January 30, 2018

New Year, New HR SystemsStrategy Resolutions

20th Annual Edition

EmployeesService & Solution AreasApplication ServicesBusiness Intelligence

Host & Managed ServicesInfrastructure Services

Integration & Cloud SolutionsResearchStrategyTraining

Delivering industry-focused client success by providing consulting, technical, and managed servicesfor the deployment, management and optimization of next-generation applications and technology.

Industry FocusCommercialHealthcare

Higher EducationPublic Sector

Justice & Public Safety

Sierra-Cedar Fast Facts

Years of Leading HR Systems Survey & Thought Leadership

7 20+ 900+

5

2

ConsultingProjects

1,500+

Research

Stacey HarrisVice President Research and Analytics, Sierra-Cedar

Background:● Oversee the Annual HR Systems Survey and its safekeeping for the Industry● HR and OE Practitioner for over 10 years in finance, retail, and franchised businesses.● Director of Research at 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● @StaceyHarrisHR

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Erin SpencerSenior Research Analyst

Background:● Research and Analysis at Brandon Hall Group● Learning Administration at ACS Learning Services● LMS selection and administration, and training at MRINetwork● Feel free to connect at: www.linkedin.com/pub/erin-spencer/6/734/388

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Sierra-Cedar 2017–2018 HR Systems SurveyOver 20 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● BI/Analytics/Workforce Planning Applications● Integration and Implementation ● Emerging Technologies and Innovations

● Vendor Landscape● Workforce and HR Expenditures● Workforce Usage and Perception

Participate in the 21st Annual Survey Download the 20th Annual White Paper

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Top Performers

Organization Sizes and Types

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Small<2,500

Medium2,500–10,000

Large10,000+

Talent-Driven

Data-Driven

Aggregate SociallyResponsible

54%

23%

23%

High TechManu-facturing

Other

Sierra-Cedar 2017–2018 HR Systems Survey

Demographics: All Respondents

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Trans./Comm. Utilities

Higher EdFinance Retail Ag. Mining.Const.

15%14%

13%12%

10% 10% 10%9%

6%

Health

17.7 Million Employees/Contingents

Avg. number of Employees = 13,610

1,312Organizations

Industries

CultureStrategy Technology

Key Themes for 2017–2018 Survey Results

Competition vs. Culture

HR Tech as a Leader

Risk and Security

Beyond the Cloud

Social ResponsibilityIntegration Strategies

Intelligent Platforms

Outcome-Focused HR

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Personalization

28%

27%

11%

25%

11%

10%

11%

18%

16%

36%

44%

63%

No Plans Developing Rarely Updated Updated Regularly

Do you Have Enterprise System Strategies?Perception often leads to Priority Setting

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ENTERPRISE FINANCE SYSTEMS STRATEGY

ENTERPRISE SUPPLY CHAIN SYSTEMS STRATEGY

ENTERPRISE HUMAN RESOURCES SYSTEMS STRATEGY

Are Enterprise Systems Strategies Important?25% Higher Business Outcomes w/Functional Enterprise Systems Strategies

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Innovation Market Share Profitability Customer Sat Competitive

HR Systems Strategy No HR Systems StrategyFinance Systems Strategy No Finance Systems StrategySupply Chain Systems Strategy No Supply Chain Systems Strategy

Business Outcomes Have They Declined or Improved in the Last 12 Months?

Impr

oved

Neu

tral

Dec

lined

25%Higher

41%

30%

14%

15%

Updated Regularly In Development Updated Rarely No Plans

2016 HR Systems Strategy By Size

54%24%

11%

10%

11

26%

25%10%

39%

HR Systems Strategies Increases Value to BusinessOrganizations with a Regularly Updated HR Systems Strategy are twice as likely to be viewed by all levels of management as contributing strategic value, versus organizations that have no HR Systems Strategy.

2X

Top 10 HR Technology InitiativesMajor Initiatives Haven’t Changed Dramatically in the last 5 Years

67%

40% 35% 35% 34%

19% 17% 17% 17% 16%

Bus. Proc

Improvement

HR Systems

Strategy

Talent

Management

Service

Delivery

BI/Workforce

Metrics

HR/All

Systems

Integrations

Mergers and

Acquisitions

Workforce

Management

Mobile

Enablement

Social

Enablement

1st Year Mergers & Acquisition

Made Top 10

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Poll One:For next year’s Survey, what topics are most important to you?

