1. ADP
®
HUMAN CAPITAL
INSIGHTSMaximizing Performance, Productivity and Profitability VOLUME 2
The Countdown to ACA Annual
HEALTH CARE REPORTING
HAS BEGUN
The 4 “C”s of
Employee Benefits
Technology
Boosting Diversity
With Millennials
The HR vs. Employee
Workforce Management
Disconnect:
A Global Snapshot
Forms
1094/1095-C
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/Contents/
RISK & COMPLIANCE
Imperatives for Security
Leaders: Preparing Today
for Tomorrow’s Impact
Learn three complacency-fighting
tactics from ADP®
Chief Security Officer
Roland Cloutier.
A Blueprint for ACA
Compliance Requirements
The countdown to ACA health care
reporting has begun.
Garnishment:
The Untold Story
An at-a-glance snapshot of the
garnishment landscape and how it could
affect your company and its employees.
BENEFITS
The 4 “C”s of Employee
Benefits Technology
Does your technology enable you to
navigate the regulatory landscape,
control costs and engage your
employees? Learn how integration can
help you get back to business.
All Paths to Benefits
Plan Savings Are Not
Yet Exhausted
Employers who walk the tightrope
between robust benefits and cost
controls are finding that dependent
verifications can result in savings.
9
INNOVATION
Boosting Diversity
With Millennials
Increased innovation and creativity stem
from a diverse employee base, including
millennials. Find out how to attract and retain
a new generation of innovators.
Optimizing the Recruitment Process
for Mobile-Enabled Job Seekers
Find out how mobile technologies are
impacting the job search process and
the steps recruiters must take to attract
more mobile-enabled candidates.
HUMAN CAPITAL
MANAGEMENT
The HR vs. Employee Workforce
Management Disconnect:
A Global Snapshot
ADP Research Institute®
data reveals a
fundamental disconnect between HR and
employees when it comes to perceptions
of workforce management success.
Perspectives
Read how two large companies are leveraging
ADP®
HCM solutions to create new opportunities.
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4. 3
The needs of the organizations we protect are complex.
The responsiveness required due to the criticality of
the services we provide tends to put our multifaceted
operations in a state of flux. Your full-time job can
quickly become chief prioritization officer.
/ Risk & Compliance /ADP®
Human Capital Insights
IMPERATIVES FOR
SECURITY
LEADERS:PREPARING TODAY FOR TOMORROW’S IMPACT
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5. 4
As security, risk and privacy experts, the roles we play both inside and outside of our organization
have a profound impact on its ultimate success. It is imperative that we manage the process of our
business protection evolution so that we don’t impair or impede our organization’s ability to innovate
and deliver new products or services.
We all know that the threat landscape and business challenges facing our profession will be radically
different five years from now. Planning for this eventuality requires focus, discipline and forward thinking.
We have found the key to success is forward momentum. Start with these three complacency-fighting tactics:
Roland Cloutier,
Chief Security Officer, ADP
Create controls
assurance.
Your programs are based on
controls – but once implemented,
how often do you measure to
see if they are affecting the
change planned?
Create a process to measure
the suitability of your controls.
Once you have reviewed the
controls and determined whether
they work as intended, make
proactive decisions on whether to
keep, remove or redistribute the
operating cost to a higher priority.
Create urgency.
Creating urgency is often
mixed with the connotation
of “selling security through
fear.” These ideas could not
be further apart. Urgency
means that you’ve educated
someone to facts that, in turn,
drive action.
Have a vendor do a proof-
of-concept with a new
technology that provides
insight into a specific gap in
your security program. Lead
a fact-gathering business
analysis using graphical data
flows, application access
and data sprawl with your
business customer to provide
them with a visualization of
the impact to their business.
Finally, spend time with your
team and take them through
the downstream residual
impact of the operations you
provide to instill a sense of
mission urgency.
Create momentum.
Create momentum through action
itself. To achieve this, create a
list focusing on reducing risk and
closing gaps in your environment.
Cite specific issues, how they
impact the business, how a
change would reduce the risk —
and offer solutions.
Next, create a critical asset
protection program and put it to use
to protect the crown jewels. Include
steps to document, test, remediate
and monitor assets using your
existing resources when possible.
