Selecting the Right HR Technology

HRMA Conference October 27

Nancy Heet, President

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Agenda � Understanding the Market � Your Selection Team � Your Selection Process � Building a Business Case � Change Management & User Adoption �  Implementation � Where’s HCM Heading � Tips for Success

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HCM Maturity Model

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Views of the Market

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�  Analyst �  Predicting 9.2% annual growth from 14.5 2017 to worth 22.51

Billion USD by 2022. � Middle market biggest opportunity �  Shareholder Investment and Stock Valuation Perspective �  Focus: Market Share, Market Opportunity, Competitive Landscape

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2015 HCM Market Share

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Views of the Market

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�  Third Party Advisors �  Independent

�  Gartner �  Sierra-Cedar �  Forrester

�  Funded �  Benefit Brokers �  Payroll Providers �  HCM Solution Providers

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Gartner Magic Quadrant

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Gartner, Inc. (NYSE: IT) is the world’s leading research and advisory company providing a comprehensive collection of analysis and advice for the users and vendors of technology

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Technology Spending Trends

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Source: “Sierra-Cedar 2016– 2017 Survey White Paper.”

Forrester Wave—HRIS/HRMS

�  Included eight vendors in the wave assessment.

�  Each of these vendors: �  Offers comprehensive

HR process functionality.

�  Goes to market primarily as a SaaS vendor.

�  Has at least 100 customers under contract.

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What Are We Looking For

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#HRWINS are reports and analysis that explore innovation in HR with a particular focus on the intersection of technology and the workforce.

Source: Larocqu, LLC

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Why Changing

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Source: Larocqu, LLC

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Views of the Market

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�  User Ratings � Trust Radius � Gartner Peer Insights � G2Crowd Source � Your Network

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•  trScore: The overall

‘likelihood to recommend’ rating from current users as a representation of overall satisfaction.

•  Research Frequency: Reflects how often a product is researched on TrustRadius. Assumes products researched are of interest/in demand in the market.

Trust Radius

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Gartner—Peer Insights

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G2Crowd—Core HR Software 2017

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•  Real time, unbiased user reviews

•  Products are ranked by customer satisfaction (based on user reviews) and market presence (based on market share, vendor size, and social impact) and placed into four categories on the Grid℠

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Project Team Structure

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Your Selection Process

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�  Requirements Gathering �  Overview Demos �  RFPs �  Deep Dives �  Beyond Functional Requirements �  Decision Making

•  Building Sponsorship •  Change Readiness •  Engaging Stakeholders & Users

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Requirements Gathering

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�  Discovery � HR Subject Matter Experts � Users—Managers & Employees �  IT

�  Functional Requirements �  User Expectations �  Competing Priorities �  Business Case Input

Outcome: Documentation of HCM Vision and Vendor Requirements for Future Use—Communication, Planning, Vendor Discussions, RFP

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Overview Demos

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•  Initial Exposure •  Educate Team •  First Impression •  Ease of Use •  Liked, Concerns •  Questions •  Pursue

Outcome: Your team will have a general understanding about the capabilities of top HCM solutions on the market

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Requests For Proposals

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�  Routine Exercise or Value Add �  Clear Objectives �  What to Ask

� Templates � Closed and Open Ended Questions � Getting to Know the Vendor

�  History, Future Direction, Culture

� Requirements Checklist �  Delivered, Roadmap, Not Able to Meet

�  Read Them

Outcome: Documentation from Vendor

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Deep Dives

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�  You Set the Agenda �  Scenarios �  Pain Points �  Functionality You Want to See

�  Two Way Dialog �  Functionally Focused

� Requirements as a Checklist

�  More than a Sales Demo �  Use a Scorecard Outcome: Better understanding of how each vendor can address your specific pain points and other requirements

Business Case

§  Enable the business with the right info, to the right resource, at the right time

§  Improve data access and analytics to inform the business

§  Deliver easy, usable reporting

§  Mobile access and predictive analytics functionality

Business Insights

Busin

ess G

oals

Rel

ated

Initi

ativ

es

§  Evolution of HR from administrative to business partner

§  Position HR to scale with acquisitions

§  Increase employee engagement

§  Reduce time to fill

§  Reduce and manage enterprise, compliance and audit risks

Continued Growth

§  Simplify and automate repeatable processes

§  Increase “speed-of-business” via self-service

§  Optimize human resource allocation

§  Streamline audit efforts

§  Integrated talent management and succession planning

Operational Excellence

Understand and Connect To Your Strategic Direction

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Business Case

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�  Engage Your Sponsor �  Partner with Finance and IT �  Calculate Risks and Expense of Current State