1. HR Technology Resourcing2. HR Technology Initiatives3. Adoption Measurements4. Contingent Workforce Management5. Other

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Top Performing Talent Driven Data Driven

The Important Questions: Outcomes and Impact Top Performers, Talent-Driven, Data-Driven, and Socially Responsible Organizations

Top Quartiles • Revenue/Employee • Profit/Employee• OIG (1 year)• Return on Equity

• Mature Career Planning• Succession Mgmt• Metric Outcomes⁃ Employee engagement⁃ Workforce readiness⁃ Retention risks⁃ Top talent

• Mature Workforce Analytics

• 3+ Metrics• 20%+ Managers/BI• 3+ Data Sources

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Decisions based on Performance

Decisions based on Talent

Decisions based on Data

• Diversity• Family Leave• Flexible Schedules• Wellness• Engagement

Decisions based on Social Responsibility

Socially Responsible

Not Regulated

High Regulation

45%

54%

57%

62%

59%

60%

64%

75%

65%

68%

76%

77%

33%

31%

26%

22%

29%

26%

24%

20%

28%

22%

19%

21%

22%

15%

16%

16%

12%

14%

11%

5%

8%

9%

5%

2%

Outplacement

Employee Engagement

Tuition Assistance

Community/Volunteer

Retirement Planning

Wellness

Flex Schedules

Employee Assistance

Comp/Pay Equity

Paid Family Leave

Diversity & Inclusion

Healthcare

Excellent/Good Average Poor/Terrible

Social Responsibility Initiatives By Regulation

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Some Regulation

How Well Do We Manage Contingent Workforce?Only 38% of Orgs Feel Good About Their Contingent Workforce Practices

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38% 40% 22%ContingentWorkforce

Excellent/Good Average Poor/Terrible

What % of your Contingent Workforce is managed through these systems? (Mark all that apply)

Excellent/Good (Avg) Poor/Terrible (Avg)

Core HRMS 77% 62%

Procurement/Vendor Management System 63% 56%

Stand-Alone Contingent System 58% 45%

Outsourced Solution 48% 29%

24%the average % of an organizations workforce that is contingent today

Achieving Outcomes Requires FocusTalent, Data, and Socially Driven Organizations Achieve Best Outcomes

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Attrac

t talen

t

Develo

p work

force

Decisi

on data

Talent r

etentio

n

Talent m

obility

Engagemen

t

Productiv

ity

Cost eff

icien

cy

Busines

s alignment

Innovatio

n

Market s

hare

Profita

bility

Customer

sat

Competitive

TD DD Social TP Agg

Talent Outcomes HR Outcomes Business Outcomes

Impr

oved

Neu

tral

Dec

lined

3%Higher

8%Higher

14%Higher

14%Higher

5%

10%

7%

53%

44%

41%

42%

47%

52%

2015–2016

2017–2018 HR Tech Spending Trends OutlookLarge Organizations Slight Spending Increase, Everyone Else Holding Steady

Increase DecreaseStay the Same

6%

10%

8%

57%

39%

47%

38%

51%

45%

2016–2017

5%

8%

12%

62%

53%

39%

33%

39%

49%

2017–2018

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HR Technology Transformations Slowing Down

2016 2017

73%58%

% of Orgs Planning to Transform Their HR Tech Environment

26%Fewer Orgs Planning HR

Technology Transformation Efforts

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12% 16%11% 16%10% 17%12% 13%

12% 15%13% 16%14% 18%15% 15%

Plans For Replacing HR TechnologiesLarge Organizations 66% More Likely to be Evaluating System Changes

WFM SuitePayrollHRMS TM Suite

23% 24%13%

29%16%

26%19% 20%

Replace in12–24 Months Evaluating

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Hosting/OutsourceSingle Tenant, or BPO

Rip & ReplaceMove everything all at onceto the Cloud Future Plans

Focused

Low R

isk

HybridsMove ONLY TM orWFM apps to Cloud

PatchworkReplace asLicense Ends

ParallelCombo Licensedand Cloud Solutions

7% 11% 11%

16% 17% 17%17% 28% 36%

22% 19% 20%

38% 25% 22%

Focused

Multiple Pathways to an HR Tech TransformationApproach to Replacing Existing HR Technology By Size

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ReactiveFocused

High RiskLow

Risk

80% Increase

Higher Cloud Adoption = More Needs Met?