Being a good security
practitioner means being a good
business partner. The actions
above demonstrate leadership,
financial accountability, resource
management and relationship
management. But most
importantly, they deliver actionable
changes that increase the efficacy
of your programs and get your
business that much further up the
maturity curve of protection.
“Being a good
security
practitioner
means being
a good business
partner.”
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/ Risk & Compliance /ADP®
Human Capital Insights
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The Affordable Care Act (ACA) is one of the
most significant pieces of U.S. legislation passed
since the inception of Social Security in 1935.
This legislation presents broad new managerial
requirements and challenges for employers and
HR leaders. The ACA is unique in that its impact
spans widely across organizations, involving a
range of resources, including tax, finance, risk,
IT, payroll, time and absence management, and
benefits. Systems that have never shared data
will now have to do just that. What’s more, it
will involve documenting and reporting data
with sufficient accuracy to avoid or minimize the
penalties that can readily be incurred.
A Blueprint for
THE COUNTDOWN TO ACA ANNUAL HEALTH CARE
REPORTING (Forms1094/1095-C) HAS BEGUN.
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Some employers have taken a
wait-and-see approach to definitive
interpretation of the ACA provisions,
as well as rulings from the U.S.
Supreme Court. However, waiting
is no longer an option. ACA is the
law and the ACA compliance clock
relentlessly keeps on ticking.
A Majority of
Employers Still Aren’t
Prepared for the ACA
While employers that are affected
by the ACA have had several
years to prepare to meet the law’s
complex requirements, the reality
is that awareness of the ACA’s
numerous provisions remains low.
A new ADP Research Institute®
study found more than half of large
(1,000+ employees) employers
are not fully prepared to comply
with ACA requirements and 49% of
large businesses aren’t prepared to
manage Internal Revenue Service
(IRS) annual health care reporting.1
This is especially worrisome, given
the fact that employers could
be subject to dramatic financial
penalties for failure to comply with
certain ACA requirements.
The same study noted that
employers are falling short of the
mark concerning ACA compliance in
three key areas:
• Health Insurance Marketplace/
Exchange Notice Management
• Annual health care reporting to
the government
• Penalty management
In order to meet requirements and,
more specifically, the requirements
under the Shared Responsibility
2015
2016
2017
2018
• Annual Health Care
Reporting
• Exchange/Marketplace
Notice Management
• Penalty Assessment
Reconciliation
“Cadillac” Excise Tax
(nondeductible 40%)
Employer Shared Responsibility:
• Determination
• Data Recording for Annual
Health Care Reporting
(Forms 1094/1095-C)
• Reconciliation ($2-3K tax penalty)
• Exchange/Marketplace
Notice Management
Health Insurance
Exchanges/
Marketplaces
open to large
employers
ACA IMPLEMENTATION TIMELINE 2014-2018
provision of the ACA, compliance
will require data from at least
four disparate Human Capital
Management (HCM) systems:
Payroll, Time and Labor
Management (TLM), Benefits and
Human Resources (HR). Such
data, related to payroll, benefits,
HR and absence management,
will have to be maintained for
several years. This data will be
critical in numerous respects:
planning and determining the
correct strategies to comply
with the ACA, complying with
the applicable requirements
under the ACA to avoid – or at
least minimize – nondeductible
financial penalties, reporting
to the federal government and
reconciling and appealing final
penalty assessments made by
the federal government.
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9. Systems that have never shared data
will now have to do just that. Such data,
related to payroll, benefits, HR and
absence management, will have to be
securely stored for several years.
8
1 “ The Affordable Care Act and Employer Confidence: Navigating a Complex Compliance Challenge,” ADP Research Institute, 2014.
HR. Payroll. Benefits.
A Blueprint for Employers
Highlights include useful information
and strategies regarding:
• Avoiding the “Catastrophic Tax”
• Avoiding the “Lesser Tax”
• Conducting an Excise Tax
Liability Analysis
• Documenting the Offer
of Coverage
• Doing Due Diligence on
Non-Calendar Year Plans
ACTIONABLE, PRACTICAL ADVICE:
A BLUEPRINT FOR EMPLOYERS
How well you respond to any unanticipated consequences will
be the key to ACA compliance success for your organization.
Although navigating this new landscape can be complicated,
with ACA Compliance: A Blueprint for Employers you’ll be
better equipped to adhere to the ACA’s rules and regulations
and remain compliant.
