Creating an Employer of Choice Environment and Transforming HR Wally Boehm VP Human Resources.
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Transcript of Creating an Employer of Choice Environment and Transforming HR Wally Boehm VP Human Resources.
Creating an Employer
of Choice Environment
and Transforming HR
Wally BoehmVP Human Resources
2
Today’s discussion:
Organization Profile
Business Case - NAS
Employer of Choice Strategies
Human Resources Scorecard
Human Resources Transformation
3
ADP: One of the largest global providers of:
Employer Services
Brokerage Services
Dealer Services
Claims Services
Information Services
4
We’re the Business Behind Business™
5
Employee Measures
Goal: Fortune Top 100 Companies
Financial Measures
Competing
Excel
6
Employer Services Organization
Employer Services
Emerging Business Services
Major Account Services
National Account Services
Benefit Services
Serving
1-49 employees
Serving
50-999 employees
Serving
1000+ employees
Serving
All sizes
7
Organizational Profile - NAS/Benefit Services
4600 Associates
Unskilled
(Shipping Clerks)
Highly skilled
(Software Engineers)
16 Operating locations
Pay 7 million people
Administer Benefits for 9 million people
8
Situation Analysis - Fall of 1998
Experiencing high growth
Good, but not “great” service
Higher than average ADP turnover
Lower than average ADP associate satisfaction
HR strategy not aligned with business strategy
9
Future Success
$1Billion Business
Employer of Choice World Class Service
10
What did we do? Embraced Service-Profit Chain business model
Aligned HR strategies with business Compensate using Balanced Scorecard framework Increase Associate Satisfaction Decrease Turnover
Productivity & Cost Savings
Results
11
12
40%
20%20%
20%
Balanced Scorecard
Employer of ChoiceFinancial
Excellence
Operational Excellence
World Class Service
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Balanced Scorecard Metrics
Turnover10%
Associate Satisfaction1
0%
Profitability20%
Client Satisfaction
10%
Client Retention
10%
Various Metrics
20%
Revenue Generation
20%
* AcceleratorsDiversity 10%Training 10%
14
Decrease Turnover
20.2%
15.2%13.7%
10.2%9.0%
FY'99 FY'00 FY'01 FY'02 FY'03
NAS/Benefit Services Associates YTD
15
Productivity and Cost Savings
Turnover Reduction
20.2%
10.2%
Productivity Time efficiencies Better service
Direct hiring costs Advertising Interviewing time Agency expense
$24.7 million savings
= =FY’99
to
FY’02
16
Business continues to grow rapidly
0
200
400
600
800
1000
FY 98 FY 99 FY 00 FY 01 FY 02 FY03
Revenues
(Plan)
(in millions)
Do
llar
s
17
HR Means Building Business Value
For ADP….
For our clients….
Associate relationships impact bottom-line profitability
EOC Best Practices are reflected in our services
18
What are we doing
to build an
Employer of Choice
environment?
19
HR Vision
Provide our associates
the HR best practices
we offer and enable in
our clients.
20
HR Mission
Lead the delivery of HR best practices
to achieve NAS objectives through
people, processes, and technology.
21
What’s the Strategy?
Finish
Start
N
S
WE
Build HR initiatives from business strategy
Fine tune initiatives from listening to associates
Establish metrics and measure progress
Communicate successes internally
Extend value to clients externally
22
Listening to Associates
What makes ADP your Employer of Choice?
“opportunity and culture”
“sense of accomplishment”
“friendly and professional atmosphere”
“easily balance work and family life”
“It’s what keeps me coming back every Monday.”
The Bottom Line:
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Working in an EOC Environment
Competent LeadershipInteresting & Challenging WorkOpen CommunicationInvolvement & Empowerment
Work Environment
Training & Development
Coaching, Feedback, & Support
Career Opportunities
Learning & Growth
Values
Recognition & Appreciation
Work Life Balance
Competitive Compensation & Benefits
The BasicsEmployer of
Choice
24
Associate Satisfaction
Training & Development
Win the Talent War
Reward & Recognition
Human Resource Planning
Strategic HR Transformation
Increase Associate Satisfaction
Leverage Human Capital for Growth
What’s the Strategy?
