HR.PAYROLL.BENEFITS.

EXPERT OPINION Q&A

How can HR demonstrate the strategic value they provide to the company

2 | How can HR demonstrate the strategic value they provide to the company

HR plays a key role in enabling a multinational organization to meet its strategic goals. It helps the wider business understand what its employees value, and what makes them productive and engaged. With appropriate systems in place, HR can truly unlock the workforce’s maximum potential, but how can HR professionals demonstrate the strategic value they provides to the company?

BY LEON VERGNESSVP/GM EMEA, ADP ES INTERNATIONAL

How can HR demonstrate the strategic value they provide to the company

How can HR demonstrate the strategic value they provide to the company | 3

WHAT DO STAKEHOLDERS EXPECT FROM HR?

T oday’s HR professionals work in an increasingly complex environment, which requires them to master all aspects of

business and management. Stakeholders count on HR to manage the internal talent pool, increase productivity and build the employer brand, while being cost efficient and supporting the business with appropriate people strategies.

In addition to the wider goals, HR and payroll professionals have to listen to the requirements of senior executives, line managers and staff, while creating a culture that is attractive to prospective employees. With so many stakeholders to consider, accommodating the various needs and demands can be a difficult task.

HOW CAN HR BECOME A STRATEGIC BUSINESS PARTNER?

P eople – or Human Capital – are an organization’s most important asset, so HR is at the heart of setting its strategic

direction. But in order to enhance this position, HR professionals must align its approach with the broader business model and drive the organization toward high performance. Thinking in terms of Human Capital can really help HR shape their thinking and become a strategic partner. By carefully managing and investing in their people, companies can enhance the value they generate.

An organization’s HCM (Human Capital Management) strategy touches every aspect of its business and should reflect its wider objectives and vision, and prepare the company for what the future might bring. However, the management of human capital requires thorough planning and proper resources, and HR professionals across the globe may therefore find it helpful to work with a specialist HCM partner. This will enable HR to become a well-oiled machine and show its true organizational value as a strategic business partner.

How can HR demonstrate the strategic value they provide to the company | 5

WHAT ARE THE BENEFITS OF HR STANDARDIZATION AND AUTOMATION?

B y automating and standardizing processes, HR and payroll departments can make processes consistent and fully aligned.

Standardization reduces the costs and time required for daily tasks and gives comparable information to decision makers across different departments. Technology plays a key part in facilitating this strategic move. With a comprehensive Human Capital Management system in place, organizations can make processes more strategic for executives, more empowering for managers, more engaging for employees and more efficient for HR.

An HCM solution simplifies everything, from the organization of employee records to talent management to administrative processes, which also makes information simpler to locate during audits and reduces the compliance risk. It can really transform the way a company is managing Human Capital by enabling it to move away from running individual processes across fragmented systems to managing the entire employee lifecycle through one source.

Standardization also ensures that everyone speaks the same language – from HR to senior executives. Human Capital Management systems allow companies to obtain consistent indicators, resulting in easy-to-consolidate reports and greater accountability. With appropriate systems in place, organizations can overcome the complex challenges of running a global business and help unlock the workforce’s maximum potential.

HOW CAN HR BETTER FOCUS ON SERVING THE STRATEGIC AGENDA?

T he core tasks of HR and payroll professionals cover an array of activities, from hiring the right talent and ensuring

their professional development to acting as an internal coach. With such a demanding agenda, HR must consider how it should organize Human Capital resource management.

Companies often find that transactional and administrative tasks which don’t require HR’s full attention are best served by an external specialist. Streamlining the core human capital and talent management tasks will free up time and release HR from the administrative burden. This will enable them to focus on strategic imperatives, while ensuring compliance.

6 | How can HR demonstrate the strategic value they provide to the company

HOW CAN HR ADAPT TO THE GENERATIONAL SHIFT IN THE WORKFORCE?

I t is essential that HR professionals understand how employee values differ across generations, in order to tailor the workplace tools to fit each

generation and situation. This will contribute to a happy and engaged workforce who feels their needs are being met. What’s more, the company will be perceived as a highly attractive place to work, and will be able to pick and choose talent from a larger pool of prospective staff.

The new generation of employees also has a different approach to how they access and consume information, manage their career and network with other people, which is an area that HCM technology is increasingly starting to reflect. By arming workforces with the right tools, organizations can retain strong teams that are not restricted by location. A global HCM strategy will empower the employees and increase their ability to work productively – anywhere, at any time.

WHAT HR TRENDS WILL BECOME MORE PROMINENT IN THE COMING YEAR?

T he changing demographic structure of the workforce will bring about change in employee needs and desires. We will see

millennials, who value a solid work-life balance, flexible working opportunities and ‘meaningful’ work, enter the workplace. An HCM strategy that incorporates these aspects could be the deciding factor in whether they decide to work for an organization or not.

As offices become interconnected across the globe, technology tools will become key to collaboration between cross-cultural teams. The importance of tools such as video conferencing technology, online communication hubs and file sharing will only become more important in facilitating teamwork across counties and time zones.

Meanwhile, the war for talent will continue to escalate and will become more crucial than ever to manage the talent pipeline. With future business needs in mind, employers are trying to recruit ‘ahead of the curve’ and engage individuals with particular skills and competencies. Many recruiters are turning to social media tools, which enable them to target specific candidates that would best fit a vacancy.

How can HR demonstrate the strategic value they provide to the company | 7

HOW CAN HR DEFINE AND MEASURE THE VALUE THEY ADD TO THE ORGANIZATION?

HOW DOES A HCM STRATEGY INFLUENCE EMPLOYEE ENGAGEMENT AND PRODUCTIVITY?

E stablishing a Human Capital strategy that caters to the employee is essential to employee engagement and

productivity. Inspiring leadership and efficient line management are critical to motivating employees, and building a two-way relationship enables organizations to understand how the workplace could be improved and what makes them thrive. Presenting employees with development opportunities is absolutely crucial in retaining an engaged workforce. Employees who feel that they are constantly developing and moving along their chosen career path are more satisfied in their roles. Furthermore, tracking the development of employees and their contribution to the organization can reveal important patterns of productivity and engagement levels. This information can then be used to target any issues and ensure the employee is presented with goals that keep them engaged in their role.

H R already owns much of an enterprise’s most valuable internal data – its Human Capital information, providing organizations

with a wealth of insight into employees, workplace trends and the overall company performance. HR departments have long invested in software and systems devoted entirely to capturing, reporting and securely storing its ‘people data’. Integrated Human Capital Management systems can truly unleash the information and enable HR to demonstrate the value it generates, as well as patterns in people management. This enables HR professionals to translate the value of their global human capital management strategy in a way that is understood by senior management and directors in other departments.

The ADP logo and ADP are registered trademarks of ADP, LLC.All other trademarks and service marks are the property of their respective owners.© 2015 ADP, LLC.

Employers around the world rely on ADP® (NASDAQ: ADP) for cloud-based solutions and services to help manage their most important asset - their people. From human resources and payroll to talent management to benefits administration, ADP brings unmatched depth and expertise in helping clients build a better workforce. A pioneer in Human Capital Management (HCM) and business process outsourcing, ADP serves more than 610,000 clients in 100 countries.

www.adp.com