To download the full report, visit adp.com/BluePrint
for your complimentary copy.
Many employers are realizing
that managing through these
new rules is complex. What’s
more, they lack a comprehensive
understanding of all their
compliance obligations. Others
simply lack the internal resources
to meet the administrative burden
that stems from the numerous
notification requirements. This is
where leveraging the expertise
of a third-party provider with a
comprehensive ACA managed
solution and a strong service
component can be a smart move.
Whether you decide to tackle
this complex, compliance challenge
internally or turn to an expert, one
thing is certain, integrated human
capital management data is the
cornerstone to compliance.
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/ Risk & Compliance /ADP®
Human Capital InsightsCompliance
With wage garnishments at an all-time high, it is important to know how it may affect you and your
employees. A recent study†
used aggregated and anonymous payroll data from approximately 13 million
employees to capture a snapshot of the garnishment landscape. The garnishment rate is defined as the
proportion of employees having their wages garnished out of the total labor force. Following are the findings.
*
† ADP Research Institute®
HOW MUCH CAN BE GARNISHED?
WHAT IS WAGE GARNISHMENT?
Garnishment is frequently used to collect debt.
Garnishment is a legal procedure requiring the
withholding of an employee’s pay to satisfy a
debt or other financial obligation.
Defendant
Judgment
Debtor
Third Party
Garnishee
(ex., employer)
Garnishments last until debts are paid in full,
or until a modified order or release is received.
*or 30 times minimum wage, whichever is less. See Consumer Protection Act, Section 303(a), 15 U.S.C. 1673(a). Creditor
garnishments (i.e., those not for support, bankruptcy or unpaid taxes), are garnishments for repayment of a debt.
**States can mandate their own rules as to the maximum percentage of disposable income that may be withheld for a
garnishment so long as the rule is more favorable to the employee.
Deductions NOT legally required and
therefore subject to most garnishments:
• Life and Health Insurance
• Charitable Contributions
• Voluntary Wage Assignments
• Payroll Advances
• Savings Bond Purchases
GROSS PAY
– Taxes
– Social Security
– State Unemployment
Insurance
– Employee Retirement
Contributions
= Disposable Earnings
Minus all exemptions and deductions
Minus all exemptions
www.dol.gov/whd/regs/compliance/whdfs30.pdf; www.irs.gov/pub/irs-pdf/p1494.pdf
Of total disposable earnings per week
that can be garnished
**
*
garnishments:
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BY AGE
†† Some individuals have multiple types of garnishments.
REASONS FOR GARNISHMENTS?
EMPLOYER RISK
of all employees in our study
have a wage garnishment††
Child
Support
Other
(i.e., Student Loan,
Consumer Loan)
Tax Levy
In most states, an employer can become liable to the creditor for the full amount of an
employee’s judgment for issues involving noncompliance.
Finance,
Professional
& Business,
Education,
Health Care
Leisure &
Hospitality
Information
Retail &
Wholesale
Manufacturing
Construction
Transportation
& Utilities
More employees from
manufacturing industries
carry garnishments
compared to the service
industries.
BY INDUSTRY BY YEARLY INCOME
BY REGION
BY GENDER
Individuals between the ages 25 and 50 have
some of the highest percentages of wage garnishment.
The highest being between 35 and 44.
In the middle income range of $25K - $60K, a higher
proportion of individuals carry garnishments compared
to employees in other income levels.
Garnishments are almost equal between men and
women, with the exception of withholdings for child
support which may reflect that women, more than men,
have custody of children.
of total labor workforce that
has a garnishment
The manufacturing industry makes up a higher percentage of
the workforce in the Midwest. Against this backdrop, the Midwest
has the highest percentage of total workforce garnishments.
{
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/ Benefits /ADP®
Human Capital Insights
THE 4 “C”s
OF EMPLOYEE
BENEFITS
TECHNOLOGY
Employers currently face a number of challenges,
including an evolving compliance landscape, new
pressures to rein in costs and ongoing retention issues
among job-hopping millennials. Against this backdrop,
health care benefits technology has become an area
of increasing importance for employers. Employee
Benefit News’ recent research confirms this trend, as
it found that 41% of benefits decision makers plan to
increase their technology spending in 2015. In addition,
its survey revealed that 45% of companies already
increased their technology spending from 2013 to 2014.1
Employers can no longer think of benefits as a
stand-alone offering. It must fit within the broader
scope of Human Capital Management. As employers
increase their investment in benefits technology,
HR leaders should look at workplace benefits and
related technology through the prism of the four “C”s:
Consumerism, Compliance, Cost and Culture.
