#SCHRSurvey19 @StaceyHarrisHR

Sierra-Cedar 2019–2020 HR Systems Survey Findings

The Future of HR Technology

#SCHRSurvey19 @StaceyHarrisHR

Stacey HarrisVice President Research and Analytics, Sierra-Cedar

Background:

● Oversee the Annual HR and Finance Systems Research, safekeeping the process for the Industry

● HR and OE Practitioner for over 10 years in finance, retail, and franchised businesses.

● Director of Research at Bersin & Associates, Launched the HR research practice

● VP of Research at Brandon Hall Group

● Co-Host of the Popular HR Tech Weekly Podcast at HR Examiner.com

● Feel free to connect at: www.linkedin.com/in/staceyharris

● @StaceyHarrisHR

Widow

#SCHRSurvey19 @StaceyHarrisHR

EmployeesService & Solution Areas

Application Services

Business Intelligence

Host & Managed Services

Infrastructure Services

Integration & Cloud Solutions

Research

Strategy

Training

Delivering industry-focused client success by providing consulting, technical, and managed services

for the deployment, management and optimization of next-generation applications and technology.

Industry FocusCommercial

Healthcare

Higher Education

Public Sector

Justice & Public Safety

Sierra-Cedar Fast Facts

Years of Leading

HR Systems Survey &

Thought Leadership

7 22 950+

5

3

Consulting

Projects

1,500+

#SCHRSurvey19 @StaceyHarrisHR

Sierra-Cedar 2019–2020 HR Systems Survey

4

Over 22 years of continuous data gathering

The most comprehensive survey in the industry:

● Strategy, Process, and Structure

● Administrative and Service Delivery Applications

● Workforce Management Applications

● Talent Management Applications

● BI/Analytics/Workforce Planning Applications

● Integration and Implementation

● Emerging Technologies and Innovations

● Vendor Landscape

● Workforce and HR Expenditures

● Workforce Usage and Perception

BE COUNTED in the 23rd Annual Survey Download the 22nd Annual White Paper

https://www.sierra-cedar.com/hr-systems-survey/

#SCHRSurvey19 @StaceyHarrisHR

DemographicsAll Respondents

Associations, Vendors & Media Outlets, Podcasts &

Webinars, Radio Shows, Social Outreach,

Clients, Prior Respondents,

Prospects & Contacts

3,032 Entries

Manu-facturing

Healthcare FinancialServices

Business/Prof Services

Education Retail/Hosp/Whsl

High Tech Non-profit Trans./Comm. Utilities

Govt. Ag. Mining.Const.

Other

10,000+2,5000<

1,892 OrganizationsTotal Workforce = 22.2 Million Employees & Contingent Workers

Cultural Trends

6

• Shift from Process to Outcomes

• Know the Culture of Your Organization

• Realize the Value of HR

#SCHRSurvey19 @StaceyHarrisHR

Are HR Organizations Still Transforming?

