Global Human Resources

Oracle Human Capital Management (HCM) Cloud

H C M P R O D U C T S T R A T E G Y | O R A C L E W H I T E P A P E R | O C T O B E R 2 0 1 4

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Table of Contents

Executive Overview 1

Introduction 3

Oracle HCM Cloud: Global Strategy 4

Global Best Practice Considerations 4

Global Foundation Architecture 5

Global Standard Processes 6

Local Considerations 6

Payroll options 8

Data Privacy and Security 8

Conclusion 9

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Executive Overview

“If you can’t explain it simply, you do not understand it well enough.”

Albert Einstein

As organizations explore their opportunities to expand globally, beyond their borders, they will find

“global experts” emerge from every corner. Every vendor/partner will claim global expertise to support

a global enterprise and express the complexities involved. This can be overwhelming and daunting for

those responsible for planning. Going global is in reality not complicated when one understands the

global and local practices /requirements, knows one’s own ambitions and plans accordingly.

In today’s business environment shaped by globalization, every organization deals with these realities

not only in their core business activities, such as supply chain and customer management or

regulatory reporting but also in their search for and management of talent. As a result, organizations

must define unique HR process steps in light of a common process framework.

In order to remain competitive, organizations today must continue to think globally and become better

at it. This includes expanding their customer, manufacturing, service fulfillment or materials supply

base beyond current borders to include a presence outside of their locale as well as expanding their

potential talent pool. By doing this, organizations will create initiatives that improve employee

management and result in a more effective, efficient and compliant atmosphere.

In the past, many organizations deployed multiple Human Capital Management (HCM) solutions from

varying vendors or multiple installations of a single vendor solution in order to comply with global and

local processes or rules. This type of strategy obviously results in multiple challenges at both a

corporate and local level. They stretch from inaccurate headcount and compensation reporting to out-

of-date data and inconsistent human resource process administration. As a result, global corporate

culture is not defined and supported, nor is the global workforce engaged as a global organization. In

hindsight, many of the same organizations are now seeing the benefits of deploying and maintaining a

single solution by providing extensions to meet local needs from a legislative as well as culturally

recognized process. Obvious benefits include common data definitions, global processing and

reporting. Other, less visible, benefits include minimizing administrative overhead as well as the ability

to define competencies globally in order to equitably rate and pay workers. This enables organizations

to ensure the most efficient processes are being deployed consistently to ensure accurate global

reporting and management of talent.

2 | GLOBAL HUMAN RESOURCES

When we think about the specific global needs, we must also think about the varying practices for

managing human capital locally. This includes understanding the needs of the shrinking skilled

workforce, the multi-generational workforce, broad use of mobile as well as alignment with local

customs and practices. We are rapidly moving from a requirement to maintain accurate job information

on a worker, to the ability to keep track of future career opportunities, analyze to ensure proper

planning from a worker engagement and budgetary perspective. Such a high-impact strategy requires

HR organizations today to justify their projects by quantifying their HR programs and initiatives. By

providing tools that not only track the current and proposed direction of an employee, but also has the

capacity to continually analyze that direction, HR departments become more relevant and accountable

for investment decisions. Again, when you know what is needed, when it is needed, then, you are able

to plan and ensure compliance at every location you require.

It is impossible to think about global human resource administration without thinking about data privacy

and security. Data privacy is already a concern within the boundaries of a single country, but even

more so when data is accessed across borders. The progression of adoption of data privacy laws and

policies has grown exponentially in the past five years. It should be a primary focus for any

organization allowing employee data access and processing within a single geography as well as

across borders. We are finding that many countries are adjusting their data privacy laws, as well as

practices, to work in this changing world, but this is ever evolving. As a result, we recommend

organizations to continually assess and review their own practices as they support their global

workforce.

3 | GLOBAL HUMAN RESOURCES

Introduction

“The top five reasons cited for international assignment programs are to provide specific technical skills not available

locally (47 percent), to provide career management/leadership development (43 percent), to ensure knowledge

transfer (41 percent), to fulfill specific project needs (39 percent) and to provide specific managerial skills not

available locally (38 percent).”

May 14, 2013

International Assignments Expected to Increase in 2013

SHRM

As organizations expand their global presence, there will be a need to manage the movement of their workforce.

As seen by the reference above, organizations are expected to significantly increase the management of these

movements worldwide. Oracle HCM Cloud solutions aim to meet the needs of all organizations, whether they

operate in one or many countries. Oracle provides a secure global human resources management solution—a

solution that enables multinational organizations to meet specific requirements unique to a country or region.