COST
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Employers are rapidly
moving beyond consumer-
driven health benefits
toward the broader concept
of consumer-driven
employment. The new
consumer expectation is
that the entire employment
experience, from hiring to
retirement, should be as
simple and convenient as
shopping or banking on a
mobile device. While benefits
selection is far more complex
than purchasing a book
from Amazon, the consumer
expectation remains the
same. Given this, the benefits
selection process needs to be
clear and visually engaging,
with decision support tools
that provide insight into plan
choices. Within benefits
administration and all
aspects of business, full HR
integration can help create
an experience that’s more
user-friendly and engages
employees in a consumer-
like way.
Consumerism
C
C
C
NSUMERISM
MPLIANCE
ULTURE
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20%of survey
respondents
reported that
their employer’s
benefits and
HR systems are
only “partly”
integrated and
22%indicated they are
“not at all”
integrated.1
While a slick front-end design
can help drive employee
engagement, employers can’t
afford to neglect effective
back-end data pipelines
that are necessary to ensure
the accuracy of benefits
information and seamless
usability. As a case in point, the
Affordable Care Act (ACA) has
transformed what was once
an annual open enrollment
benefits decision into an
ongoing monthly process of
tracking and reporting. One
misstep can be the difference
between compliance and
significant financial penalties.
In addition, organizations must
submit and certify critical
ACA tax filings. In the event of
an audit, your corporate tax
and finance departments will
need to provide proof of your
organization’s compliance with
the law. Proof includes data
from benefits, payroll, time and
labor, and absence management
systems. If your company still
operates in data silos, consider
a solution that breaks down
barriers right now and combines
your disparate data. This is
especially critical, as employers
can now be penalized for
noncompliance based on their
actions or inactions.
Knowing this, many
employers have turned to
outsourced compliance
solutions that can manage
calculations regarding
affordability of and eligibility for
health care benefits. Employers
also need to consider the
labor-intensive interactions
they may have with the public
Exchanges/Marketplaces and
IRS requirements that are
often overlooked. ADP’s new
ACA compliance solution,
ADP®
Health Compliance,
gives employers the ability to
outsource multiple tasks and
end-to-end processes related to
ACA compliance.
Compliance
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Conclusion
The best way to deliver the four “C”s is to pursue an integrated approach to Human Capital
Management. That’s because, when considered in a silo, new health benefits technology can provide
only so much value. Research by Employee Benefit News suggests that there is much work to be
done, as 20% of survey respondents reported that their employer’s benefits and HR systems are only
“partly” integrated, while 22% indicated they are “not at all” integrated.1
A truly integrated approach
to the four “C”s enables employers to navigate the evolving regulatory landscape, control costs and
engage employees. It also enables employers to turn their attention to their core business.
Faulty technology and poor
administrative systems can be
a major barrier to executing a
coherent, cost-effective health
benefits strategy. Your overall
benefits strategy should leverage
an integrated system that can
seamlessly achieve the following:
• Track benefits coverage offered
to each individual
• Enroll an individual into the
appropriate health plan
• Introduce pretax Health Savings
Accounts that can help reduce
total cost
• Offer access to cost calculation
and management tools
• Enable real-time
communication to answer
questions in a timely manner
• Provide tools that enable
transparency into the costs of
local health care providers
• Administer financial
incentives to reward
good health practices
and appropriate use of
health care
An additional consideration is
that disjointed administrative
systems leave employers
vulnerable to premium
leakage and unnecessary
costs, due to faulty dependent
verification or benefits that
are not discontinued when an
employee leaves. According
to Christopher Ryan, Vice
President of ADP Strategic
Advisory Services, “I have
encountered individual
employers where resulting
cost overages were greater
than 10% of total employer
paid health premiums.”
Benefits aren’t just a perk.
They’re a critically important
value proposition in any
employment relationship.
According to data from the
Bureau of Labor Statistics,
benefits, on average, now
represent about 8.5% of total
compensation paid in the U.S.
