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HR Technology Key Trends 2014 www.hrzone.com @HRZone

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Page 1: 2014_HR_Technology_Trends

HR Technology Key Trends 2014

www.hrzone.com @HRZone

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Contents

1. Impact of the client/vendor relationshipJason Averbook - Chief Business Innovation Officer, Appirio

Andy Campbell - HCM Strategy Director, Oracle

Daniel Kasmir - Chief Human Resources Officer, FNZ

2. The device won’t matter Perry Timms - Visiting Fellow, Sheffield Hallam Business School

Chip Luman - Chief Operating Officer, HireVue

Louise Hadland - HR Director, Shoosmiths

3. The rising importance of

self-serviceJosh Bersin - Founder & Principal, Bersin by Deloitte

Nicolas Roi - Managing Director UK, SilkRoad Technology

Graham Salisbury - Head of HR, ActionAid

4. Process integration and effective training Andrew Steels - HR Service Delivery Practice leader, Towers Watson

Peter Russell - Director, HRN Europe

Brian Bowden - Director of HR Operations, Aer Lingus

5. Data analytics in decision-making Jon Ingham - Executive Consultant, Strategic Dynamics

Liliya Apostolova - Senior Product Marketing Manager, Lumesse

Rob Taffinder - Senior Recruitment Manager, Nationwide

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Impact of the client/vendor relationshipJason Averbook - Appirio

When it comes to the relationship between vendors and customers there are probably three key concepts that are important for everyone to understand. When I say everyone, this is independent of if you are on the vendor or the customer side and a mastery of these concepts is guaranteed to create a longer, richer and fulfilling relationship now and into the future. These three key concepts, which I will break down below, are expectation setting, communication and ongoing transparency.

“...remembering that both customer and vendor have responsibilities towards meeting and exceeding expectations, the relationship has a much better chance of success. ”

Let’s start with expectation setting. Expectations truly create our “perception” of a relationship from day one. If expectations are set and clearly stated as to how a relationship is going to work and who is responsible for each aspect of the relationship, and expectations for the customer and the vendor during each phase of the relationship are put into writing - courting, dating, signing up to be together and ongoing relationship

maintenance – the relationship has what I call as “barbed wire fence” around it to make sure it cannot go “off the rails” too badly in any one direction. There will never be a relationship between a customer and a vendor that is perfect and if you are hoping for one, you are going to be sadly mistaken, but by tackling the expectation setting upfront for each other, and remembering that both customer and vendor have responsibilities towards meeting and exceeding expectations, the relationship has a much better chance of success.

This takes us to the next phase of success that is made up of communication. Communication is the devil that kills most relationships and it is not the fact that people don’t talk to each other, but it is the issue that the right people are not talking about the right things at the right time. There are communication topics that should be happening at executive levels that are very important to the long term relationship that never get escalated for fear of looking bad, and there are issues that get escalated that make executives “tune out” and think that either their internal people or the vendor should be managing the conversation. I could write forever about communication styles and plans, but to make it simple; set up short, frequent reviews of where the relationship is “truly” at the executive level, mid manager level and project

About the author As Chief Business Innovation Officer of information technology consulting company Appirio, Jason leads the

company’s human capital management business. Drawing on more than 20 years of experience in the HR and

technology industry, he works closely with customers to creatively drive business outcomes. Jason is deeply involved

in the global HR community and speaks frequently at industry conferences, including HR Technology, IHRIM

and major enterprise software vendor conferences. He also contributes to publications that include Bloomberg

Businessweek and Forbes.

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team level on a weekly basis as well as a strong communication framework and, once again, your chances of a successful relationship skyrocket quickly.

Last but certainly not least is transparency. In every relationship between customers and vendors, things go wrong, and these things are often very important to the success of the relationship. What kills relationships most often is a lack of trust and transparency. When you screw up and don’t staff the project with the best resources, or your software has a bug, admit it. If the customer is not meeting their end of the bargain, call them out on it. Set an open and transparent dialogue rule from day one and you will alleviate many of these simple issues.

What doesn’t get measured doesn’t get managed. Too many people manage projects and not relationships. I recommend a green/yellow/red status be assigned to vendor/customer relationship on a weekly basis to guarantee alignment. By having this front and center, there are no surprises and will save a ton of time and energy in the long run. Once again, no relationship is perfect but by implementing these three key facets of relationships, your chances of a longer lasting, more fulfilled union increase exponentially.

Impact of the client/vendor relationshipJason Averbook - Appirio

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Impact of the client/vendor relationshipAndy Campbell - Oracle

It is safe to say that talent management software has, for years now, been a permanent fixture of the HR department’s toolbox. However, while it has brought HR professionals some added insight and functionality, many organisations still lack the time and resources required to keep their software up-to-date and enjoy the full extent of what it can offer them.

“... the adoption of new functionality will see customers require more frequent and insightful support than ever.”

Today, cloud-based software solutions are beginning to change that. The consumerisation of IT has kicked off an era of fast-paced innovation and bred a generation of digital natives hungry for new technologies. IT vendors have answered the call with Software as a Service (SaaS) cloud solutions that provide HR professionals with the opportunity to extend their capabilities and gain new flexibility from their IT and, in turn, improve the services that they can offer to the business.

These advances have also prompted a move towards closer relationships between

clients and their software vendors, as frequent upgrades and the adoption of new functionality will see customers require more frequent and insightful support than ever. By developing these collaborative relationships with their providers, HR departments will be in the best position to fully exploit their software investment.

Staying on the ballAlthough HR teams have always made healthy investments into their software, their contact with vendors has often focussed on the occasions when they required a product upgrade. Cloud-based solutions tend to evolve much more frequently than traditional on-premise software and users are reliant upon vendors for ongoing support rather than their internal IT department.