Oracle has created this white paper to give you a better understanding of the best strategy for deploying Oracle

HCM Cloud global applications. We’ll examine:

» Oracle HCM Cloud Global Strategy

» Deployment considerations

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Oracle HCM Cloud: Global Strategy

Oracle HCM Cloud solution is designed and developed using the latest technology and incorporating the best

practices from thousands of organizations, deployed across multi-national organizations headquartered on every

continent. Delivering global processes, to maximize the use of common data definitions, or to effectively interpret

and analyze data, is critical to timely Human Resource management. It is also critical to recognize that there are

local and cultural requirements that must be adhered to.

By delivering global processes leveraging a common data model and, at the same time, meet local requirements or

local practices, with additional functionality, we provide a compelling, comprehensive solution. This functionality is

planned, developed and maintained by experienced global HR experts, based locally across the globe.

We believe that delivering both local and global capabilities, in one solution, gives you significant business

advantage; helping you to strategically manage your global workforce with global processes yet helping you comply

with any global, regional or local operating needs.

Global Best Practice Considerations

Global best practices have changed significantly over the past ten years. This is attributed to the changes in

technology offerings as well as the speed in which organizations are expanding. The Cedar Crestone Survey for

2012 -2013 found that 25% of respondents are planning to globalize their HCM support.

Cedar Crestone 2012 – 2013 HR Systems Survey

This will require organizations to not only define their global corporate culture but to translate it in their HCM support

and socialize it locally. Organizations are finding that using their headquarters, as the base of their global solution is

5 | GLOBAL HUMAN RESOURCES

not the best approach to any global deployment. This approach implies that the first country is the ideal or role

model for the base process, when in fact it does not represent a standard process for the global organization.

Global Foundation Architecture

Oracle HCM Cloud is build to be both Global as well as local. To the end user the system appears as a local system,

while on a higher level, all these local solutions are part of an integral, single installation of a Global solution,

providing a global, overall view across your organization.

Oracle HCM Cloud’s Global Foundation provides both the functionality required for each country worldwide, as well

as the features required to be a truly global system:

» Country-specific security requirements

» Country-specific Data Privacy requirements

» Country-specific Personal Identifiable Information (PII) support

» Support for statutory compliant Legal Entities (including multiple legal entities)

» Support for local Time zone

» Support for local currency (including the ability to run Multi Currency)

» Support for local language (Unicode and bi-directional (Hebrew and Arabic))

» Ability to run multi-lingual in a single instance

» Support for local Data Formatting including

» Name

» Address

» Dates

» National identifiers

» Person and employment data

6 | GLOBAL HUMAN RESOURCES

If not directly delivered by Oracle via deep country localization, the required country functionality can be enabled by

configuration and setup. Oracle HCM Cloud can accommodate over 200+ worldwide country requirements.

Global Standard Processes

HR process standardization is not a new concept and everyone has a different definition and expectation when

discussing global HR standard processes. Discussions cannot begin with one country or location as a starting point.

Common processes must be the starting point for discussions with expansion into the details to ensure that true

global standards are defined and approved. More critical is the socialization of this global standards for which a

technology solution can support. As a result, many organizations look at smaller operations as their first deployment

to ensure that the implementation team has an opportunity to define those global standard processes while giving

the ability to access more complex markets.

Oracle HCM Cloud solutions supports organizations in the deployment of global standard processes through the

definitions of Legal Entities, Business Units and Sets to define data rules associated with locations, business

segments or countries. This expands from Core HR to other processes including Compensation, Absences, Benefits

and Payroll.

Local Considerations

When organizations consider the opportunity of either consolidating to a single installation or deploying multiple

installations of their HCM application globally, many requirements and practices must be considered. Planning and

global involvement is imperative to the success of any global deployment. Moreover, it is critical that communication

is clear and requirements of all locations are considered and provided with a solution. This communication plan must

be executed upon early and consistently to ensure acceptance and rapid adoption of the global HCM installation.

There are obvious benefits, which include:

» Deliver HR content consistently

» Create a global data model

» Store past, present and future data in one place

» Report business metrics from one source with real time access

» Quickly get a consolidated view of the organization

» Simplify administration by supporting one solution

» Manage data privacy effectively and securely

In order to accomplish this, the following is also required:

» Ability to deliver multiple languages

» Support multiple currencies and the conversions

» Support multiple character sets

» Support variances in Name, Address and National ID formats

» Deliver options for the capture of locally relevant data

7 | GLOBAL HUMAN RESOURCES

English Arabic (bi-directional)

French Chinese

Managing a Global HCM environment is challenging without all of your plans and considerations in place. Oracle

HCM Cloud provides decades of global experience and technology tools in place to support your successful project.

Local expertise in legislative and regulatory requirements as well as cultural preferences and practices are also

required to ensure success.

Oracle has customers deployed in over 200 jurisdictions with localized functionality to support unique requirements

and preferences. Listed below are some examples of localized functionality delivered with Oracle HCM Cloud; this is

not an exhaustive list.

Australia Supports person, employment and organization information such as, ABN, registration number per

state and designated employer group. Superannuation

Canada Provides Social Insurance validation as well as element classifications.