Beyond cost alone, health care
benefits are the one element
of total rewards that the CEO
shares with every front-line
employee. Therefore, it’s
important to remember that
employee benefits contribute to
an employer’s overall culture
of engagement. Not only do
they have the ability to drive
loyalty and retention, they can
also make candidates view your
organization as an employer of
choice in your industry.
Cost Culture
1 Employee Benefit Advisor Technology Survey, 2014.
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All Paths
to Benefits
Plan Savings
ARE NOT YET
EXHAUSTED
/ Benefits /ADP®
Human Capital Insights
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Providing benefits is like walking a tightrope.
On the one hand, you need to control costs.
On the other, you want to provide health
coverage that is as robust as you can justify.
Doing so helps attract and retain good
employees. It also helps to keep them from
worrying as much about their dependents so
they’re less distracted on the job. Health care
costs, however, have been climbing each and
every year for decades, making the tightrope
shakier and shakier.
Many organizations
have turned to
trimming their
benefits offerings to control costs.
Many have also passed along
more and more of the premium
costs to their employees. As the
costs continue to rise, these
organizations are finding their
options are shrinking. So, when
they can find ways to save a
few thousand here and a few
thousand there without upsetting
the delicate balance of cost and
productivity, the news tends to
spread quickly.
Optimizing Your Health
Care Resources.
The average annual premium
for employer-sponsored health
insurance in 2014 was $6,025
for single coverage. For family
coverage, that number jumps to
$16,834.1
Coverage of dependents
doesn’t just increase costs, it more
than doubles them.
In terms of productivity, however,
covering dependents is wise. What
employee is going to be able to
concentrate on work if he or she
is worried about how one of their
dependents will get needed medical
care? So, of course, you want to
provide that coverage. However,
you don’t want to cover individuals
who are not eligible under your
plan’s rules.
In 2013, ADP®
audited over
350,000 dependents. As a
business services provider to
over 610,000 small, midsized
and large businesses, ADP is
uniquely positioned to uncover
opportunities for saving their
clients money. During the 2013
audits, over 74,000 dependents did
not meet the qualifications to be
covered under their benefit plan.
In other words, over 21% failed.
ADP estimates that it was able to
save their clients approximately
one quarter of a billion dollars
through this process.
NEWS FLASH:
Dependent
verifications can
result in more
than a little
savings. In fact,
employers are
citing significant
savings.
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The problem for most
companies with verifying
dependents is that the process
is paper-driven and, therefore,
labor-intensive. Depending
on the type of audit you are
conducting, the process can
vary, but the basics remain the
same. Notifications are sent
to all employees with enrolled
dependents. The notices request
documentation to confirm
eligibility. Support in the form
of customer service is needed
to answer employees’ questions
and address any concerns about
the verification process. And,
the responses to the notices
and the provided documentation
have to be received, tracked,
acknowledged and scrutinized.
When the process is complete,
you should have a comprehensive
status report to review internally.
You will then have the information
you need to make an informed
decision about any adjustments
in coverage.
One-Stop Dependent
Verification
Although the process can be
tedious, the saving can be
significant. Many companies are
making the strategic decision to
utilize a third party to perform
their audits. “In our benefits
area, I only have so many staff
members to accomplish our
goals,” reports Kim Dwyer,
Vice President of Benefits for
Advocate Healthcare.
“I need them to focus on
compliance and plan design.
1 2014 Employer Health Benefits Survey, Kaiser Family Foundation and the Health Research & Educational Trust, Sept. 2014.
“Based on very conservative
projections, our dependent
verification audit produced
about $2.5 million in annual
savings for us.”
Kim Dwyer
Vice President of Benefits
for Advocate Healthcare
I need the whole department to
be strategic visionaries so I don’t
want them processing paper.
We are very focused on taking
everything that is transaction-
based out of our HR functions.”
Advocate Healthcare utilized
ADP’s Dependent Verification
solution and found that it
produced around $2.5 million
in annual savings. Dwyer notes,
“We were able to just turn that
transactional process over to
ADP. Follow-up and all. They
are perfectly suited for doing it
efficiently, and it’s just not the
kind of work I need our human
resource function to be doing.”