Upgrades to a cloud-based software service are automatically shared with all users of that particular solution. HR teams that turn to SaaS can therefore rest assured that they can always enjoy the latest functionality from their talent management and HR tools. One key benefit of this approach is that vendors can step in and provide clients with the on-going support they will need to take advantage of their IT investment and create a better, happier, and more productive work environment.

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About the author Andy Campbell has been at Oracle for 18 years. In his current position as HCM Strategy Director for Oracle EMEA he

is actively involved in research and thought leadership activity associated with Oracle’s HCM Cloud propositions.

He combines this role with active engagement with customer executive teams that are looking to embrace the

significant opportunities that are enabled by such capabilities. In his previous positions he has been responsible for

the successful delivery of major business transformation programmes.

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Always at your serviceFor vendors, it has become more important than ever to build strong, lasting relationships with their customers. SaaS, as its name suggests, is as much a service as it is a product, which implies that IT vendors will be expected to offer both software and support in equal measure. This will extend to walking customers through frequent upgrades and educating them on the implications of future enhancements so that they can develop the most forward-looking HR strategies possible.

The support that clients receive from a more collaborative cloud vendor will allow HR teams to spend less time housekeeping in preparation for the installation of new technologies, and more time actually enjoying the innovations they have invested in. Vendors that provide customers with boththe software and product support they require will equip them to add real value to their business, and in turn help drive their success for years to come.

Impact of the client/vendor relationshipAndy Campbell - Oracle

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Impact of the client/vendor relationshipDaniel Kasmir - FNZ

Technology in HR has been passively applied for some time, but now HR must seize the opportunity to go on the offensive. It must do more than simply automate simple processes and instead apply that technology to truly deliver innovation and competitive advantage. Grand words. Yet, all too often, HR people are technology dinosaurs, thinking about how to police or even whether to allow access to technology, such as Facebook, in the workplace rather than embrace it, and demonstrating a pervading paranoia about confidentiality of data.

But embrace it they must and with this greater and more intimate reliance on technology, HR professionals will need to deal with a growing number of IT vendors and outsourcing suppliers. How effectively they manage those relationships can influence the benefit they can glean from the technology and influence the contribution of the HR department.

“Communication is a two-way process and it’s fashionable to talk about client and vendor relationships”

In theory, managing these relationships should be a walk in the park for HR professionals. After all, HR is a people-led profession and understands the importance of clear and regular communication in any

corporate endeavour. There’s a danger, however, that there’s too much focus on the initial contract and features-setting and not enough on what happens after the ink is dry. You need to put in the effort to establish ongoing open and transparent communication. With that in place, it will be far easier to analyse which aspects of the technology or service work well and which elements need improvement.

Communication is a two-way process and it’s fashionable to talk about client and vendor relationships, particularly in outsourcing, as a partnership or even a marriage, but this just isn’t the case. In reality, you are paying for a service and should expect to get what you pay for. While I believe the idea of a partnership is not the right idea in this context, it is important that you develop and maintain a positive relationship with your supplier base. The way to ensure that is to have clearly defined goals and priorities and to ensure continuity of communication, so that someonewithin the team ‘owns’ that relationship.

Relationships with vendors can go wrong and one of the chief reasons for that is that the relationship was built on faulty logic in the first place. It’s all too common, for example, for HR to be swept along by the push to outsource as much as possible, in a bid to cut costs. While outsourcing, when properly managed, can prove an immensely powerful

About the author Daniel Kasmir has over 20 years’ experience in senior HR positions in various industries, including Shell UK, Phones

4U, Xchanging and General Atlantic. As Chief Human Resources Officer at FNZ – a technology company that operates

within financial services - he helps the business achieve its ambitious growth targets, through ensuring they have

the best people in the industry who are motivated to succeed.

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and useful corporate tool, you shouldn’t outsource something just because you can. Every company is different, but I believe that outsourcing an area like recruitment is not the right thing to do, even though many HR departments have chosen this route. Your people are your greatest asset, so why would you pass that responsibility to an outsider? The control needs to remain very much with you.

And that’s the key with relationship with vendors: put the effort in to keep the relationship positive and open, but also keep control.

Impact of the client/vendor relationshipDaniel Kasmir - FNZ

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The device won’t matterPerry Timms - Sheffield Hallam Business School

Technology advancements have enabled huge changes in our lives through how we shop, work and socialise. The ubiquity of access to the internet for whatever we want, whenever we want and largely wherever we want makes the world a smaller place and our choices almost endless.

Predicting what will be the device of choice is taxing consumer electronic giants, governments and people alike. We know that consumer technology is very much ahead of corporate in convenience and use of new applications.

“We know that consumer technology is very much ahead of corporate in convenience and use of new applications.”

So be it a tablet, laptop, ultrabook, netbook, Chromebook, mini tablet, phablet, smartphone, mini smart phone and of course a wearable device, the very nature of our diversified lives means we have choices like never before. Most of us choose two or three devices with us at any given time.

What does this mean for HR, HR information systems and people-related applications?

The obvious one is the dreaded Bring Your Own Device policy. The majority of technology-savvy workers don’t need a “you can/can’t” directive. It is time it was more about “Use YOD - be aware; be safe” which is less policy, more guidance on ensuring folks are compliant with company IT policies and security protocols.

The other is the rise of mobile as the chosen internet access device. Website constructs have to be optimal for the three to five inch screens of mobile devices but must also fit the seven to 10 inch screens of tablets. HR isn’t in charge of screen design but it does need to know its HR database and performance management software applications can port across all device screen sizes and be easy enough to use.

Many corporate and freelance HR and L&D staff are on the move anyway, so need to access information on the go at any given time.

Even device inputs are increasing - keyboards, stylii, voice recognition, character readers – again, sometimes down to choice and often helpful in ensuring people with specific needs can be enabled by their device.