7

73%58%

42%33%

Plans for Transforming HR Tech Environments

2016 2017 2018 2019

#SCHRSurvey19 @StaceyHarrisHR8

The New Sierra-Cedar HCM Application Blueprint

The HR Systems

Strategy

shifting from

Process Focused to

Outcome Focused

#SCHRSurvey19 @StaceyHarrisHR

Process Focused Experience Focused Outcome Focused

Shifting to Outcome Focused HR

9

Recruit

Onboard

Train

Perform

Assess

Pay/Reward

Develop

TransitionPersonnel

Department

Hiring

Pay/

BenefitsCompliance

Performing

Training Assessing

Exiting

Employee Relations

Compliance

Employee

Lifecycle

Efficiency/Cost Skills/Readiness Agility/Change

OutcomesCulture/

Behaviors

Business Model

Available

Workforce

Leadership

Approach

Vision/ Goals

#SCHRSurvey19 @StaceyHarrisHR

Effective Processes Tailored Experiences Defined Outcomes

Outcome-Focused HR, An HR Leadership Model

10

Efficiency/Cost Skills/Readiness Insights/Agility

OutcomesCulture/

Behaviors

Business Model

Available

Workforce

Leadership

Approach

Vision/ Goals

#SCHRSurvey19 @StaceyHarrisHR

Decisions based on

Talent

• Mature Career Planning

• Succession Management

• Metric Outcomes

⁃ Employee Engagement

⁃ Retention Risks

⁃ Top Talent

Decisions based on

Data

• Mature Workforce

Analytics

• 3+ Metrics

• 20%+ Managers/BI

• 3+ Data Sources

Talent Driven Data Driven

The Important Questions: Outcomes and Impact Talent-Driven, Data-Driven, Socially Responsible Organizations, and Emerging Tech

11

Decisions based on

Social Responsibility

• Diversity

• Family Leave

• Flexible Schedules

• Wellness

• Engagement

Socially Responsible

Decisions based on

Innovation

• Mobile Enabled HR

• Socially Enabled HR

• Use of Intelligent

Technologies

Emerging Tech

#SCHRSurvey19 @StaceyHarrisHR

Outcome Focused Organizations

12

Average Talent Average HR Average Business

Aggregate Talent Driven Data Driven Socially Responsible Emerging Technology

Talent Outcomes HR Outcomes Business Outcomes

Imp

rov

ed

Neu

tral

Declin

ed

#SCHRSurvey19 @StaceyHarrisHR

Benchmarking

Platform as a Service

Predictive Analytics

Sentiment Analysis

Machine Learning

Robotic Process

Blockchain 14%

41%

38%

32%

50%

32%

72%

7%

11%

16%

9%

28%

13%

12%

15%

20%

22%

14%

16%

19%

6%

4%

9%

9%

9%

17%

20%

29%

2%

7%

7%

3%

14%

4%

6%

11%

15%

18%

13%

22%

17%

16%

What Emerging Tech is Used in Your HR Tech?

13

What Emerging Tech Applications are In Use?