22

32%

25%20% 22%

27%

14% 16% 14%

Payroll HRMS WFM TMS

Our HR Systems AlwaysMeets Our Needs

High Cloud Low Cloud

7% 9% 7% 8% 8% 10%6% 7%

4% 2%7% 6%

13% 14% 14% 15%20% 21% 22% 24%

27%

34% 35% 35%

Benefits Payroll HRManagement

HR Generalist HR BusinessPartner

HR ITInfrastructure

WorkforceManagement

HR SystemSupport

TalentManagement

HR DataAnalytics

Recruiting Learning andDevelopment

27%

55%

IncreaseDecrease

Talent Issues Impact HR Hiring PlansWhat HR Roles Does Your Organization Plan to Increase or Decrease This Year?

23

39%

22%

28%

41%

29%

2%

Consistent Culture of Change Mangement Key Projects – Meet Criteria Sporadically – No Criteria Never

2017 Change Management Practices High Cloud versus Low Cloud HR Technology Deployment and Change

22%

37%

34%

7%

24

70% of High Cloudorganizations practice consistent

Change Management.

HighCloud

Low Cloud

Low Cloud organizations 2½Xmore likely to have no Change

Management

Where are HR Technology Budgets Allocated?

25

7%

30%

12%18%

IT HR

What % of your Budgets are Allocated to HR Technology?

High Cloud Low Cloud

17%

10%

18%35%

20%

Enterprise Integration Strategy?

Yes, updated regularly

Yes, rarely updated

In development

No Strategy

Unknown

2017 Integration Strategies Matter47% of Orgs Have No Standard Approach to HR Technology Integration

26

3%

9%

18%

22%

47%

Other

Integration platform

Into core HR

Into TM Suite

Case by Case/None

Approach to Integrating HR Technology

20%Organizations have a Major

Initiative to Improve Integrations

62

22

518

Average Number of Integration Touch Points Between HR and

Non-HR Systems

Do You Need an Enterprise Integration Strategy?

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21% Higher business outcome ratings

when organizations have anEnterprise Integration Strategyover those without a strategy

Enterprise Integration Strategymore aligned with Business Outcomes

than Change Management,Cloud Technology, Data Analytics,

and Talent Management efforts.

Wearables

Wellness Programs

Data TransferProtocols

General DataProtection

Regulations

Mobile Risk

It’s 2017, Do You Have an HRIT Security Strategy? 70% of Top Outcome Organizations Regularly Update a Risk/Security Strategy

28

46%

11%

15%

14%

14%

Cyber Security/Data Risk Strategythat Includes HR Systems

Yes, updated regularly

Yes, rarely updated

In development

No Strategy

I Don't Know

48%of organizations are Effective at Data Privacy Processes

8%are

Transformational

Is Effective Good Enough?

Regularly Updated Cyber Security Strategy What Do They Do Differently?

29

66%34%36%

64%

Yes No

Multi-factor Authentication for HR Systems

72%

28%36%64%

Yes No

Remote Wipe Technologyfor Mobile Devices

22% 27%51%

12% 14%

74%

Select Groups Everyone No Policy

Bring Your Own Device Policy

Strategy

No Strategy

58%50%

43%38%

33% 30%20% 17% 16% 12% 11%

ComplianceRisks

ManageHR Costs

EmployeeRetention

Engagement WorkforceReadiness

AttractingTalent

Productivity WorkAssignment

CustomerSatisfaction

Improvennovation

CompetitiveAdvantage

What Are You Currently Using HR BI to Accomplish?

20%

64%

What Are you Accomplishing with HR BI/Analytics#1 Outcome Organizations are Achieving Today is Risk Mitigation

n = 681

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46%

27%

Barriers to Rolling Out BI/Analytics to Managers● Role Security, Defining Team● Training Required● Cost, Time● Data Security● Lack of data standards

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“Training, and most managersshare staff that they don’t haveaccess to in Core”

“Culture of data protection”

“HR Controls the data, that is ourbusiness process. We schedule reports”

“Concerns aboutmisuse of data”

“HR teams “letting go”of the data”

Workforce Planning RealitiesTop Performing Orgs, 70% More Likely to Conduct Workforce Planning

32

23%of all organizations are conducting

Enterprise Workforce Planning

41%24%

TopPerforming

Not TopPerforming

Do You Conduct Enterprise Workforce Planning

32%

20%20%

13%

10%5%

Primary Function Leading Workforce Planning Efforts

HR Strategy

Business Strategy

Talent Management

Finance

Recruiting

Other

Intelligent Systems Building BlocksThe Emergence of Active Technology – Requires Your Input