So why not use the HR Business Partner’s own device to record the discussion over a disciplinary? Linked to the company cloud

About the author Perry Timms is a Chartered Member of the CIPD and a Visiting Fellow at Sheffield Hallam Business School. He

has held corporate roles as Head of Learning, Talent and OD in both the public and not-for-profit sectors, and

lectures on HRM at Birmingham City, Westminster and Dublin City universities. Perry has been leading on business

improvement and change for over 20 years and is currently the Advisor to the CIPD on Social Media & Engagement.

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drive where the file is run through transcribing software and emailed out 30 minutes after the meeting has concluded. What happens with the “own device” file? Once it’s clear the file transfer has been successful, it’s deleted of course.

Then there’s the L&D pro building an online learning lesson via his tablet and posting it to the corporate network’s learning platform. The minute it’s posted, it pings a note to those learners connected by their phones and corporate iMacs awaiting the next instalment in “Web Psychology for Leaders”.

Our corporate networks must be able to connect to “the internet of things” - i.e. everything - including all new wearable technology.

Indeed the device will be like the company car or the corporate biro. Expected to perform and be reliable.

So it’s what the device - combined with GPS and cloud-accessibility - will do for us that matters.

The device itself - personal choices not withstanding - simply doesn’t matter.

The device won’t matterPerry Timms - Sheffield Hallam Business School

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The device won’t matterChip Luman - HireVue

When it comes to hiring top talent, recruiters and hiring managers have a competitive advantage when they’re in the right place at the right time – even when they’re on-the-go. According to IDC, 70% of all workers have some mobility in their jobs. Forbes also estimates that 23% of keyword searches that contain the word “job” come from mobile devices. But alarmingly, a recent study found that only 7% employers have a mobile version of their career website and only 3% of employers have a mobile job app (source: Mashable).

Today’s talent pool is everywhere, so the only way companies can effectively reach and engage them is by finding them where they are. A challenging proposition. Tools and technology are available to help eliminate the challenges standing between companies and top talent – challenges such as time zone differences, travel costs and scheduling nightmares.

“The increased adoption of mobile will also make it infinitely easier for the HR function to do its core job”

How will this influence the development of HR technology in the near term? In short, mobile will officially transition from being

a “trend” in human capital management to the widespread norm, and companies who lag behind will continue to miss out on top talent. Mobile will also take a bigger role across all phases of the talent management lifecycle – from sourcing to screening and interviewing to onboarding. To deliver on this, mobile technology catered toward HCM will expand dramatically, with functionality such as on-demand interviewing, enterprise integration and responsive design becoming more prevalent.

The increased adoption of mobile will also make it infinitely easier for the HR function to do its core job – find, vet, hire and onboard great talent. Specifically, there are three benefits mobile technologies can power:

• speeding up the hiring process,• providing reporting and analytics, and• integrating with other recruiting technologies to improve efficiency overall.

Through HireVue’s own customer base, we’ve estimated mobile tools allow companies to interview candidates up to 10 times’ faster than traditional methods.

For candidates, mobile tools allow them to respond to interview questions at their own convenience, leaving them with a better opinion of the company as an employment

About the author Chip Luman is the Chief Operating Officer at HireVue. He previously served as senior vice president of HR Shared

Services and Total Rewards at Charles Schwab and Co., where he led a team of up to 100. He also filled the role of vice

president of HR for Client Services during his tenure at Schwab. Luman has also held extensive HR and management

background positions at Marathon Oil, Pepsi Cola and Acclaim Entertainment, where he led the video game

development division in 2000.

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brand of choice. And the power of mobile won’t stop at sourcing and interviewing, but will more frequently extend into onboarding and employee engagement. For instance, more and more companies are offering employees access to corporate intranet, scheduling information and training programs via their smartphones. A relative newcomer to this list is the use of mobile technology to help, at least in part, with performance management.

Mobile can streamline and super-charge your sourcing, interviewing and vetting efforts, and is a proven win-win for companies and candidates. While companies enjoy the benefits of time efficiency, enhanced branding opportunities via video, and access to a broader talent pool they can engage with in real-time, candidates appreciate the convenience of interacting with companies this way. In 2014, mobile will be the must-have tool in any HR executive’s toolkit to help bring best-in-class talent to the table faster and better than before.

The device won’t matterChip Luman - HireVue

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The device won’t matterLouise Hadland - Shoosmiths

It was Martyn Best who said: ‘Don’t focus on the machines, focus on the people...people will always outwit machines, make sure you side with the eventual victor’.

From my perspective, wise words as for each individual there is a mindset driving the device of choice.

“...employees are looking for a single solution to juggling multiple devices and keeping them synchronised.”

We need to balance the disparity in device preference between technological competence in different employment groups within businesses.

From digital natives, present teenagers soon to become tomorrow’s employees and clients/customers to the subconscious user, the technophobes who are engaged with their smart phones and apps yet don’t recognise the connection with enterprise mobile and its application in the work place. Then crossing this blurred line of competence is the pressure to ‘keep up with the Joneses’. That oh-so-human failing, if indeed it is perceived as a failing, of the pressure brought to bear by high achievers in the business to sport the latest technological device for social standing

purposes in both business and private lives. Such demands have been the cause of many a grey hair in IS managers.

Will a one-size-fits-all device really meet this broad spectrum of individual need and ability? Doubtful must be the answer yet we are constantly fed the message that today’s employees are looking for a single solution to juggling multiple devices and keeping them synchronised.

However, it begs the question: would employees be happy with multiple devices if they all synchronised automatically?

Home and flexible working exacerbate this need and in some professions home working has been replaced with ‘home at the office’ where showering and breakfast are daily features of office working. Whichever way round this is viewed, depending on individual preference and need, the solution has to lie in integration rather than single device solutions.