Because of results like Advocate
Healthcare’s and others, it’s easy
to see how dependent verification
could be an unexpected windfall of
savings. How will you reinvest your
“found” money?
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Boosting Diversity with
MILLENNIALSNot only does a diverse workforce improve the possibilities for
employer branding and attract top talent to the organization,
there are other tangible benefits as well. Diversity of all kinds –
age, gender, race, ethnicity, sexuality, disability and more –
affects the composition of a team and ensures a variety of
viewpoints on organizational functions and decisions. Increased
innovation and creativity stems from a diverse employee base.
Additionally, a Gallup®
study found that gender-diverse business
units had both higher revenue and net profits.1
ADP®
Human Capital Insights / Innovation/
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Job-Hopping
Millennials
Millennials often work
multiple jobs in their first few
years of adulthood, moving
between self-employment
and short stints with a variety
of organizations. While
job-hopping is traditionally
seen in a negative light, it’s
simply a fact of life for the
majority of millennial job
seekers, due in part to limited
economic opportunities for
young graduates.
According to
PricewaterhouseCoopers®
,
millennials seek out a variety
of experiences because they
want to develop a diverse
background of skills and
capabilities in order to be more
suited to the marketplace.3
Unlike generations before,
millennial job seekers fully
expect to experience a variety
of positions with several
companies. An organization
that can offer a variety
of assignments, training
sessions and clear pathways to
increased responsibilities will
be more likely to attract – and
keep – millennial candidates.
Mobile, Social
Millennials
In addition to expecting a
diverse career, millennials
are also the most digitally
connected generation. They
are mobile, social and always
on the go. Companies that
can connect with candidates
Innovation-focused companies
that want to succeed in
attracting and retaining
diverse top talent should pay very
close attention to the changes
millennials are bringing to the
workforce. This demographic
is projected to comprise the
majority of the workforce
within the next decade. For
organizations that want to recruit
millennial job seekers – and
every company will need to – it’s
important to understand exactly
what makes millennials tick.
Millennial Job Seekers
Not only is this generation large,
it’s racially and ethnically diverse,
comprised of many born outside
the U.S., and/or bilingual.1
This
group cares about diversity,
company ethics and giving back
to their communities. In fact,
a study from The Intelligence
Group®
found that 64% of
millennials would take a lower-
paying job they found fulfilling,
even if given the opportunity to
earn more than twice as much in
an unfulfilling job.2
In order to attract and retain
this generation, finding ways
to make work engaging will be
essential. During the recruiting
process, demonstrate how
a position solves problems,
increases efficiencies, or gives
back. An organization that can
effectively convey a diverse
organizational culture, along
with traits that appeal to
millennials, will be more likely to
attract this demographic.
64%of
millennials would
take a lower-
paying job they
found fulfilling,
even if given the
opportunity to earn
more than twice
as much in an
unfulfilling job.2
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21. 20
on a variety of platforms
and maintain flexibility for
their employees are more
likely to draw the attention
and engagement of diverse
millennial candidates.
Targeting diverse groups of
millennials on social media
requires knowing which
candidates are using certain
sites. For example, according
to Pew, women dominate
Pinterest®
as a social network,
and half of all Internet-using
adults between 18 and 29
years old use Instagram®
.4
Twitter®
is one of the most
diverse social networks and is
(1) U.S. Census Bureau, 2014; (2) The Intelligence Group, 2014; (3) PricewaterhouseCoopers, 2014; (4) Pew Internet Research, 2014
used by millennials to share
their expertise and make
professional connections.
Organizations that want to
attract millennials need to have
an online presence and, more
importantly, one that transfers
to mobile platforms. Mobile-
optimized career sites and
text message communications
with a legally compliant
opt-in method are keys to
getting millennials to apply.
Companies that stay ahead of
the curve for social and mobile
engagement will have access
to a broader range of diverse
millennial candidates.
Encourage Diversity,
Foster Innovation
Diverse, innovation-driven
cultures don’t spring up
overnight. Success requires
dedication and buy-in at all levels.
A recruiting strategy focused on
diversity might attract millennial
hires, but they won’t stay long
if the company’s policies and
procedures don’t also reflect
an ongoing commitment to
diversity. Companies that develop
a reputation for being diverse
employers are more likely to
attract the top talent that will
take them to the next level in the
years to come.