�  Inaccurate Data—Compliance Implication �  Productivity—Rework and Rekeying � Non Integrated systems � Time to Fill �  Lack of real-time business information about talent

�  Understanding Turnover

� Reallocating HR/Payroll Resources to deliver higher strategic value

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Assumptions

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% Admin Hrs/Year Total Admin Admin Weeks

Mary 90 2080 1872 47

Elizabeth 80 2080 1664 42

Meghan 60 2080 1248 31

Beth 50 2080 1040 26

146

Reallocating HR/Payroll Resources to deliver higher strategic value

146 available weeks HR can direct to the Strategic Business Partner role and New Operating Model of HR

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Costs Comparison

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�  Implementation-Vendor or Partner—Year 1 �  Per Employee Per Month Per Functionality-Ongoing �  Training �  Support—Tiers, Professional Service Hours �  Additional HR Services—Ongoing

�  Per Payroll � Tax Filings � Cobra � Garnishments

�  Other Consulting Services

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Service: The Missing Factor in HCM Selection

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Source: Kelton Global Research,2016

While most HR decision makers say they are happy with their HCM provider’s product functionality, Less than half (43%) are as satisfied with its service.

Three in four (75%) HR decision makers say they would consider customer service extremely important if they were to select their company’s HCM software provider again.

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Beyond Functionality—Service & Support

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�  PODS vs. Single Point of Contact �  Access to “live people” �  Location and Availability of Support �  Case Management Tools �  Standard Support vs. Professional Services �  Customer Communities �  Support Team Employee Turnover �  Service Level Agreements (SLAs)

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Selection Timeline

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Typically, a selection process will take 5 – 6 months with someone clearly leading the effort.

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Implementation & Integrations

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•  Collect needed data elements

•  Product Training

Data / Training

•  Configure •  Load data •  Activate in Test

Configure / Activate •  Unit Testing

•  Super User Enablement (SUE)

•  User Acceptance Testing (UAT)

Validation

•  Move to Production •  Final Delivery Assurance

(DA) •  Go Live

Deployment

Integration Types and Priorities Payroll, Time, Benefits Admin and G/L required for Go-Live

Other Integrations and Functionality—Not required for Go-Live will be configured per project plan  

Source: Workday

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Implementation-Who Does It

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Source: “Sierra-Cedar 2016– 2017 Survey White Paper.”

Aligning Around Decision Criteria

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•  Vendor Reputation & Service •  Reporting •  Core HR •  Talent Mgmt Capabilities •  User Friendly for Admin •  User Friendly Manager Self-Service •  User Friendly Employee Self-Service/Engagement •  Cost •  Risk & Number of Integrations Required

13%

11%

9%

8%

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Communication Get User Input Early & Often

Project Management Sell the Value

Training & Support Supervisors First

Time to Plan Fear of Technology

Lacking Confidence in the Solution Lack of Teamwork

Not Considering Field Impact Insufficient Testing

Positive Forces Driving Change

Restraining Forces Obstacles to Change

HCM SOLUTION

Lessons From Other Implementations

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User Adoption

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�  Communication �  Get Users in the Solution �  Training & Job Aids �  Help & Resources

�  Imbedded Tools �  Internal Support Plan

�  Make it Fun � Theme Your Rollout � Gamification, Contests, Scavenger Hunts

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Example Branding

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What’s “Hot” Now

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�  Think Employee Tools, Not HR Tools �  Everything Mobile �  Beyond Dashboards—Predictive Analytics �  Easier Integrations �  Millennials Have Different Expectations

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Future

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�  Predictive Analytics v2 �  Contingent Workforce Management �  Team Management Tools �  Wellness and Engagement Converging �  Innovative Features Rapidly Becoming Commodity Status �  Disruptive New Vendors and Solutions �  HCM solutions are very much in reach for small-mid size businesses

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Final Thoughts for Success

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�  Establish a project structure �  Engage stakeholders early �  Understand your data and current-state workflows �  Harmonize what you can (ie. data definitions, comp structure) �  Change Management and Communication early and often �  Ensure adequate time and resources �  Dedicated System Admin �  Plan your approach for next phase and future updates

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References

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�  HR Technology for 2016: 10 Big Disruptions on the Horizon, Bersin by Deloitte

�  Gartner, Magic Quadrant for Cloud HCM Suites for Midmarket and Large Enterprises, August 2017

�  “Sierra-Cedar 2016–2017 HR Systems Survey White Paper, 19th Annual Edition”

�  Forrester, Forrester Wave SaaS HCM Systems, 2017 �  #HRWINS, 2018 Future of HR Technology Report, The Middle

Market’s Continued Rise, Larocque, LLC �  Service, The Missing Factor in HCM Selection, Kelton Global

Research,2016