Even if we managed to get all employees trained and engaged with a single solution approach to enterprise mobile the speed of change and constant innovation in mobile technology would mean that if a business relied upon one solution it would soon be outdone by its competitors who may be more

About the author Louise Hadland is HR Director at national law firm Shoosmiths. As such, Louise is responsible for ensuring that

the strategic profile of the firm’s staff is best suited to delivering its stated goals and objectives. Before joining

Shoosmiths in May 1999, Louise worked in Personnel Management for the Volkswagen Group UK Ltd, building an HR

specialisation on a general management background developed in both public and private sectors.

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fleet of foot and able to implement device solutions for smaller groups of people.

Technology, be it cloud, device or app is not the thing that is going to help businesses change to become more successful in their chosen markets; it is not the reason to do things, it is an enabler. Strategy starts with the goals of the business, not the latest technological trend. Once the strategy is defined, the goals clearly identified and communicated, then – and only then – should the available technology be considered as a solution. Factor in individual difference, the speed of change and the highly competitive markets and the ‘the device won’t matter’ has to become ‘the device can’t matter’.

The device won’t matterLouise Hadland - Shoosmiths

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The rising importance of self-serviceJosh Bersin - Bersin by Deloitte

Self-service HR platforms have really transformed the role of the HR organisation. If you can implement tools to let employees manage their profile, benefits, time and attendance, vacation, travel and expense, performance plans, goals, and training – you’ve unloaded a significant amount of effort from the HR team. Now if you’re enabling managers to open job requisitions, view candidate flow, manage performance appraisals, and analyse and input salary adjustments, you’ve gone even further. These are all time-intensive applications that typically take many hours of an HR generalist’s time.

This is not to say that “self-service” is easy. What started as an HR portal that provided simple applications, such as benefits communication and administration, has now become an entire array of talent management applications that employees and managers don’t know how to use. So even if you do embrace a self-service strategy your HR team still has to teach people how to use the system and how to adopt the process.

“Companies including Apple and Amazon have proven that simplicity creates scale.”

But even in this self-service environment, we

have to push harder to make HR systems easy to use so that our valued HR professionals can serve as advisors, coaches, consultants, and strategic change managers.

Among the keys to success:

• Select HR software that is already integrated wherever possible, and err on the side of a simpler process in every case. It is tempting to offer employees lots of options, but ultimately they won’t use them. Simpler is better.

• When selecting vendors, talk with their references and understand how easy it was to get users to adopt the application. You may find certain systems exciting and filled with features but your employees and managers may find them hard to use.

• Focus your program designs on fewer steps, simpler competency models, fewer options, and generally a simpler design. Learning programs, performance evaluation, goal-setting, and even benefits can be dizzyingly complex if you’re not careful. Rather than six steps reduce it to three. Companies including Apple and Amazon have proven that simplicity creates scale.

• Train your HR staff intensely. Your HR team must understand all areas of talent management as much as possible, so they can

About the author Josh Bersin founded Bersin in 2001 to provide research and advisory services focused on corporate learning. He is

responsible for Bersin by Deloitte’s long term strategy and market eminence. Josh is a frequent speaker at industry

events and has been quoted on talent management topics in key media, including Harvard Business Review, The Wall

Street Journal, Bloomberg, on BBC Radio, CBS Radio and National Public Radio.

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both show employees how to use the system and advise them on being better recruiters, managers, coaches, and learners. Companies spend less than $300 per HR staff per year on internal HR training. You should be spending three-to-four times this much – your HR team is creating tremendous value and they need expertise, just like your employees.

• Spend time developing simple dashboards and reports that deliver actionable information to managers. While many managers will ask for reports and charts to analyse data, our research shows that more effective organisations provide single-purpose charts. For example, offer one chart on turnover, one chart on compensation comparison, one chart that shows tenure. These single-purpose analytics give managers just enough information to make decisions. Behind the scenes you can build lots of fancy analytics to understand all the people data – just remember managers will not want or understand all that detail.

Self-service is an old-fashioned term that should probably go away. In today’s HR technology environment we simply want systems which are simple, easy to use, available on mobile devices, and provide high value services. If we keep our designs simple, charts easy to understand, and focus on “one-click” solutions wherever possible, our HR staff will be freed up to focus on more strategic value.

Remember Occam’s Razor: when two different scientific findings or hypotheses are compared, the simpler one is more likely to be fit for purpose. In HR the same thing is true: keep it simple and it will more likely work well.

The rising importance of self-serviceJosh Bersin - Bersin by Deloitte

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The rising importance of self-serviceNicholas Roi - Silkroad UK

The HR director does not work in data entry. Their primary role should not be about collecting birthday dates or entering sick leave into a spreadsheet; instead they should be making strategic decisions based on HR data. The key to this is ‘self service.’ Requiring employees to take responsibility for reporting on sick leave and holiday, keeping an accurate record of personal details and completing expenses and overtime details, amongst other HR duties, means your dedicated HR staff can get on with the jobs that really matter to your business. So how will the development of ‘self service’ impact your HR team as we move into 2014?

Employee satisfactionEmpowering the employee with HR duties means they become responsible for their own career paths, job roles, benefits and remuneration. It also means that managers can perform certain designated HR tasks like promotions and pay rises without having to heavily involve the HR department. The key to this is ensuring your employees have the ability to input their own data. Mobile-friendly solutions are essential for employees working in ‘blue collar’ industries who may not always have access to computers. Site managers, for example, can designate a time every quarter in which everyone spends an hour ensuring their records are accurate. Another emerging trend will see employees’

skills better utilised as they enter information relating to competencies that may not be key to their day-to-day roles. If as an organisation you’re not developing and assessing employee skill sets, then you may be sitting on untapped talent you’ll never be aware of and won’t be able to use.

“The key to this is ensuring your employees have the ability to input their own data.”