Today 12 Months Evaluating

Emerging TechAggregate

#SCHRSurvey19 @StaceyHarrisHR

69% 67% 67% 70%

41% 41% 43% 40%

Talent Driven Emerging Tech Data Driven Socially Responsible

Perception of Human Resources Strategic Value

Outcome Focused Organizations Are Partners

14

Δ63%Δ68% Δ56%

Everyone Else

Δ75%

#SCHRSurvey19 @StaceyHarrisHR

Five Years of Technical TransformationThe View of HR has Improved by 20%

38% 41% 43% 44% 45% 46%

2014 2015 2016 2017 2018 2019

HR Viewed as Contributing Strategic Value

15

#SCHRSurvey19 @StaceyHarrisHR

We Must Realize the Value in Human Resources

54%

43%

18%

38%

24%15%

Perception of HR

Viewed as a Strategic Partner

Contributing Some Value

Compliance Focused

16

Executives Directors/Managers

Buying Trends

17

• Addressing a Commoditized HR Tech Environment

• Shift from Transformation to Adoption

• Focus on Measurements that Matter

#SCHRSurvey19 @StaceyHarrisHR

Ve

nd

or

Sa

tis

fac

tio

n

User Experience

18

Workday

Ceridian DF

UltiPro

SF EC

Oracle HCM

Kronos WFC

Oracle PS

ADP WN

Infor/Lawson

SAP HCM

Oracle EBS

Paycom

ADP GV

PaycorSumTotal

Good Excellent

Dis

sati

sfi

ed

Very

Sati

sfi

ed

Poor

PayChex

Cost and

Functionality

Infor Cloud

ADP E

Administrative

HRMS

Average VS

Score

3.1

Average UX

Score

3.1

#SCHRSurvey19 @StaceyHarrisHR

UX Is No Longer The Biggest Differentiator

19

Average User Experience, By Deployment Model

SaaS/Cloud Hybrid Licensed

WFM 3.24 3.02 3.23

HRMS 3.50 3.04 3.10

TM 3.30 3.08 3.11

#SCHRSurvey19 @StaceyHarrisHR

High and Low Vendor Satisfaction Drivers

20

19%

25%28% 30% 32%

FunctionalityNot Specificfor Industry

Inability toCustomize

PoorService &Support

Poor UserExperience

High Costs

Top Challenges

29% 30% 30% 31%

39%

BestPractice

Functionality

IntegratedSolution

Ability toCustomize

GoodVendor

Relationship

GoodService &Support

Top Benefits

#SCHRSurvey19 @StaceyHarrisHR

Total HR Technology Costs per Employees by Size

21

Costs Per Employee

$274$319

$196$148

Average # of Applications

8.04 7.06

9.70 10.62

#SCHRSurvey19 @StaceyHarrisHR

6.12

6.91

8.58

8.85

Total HR Technology Costs per Deployment

22

Average Costs By Deployment Model

All Cloud

Deployments

Cost More

But Also

include

45% More

applications

Avg. # of Applications

$277

$236

$213

$195

All On Premise Other Hybrid All Cloud

#SCHRSurvey19 @StaceyHarrisHR

“We recently rediscovered the recruiting and onboarding features

within the application after previous employees left.”

“We are finally learning the capability of the system and

not all features are enabled.”

“Implementation consultant did not provide

the expertise we needed.”

Just a few Customer Comments….

23

#SCHRSurvey19 @StaceyHarrisHR

What Are Your Biggest HR System Gaps?

24

45%

37%

35%

29%

25%

25%

55%

40%

38%

40%

31%

26%

37%

42%

41%

30%

36%

21%

50%

44%

38%

36%

35%

26%

Functionality Gaps

Config/Cust Limitations

Reporting

Integration Issues

Poor Usability

Internal Knowledge

Buyers View on Current Application Gaps

Payroll HRMS Workforce Management Talent Management

#SCHRSurvey19 @StaceyHarrisHR

`

Do You Know Who is Using your HR Tech?

25

12%9% 10%

26%

Measure HR Technology Use, By Size

Outcome Focused

2Xmore likely to

Assess HR

Technology Usage

#SCHRSurvey19 @StaceyHarrisHR

15%

25%

22%

43%

49%

67%

85%

87%

14%

21%

22%

31%

51%

68%

83%

89%

14%

17%

23%

41%

42%

52%

63%

74%

Productivity

Learning

Performance

Absence

Compensation

Recruiting

Demographics

Turnover

Do You Know What You Are Reporting?

26

Which Metrics are Included in Your Regular HR Reporting?

#SCHRSurvey19 @StaceyHarrisHR

15%

18%

19%

26%

29%

31%

39%

47%

47%

49%

52%

Increased Competitive Advantage

Improved Innovation

Improved Customer Satisfaction

Improved Productivity

Optimal Work Assignments

Workforce Readiness

Acquiring Top Talent

Improved Retention

Improved Engagement

Compliance Risk Mgmt

HR Cost Management

What Are You Achieving With Analytics?

27

What Are You Currently Using HR BI to Accomplish?

Who Owns This?

#SCHRSurvey19 @StaceyHarrisHR

Do You Know Your Employee Data Footprint?

28

12%

12%

76%

Do You Have a Strategy for Aggregating your Employee Data Footprint?

Yes In Development No

42%Did Not Know if

They had a

Strategy

Emerging Tech

Orgs

3X More likely to

have one in

Development

#SCHRSurvey19 @StaceyHarrisHR

Do You Know Where You Capture Your Data?

29

12%

16%

23%

25%

25%

37%

44%

53%

61%

72%

86%

Environmental Sensors

Audio Monitoring

Biometric Sensors

Personal Mobile Devices

Social Media

Internet/Screen Monitor

Pulse Surveys

Video Monitoring

Wearables/Badges/RFID

Employee Surveys

Exit Interviews

Methods of Capturing Employee Data Beyond HR Systems

Who Owns This?

#SCHRSurvey19 @StaceyHarrisHR

Who Owns Configuration Decisions?

