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Digital HR technology
comes of age
Contents
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
TREND 1: Human resources goes digital . . . . . . . . . . . . . . . . . . . . . . 4
TREND 2: Human resources becomes decentralized . . . . . . . . . . . . . 5
TREND 3: Human resources knows the business . . . . . . . . . . . . . . . . 6
TREND 4: Human resources adds value . . . . . . . . . . . . . . . . . . . . . . . 7
Case studies and business benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
TREND 5: Human resources wins over the boardroom . . . . . . . . . . . 9
Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Learn more . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
2
Introduction
Human Resources (HR) departments have This point of view provides an overview
typically managed people while remaining of five key trends in the adoption of
separate from other parts of an organization. digital HCM solutions. It is based on
This is rapidly changing thanks to advances insights gained by Accenture through its
in digital technology, specifically Software extensive projects around the world and
as a Service (SaaS) based applications for as an alliance partner of leading vendors
human capital management (HCM) that including Workday, Success Factors and
are hosted on online cloud platforms Oracle. Learn how HR departments are
rather than Located on site. embracing digitization and the benefits
that other organizations can expect to gain.
Increased digitalization is revolutionizing
how HR departments serve managers and
employees. In particular, cloud technology
and mobile functionality are integrating
HR into the fabric of everyday business.
HR departments can generate data-
driven insights to enhance workforce
performance and thereby improve overall
business performance. As a source of
quantifiable value to organizations,
HR has truly come of age.
3
TREND 1
The world of HR is changing. While This may require HR to gain more technical Reduced total cost of ownership
HR professionals will always require expertise. A support team could be enlisted
Digital HCM solutions enable organizations
a deft touch for managing people, to manage the ongoing configuration
to scale up operations, and protect and
they must increasingly achieve and functional software updates that are
backup workloads, while spending less on IT
business goals by harnessing the offered by vendors up to four times a year.
capital equipment, installations and staffing.
possibilities of digital technology. Fortunately, today’s cloud-based SaaS
A major financial services company achieved
applications are so advanced that they can
HCM systems in many organizations are a 43% total cost of ownership reduction
be implemented as a whole-of-HR solution.
being migrated to cloud platforms rather by switching to Workday.2 It consolidated
In many cases HR may require customized
than being housed on premises. Thanks its legacy HR systems into one cloud-based
reports to be built to meet unique reporting
to cost-effective and user-friendly SaaS solution. Similarly, a franchise management
requirements. While this can add complexity,
applications, IT departments are no longer company that supports 650 restaurants
these can be developed from within the
the sole repository of the skills required in eight countries reduced personnel and
application by HR or other end users.
to manage HR computer systems and payroll management activities by 30% since
implement software changes. Many vendors offer their customers implementing SuccessFactors.3
access to forums where challenges can
Digitization is blurring the line be brainstormed, solutions shared and
between IT and other business product enhancements suggested.
functions, and HR practitioners can Workday attributes its 98% customer
now become IT systems experts. satisfaction rate to establishing this
As this process accelerates, HR departments type of collaborative community.1
are not only expected to manage the IT Overall, enabling HR departments to seize
system changes associated with optimizing greater ownership of IT makes sense in a
business processes and structures. They are world of digital disruption where business
also responsible for creating the roadmap structures and support systems are in flux.
and deciding what functionality to deploy Many organizations prefer to remain flexible
into their live environment and when. and not set staffing structures in stone.
Under this model, HR coalesces employees
around joint goals and autonomous,
collaborative teams, instead of discrete
positions with tight job descriptions. This
new way of working promotes ideas and
innovation at all levels.
4
TREND 2
Digital HCM solutions give more power Inevitably, there are cases where a The Head of Operations at Nationwide
to users, making many tasks traditionally workforce may not be ready to shoulder Building Society, Neil Lewis, said that
managed by HR redundant. For example, full employee or manager self-service implementing Oracle HCM cloud would “give
employees and line managers can review capability. These organizations should us a better view of our data and our people
and action work-related administrative identify functionalities that can be phased … and the same level of real-time technology
tasks in the same flexible and convenient in gradually and managed through a robust we use every day outside of work”.6
way they run their lives as digital change and training program.
consumers outside work. Another employee offered glowing feedback
Smaller HR footprint after a cloud application went live: “I
Just as people don’t need a tutorial when managed to update my personal details
Decentralizing activities to employees
accessing a new app, booking a holiday and apply for annual leave in the blink of
and managers results in more nimble HR
online or processing a bank transfer, an an eye. In my 15 years working in large
teams. For example, when global food
organization’s employees expect similar corporations, I have never seen something
giant Chiquita Brands (headquartered in
ease while managing an expense claim or so easy to navigate.”7
the United States with 21,000 employees
processing an annual leave request.