Data and analyticsBy making the employee responsible for their own HR data your business benefits from up-to-date, accurate information, from which managers can make informed decisions. This makes it easy for management to undertake performance appraisals. Traditionally this type of appraisal would involve multiple spreadsheets flowing from different departments to HR before being collated and sent back to middle management – a hugely time consuming, inaccurate and unsecure approach. Even better, because HR departments know that HR data is being managed on a team by team level, they can extract reports regarding the whole workforce or just a single department. Automated software enables them to extract the HR intelligence they need, when they need it.

About the author Nicholas Roi is managing director UK at SilkRoad Technology, which has been providing talent management solution

globally since 2003. Nicholas has over 11 years’ software experience and eight years’ experience in the talent

management and SAAS space. Six of the last eight years have been spent as operational and country head. Prior

to becoming the managing director of the UK operation, Nicholas started the SilkRoad Australia and New Zealand

offices in 2008.

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Flexible workforceIn today’s increasingly flexible working environment it is time consuming and difficult for HR teams to keep track of a mobile workforce. A cloud solution means that wherever and whenever an employee has access to the internet, they are able to update their HR data. This turns an impossible task into a manageable one and will become more important as businesses seek out the best talent from all over the world. The next stage from a self-service perspective is apps designed to facilitate accurate entry of data. As mentioned above, there are a lot of employees that either won’t be able to access a PC or will only be able to occasionally. In future they’ll download HR apps which will automatically integrate with company systems, so managers can ensure accurate, up to date records.

The challenge for companies is ensuring accurate HR data input – one that should be addressed during employee onboarding. It’s as easy for a worker to forget to update an HR department on a change of address, as it is for them to forget to enter their new details into the company’s HR software. Employees need to understand that a failure to maintain their records will hamper their employer’s ability to reward them for excellent performance. This is not to say that employees should be abandoned and told to get on with it, but instead of them emailing the HR department every time they have a query, middle management and line managers should be on hand to help with basic HR functions, and time in the working day should be assigned to the self service process. Advanced HR software is designed to error check at the field worker level and as more company systems move into the cloud and link together, information only needs to be entered once for every department, from payroll and performance.

‘Self-service’ is an HR enabler – it frees up valuable HR staff to address actual HR problems, it empowers management to accurately feed back to their team members and it gives employees more control over their

personal details and HR records – the sooner it’s implemented in your organisation, the sooner you’ll benefit from it.

The rising importance of self-serviceNicholas Roi - Silkroad UK

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The rising importance of self-serviceGraham Salisbury - ActionAid

Call me a Luddite (and many often do!) but I am far from convinced that the predicted explosion of deregulated and decentralised mobile technology-centred employee self-service is going to have the universal impact that is sometimes claimed.

To be honest it appears to be a solution to a problem that many of us are not even certain that we have.

And, let’s admit it; many organisations are yet to embrace the opportunities offered by technology to address even the administrative challenges of recording sickness absence and booking annual leave. These organisations are not (as is sometimes portrayed) intrinsically evil dinosaurs, but they are ones for whom doing things “the old-fashioned way” is preferable, simply because it works. It may be heresy to say such things, but there are some organisations that actually like yellow holiday booking forms!

“... many organisations are yet to embrace the opportunities offered by technology...”

The prediction also fails to address that for many organisations, the introduction of

basic HR technology has not yet delivered its promised benefits.

Particularly in a climate of tightly controlled expenditure on HR costs and limited opportunity for investment in any form of non-essential infrastructure, the pressure on the HRD to demonstrate tangible cost-savings and Return on Investment is increasingly critical.

The challenge faced by the majority of HR functions remains that which has been the case for decades; how to attract, reward, motivate and retain an effective group of employees. Any introduction of a different way of doing things, or a way of doing new things, needs to be able to justify how it will contribute to meeting the challenge above.

On a purely practical note, the growth of employee self-service assumes that the majority of organisations already have effectively-functioning IT systems which allow a high degree of interfacing with external applications. In my experience, that it simply not the case. The wide range of alternatives even in choosing which web browser to use leads to headaches in implementing changes, where compatibility issues prevent successful implementation.

About the author Graham Salisbury is Head of HR at human rights and poverty alleviation charity ActionAid, where he is committed

to embracing the ethos of sharing and co-operation on which the charity sector thrives. His areas of expertise

include understanding and implementing HR Business Partner models, managing complex organisational change

and selecting and implementing appropriate HR Information Systems. He was previously HR Business Partner at

Amnesty International as well as an HR Consultant with Tearfund.

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If you’re not convinced by my words of wariness, cast your mind back a couple of decades to the days when the arrival of “Cafeteria Benefits” was announced within the HR community. Apparently employees would be able to largely determine their own ultimate remuneration package, exchanging a company car (remember those?) for a higher salary, accepting reduced employer-side pensions contributions in return for higher pay, or purchasing additional annual leave from their employer. Let’s just put it this way: in 2014 there are not many items on the menu in the HR Cafeteria nor are there too many customers queuing up for (self) service!

One tip (or possibly it’s a plea) to those wishing to sell me a self-service product (and if you use the word “solution” I will cast you out of my office!): speak my language, and don’t expect me to learn to speak yours. If you claim that your “innovative solution leverages recent developments in cloud-based technology thereby maximising employee engagement across multiple platforms” I will stare at you blankly. Actually, better still, make sure that you speak the language of the Finance Director, as it is he/she who will ultimately approve or reject the necessary investment in your product or service.

The rising importance of self-serviceGraham Salisbury - ActionAid

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Process integration and effective trainingAndrew Steels - Towers Watson

As the primary purpose of HR technology business cases is to secure funding, they typically focus on long-term efficiency and financial gains without adequately considering the risks – especially the risk of poor organisational adoption. In addition to proving that the investment provides an acceptable rate of return, they also need to convey to key stakeholders the overarching vision for undertaking the HR initiative, and that the plan to achieve the vision is sound and based on fact and reasonable assumptions. A common flaw in business cases is to ignore the emotional and change management aspects that are critical to success.