30

1%

3%

3%

9%

31%

48%

All Cloud

Role Primarily Responsible for HR System Configurations

2%

5%

11%

26%

29%

26%

On Premise

HRIS/HRIT

Functional HR

IT Leadership/CIO

IT Role

HR Tech Vendor

Governance

Committee

80%More Likely

to Own

#SCHRSurvey19 @StaceyHarrisHR

4%

10%

13%

13%

52%

8%

On Premise

2%

7%

12%

22%

25%

32%

All Cloud

Who Owns Data Privacy & Content Security?

31

Role Primarily Responsible for HR System Content Security and Data Privacy

HRIS/HRIT

IT

HR Tech Vendor

Functional HR

Risk/Audit

No One/Other

3XMore Likely

to Own

#SCHRSurvey19 @StaceyHarrisHR

What Goes Wrong in Implementations?

32

18%

23%

36%

37%

72%

63%

57%

52%

10%

14%

7%

11%

Budget

Adoption

Timeline

Resourcing

How Would You Rate these Outcomes?

Fell Short of Expectations Met Expectations Exceeded Expectations

#SCHRSurvey19 @StaceyHarrisHR

17%

10%

18%

12%

4%6%

13%11%

Budget Timeline Adoption Resourcing

Exceeded Implementation Outcome Expectations

Certified HR/HRIT Not Certified HR/HRIT

Does Resourcing Certification Matter?

33

Δ66%Δ3X

Δ38%

#SCHRSurvey19 @StaceyHarrisHR

Do You Know What You Achieve with HR Tech?

80%

79%

69%

52%

38%

Replaces HR Paper-BasedProcesses

Employees & Managers Input/Access Information

Monitor and Report Compliance

Influences WorkforceBusiness Decisions

Informs Business Strategy

Level of HR Technology Utilization

Getting the Most From Your HR TechnologyMeasuring What Matters

35

#SCHRSurvey19 @StaceyHarrisHR

What Are Business Outcomes?

36

Market Share

Customer Sat

Profitability

Innovation

Competitive Advantage

#SCHRSurvey19 @StaceyHarrisHR

What Doesn’t Matter in Business Outcomes

● Vendors

● Deployment Models

● Process Maturity

● Outsourcing

● Years of Ownership

● Total Technology in Use

● Resourcing Numbers

37

#SCHRSurvey19 @StaceyHarrisHR

A Regularly Updated HR Systems Strategy

38

● Reviewed every 12 to 18 Months

● Tied to enterprise Outcomes

● Current state analysis

● Phased roadmaps

● Key Performance Indicators

● Governance Models

Regularly Updated

HR Systems

Strategy

10%Higher Business

OutcomesTop Factor Aligned with 2019 Business Outcomes

#SCHRSurvey19 @StaceyHarrisHR

A Regularly Updated Integration Strategy

39

Regularly Updated

HR

SystemsStrategy● Reviewed every 12 to 18 Months

● Enterprise Approach

● Master Data Governance Model

● Data Sharing Map

● Preferred Integration Standards

● Vendor Requirements

Regularly Updated

Integration

Strategy

12%Higher Business

OutcomesTop Factor Aligned with 2019 Business Outcomes

#SCHRSurvey19 @StaceyHarrisHR

Invest in Supporting Human Resources

40

● Not Viewed as a Compliance Function

● Contributing Value to Business Leaders

● Respect at Multiple Management Levels

● Outcome Focused HR: – Vision/Goals

– Business Model

– Culture

– Leadership Approach

– Workforce Planning

HR Viewed as

Adding Strategic

Value

HR Viewed as

Adding Strategic

Value

23%Higher Business

Outcomes Top Factor Aligned with 2019 Business Outcomes

#SCHRSurvey19 @StaceyHarrisHR

Invest in a Culture of Change Management

41

● Shift from Project CM to Culture of CM

● Prepare for Constant Change

● Assess HR Technology Adoption (8%)

● Governance and Role Definition

● Continuous communication tools

● Transparency, Feedback, Iterations

● Transformational Learning Processes

Culture of Change

Management

28%Higher Business

Outcomes Top Factor Aligned with 2019 Business Outcomes

#SCHRSurvey19 @StaceyHarrisHR

Year-over-Year Impact of Investment in…..Strategy, Integration, Change Management, and Respect,