Innovation-
focused
companies that
want to succeed
in attracting
and retaining
diverse top
talent should
pay very close
attention to
the changes
millennials are
bringing to the
workforce.
51934_04.3765v2.indd 20 2/14/15 4:54 AM
22. 21
/ Innovation/ADP®
Human Capital Insights
Optimizing
the Recruitment
Process for
MOBILE-ENABLED
JOB SEEKERS
As mobile job-seeking
gains popularity, many
organizations are lagging
behind. From mobile-
enabled job alerts and
postings, to applying via
smartphone, today’s job
seekers increasingly want
tools that leverage the
latest social and mobile
technology.
Shift to a Consumer-Style
Job-Seeker Experience
Changes in talent management are driving the next big
transformation in human capital. The tools that recruiters
and job seekers use are the keys to this evolution. Yet,
recent research conducted by the ADP Research Institute®
reveals a growing disconnect between the tools recruiters
and job seekers use to find each other.
51934_04.3765v2.indd 21 2/14/15 4:54 AM
23. 22
For example, the research
found that 44% of recruiters
listed LinkedIn as “extremely”
or “very” useful in their pursuit
of new talent. Yet, only 19% of
job seekers felt the same when
looking for a job. Recruiters’ and
job seekers’ perspectives on
the usefulness of other social
media sites during the recruiting
process — including Facebook®
,
Twitter®
and Google+®
— showed
a similar disconnect, with
recruiters consistently viewing the
social platforms as more useful
than job candidates did.
In addition, while mobile job
seeking is gaining in popularity,
many corporate career sites
are still not mobile-enabled.
According to the research, job
seekers increasingly want the
ability to receive job alerts,
view job postings and track the
progress of their job applications
on their smartphone or tablet.
As social and mobile
technologies continue to impact
job-seekers’ expectations,
attracting top talent will require
HR leaders to move their
organization toward a more
consumer-style job-seeker
experience. This includes
optimizing their recruiting
process for today’s more mobile-
enabled job seeker by providing
mobile access to their career
site. It also requires tracking
metrics that shed light on the
candidate experience, and then
top performers, because it makes
it easier for them to do their jobs
and manage their HR information
anytime, anywhere.
For HR leaders, this requires
modern HCM systems that
leverage the latest technology
innovations to deliver a highly
intuitive user interface akin
to the mobile apps we use in
our personal lives. The HR
systems of the future should
empower employees with visual,
personalized dashboards that give
them a single point of entry to
their benefits, payroll and other
HR information. They should
also include built-in decision-
support tools tailored to both
employees — such as for annual
open enrollment — as well as
managers, to drive better decision-
making, based on actionable
insights regarding talent and
performance. The end result will
be a more satisfied, engaged and
productive workforce.
HR systems of the future should
empower employees with visual,
personalized dashboards that offer
a single point of entry to benefits,
payroll and other HR information.
leveraging those insights to
refine the recruiting function to
better meet candidates’ evolving
needs. Finally, investing in online
talent communities will help HR
leaders build pools of prospects
for hard-to-fill job categories that
they can nurture through regular
communication until appropriate
positions open up.
HCM Systems
That Leverage the
Latest Technology
As we’ve grown accustomed to
the simplicity of online shopping,
we increasingly demand a
similar experience from the
systems we use at work. Yet,
many core business systems,
including Human Capital
Management (HCM) platforms,
haven’t kept pace with the trend
toward more consumer-centric
user interfaces. Meeting this
growing employee expectation
is critical to engage and retain
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24. 23
/ Human Capital Management /ADP®
Human Capital Insights
THE HR VS. EMPLOYEE
WORKFORCE
MANAGEMENT
DISCONNECT:
A Global Snapshot
51934_04.3765v2.indd 23 2/14/15 4:54 AM
25. 24
There’s no doubt that
workforce issues are a
fundamental focus for Human
Resources. One would
hope that alignment among
employees and HR would
be closer rather than more
distant. Yet, all too often our
studies showed this simply
wasn’t the case. Despite
decades of technological
innovation, corporations and
their HR departments remain
significantly disconnected
from their organization’s
single largest asset: their
workforce.
So, how concerned should
stakeholders be? Are
corporations reading the
pulse of employee engagement
with sufficient accuracy? How well
is the organization’s single biggest
asset being directed? Several
recent ADP Research Institute®
studies compared the perspectives
of employees with that of HR on
identical key issues. And the gap in
perception is statistically enough to
warrant concern.