“...HR’s impact can be transformed by technology, with HR programmes more accurately tailored and targeted as a result.”

Driving organisational adoption by only selling improved efficiency and financial gain to users just doesn’t work. Experience suggests that users need to be able to do things they couldn’t do before and achieve demonstrably better outcomes – and to do it with ease. Given the financial investment in new HR systems, organisations are also looking for a dramatic impact on the business: simply integrating

new technology with existing processes does not generate the kind of ‘returns’ that are required.

Rather, the most successful initiatives use the implementation of technology as an opportunity to challenge how HR goes about its business end-to-end, applying the same transformational guiding principles to both technology and non-technological changes. Often organisations are looking to cut through organisational inertia in order to establish enterprise-wide consistency in the way HR work is done, with local variations only where necessary. This extends to revising how HR work is organised as well as how it is delivered, with revisions to roles and accountabilities being at least as significant as the technology. Additionally, enhanced capabilities in how HR can be measured means that HR’s impact can be transformed by technology, with HR programmes more accurately tailored and targeted as a result.

The new generation of cloud-based HR systems pride themselves on their ease of use, providing a consumer-grade experience with a minimal ‘time to competence’. Often such systems provide several ways to achieve the same result, with users being able to adopt the one that makes the most sense to them. Many users are now able to navigate this learning

About the author Andrew Steels is Towers Watson’s HR Service Delivery Practice leader for the UK specialising in improving HR

function effectiveness. Based in Towers Watson’s London Office, Andrew advises large organisations on areas such

as the design of their HR Services function, developing global HR processes and post-merger HR integration and has

worked across a variety of industries including energy, finance, telecoms and professional services. Before joining

Towers Watson, Andrew was a Senior Manager at a ‘Big Four’ professional services firm.

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curve with minimal external interference – including the regular upgrades that are often a feature of such technology. However, segmenting the population and tailoring learning interventions accordingly is the key to success. In our experience, we also find that involving users throughout considerably eases adoption – as long as meaningful influence is transferred throughout the process of design and implementation.

Many organisations therefore positively seek out the disturbance that new HR technology can bring to how HR services are delivered and experienced – the challenge being to maximise the anticipated benefits while mitigating the downside of radically new ways of delivering HR. The good news is that although changes need to be radical to be justifiable, they are increasingly manageable by those experiencing them – aided by more user-friendly technology and increasingly sophisticated approaches to design and implementation.

Process integration andeffective trainingAndrew Steels - Towers Watson

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Process integration and effective trainingPeter Russell - HRN Europe

Whatever workforce or HR technology an organisation finally decides upon, and regardless of who the vendor is, the real crux of its success is always going to be how useable it is, how well it is implemented, integrated, and championed inside the organisation.

Technology is advancing so fast that many find it a struggle to keep pace - the result is that all too often many in management don’t have the time, and in a handful of cases the inclination, so they continue to do things as they have always done them and due to poor engagement the user adoption of new investments in technology falls away - anecdotal evidence suggests that many new initiatives are only being used and exploited to around 50% of their capability.

A look at a few of the latest technology developments will reveal just how important it is for companies to focus on integrating technology with existing business processes and ensuring users have the knowledge and skills to utilise it productively.

Mobile technology has a very high priority on the shopping lists of HR technology buyers and sourcers; there are several reasons why. Not only is it essential in today’s connected world, it is also technology they know their people will use – most people carry a mobile

at all times and are relative experts in using it - and this ability to be assured of the usability of the technology is a significant benefit when it comes to the successful implementation of new technology.

Technology that analyses data and offers practical business insights is not new. What is new is the sheer volume of data available and also the depth and detail to be found in it. Data has become “Big” and HR decision-makers need to know what it is they really want, and they need to understand how to ask the right questions to generate the desired outcome in terms of analysis. Often the latter is not the case and the result is disappointment and disenchantment and the “software” gets the blame. Generally speaking the more innovative the technology is, the more companies must have a clear path to successful integration and user uptake.

“...anecdotal evidence suggests that many new initiatives are only being used and exploited to around 50% of their capability.”

Cloud technology is another emerging area.Most companies that haven’t gone this route yet will do so in the near future - it is now

About the author Peter Russell is a Director of HRN Europe – The Pan European HR Network, which has grown from an online research

community/CHRO Roundtable to the largest corporate HR network in Europe. Working together with leading

disrupters and influencers, their research and events bring people the useful corporate and educational patterns and

predictors that generate insight into the world of work. Learn more and join their network at

www.hrtecheurope.com.

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considered by most a “core” technology. The key to the success of any cloud solution is always going to be the user interface - it needs to be simple, easy to use and attractive to the eye. A major multinational we recently spoke with revealed they spent more time on the design of icons than on anything else during a recent implementation. This very clearly underlines how the interaction between the software and the user is key to whether HR technology will succeed or fail.

Earlier in the autumn, prior to HR Tech Europe 2013, we surveyed our enterprise members and some of the results were interesting. Over 60% planned to increase spending, and furthermore 81% of respondents indicated they planned to implement a SaaS solution in the near future. And, while our survey indicated there is still some room for improvement when it comes to satisfaction with after sales service and value for money, 86% of organisations surveyed were happy with the quality of systems and applications on offer.

HR software is evolving; it’s improving all the time. This is exciting for organisations because the potential for the benefits it can bring to their organisations is considerable. But they have to remember that usability and the ability of staff to fully utilise the system are key – and will always be key - to ensuring long-term success.

Process integration andeffective trainingPeter Russell - HRN Europe

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Process integration and effective trainingBrian Bowden - Aer Lingus

There are really two questions raised within this proposition:

• Are potential efficiencies categorised and presented appropriately within business cases?• How are potential efficiencies best realised?

Categorisation is the key to the first question. While some efficiencies, usually within HR Admin functions, will deliver headcount reductions and therefore direct bottom line savings, other efficiencies arising will not necessarily deliver a bottom line saving – they will however free the time of management and employees for more important or strategic tasks.

