1. Move to service-oriented HR
Anita Lettink
Business Development Manager
ARINSO International
March 2003
2. What’s your performance?
● Do you know:
− FTE’s per HR Department FTE?
− Absence rates?
− Percentage of new hires to achieve
management positions?
− Performance scores of management and
professionals?
− Human Investment Ratio?
− The wealth created per FTE?
− How you compare to other organizations?
3. What’s your performance?
● What is the contribution of the HR
department to the bottom line of the
organization?
− What are the “all-in” costs of HR?
− What’s the ROI of HR?
− How can you prove that?
− Do you measure that?
5. What is the problem?
● ARINSO Research shows:
− HR customers are not satisfied
− Main HR focus is (still) administration
− Ineffective use of technology
− HR functions are not efficient, associated cost
are high
− HR departments are focused on internal HR
performance
● New services do not meet customer needs
● Business demands are not met by HR Transformation
● HR departments often introduce non-HR services
6. What’s needed?
● Transform Role of HR
HR Value Proposition
How can we serve
the company
strategically?
How can we serve
our customers?
How can we best
deliver services?
HR Business Transformation
7. HR Business Transformation
● Introduce HR Service Delivery Model
● New HR Business Model
● Concentrate on strategic HR services
● HR Process Review
● Become comfortable with technology
Measure contribution to bottom-line
8. HR Service Delivery
Subject
Matter
Experts
TIER 2
E-HR
Portal
IVR,
Kiosks
TIER 0
Service
Agents
HR Service Center
TIER 1 TIER 3
Policy
Experts
HR Expertise Center
Inquiries
Employees
Management
HR-Professionals
9% 1%55% 35%100%
9. HR Business Model
● A new way of providing HR
Services:
− Business HR embedded in
business structure supporting
transformational change and
business needs
− Service Center(s) delivering
transactional activities and basic
employee support (web, IVR,
etc)
− Center(s) of Expertise
providing world class advice and
policy development on HR topics
(Resourcing, Development, etc)
10. HR Services
● Provide strategic HR services:
− Defining corporate vision, goals and
identity
− Leadership development
− Performance management
− Workforce planning & development
− Talent acquisition and retention
− Management support
− Workplace improvement
11. “To - Be” HR Process Model:
Service Map
Managing the Service
Delivering the Service
Technology Support Services
Network Management Applications Management Applications IntegrationIT Operations
Basic Value Strategic
Time & Attendance
Payroll
Benefits
Labour & Employee Relations
Employee Communications
Expatriates Administration
Resourcing
Learning
Remuneration
Employee Development
Performance Management
Organisation Development
HR Strategy & Benchmark
Managing Diversity
Enabler
HR Reporting
Personnel Administration
Organisation Administration
Service Center
Center of Expertise
Business Partners
Technology
Executive Compensation
Supply Management
12. HR Technology Support
● Introduce more efficiency:
− Information management and discovery
− Transactions and simulations
− Streamlined, standardized processes
− Personalization
− Web-based collaborative team services
− Broadcast delivery of business
communications to employee desktops
13. HR Customer Scenarios
Information & Transactions
● Resumes
● Careers
● Company Handbook
● Discussion boards
● Training
● Benefits
● Live Broadcasts
Benefits
● Rapid information dissemination
● Legal compliance
● Broad audience reach
● Real-time communication
● Increased productivity
● Reduced costs
14.
15.
16.
17. Most popular scenarios
● Company handbook
● Time/money exchange
● Vacancies
● Expenses
● Change Personal Data
● Time & Attendance
● Payslip Online
● …
● Benefits statement
18. What’s needed?
● HR Business Transformation
HR Value Proposition
How can we serve
the company
strategically?
How can we serve
our customers?
How can we best
deliver services?
Initiatives in corporate
strategy and culture
HR Contribution to
financial goals
Service Offering that
satisfies employees
19. ARINSO’s answer
● HR Business Transformation
− Achieve economy of scale
− Excel in administrative transaction processing
− Unified process delivery
− Use technology for HR support
− Optimal use of scarce HR resources
− Key Performance Indicators to measure results
− Business chooses service level
− Services based on SLA’s
● HR departments focus on
− Creating value for the company
− Improving Human Capital Performance