DISSECTINGTHE TOP 7 TRENDSIMPACTING HCMThe Starr Conspiracy and Brandon Hall Group

HOUSEKEEPING60 minutes

#HCMtrends

@StarrConspiracy

@BrandonHallGrp

PRESENTERS

LANCE HAUNEditor

The Starr Conspiracy

MICHAEL ROCHELLEChief Strategy Officer

Brandon Hall Group

#HCMtrends

It's an exciting time to be in the HCM market. Know the minds of your buyers to position your brand competitively.

#HCMtrends

TREND No. 1Legacy HCM systems and their uncertain certain future

#HCMtrends

Why are organizations still hesitant to abandon or upgrade their HCM systems now?

The cost on the balance sheet is low They've built systems around it There's familiarity with it

LEGACY HCM SYSTEMS AND THEIR UNCERTAIN CERTAIN FUTURE

#HCMtrends

"WE'RE NOT IN A POSITION TOTAKE ON THE COSTS AND PAINOF TRANSITION NOW."

#HCMtrends

1. Cloud migration2. Integration solutions3. Data harvesting and standardization4. Specialized functionality5. Incentives to upgrade

WHAT ARE HCM SYSTEMS BUYERS LOOKING FOR?

#HCMtrends

Consulting

Education

Finance

Government

Healthcare

Other

NO RESPONSE

PLAN TO CONSOLIDATETO A SINGLE HR SYSTEM

PLAN TO CONSOLIDATE TO2-3 INTEGRATED PLATFORMS

PLAN TO PURCHASEBEST-IN-BREED HR TECH

NO STRATEGY OR PLAN

WHAT IS YOUR CURRENT APPROACH TO HR TECHNOLOGY PURCHASES?

#HCMtrendsBrandon Hall Group. Employee Development and Performance Survey. 2012.

IMPACT OF SYSTEM DECISIONS

#HCMtrendsBrandon Hall Group. Employee Development and Performance Survey. 2012.

58% of organizations with no succession or career planning tools have more than half of their KPIs moving in the negative direction, engagement scores moving in the negative direction, and voluntary turnover going up.

Manual approaches don’t trend with worse or better KPIs — but organizations with manual tools have a wider range of KPI directions — where an integrated system is more consistently associated with higher KPIs.

KPIs THAT ARE CONSISTENTLY TRENDING UP ARE ALIGNED WITH THESE FEATURES:

#HCMtrendsBrandon Hall Group. Employee Development and Performance Survey. 2012.

59%Tools to help managers identify development needs and strengths

56%Tools to help employees identify development needs and strengths

35%Links to objective assessment tools

34%Coaches and mentors

32%Step-by-step guide for employees on OTJ activities

30%Step-by-step guides for managers on helping employees with OTJ

50%Formal training links

39%Employee progress reports

37%OTJ completion tracking

TREND No. 2HR technology pain points that every HCM provider has a stake in fixing

#HCMtrends

NEARLY 50% OF ORGANIZATIONS ARE NOT SATISFIED WITH THEIR CURRENT LEARNING/TALENT/HR TECHNOLOGY.

#HCMtrends

EASY STEPS YOU CAN TAKE TO AVOID DISSATISFIED HR BUYERS:

#HCMtrends

No. 1Help HR develop a list of critical system requirements based on stakeholder needs

EASY STEPS YOU CAN TAKE TO AVOID DISSATISFIED HR BUYERS:

#HCMtrends

No. 2Ask HR to develop use cases to help you understand what is most important

EASY STEPS YOU CAN TAKE TO AVOID DISSATISFIED HR BUYERS:

#HCMtrends

No. 3Set up test systems

WHY DO YOU WANT TO REPLACE YOUR CURRENT LEARNING MANAGEMENT SYSTEM?

#HCMtrendsBrandon Hall Group. LMS Trends Survey. 2012.

26.7%Platform lacks reportingfeatures we need

24.1%System is difficult to use

19.8%Poor support from vendor

25.9%System appears outdated

WHAT ARE YOUR MOST IMPORTANT CRITERIA FOR A NEW LEARNING MANAGEMENT SYSTEM?

#HCMtrendsBrandon Hall Group. LMS Trends Survey. 2012.

