practice functionality

Faster time to implement and achievevalue

Eliminates dependence on IT

Reduces need for internalinfrastructure

Reasons for Moving to a New SaaS Core HRMS Stakeholder Rankings

HR IT Exec.

1

2

3

4

6

5

1

2

3

5

6

4

1

4

3

5

2

1

2

3

5

4

6

Executives Also Focus on Infrastructure and Upgrades

6

n=1,022

66

Concerns With Moving to SaaS HRMSWith High Profile Data Leaks in Press, Security & Control Concerns are Growing

61%

56%

55%

50%

46%

32%

Concerns about service and support

Inability to customize

Integration complexities

Security/data privacy

Loss of control over systems/data

Concern about vendor lock-in

Concerns About Moving to a New SaaS Core HRMSStakeholder Rankings

HR IT Exec.

1

2

3

4

6

5

1

5

2

3

6

3

3

4

1

5

1

6

+25%

+40%

1

2

3

4

6

5

n=1,022