Workforce Using

Intelligent Systems Building Blocks Today 12 Months Evaluating No Plans

Artificial Intelligence 40% Feel It is Valuable to Extremely Valuable

Predictive Analytics 76% Feel It is Valuable to Extremely Valuable, 29% Doing Something

Machine Learning 3% 2% 22% 73%

Sentiment Analysis 6% 4% 15% 75%

Wearable/RFI (IoT) 8% 1% 9% 82%

Benchmarking Databases 20% 5% 24% 52%

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5 Questions When Buying Emerging AI ToolsKnow Your Risk, Options, and Regulations

● Tell me about your views on product liability?● How do we make changes to the data?● What happens when we turn “it” off?

● Do we own what the machine learned from us? How do we take that data with us?

● What are the startup costs, resources, and supervision? How much will it take to train?

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2017 Business Systems: On the Move to Cloud40% Increase in Orgs Adopting Cloud for Finance, Marketing, Vendor, and Ops

38%

25%

25%

24%

22%

6%

7%

2%

6%

5%

3%

3%

2%

4%

4%

11%

16%

13%

20%

16%

41%

49%

58%

46%

53%

Sales/CRM

Vendor Management

Marketing Systems

Financial Systems

Operations Systems

Non-HR Systems in the Cloud Today?

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12 Months Evaluating24 MonthsToday No Plans

What We Couldn’t Fit In Today!

36

HR Technology Adoption Trends by Vendor – See Who’s Acquiring New Clients

New Insights in Recruiting Technology, BI/Analytics, and Non-Healthcare Benefits Offerings

Vendor-Specific Client Averages and Client Feedback on Vendor Satisfaction Data

New Insights on Implementation and Maintenance Practices, Timelines, Updates, Work Assignments

Lots of Extra Industry, Size, and Organization Type Breakouts of Our Traditional Data

Thank you!

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

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www.Sierra-Cedar.com/annual-survey

Why Organizations Participate?

● Obtain a personalized benchmarking snapshot filtered by size, region, or industry

● Value conducting a review of their own enterprise HR system environment annually

● Need data to build their own HR Technology strategy or business case for change

● Believe it is important to support the broader HR technology community

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Having a career passion for enabling technology for HR, I am drawn to the unbiased, objective nature of the Sierra-Cedar HR Systems Survey White Paper. It serves as my voice to the vendors in terms of what we need and where we want to go at Dell. The benchmarking component is also vital in validating the technology and making the case for investment.

Karen CaveneyGlobal HR Business Architecture & Technology

Dell

Why Organizations Participate?

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Why Organizations Participate?

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The Sierra-Cedar HR Systems Survey White Paper is one of the main sources I use to keep my finger on the pulse of the HR Technology industry. The trending data and future landscape analysis is extremely valuable—I’m not sure I could effectively do my job or remain a thought leader in the industry without it.

Joe AlmodovarSenior Director Global Business Systems

AT Kearney

Why Organizations Participate?

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The real win for our organization is in the actual exercise of completing the yearly Survey. The detailed questions force us to take a good, hard look at what we’re really doing in our business… a real eye-opening experience and well worth the effort.

Jim PettitProgram Manager of HR Systems

Halyard Health

Sierra-Cedar 2017–2018 HR Systems SurveyDemographics: International and Global Organizations

80%

4%10%

5%

Global36%

Non-Global64%

The average global organizationhas operations in over

28different countries.

204Organizations withHQ outside the US

467Global Organizations

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1%

Who Responds to Our Survey?

69%

11%

8%3%2%7%

Participants by Function

Human Resources Information Tech FinanceLine of Business TM & Learning Other

55%

25%

10%10%

Participants by Role

Manager/Director Individual contributorExecutive Other

44

What Type of Organizations Participate?

45

52%

24%

13%

8%3%

Organizations Types

Privately owned

Publicly traded

Nonprofit

Government Owned

Subsidiary/Other

Survey MethodologySierra-Cedar follows rigorous standards in the form of a nine-step survey methodology, independently validated in 2011 by the Mercer Survey Quality group. Each year, this annual reach provides a wealth of knowledge that is shared openly with the HR systems community. All participants are kept strictly anonymous, and only aggregate data is used.

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