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Creating an Employer of Choice Environment and Transforming HR

Creating an Employer of Choice Environment and Transforming HR. Wally Boehm VP Human Resources. Today’s discussion:. Organization Profile Business Case - NAS Employer of Choice Strategies Human Resources Scorecard Human Resources Transformation.

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Creating an Employer of Choice Environment and Transforming HR

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  1. Creating an Employer of Choice Environment and Transforming HR Wally Boehm VP Human Resources

  2. Today’s discussion: • Organization Profile • Business Case - NAS • Employer of Choice Strategies • Human Resources Scorecard • Human Resources Transformation

  3. ADP: One of the largest global providers of: Information Services • Employer Services • Brokerage Services • Dealer Services • Claims Services

  4. We’re the Business Behind Business™

  5. Goal: Fortune Top 100 Companies Excel Financial Measures Employee Measures Competing

  6. Serving Serving Serving Serving 1-49 employees 50-999 employees 1000+ employees All sizes Employer Services Organization Employer Services Emerging Business Services Major Account Services National Account Services Benefit Services

  7. Unskilled (Shipping Clerks) Highly skilled (Software Engineers) 4600 Associates 16 Operating locations Pay 7 million people Administer Benefits for 9 million people Organizational Profile - NAS/Benefit Services

  8. Situation Analysis - Fall of 1998 • Experiencing high growth • Good, but not “great” service • Higher than average ADP turnover • Lower than average ADP associate satisfaction • HR strategy not aligned with business strategy

  9. Future Success Employer of Choice World Class Service $1Billion Business

  10. What did we do? • Embraced Service-Profit Chain business model • Aligned HR strategies with business • Compensate using Balanced Scorecard framework • Increase Associate Satisfaction • Decrease Turnover Results Productivity & Cost Savings

  11. Balanced Scorecard Employer of Choice Financial Excellence Operational Excellence World Class Service

  12. Balanced Scorecard Metrics Employer Of Choice * Revenue Generation 20% Turnover10% Associate Satisfaction10% Financial Excellence Profitability20% Various Metrics 20% Operational Excellence Client Satisfaction10% Client Retention10% World Class Service * Accelerators Diversity 10% Training 10%

  13. Decrease Turnover YTD

  14. Productivity and Cost Savings • Productivity • Time efficiencies • Better service • Direct hiring costs • Advertising • Interviewing time • Agency expense Turnover Reduction 20.2% 10.2% = = FY’99 to FY’02 $24.7 million savings

  15. Business continues to grow rapidly (in millions) Dollars (Plan)

  16. HR Means Building Business Value For ADP…. • Associate relationships impact bottom-line profitability For our clients…. • EOC Best Practices are reflected in our services

  17. What are we doing to build an Employer of Choice environment?

  18. Provide our associates the HR best practices we offer and enable in our clients. HR Vision

  19. HR Mission Lead the delivery of HR best practices to achieve NAS objectives through people, processes, and technology.

  20. Finish Start N W E S What’s the Strategy? • Build HR initiatives from business strategy • Fine tune initiatives from listening to associates • Establish metrics and measure progress • Communicate successes internally • Extend value to clients externally

  21. The Bottom Line: “It’s what keeps me coming back every Monday.” Listening to Associates “opportunity and culture” What makes ADP your Employer of Choice? “sense of accomplishment” “easily balance work and family life” “friendly and professional atmosphere”

  22. Training & Development • Coaching, Feedback, & Support • Career Opportunities Learning & Growth Employer of Choice • Competent Leadership • Interesting & Challenging Work • Open Communication • Involvement & Empowerment The Basics Work Environment • Values • Recognition & Appreciation • Work Life Balance • Competitive Compensation & Benefits Working in an EOC Environment

  23. Associate Satisfaction Training & Development Win the Talent War Reward & Recognition Human Resource Planning Strategic HR Transformation What’s the Strategy? Increase Associate Satisfaction Leverage Human Capital for Growth

  24. Strategy: Drive Associate Satisfaction • Survey Semi-annual • Analyze Results • By Division • By Business Unit • Develop Communication Strategy • Create Action Plan • By Division • By Business Unit • Business Unit Action Plans • Develop Individual BU Action Plans • Validate issues through Associate Focus Groups • Initiate Teams to Work on Issues • Track Progress Against BU Plans • Report Action Plan Progress • Reward Management for Improvement

  25. Strategy: Make Retention a Way of Life • Reward management for retention • Use competency-based selection criteria • Engage group teams for selection process • Get serious about pre-employment screening • Invest in associate learning • Expand new hire orientation & mentoring

  26. Strategy: Increase Associate Communications • Develop Associate Communications Strategy • Move Associate Communications into HR • Dialogue w/ associates through variety of vehicles: Video Newsletters - Division-wide - Localized MyInfoCenter.com

  27. Strategy: Invest in Training • Institute technology-based learning • 3 week requirement for technology function • Use 2 outside vendors • Increase associate training to a minimum of 40 hours per year per associate 27% of workforce 54