The studies surveyed global
employees, HR leaders, and other
senior leadership and found a wide
disparity in their perceptions on key
Human Capital Management (HCM)
metrics. This was true regardless
of the company’s size, industry
and location. Not only were there
disconnects between employees
and their HR departments, the
research showed that HR and senior
leadership are also disconnected on
some fundamental issues.
51934_04.3765v2.indd 24 2/14/15 4:54 AM
26. 25
How Pervasive Is
the Disconnect?
The ADP Research Institute
studies show that workers across
the globe have a far more negative
perception of how well companies
are managing them than their
C-suite executives and HR leaders
believe. In particular:
• Employees rank the level
of their compensation and
benefits less favorably than
HR or management.
• With the exception of the
U.S. workforce, employees
rate their work/life balance
significantly lower than the
perceptions of HR and senior
management.
• Career opportunities – a key
driver for retaining employees
– receive significantly lower
ratings from employees than
from HR.
• Senior leadership is rated
less positively by employees
than HR.
It is interesting to note that
with the exception of the United
States, the gap between HR
and employees’ perceptions of
how well their organization is
managed tends to widen as the
organization gets larger. In some
regions, the difference is as much
as 38%. Clearly HR’s perception
is significantly disconnected with
employees’ reality.
Bridging the Gap
Between Perception
and Reality
HR is the corporate function
with the greatest potential
and can be a key driver of
business performance. A strong
connection between HR and the
workforce can be an obvious
indicator that a company’s
largest asset is aligned with its
business strategy. It can also
demonstrate the effectiveness
of talent management efforts.
Maintaining that connection can
also help give HR the means to
anticipate challenges and seize
opportunities.
Things go awry when HR
thinks it is performing well and
the workforce differs with that
perception. An important
link in the chain of success
is broken. This could indicate
that HR may not have a handle
on the asset it is hired to
manage, and that companies
are operating without fully
engaged workforces.
There are very few
industries where misjudging
the human capital component
— typically an organization’s
single most expensive asset —
would not impact results. The
huge differences between HR
and employee perceptions on
key HCM issues means there
is work to be done. Bridging
the gap between perception
and reality is a necessary
first step.
*ADP Research Institute, Employee Perspectives on HCM Study, 2013.
ADP Research Institute, Quantifying Great HCM, 2013.
How Well Companies Manage
Employees (Extremely/Very Well)*
United States
Canada
Latin America
Europe
Asia-Pac
44%
59%
40%
72%
44%
82%
30%
68%
38%
66%
1K+ Employees
Employees HR
51934_04.3765v2.indd 25 2/14/15 4:54 AM
27. 26
Celestica provides its clients with end-to-end
product lifecycle solutions at the lowest total cost of
ownership, including design and engineering. Linda
Moore, Vice President of Global Talent, explains how
providing services for Celestica’s 25,000 employees
in 27 locations and 17 countries led to a host of
challenges. The firm was eager to have a global
platform that provides a common framework to
facilitate human capital decisions, offers technology
to help streamline administrative processes
and assists with onboarding large numbers of
employees from strategic acquisitions. Linda also
explained Celestica’s need to manage payroll and
remain compliant given its global footprint.
To learn more, go to
adp.com/celestica
CHALLENGES:
· Onboard large numbers of employees
· Lack of technology to reduce paper processes
· Remain compliant in 17 countries
Destination XL Group is the country’s largest
multichannel specialty retailer of big and tall
men’s apparel and accessories. Stacey Jones,
Vice President of Human Resources Operations,
discusses the company’s need to remain compliant
in the 48 states where they conduct business.
The firm is also looking for relevant business
analysis and best practice recommendations
to help improve their operational efficiency.
Additionally, Stacey discusses the need to have
talent assessment resources and strategies to
streamline the firm’s back-end processes so
their store associates can continually provide
exceptional customer experiences.
To learn more, go to
adp.com/dxl
CHALLENGES:
· Streamline back-end processes
· Remain compliant in 48 states
· Improve operational efficiency
Destination XL Group, Inc.
Canton, Massachusetts
Celestica, Inc.
Toronto, Canada
PERSPECTIVES
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