worldwide) implemented Workday, it was
Employees, especially younger ‘digital able to reduce the number of HR workers
natives’, often perceive consumer tools from one in 145 employees to one in 225.
as more enjoyable and intuitive to use This was partly achieved through saving
compared with those provided by their time on creating HR reports.4
company. Digital HCM solutions recognize
this. They invest significantly in ensuring Easy to use
a great user experience when employees By implementing SuccessFactors, Timken
view reports, or go back to view, edit and (a steel and mechanical components
action transactions. Equally, these systems manufacturer with more than 17,000
are so easy to use that managers do not employees in 30 countries), has reduced
feel as if HR work is being forced on them. the number of clicks per HR transaction
Rather, it is experienced as a natural from four to one.5
extension of their role.
5
TREND 3
Digital HCM solutions free up HR Faced with this new HR value And HR’s ongoing relevance hinges on
departments to refocus their activities. proposition, recipients of HR services its ability to use data-driven insights to
Most importantly, they provide HR with have very different expectations. support continuous improvement. For
the integrated technology architecture to example, at Redstone Federal Credit Union,
capture employee feedback and data across • Employees now experience the face an Alabama based credit union, users can
business lines. of HR as a portal, rather than a person. now spend 70% of their time on data
They expect seamless service, with fast analysis rather than data gathering since
This means that instead of managing day- resolution of issues, as well as building its analytics capability through
to-day administration, HR departments can the ability to access help anytime. implementing Workday. This is productive
move into human capital analytics, insight time, used to better understand and engage
• Line managers expect value-added
and prediction in order to add value in with its employees.8
services from HR, such as workforce
areas such as employee engagement and
planning, guidance on predictive
workforce planning. The new world of
recruitment and training development
As they better understand their employees, programs aligned to business strategy. employee engagement
HR can create in-house talent offerings, Success is not necessarily measured by raw Digital HCM solutions are far from
incentives and educational programs that sales, but qualitative user-based measures dehumanizing. They are designed to be
win acceptance. Just like the marketing that impact the business indirectly. These precisely the opposite; ensuring that
arm of a business, they can segment include employee satisfaction, workforce work is tailored to individual strengths,
different categories of employees and productivity and increased HR efficiency. flexible, portable, collaborative and
customize services to them. In this way, meaningful to employees. For example,
HR transforms cultures and brings needed just six weeks after a hospitality company
organizational change. implemented Workday, 94% of its
62,000 employees had logged on. This
helped HR quickly engage the workforce
and communicate information.9
6
TREND 4
Organizations once streamlined their HR In addition, HR can hire new staff Finally, digital technology creates
model to cut costs and improve efficiency. and manage talent pools in response opportunities for HR to promote improved
While the automation of some basic to seasonal business requirements by performance through mobile adoption.
aspects of HR administration has largely integrating standardized in-house systems, According to Mary Sullivan, VP Human
succeeded, this is no longer enough external careers websites and social Resources at Four Seasons, a hospitality
to assure a competitive advantage. In networking tools such as LinkedIn. chain with more than 35,000 employees
a digitized world, HR departments are across 36 countries: “Many of our executives
expected to contribute data-driven insights Data analysis also help organisations manage travel extensively, and Workday for iPad lets
that help manage the workforce and change by giving them a holistic view on them accomplish tasks and gain insights
strategically position the business. progress and outcomes. For example, Chiquita while they’re on the road – including
Brands estimates that it can implement insights into the Four Seasons properties
The evolution of HR’s role – from adding structural changes at least four months faster that are next on their itineraries.”11
efficiency and effectiveness, to adding by more effectively channeling resources
value – is seen in the table below. where it needs them. “It’s important to
understand where the pockets of cost are in
Digital HCM solutions place important our organization as our business changes,”
value-adding activities within HR’s reach. said Kevin Holland, Senior Vice President
During workforce planning, HR can use and Chief People Officer. “Workday’s highly
data analytics to prevent or shorten flexible organizational model allows us to
temporary skill gaps in areas that may be manage that change at the speed that we
vital to a company’s competitiveness. need to move.”10
Reduce HR administration and Streamline HR processes and Compete more effectively for global talent
compliance costs reduce administrative burdens
7
Case studies and business benefits
8
TREND 5
9
Summary Learn more
Flexibility:
technology allows organizations
to manage people in a different and
data-driven way, opening possibilities
to re-imagine their business models.
10
References
1
Workday, Aneel Bhusri and Workday Value Realization Analysis data.
11
11
Contact us for About Accenture
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Andrew Woolf
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Global Human Capital Lead
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– Financial Services
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andrew.woolf@accenture.com
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