China

Support for Hukou type and location, expatriate status, number of children and additional contract

information. Termination information, including leave compensation factor and monthly salary paid

days is also supported.

France National ID SIN, education level, establishment (e.g. SIREN, SIRET, NAF), Reports (RUP, bilan

social, DUE, MMO, DOETH) , work certificate, BIAF

Germany DEUEV / ESTER- Name, Address Set up and Validation, disability data, REHADAT.

Hong Kong Ability to track person and employment information such as Chinese and Hong Kong name, Hong

Kong ID with format validation.

India Supports person, employment and organization information specific to India, such as, National ID,

ECNR information, caste or tribe, Permanent Account Number, Tax Account Number, Provident

8 | GLOBAL HUMAN RESOURCES

Fund Number and ESI Number.

Ireland Irish name, PPS number, PRSI information, NES and EHECS data capture

Kuwait Provides capability to track Kuwati name, national identifiers validations as well as disability, visa

and sponsorship information.

Netherlands Name ( incl. last name maiden and spouse combination), Address (houseboat, mobile home), BSN

number, 30% tax ruling

Saudi Arabia Ability to track specific information related to disability, visa sponsor information, contract

information, Hijrah equivalent dates, and visa specific information (i.e. Iqama number).

Singapore

Provides ability to capture employee legal name, National Identifier Type, NRIC and FIN information

as well as supporting number format validation. In addition, you can create and define organization

information specific to Singapore, such as IRAS details and CPF Submission Number.

Switzerland NNSS, Swiss Legal Jurisdictions, FAK registrations per Canton, cross border worker

United Arab Emirates Ability to track specific information related to disability, visa sponsor information, contract

information, Hijrah equivalent dates, and visa specific information (i.e. Iqama number).

United Kingdom Provides national identifier validation and ability to track disability data in accordance to UK

legislative requirements.

United States Support for all personal and legal employee data, such as social security number, ethnic origin,

veteran status, and I-9 status

In order to ensure the success of a global deployment, organizations must have the proper executive sponsorship to

ensure commitment and governance is adhered to. The lack of success of projects are typically as a result of the

lack of global executive support, which resulted in lack of country management support and poor communication to

the local offices.

Payroll options

In a global HCM context various payroll options are often considered. Depending on the size, the industry and the

preference of organizations in their respective regions and countries a choice can be made for an in-house payroll,

an outsourced solution directly to individual country payroll service providers or global service providers, or a mix

with a hybrid solution of internal and external. Oracle HCM Cloud offers native payrolls for Canada, China, Kuwait,

Saudi Arabia, United Arab Emirates, United Kingdom and United States. Internal payroll provider integrations are

supported via the included Payroll Interface functionality, via templates and prebuilt integrations.

Data Privacy and Security

Data Privacy is a critical issue impacting all organizations around the globe. Countries, states, provinces, cantons,

counties as well as unions, worker’s council, organizational policies, and individuals are dictating their requirements

to ensure the privacy of individual personal data so it is becoming critical that every organization establishes,

understands, maintains and effectively communicate their data privacy rules and practices. Understanding one’s

privacy needs is critical to develop and execute on a security strategy to meet that need. Defining a security strategy

and solution for personal data cannot be accomplished without a comprehensive view of the organization’s privacy

requirements. Therefore, it is not just about creating user profiles, it is about understanding where data resides; how,

when, by whom data is accessed and when it is retired. Privacy and security are no longer issues just for

organizations that have cross border data storage considerations; we are finding that organizations, in one location

or many, as well as workers are dictating stricter rules to ensure that personal data is secure. Oracle HCM Cloud

security is roles and rules driven providing you the tools to enable data privacy.

9 | GLOBAL HUMAN RESOURCES

Conclusion

Organizations continue to struggle with the balance of deploying strategic global HR practices with local

requirements and cultural needs. Finding the right solution, the right partner to support the socialization and

manage your change impacting your global organization is key to your success. Managing a global workforce is a

function that continues to evolve as strategic business partnerships form worldwide. We will see more organizations

perfect this balancing act with the support and guidance of a trusted partner that has managed and completed the

process successfully. Oracle has partnered with the largest organizations globally, based in every continent, and

supported solutions deployed successfully in more than 200 jurisdictions.

Oracle HCM Cloud provides the flexible solution to support your competitive needs locally and globally.

Oracle HCM Product Strategy will continue to investigate opportunities to simplify, optimize and expand the

capabilities that help you manage your global workforce.

For more information, please contact your Oracle Customer Success Manager or Oracle Sales representative.

For additional information on our solutions or product capabilities, please review information located at

www.oracle.com/hcm.

Oracle Corporation, World Headquarters Worldwide Inquiries

500 Oracle Parkway Phone: +1.650.506.7000

Redwood Shores, CA 94065, USA Fax: +1.650.506.7200

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