These latter efficiencies are still tremendously valuable and it is entirely appropriate to include them in business cases. However it is also vital to be clear from the outset as to how the value arises - otherwise the post-implementation benefits realisation review could be a fraught affair where direct bottom line effect is sought for changes whose value cannot be demonstrated in that way. This is best addressed through an alternative measurable mechanism. We used an objective 3rd company to break down % time on tasks for indirectly affected staff. This enabled us to demonstrate the time (and therefore cost)

associated with tasks that would be removed by the system, thereby showing the value of changes even where these staff remained in the business.

“To me the emphasis therefore needs to be on communications rather than training.”

On the second question I think we need to be careful not to pander to existing processes just to drive system usage. While we need people to use the system, ultimately efficiencies that derive from people using a system come from them doing the right things more efficiently. Systemising bad processes to garner support will only end up bringing your new system into disrepute. Our approach when implementing our integrated payroll & HR system was to challenge existing processes (especially those that were HR-owned) but to respect business concerns on key existing systems and processes. For example, while we changed many HR processes (we went with an outsourced service as well as a system solution) we did not insist that our Learning Management System replace local operational systems (which hold regulatory training information). By building interfaces from these systems to the LMS we can allow the

About the author Brian is Director of HR Operations at Aer Lingus. His role includes responsibility for the delivery of HR

Transformation. This has seen Aer Lingus outsource HR administration and implement an integrated Payroll & HR

system. He has previously worked in a range of senior HR, commercial and planning roles. He holds an MBS in HR

strategies from Dublin City University and is a graduate of the Advanced Executive HR programme at Ross Business

School at the University of Michigan.

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business to build trust before ceding control. However to build this trust, the system has to prove its worth (helped by incorporating improvements to existing processes that were not fit for purpose).

I don’t buy into the need for extensive competency training. We live in a world of intuitive technology – outside of the work environment we tolerate very little that is more than two easy clicks away. The workplace should be no different – if you need extensive training in your system you have to ask whether you have the right solution. If you want regular users, make the system easy to use rather than resourcing elaborate training for a challenging system. To me the emphasis therefore needs to be on communications rather than training. Key to this is getting champions within key areas of the business. Utilise these to both champion your message but also as your vehicle for understanding and negotiating the genuine issues and concerns within each area. In communicating your own message you can readily address the “what’s in it for me?” question, and the answer to this can range from “an easier life” to “new toys” to “better data” depending on the internal audience.

Process integration andeffective trainingBrian Bowden - Aer Lingus

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Data analytics in decision-makingJon Ingham - Strategic Dynamics

It is absolutely correct to say that business leaders are not interested in HR data. Analytics helps provide intelligence from all of this information and it is this intelligence, which helps companies gain even greater competitive success through their people, that business leaders absolutely want.

Analytics is an important part of putting this intelligence together and HR practitioners should be better informed and skilled in this area than we often are. We have seen substantial advances in tools and technologies, approaches and case studies. In addition, as the amount of complexity of information within the ‘big data’ era grows, the need to find signals in all this noise increases in importance too. Therefore, the more we know about and understand what analytics can provide, the better positioned we become to take advantage of best analytical practices ourselves.

“The more clarity we have about what is important and what we are trying to do, the more powerful the use of analytics becomes.”

At the same time, most business leaders are not terribly interested in lots of analytics

either. My worry about overdoing our focus in this area is that whilst it may help us climb out of the process monkey role that we often get trapped within, becoming a data monkey or even an analytics monkey does not really help move us on!

The key enabler to better decision-making is not analytics but strategic insight supported by ambition and inspiration. These provide the context for asking questions about whether our business is working or not, or for increasing our understanding about the way it works. Analytics simply provide one means of answering these questions. So if HR wants to be a respected heavyweight in business strategy, data analytics are necessary but not sufficient.

This applies whether we are an HR practitioner reviewing how we manage talent across the organisation, or a business leader or line manager wanting to better manage their business area or team. The more clarity we have about what is important and what we are trying to do, the more powerful the use of analytics becomes.

Having this clarity also helps us reduce the waste of time, and the tendency to rely on spurious correlations, that often comes with a fishing trip approach (one based on looking for

About the author Jon Ingham is an analyst, consultant, blogger and speaker focusing on strategic human capital management, social

HR and management 2.0. He originally worked as an IT consultant and has maintained an interest in technology

since then. However, he also suggests that the reason he has been spending more time advising on HR technology is

that the strategic opportunities provided by this have been growing so rapidly recently. He has also chaired the HR

Tech Europe conference in Amsterdam for the last three years.

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random insights that emerge out of the data.)The same principle applies to analytics systems, or analytic capabilities of other talent management systems – today’s technologies make it easier to perform analytical tests or conduct analytical investigation into an organisation’s people data but the value of these activities will be much higher when combined with a smart, strategic approach and clarity about what is important.

There are aspects of HR that can be thought of as data science and the latest technologies can help us move towards this approach. However, the most important aspects of HR have always been, and will always continue to be, art. Data analytics approaches and technologies do not change this important fact.

Data analytics in decision-makingJon Ingham - Strategic Dynamics

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Data analytics in decision-makingLiliya Apostolova - Lumesse

More than 60% of companies are investing in big data and analytics to help make their HR departments more data-driven, according to research analysts, Bersin by Deloitte. What has sparked this upward trend in data analytics? The power of data to inform decision making at the highest level and to measure the return on investment (ROI) of HR’s approach.

The value of data Traditionally, talent management was perceived within a business to be important enough to not require a business case or proof of ROI. However, following research that we conducted this year alongside leadership specialists, Cirrus, we have found that this is no longer the case. Most HR professionals we interviewed said that they feel pressure to present a strong business case to make sure they received the investment, resources and support required for their talent initiatives. They also felt their existing ROI model and metrics weren’t doing their success justice.