25
Strategy: Drive Associate Satisfaction
Survey Semi-annual
Analyze Results By Division By Business Unit
Develop Communication Strategy Create Action Plan
By DivisionBy Business Unit
Business Unit Action Plans Develop Individual BU Action Plans Validate issues through Associate Focus Groups Initiate Teams to Work on Issues
Track Progress Against BU Plans Report Action Plan Progress
Reward Management for Improvement
26
Strategy: Make Retention a Way of Life
Reward management for retention
Use competency-based selection criteria
Engage group teams for selection process
Get serious about pre-employment screening
Invest in associate learning
Expand new hire orientation & mentoring
27
Strategy: Increase Associate Communications Develop Associate Communications Strategy
Move Associate Communications into HR
Dialogue w/ associates through variety of vehicles:
Newsletters
MyInfoCenter.com
Video
- Division-wide
- Localized
28
Strategy: Invest in Training Institute technology-based learning
3 week requirement for technology function Use 2 outside vendors
Increase associate training to a minimum of 40 hours per year per associate
54
27% of workforce
29
$2 million - Sales & Leadership Training
Institute for Service Leadership
Leading & Managing in EOC Environment
Leadership Development
Managing for Commitment & Diversity
Strategy: Improve Leadership Development
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Strategy: Win the Talent War Implement electronic careers center
External access through www.adp.com
Centralize recruiting for high growth functions
Technology
Sales
Institute competency-based selection process
Respond to associate worklife needs - flexibility
Promote employment brand
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Respond to Worklife Needs Flexible Work Arrangements
In-office Services (e.g., dry-cleaning, massage)
Office Social Gatherings
ADP Preferred Childcare Discount Program (US-Wide)
ADP On-site Day Care Facilities
ADP On-site Medical Facilities
Continue asking & listening
32
Strategy: Align Reward & Recognition
Balanced Scorecard What Gets Measured Gets
Done
Variable compensation plans
60% of associates
Stock options 40% of associates
Knowledge Pay Program
ACE’S
President’s Club
Stars
Quarterly Breakfast
Numerous Service Awards
Recognition Reward $$ $$
33
Strategy: Systemic Human Resources Plan
Assess with 360-degree process and feedback
outside vendor
Individual development plans 6 month review discussions
Managers as coaches
Some use of executive coaches
Our Processes & Tools:
34
Strategy: Systemic Human Resources Plan
Benchstrength measure
Gap identification in existing vs. future needs
Diversity of associate background, talent, abilities
Structured pipeline for talent infusion
Associate partnership of career development
Our Outcomes:
35
Strategy: Delivering on Diversity
Implementation of Local Diversity Councils
Connecting through Surveys, Focus Groups
Leverage progress and work on priority issues
36
What Do We Measure?Associate
Turnover
Recruitment
Productivity
Associate
Benefits
Associate
Satisfaction
Diversity
Associate
Training &
Development
Associate Satisfaction
Associate Turnover (by Segment, New Hire, Cost)
Training Hours per Associate
Competency Gaps of Workforce
Diversity Representation
Cost per Hire
Time to Fill
Compensation Competitiveness
HIPO Associates (Bench Strength, Development Plans)
Human Resources
Indicators
HR Scorecard…
37
ACCOUNTABILITYStrategy: Transform HR
Develop & measure new HR Competencies
HR Process Re-engineering
Electronic self-service
HR Metrics – Digital Dashboard
Leverage HR in new product development and piloting
38
Strategy: Transform HR
Source: Tomorrow’s HR Management, Dave Ulrich & Michael Losey, 1997.
Percentage of Time Spent
Strategic HR Planning
Consultative/Developmental
Execution-Oriented & Administration
Today
10%
25%
65%
Future
25%
50%
25%
Consultative and
DevelopmentalStrategic
Execution-oriented & Administration
39
What Does This Strategic Transformation Look Like?
Old HR•Non-Strategic•Administrator
•Distributor•Enforcer
•Translator
New HR•Business advisor/consultant
•Workforce strategist
•HR Process Expert
•HR Measurement Analyst
D
rive
rs
•Services•Customer Service
•HR Program Admin•Operational Excellence•Technology Application
•Technology•Process Integration
•Technology roadmap•E-HR Strategy
•Measurement & Analysis
•Manager/Employee•Information Access
•Learning•Decision-making
•Action Taking
Process Reengineering
40
Reengineering HR Processes
Reengineering HR Processes through The Portal
HR Administration
Recruiting Process
HR Metrics
HR Planning
Flex Benefits Enrollment
Performance Management
HR Reporting
41
NAS HR Web Portal – Strategic EnablerMission Statement
Guidelines and Procedures
Benefits Related Information
Forms
Phone Book New & Events
42
Conducting HR Transactions
Skills Profile and Personal Search Agent
Internal e-Recruiting Solution
Expense Management
401(k) Transactions
Benefits Enrollment
Stock Purchase/Stock Options
On-Line Pay Stubs
43
Leveraging Human Capital
Digital Dashboard
High Potential Tracking
Career Development
Hot Skills Database
Human Resources Planning
44
The Horizon of Practice
Business Partnership
Service Delivery
Talent Acquisition
Career Development
Management Developmentand Training
Standard Practice
Progressive Practice
At the Horizon
HR respondsto requests
HRprocesses
transactions
HR recruitsfor open jobs
Job posting;vertical paths
Stand-upclassroom
training
HR partnerson solutions
Manager & EEdirect access;
HR aligns activitieswith business strategy
HR proactively sourcestalent to fill pipeline;
managers fill openingsvia desktop technology
Job posting;vertical paths
Stand-upclassroom
training
HR anticipates strategicissue and leads effort
“My Portal” - CustomizedWeb-based / vision of
paperless administration
Precision workforceplanning / emphasis on
retention and relationshipextension
Talent managementlinks development,
career planning, talentassignment and
developing futureleaders
Real-time workplaceexperiential
learningsupported by
interactivetechnology
Source: Corporate Leadership Council
45
Managing Change
Creating a Cultural Shift
Creating Systemic Processes
Measurement
Creating...
IN SUMMARY…
Creating an Employer of Choice Environment and Transforming HR is about:
46
Associate Satisfaction
ASI
Training & Development
Talent War
Leverage Human Capital for Growth
Reward & Recognition
Human Resource Planning
HR Transformation
High Performance Organization
Work Environment
Learning & Growth
The Basics
EOC