40.1%Reporting features

27.9%Ease of use

16.3%Cost

32.7%Integration with enterprise software

TREND No. 3The rise of contextual computing

#HCMtrends

THE FUTURE IS BIGGER THANBIG DATA AND MOBILE —IT'S CONTEXTUAL COMPUTING.

#HCMtrends

It's not just about you and your products anymore

It's about enabling your users

It's about more than "the system"

WHAT DOES CONTEXTUAL COMPUTING MEAN FOR YOU?

#HCMtrends

Computers monitoring production capability automatically text or email when capacity demands more workers

Your computer or tablet pulls up files and tasks based on who’s attending the meeting you’re in

Your phone automatically forwards your phone calls if you accidentally leave it at the office

FUTURE-STATE EXAMPLES OF CONTEXTUAL COMPUTING:

#HCMtrends

TREND No. 4Rethinking performance management

systems (again ...)

#HCMtrends

#HCMtrends

More than 70% of organizations said they had some form of technology in place to handle performance management processes ...

Yet less than 50% of those sameorganizations felt performance management

feedback was highly effective.

#HCMtrends

WHY DO ORGANIZATIONS CONTINUE TO CHASE

THE HOLY GRAIL OF PERFORMANCE

MANAGEMENT WHILE THE PROCESS AND TOOLS

CONTINUE TO BE SOME OF THE MOST-HATED

HR OUTPUTS OF ALL TIME?

HOW ARE INDIVIDUAL DEVELOPMENT PLANS MANAGED IN YOUR ORGANIZATION?

#HCMtrendsBrandon Hall Group. Employee Development and Performance Survey. 2012.

10.9%As part of a stand-alone automated LMS

14.3%We have no tools or processes

33.2%Manually, with paper-based tools

18.0%As part of an integrated talent management system

6.5%Other

17.1%As part of a stand-alone automated performance management system

1. Real-time performance tracking2. Fluid goal-alignment tools3. Incentives for feedback4. Changing perceptions of performance

WHAT WILL TOMORROW'S PERFORMANCE MANAGEMENT SYSTEMS NEED?

#HCMtrends

TREND No. 5Provocative, forward-thinking solutions

for the talent shortage

#HCMtrends

#HCMtrends

THERE’S NO TALENT SHORTAGE.There's a shortage of talent with

specific skills to meetspecific business needs.

1. Employee referral programs2. Earlier college recruiting3. Increased internships4. Talent retention5. Acqui-hiring6. Social and mobile recruiting7. A focus on aptitude

VENDORS CAN HELP HR FIGHT BACK BY UNDERSTANDING THESE STRATEGIES:

#HCMtrends

#HCMtrends

SOLUTIONS ARE THE REAL SCARCITY.How can you attract, retain, and get

the most from your best employees?

2 of those 3 havenothing to do with recruiting.

TREND No. 6The rise of next-generation

talent acquisition tools

#HCMtrends

TALENT ACQUISITION HAS DRIVEN INNOVATION IN THE HCM SPACE FOR TWO DECADES.

#HCMtrends

1. Sourcing 2.02. New assessment approaches3. Mobile-enabled recruiting

HERE'S WHAT TALENT ACQUISITION PROVIDERS DID RIGHT:

#HCMtrends

Passive capture of skills and experience

Predictive capabilities that allow proactive recruiting

Features that go beyond assessment and interview selection methodologies

TALENT ACQUISITION PROVIDERS ARE ADDING AND IMPROVING:

#HCMtrends

TREND No. 7The consumerification of HR technology

#HCMtrends

THE SUCCESS OF EMPLOYEE-FACING TOOLS IS HEAVILY DEPENDENT ON AN ACTIVE AND ENGAGED WORKFORCE.

#HCMtrends

1. Recruit champions2. Reward desired behaviors3. Promote best practices

HOW TO DRIVE CUSTOMER ADOPTION AND USER ENGAGEMENT:

#HCMtrends

#HCMtrends

WHY?At some point, the employee user’s power and influence

over whether a piece of technology stays or goesis going to be more powerful than

the person with the actual purchasing power.

WHAT'S NEXT?

#HCMtrends

AR.GY/STATEOFHCM

#HCMtrends

THE FUTURE OF HCM WHITE PAPER

QUESTIONS?

#HCMtrends

GET IN TOUCH

THE STARR CONSPIRACYthestarrconspiracy.com

BRANDON HALL GROUPbrandonhall.com

#HCMtrends

THANK YOU

#HCMtrends