According to Bersin, organisations using data to its full potential are twice as likely to be delivering high impact recruiting solutions, and their leadership pipelines are 2.5X healthier. Companies using data properly generate high returns for their hard work: their stock market returns are 30% higher than the S&P 500.

For many companies data and analysis hold the answer to getting the right insight. By helping HR departments spot trends and patterns in data they are in a better place to understand the impact of their HR approaches and use this intelligence to inform future strategic decisions.

“For many companies data and analysis hold the answer to getting the right insight.”

For example, talent managers may use analytics to find out whether their most valuable asset –employees - are aligned with the goals of, and contributing to, the overall success of your business, They may use it to answer questions such as: Who is your top talent? How aligned is talent to business goals and focused on things that matter and drive business? What risks do you face if top talent goes unrecognised? Analytics can reveal the exposure and impact on the position, and highlight the benchmark strengths for specific roles across the organisation.

The data challengeWhat organisations need today is to receive timely and actionable information about their workforce so employees can deliver more business value. That’s where HR comes in and will be the syndicate, analyst and consultant to the business.

About the author Liliya brings over eight years of product marketing experience in the high-tech sector to her position as Senior

Product Marketing Manager at Lumesse. She is passionate about HR technology and talent management trends. Liliya

has held progressive marketing roles for both large organisations and small start-ups including Talent Technology,

ActiveState, Faronics and ACL. She brings an international perspective with her experience in both North America

and Europe and holds a B.Comm in Marketing from the University of British Columbia. Liliya is Pragmatic Marketing

Certified.

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Yet, the volume of data, the speed at which it is created and the variety of data sources are growing exponentially as the speed of technology adoption accelerates. This has been driven by the technology revolution - social, web and mobile channels – which have given HR access to a huge amount of valuable employee data.

This data can be challenging for HR leaders as it is often sitting in siloes across multiple systems and channels – such as recruiting, performance, learning, social and mobile.

Lumesse is taking this issue on board by offering an open platform with a unified reporting layer which can be integrated with a number of different HR systems – providing unified analytics and reports. This means companies can choose the best mix of technology for their needs while keeping the advantage of visibility into data across multiple systems and platforms.

By analysing the links between recruitment, talent and business metrics, HR will be in a better position to put in place and measure a strategy that aligns with the business and ultimately improves the bottom line. However, technology is a key enabler of data gathering and analytics. Only the right technologies will give you the right data. And only an open platform will help HR to integrate systems and ensure HR stay on top of the latest technology. This in turn will enable you to meet the ever changing requirements of recruitment and talent management, without compromising the ability to provide actionable business information.

Data analytics in decision-makingLiliya Apostolova - Lumesse

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Data analytics in decision-makingRob Taffinder - Nationwide

The resourcing department at Nationwide Building Society is charged with delivering key services to a broad base of customers; hiring the best of the new talent, quickly, whilst also balancing cost factors. Making the right decisions is key to ensuring that this service is delivered and proves the value of our in-house function. However, a competitive online recruitment landscape, the introduction of social media and new job websites have complicated the hiring process and made delivering an optimum service a tough challenge.

“Data analysis - inspecting, cleaning, transforming, and modelling data - with the goal of discovering useful information, was the answer.”

Three years ago we would have used a range of knowledge sources to inform resourcing decisions and to keep pace with this challenge. These included historical track record, traditional media sources and insight from external hiring agencies which were using data analytics to develop their knowledge of the market. Gathering this type of understanding and using external experts was time intensive and had cost implications on the business. We found that we were, at times, duplicating

routes to market, and this directly impacted on service.

We needed an analytical approach that would help us better inform the decision-making process and make sure that we could track and measure our plans. Data analysis - inspecting, cleaning, transforming, and modelling data - with the goal of discovering useful information, was the answer.

We decided to use raw data from every source available; contact management technology systems, mobile platforms and HR systems – including those that powered our career portal – to analyse and track candidate profile and demographics. As a result, we could spot any trends and patterns that would help us to make better resourcing decisions. For example, tracking hits to our website and recording visitor detail – including demographics, specific interests and lead conversion rates - enabled us to understand how effective we are at converting candidates through a process, and how effective our career website is at turning leads into potential candidates over a period of time, This is crucial to help us spot what has worked, when and why.

We realised that this data could also help us understand which social and traditional platforms would reach potential candidates

About the author Rob Taffinder is a senior recruitment manager with a strong track record of delivery in both in-house and agency

fields. Experience has included working on key start up projects, business turnaround, MSP management,

restructuring of teams and BAU delivery of over 2000 permanent and over 1000 interim appointments annually.

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and bolster conversion rates. For example, we previously would use external hiring agencies to recruit project managers as these vacancies came in large batches of 20-30 at any one time. For a recent project manager recruiting campaign, we analysed data to direct source individuals and candidates that we had been ‘pipelining’ – those the in-house team had identified as potential candidates. For this specific campaign, we discovered that Twitter was the best platform to engage and educate this demographic on the benefits of working for Nationwide. Following this process we ran two hiring assessment centres and hired approximately 60% of attending candidates.

The benefits of using data and analytics are plentiful. We’re able to credibly advise on the best routes to market, challenge pre-conceived ideas that exist within the business and deliver more effectively from a time and cost perspective. Ultimately, we can get to market with the right decisions and hire the right candidates, quicker in the race for talent.

In 2014, we’ll be working on the education and skills development that accompanies HR data analysis and the use of it within the business. Data is worthless unless you can effectively gather and analyse it to spot important trends and patterns. The data used needs to map back to the business objectives and answer questions that already exist – it should support an argument but not be the argument. Ultimately, it should support the human and personal element of a resourcing programme – not replace it.

Data analytics in decision-makingRob Taffinder - Nationwide

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