  28. Strategy: Improve Leadership Development • $2 million - Sales & Leadership Training • Institute for Service Leadership • Leading & Managing in EOC Environment • Leadership Development • Managing for Commitment & Diversity

  29. Strategy: Win the Talent War • Implement electronic careers center • External access through www.adp.com • Centralize recruiting for high growth functions • Technology • Sales • Institute competency-based selection process • Respond to associate worklife needs - flexibility • Promote employment brand

  30. Respond to Worklife Needs • Flexible Work Arrangements • In-office Services (e.g., dry-cleaning, massage) • Office Social Gatherings • ADP Preferred Childcare Discount Program (US-Wide) • ADP On-site Day Care Facilities • ADP On-site Medical Facilities • Continue asking & listening

  31. Balanced Scorecard What Gets Measured Gets Done Variable compensation plans 60% of associates Stock options 40% of associates Knowledge Pay Program ACE’S President’s Club Stars Quarterly Breakfast Numerous Service Awards $$ $$ Reward Recognition Strategy: Align Reward & Recognition

  32. Strategy: Systemic Human Resources Plan Our Processes & Tools: • Assess with 360-degree process and feedback • outside vendor • Individual development plans • 6 month review discussions • Managers as coaches • Some use of executive coaches

  33. Strategy: Systemic Human Resources Plan Our Outcomes: • Benchstrength measure • Gap identification in existing vs. future needs • Diversity of associate background, talent, abilities • Structured pipeline for talent infusion • Associate partnership of career development

  34. Strategy: Delivering on Diversity Connecting through Surveys, Focus Groups Leverage progress and work on priority issues Implementation of Local Diversity Councils

  35. HR Scorecard… What Do We Measure? Associate Turnover • Associate Satisfaction • Associate Turnover(by Segment, New Hire, Cost) • Training Hours per Associate • Competency Gaps of Workforce • Diversity Representation • Cost per Hire • Time to Fill • Compensation Competitiveness • HIPO Associates(Bench Strength, Development Plans) Associate Satisfaction Productivity Human Resources Indicators Diversity Recruitment Associate Training & Development Associate Benefits

  36. Strategy: Transform HR • Develop & measure new HR Competencies • HR Process Re-engineering • Electronic self-service • HR Metrics – Digital Dashboard • Leverage HR in new product development and piloting ACCOUNTABILITY

  37. Consultative and Developmental Execution-oriented & Administration Strategic Strategy: Transform HR Percentage of Time Spent Strategic HR Planning Consultative/Developmental Execution-Oriented & Administration Today 10% 25% 65% Future 25% 50% 25% Source: Tomorrow’s HR Management, Dave Ulrich & Michael Losey, 1997.

  38. What Does This Strategic Transformation Look Like? • Old HR • Non-Strategic • Administrator • Distributor • Enforcer • Translator • New HR • Business advisor/consultant • Workforce strategist • HR Process Expert • HR Measurement Analyst Process Reengineering Drivers • Services • Customer Service • HR Program Admin • Operational Excellence • Technology Application • Technology • Process Integration • Technology roadmap • E-HR Strategy • Measurement & Analysis • Manager/Employee • Information Access • Learning • Decision-making • Action Taking

  39. Reengineering HR Processes Flex Benefits Enrollment HR Reporting Reengineering HR Processes through The Portal HR Metrics Performance Management HR Administration Recruiting Process HR Planning

  40. NAS HR Web Portal – Strategic Enabler Benefits Related Information Mission Statement Guidelines and Procedures Forms Phone Book New & Events

  41. Conducting HR Transactions Skills Profile and Personal Search Agent Internal e-Recruiting Solution Expense Management 401(k) Transactions Benefits Enrollment Stock Purchase/Stock Options On-Line Pay Stubs

  42. Leveraging Human Capital Digital Dashboard High Potential Tracking Career Development Hot Skills Database Human Resources Planning

  43. At the Horizon HR anticipates strategic issue and leads effort Progressive Practice HR partners on solutions “My Portal” - Customized Web-based / vision of paperless administration Manager & EE direct access; HR aligns activities with business strategy Standard Practice HR responds to requests Precision workforce planning / emphasis on retention and relationship extension Business Partnership Service Delivery Talent Acquisition Career Development Management Development and Training HR processes transactions HR proactively sources talent to fill pipeline; managers fill openings via desktop technology Talent management links development, career planning, talent assignment and developing future leaders HR recruits for open jobs Job posting; vertical paths Job posting; vertical paths Real-time workplace experiential learning supported by interactive technology Stand-up classroom training Stand-up classroom training The Horizon of Practice Source: Corporate Leadership Council

  44. IN SUMMARY… Creating an Employer of Choice Environment and Transforming HR is about: • Managing Change • Creating a Cultural Shift • Creating Systemic Processes • Measurement • Creating... Value

  45. High Performance Organization Leverage Human Capital for GrowthReward & Recognition Human Resource Planning HR Transformation Associate Satisfaction ASI Training & Development Talent War

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