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Optimising the HR Delivery Solution

Optimising the HR Delivery Solution. Bill Farrell PricewaterhouseCoopers. Agenda. Shared Services - optimal solution ? The Key HR Delivery Channels Positioning technology in the delivery model Where to next Group Exercise. Why change the HR delivery model ?.

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Optimising the HR Delivery Solution

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  1. Optimising the HR Delivery Solution Bill Farrell PricewaterhouseCoopers

  2. Agenda • Shared Services - optimal solution ? • The Key HR Delivery Channels • Positioning technology in the delivery model • Where to next • Group Exercise

  3. Why change the HR delivery model ? • Reinvention - the HR value Proposition • Cost Reduction • New Generations • Information Pull • Technology Push

  4. Service Delivery Location Strategic Relevance and Impact Optimising the Delivery Model Current Performance • Shared Services • Self Serve • Line management • Technology • Cost Effectiveness • Service Level • Capability Level • Operational Dependence • Supporting the business • Innovation • Whole-sale outsourcing • Buy In/Vendor Manage • In Source • Centrally • Regionally • By country • By BUs Supply Source

  5. 20% Strategic Planning 10% Strategic Planning 30% Customer Service/ Consulting 60% Customer Service/ Consulting Administration 60% Administration 20% Strategically HR needs repositioning…... 10% Strategic Planning 30% Customer Service/Consulting Administration 60%

  6. Recent research shows HR organisations are predominantly traditional and administration-based 80% 67% 63% 60% 62% 54% 43% 40% 42% 20% Technology Technology Telecom’s Transport Financial services Financial services Source: PwC HCS Survey 2001

  7. HR shared services has led to cost reductions 160 140 145 HR support staff FTE ratio for HR departments with and without shared services >5,000 employees 120 120 100 80 60 40 Employees per HR support staff FTE 20 0 No shared services Shared services Source: PwC HR Benchmarking Survey 2000

  8. The Key HR Delivery Channels

  9. HR Shared Services delivery model • Lean • Corporate policy • Corporate strategy Group • Decision support specific to the BU • Business analysis specific to the BU BU • Lean Shared Services • Bulk of resource for support functions • Service culture toward Corp/BU’s • Advisory Support • Specialist Services to be shared across organisation • Transactional processing

  10. HR Delivery Channels Group HR BU HR Business Unit Line Mgr Call Centre Specialist Shared Services Talent Management HR Admin Employee Self Service

  11. The roles of BU HR versus Shared Services Business Unit Cyclical HR processes, driven by corporate objectives Planned HR interventions, addressing critical Corporate and BU specific needs Typically embedded in business unit Strategic need Shared Services Strategic Need Specialist HR Services, requiring expert design, interpretation and advice Administrative HR activities driven by employee life cycle needs Capability Capability

  12. Understanding your customer, is key to successful delivery Corporate Business Unit Managers Employees

  13. Process example - recruitment and selection GHR BU Shared Services Recruitment Policy Define strategyand jobrequirements • Advertising • Short listing Candidate Management Interview and Selection of Candidate New Hire Admin. New Starter Orientation End To End Process Design

  14. Optimising the HR delivery Model The optimal service delivery model for an organization may include some combination of SELF-SERVICE, SHARED SERVICE, OUTSOURCED SERVICE, all accessible and branded through a portal.

  15. Technology

  16. B2E’s Brief But Important History A year ago: ‘B2E’ = B2Employee and was all about web-enabled HR functions Several months ago until now: ‘B2E’ = B2Enterprise Evolving into: ‘B2E’ = B2EVERYTHING B2E is the platform for a new way of workingmore efficiently, more effectively, more productively, and with less cost.

  17. What Is B2E? • A single channel for communicating with employees—instantly, consistently, globally. • A platform and vehicle for a new way of doing business, where employees can access information anywhere, anytime. • A link for employees with customers and suppliers, internal teams, tools and work… maximum flexibility and increased productivity.

  18. People prefer the web Inquiry HR Online Call Center Verify Employee Data Compensation Salary Adjustments Salary Ranges Stock Options Leadership Development – Performance Management US Savings Bonds Profit Sharing Holidays 29 Calls 14 Calls 19 Calls 1 Call 9 Calls 1 Call 8 Calls 1 Call 3 Calls 16,385 Hits 15,815 Hits 15,815 Hits 3,802 Hits 3162 Hits 1,675 Hits 1,341 Hits 1,206 Hits 569 Hits

  19. The Savings are Well Proven Company On-Line Service Savings /Employee Sprint Employee Data $20/yr Olin Pay statements $9.25/yr HP Policy Manual $9.75/yr F/S On-boarding $42.51/yr PwC Travel reservations $34.5/yr Energy Co Web server consolidation $16.30/yr E-Services Co Training Administration $70.90/yr

  20. Implications • HR Capability • Clearly Defined Touch Points • Technology as enabler, make it easy to use - think access • Process Consistency and Simplification • Technology Push • ‘eat your own dog food’

  21. Discussion Points

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