2014 2015 2016 2017 2018 2019

Average 5-Year Outcome Differences

Strategy, Integration, Culture of Change, and High HR Value

No Strategy, No Integration, Low Change, and Compliance HR

42

Imp

rov

ed

Neu

tral

Declin

ed

15%Higher Outcomes

per Year

#SCHRSurvey19 @StaceyHarrisHR

Year-over-Year Impact of No Investment in…..When HR is Not Viewed as a Strategic Business Partner

2014 2015 2016 2017 2018 2019

5 Year, Average Outcome Differences

Aggregate Yes Aggregate No Compliance

43

19%Lower Outcomes

Imp

rov

ed

Neu

tral

Declin

ed

#SCHRSurvey19 @StaceyHarrisHR

Key Themes 2019–2020 HR Systems Survey

44

Measure Outcomes

that Matter

From Transformation

to Adoption

Realize the

Value of HR

Know Your

Culture

Shift from

Process to

Outcomes

Know Your

Data

Assign

Responsibility

Innovation is

about the Data

Cost & Functionality

are Back

#SCHRSurvey19 @StaceyHarrisHR

HR Technology Adoption Trends by Vendor – See Who’s Acquiring

New Clients.

New Insights Shared Services, Communications, Outsourcing, and

Benefits

Vendor Specific Client Averages and Client Feedback on Vendor

Satisfaction Data

Updates Implementation and Maintenance practices, timelines,

updates, work assignments

Lots of extra Industry, Size, and Organization Type Breakouts of

our traditional data.

What We Couldn’t Fit In Today!

45

46 #SCHRSurvey19 @StaceyHarrisHR

Thank you!

THE HR SYSTEMS SURVEY COMMUNITYTOGETHER, WE CAN BUILD A BETTER HR

https://www.sierra-cedar.com/hr-systems-survey/

#SCHRSurvey19 @StaceyHarrisHR

Questions?

47

#SCHRSurvey19 @StaceyHarrisHR

Why Organizations Participate?

48

● Obtain a personalized benchmarking snapshot filtered by

size, region, or industry

● Value conducting a review of their own enterprise HR

Systems environment annually

● Need data to build their own HR Technology strategy or

business case for change

● Believe it is important to support the broader HR Technology

community

#SCHRSurvey19 @StaceyHarrisHR

Sierra-Cedar 2019–2020 HR Systems SurveyDemographics: International and Global Organizations

82%

5%5%

7%

Average Global organization

has operations in over

26different countries

336Non-U.S. HQ

International

Organizations

(18%)

609Global

Organizations

(33%)

49

1%

#SCHRSurvey19 @StaceyHarrisHR

4.7%24.0%

35.2% 33.5%

2.6%

Greatest Gen1930–1945

Average Generational CompositionsNo Major Differences by Organizational Size

50

4.3%20.4%

36.1% 35.5%

3.7%

5.7%24.4%

33.7% 33.7%

2.5%

Baby Boomer1946–1964

Gen X1965–1980

Millennials1981–2000

Gen Z2001–2010

#SCHRSurvey19 @StaceyHarrisHR

Who Responds to Our Survey?

52%

28%

14%

6%

Participants by Role

Manager/Director

Individual contributor

Executive

Other

51

66%

11%

9%

5%2%

7%

Participants by Function

Human Resources

Finance

Information Tech

Line of Business

TM & Learning

Other

50%

17%

19%

9%5%

Organizations Types

Privately Owned

Publicly Traded

Nonprofit

Government Owned

Subsidiary/Other

#SCHRSurvey19 @StaceyHarrisHR

Fun Facts About Survey Participants

50%50%

HR & IT Certifications

No

Yes

52

4%

35%

46%

5%

9%

1%

Doctorate/Professional Degree

Master's/Graduate Degree

Bachelor's/Undergraduate Degree

Associates Degree

Some College

H.S. Graduate/Equivalent

Education Level

19%

18%

20%

30%

13%

>10 Years

5–10 Years

3–5 Years

1–3 Years

<1 Year

Years in Role