Exclusive research by PersonnelToday.com and Cezanne Software on Global HR

Cezanne Software Hot Topics Research

Prepared by Gurur Sarbanoglu

Reed Business Insight

2

Contents

Slide

Background & Objectives 3

Methodology 4

Respondent Profile 6

Main Findings 13

Summary & Conclusions 42

3

Background & Objectives

Headquartered in the UK, Cezanne Software has over 20 years‟ experience of

providing global HR and talent management software solutions to some of the

world‟s leading organisations. Today Cezanne Software support over 700

organisations including companies as diverse as Vodafone, Swarovski, TNT, TSYS,

Bakkavor, TUI Travel, & Kempinski.

Research was required to understand how companies with offices overseas

manage their day-to-day HR activities, specifically to:

• Explore the HR processes they would like to manage across international

offices;

• Establish the professional skills HR personnel should possess in order to be

effective in an international company;

• Establish the main challenges HR personnel face when dealing across borders;

4

Sample & Methodology

Research was conducted as an online self-completion quantitative survey amongst

HR managers with international responsibility.

The survey was sent to a panel of HR professionals and supplemented with users

of Personneltoday.com.

Fieldwork was conducted between 2nd August 2010 and 17th September 2010.

In total 444 responses were received, of which 200 were eligible (i.e. working in a

company with offices in different countries or with plans to expand internationally in

the near future).

5

For more information on Cezanne Software……..

Case studies - www.cezannesw.com/customers/case-studies

Latest news and press releases - www.cezannesw.com/news

Cezanne on-line newsletter - www.cezannesw.com/newsletter

Free webinars - www.cezannesw.com/webinar

Product demonstrations - please call +44 (0)207 202 9300

Respondent Profile

6

7

Does your company have offices and operations in more than one country?

45% of respondents either have offices in more than

one country or are planning to expand internationally

Base: all respondents (444)

Excluded from

subsequent analysis.

Three quarters (75%) of respondents have

headquarters based in Europe

8

Where are your company headquarters based?

Base: those with int‟l offices (200)

75% are based in Europe.

16% of respondents work in manufacturing

9

Which of the following best describes the primary business of your company?

“Charity”

“Consultancy”

“Housing”

“Legal” etc.


Half have 10,000+ employees within their

organisation

10

How many people are employed within your organisation?

Mean average is just

under 7,500 employees.


Two-thirds (67%) of respondents are HR managers

11

Which of the following best describes your job function?


More than three quarters (77%) have HR

representation on the board

12

In your company, does HR have representation on the board?


Main Findings

13

14

How long has your organisation been operating internationally?

58% of respondents‟ organisations have been

operating internationally for more than 20 years

Mean average is

approximately 19 years.


15

How did the organisation that you work for become an international company?

More than half (52%) have become an international company as part

of organic growth, while a third as a result of a merger or acquisition


Method of becoming an international company by

years of operating internationally

TotalLess than 5

years

Between 5 – 20

years

More than 20

years

As a result of

organic growth52% 71% 53% 49%

As a result of a

merger /

acquisition /

joint venture

33% 24% 35% 32%

Don‟t know 6% - 8% 5%

Other 9% 5% 4% 13%

16



Method of becoming an international company by

employee size

TotalLess than 1,000

employees

Between 1,001

and 10,000

employees

More than

10,000

employees

As a result of

organic growth52% 79% 40% 49%

As a result of a

merger /

acquisition /

joint venture

33% 16% 42% 36%

Don‟t know 6% - 8% 7%

Other 9% 5% 10% 8%

17



18

1- Headcount 78%

2- Organisational structure 69%

3- Performance 67%

Already manage

1- Skill gaps 30%

2- Succession planning 23%

3- Competencies 20%

Would like to manage

1- Absence 37%

2- Competencies 28%

3- Employee turnover 27%

Do not manage

What HR data do you look to manage across countries?

Base: those with int‟l offices

HR data managed across countries

See the following slide for the full data tables

HR Data managed across countries

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HR Data managed in companies w/ 10,000+

employees

20



HR Data managed in companies based in the UK

21



HR Data managed in companies based in Western

Europe or North America

22



Key obstacles HR staff encounter when operating

globally

23

What are the key obstacles that HR staff encounter when operating internationally?

“Cultural alignment –

what‟s good in one

country is not „good‟ in

another.”

“Inconsistencies within

the HR systems.”

“Finding a system that

allows different rules

based on geography.”

“Remote from the UK

headquarters creates a

local „them v us‟ approach

sometimes.”

“Language, local

employment laws, time

zone differences, big

travel bills.”

“Ensuring each international

office works towards shared

goals whilst ensuring local

needs are met.”

24

In your opinion, how important are the following competencies and skills sets recommended by CIPD for HR

staff to have in order to be effective ?

Competencies and skills sets with the highest net

importance* for the respondents *Very or fairly important

Net importance

Showing an appreciation of the ways in which culture influences core

organisation behaviours.

98%

Having respect for the countries and communities being dealt with. 98%

Capacity for and tolerance of the ambiguities and uncertainties inherent

in new business situations.

97%

Becoming a broker of appropriate knowledge, learning and ideas across

a loose connection of people.

95%

Being a process facilitator, with diplomatic sensitivity to complex

organisational politics and power struggles.

95%

Being a provider of information and advice within the business network. 95%

Mobilising the energy and engagement behind ideas. 95%

Being a strategic thinker 94%



25

In your opinion, how important are the following competencies and skills sets recommended by CIPD for HR

staff to have in order to be effective?

Importance of competencies and skills sets


26

In your opinion, how important are the following benefits of / drivers for a global HR system?

63% said gaining efficiencies and 60% said minimising data security

risks are very important benefits of a global HR system

Net importance

95%

92%

91%

95%

92%

89%

87%

85%

92%

89%

87%

89%

83%


27

In your experience, which one of the following is the main barrier to implementing a global system?

Legislative complexity, culture of the organisation and a fragmented HR

process are seen as the main barriers to implementing a global system.


28

More than half have a formal documented succession

planning process.

Yes, 52%No, 40%

Don't know, 8%

How long has your succession planning process

been used within your company?


Base: those with succession planning process (103)

Does your company have a formal documented succession planning process?

Formal documented succession planning by region

29

Total UK Rest of Europe North America

Yes 52% 45% 56% 57%

No 41% 47% 33% 35%

Don‟t know 8% 8% 11% 8%

Does your company have a formal documented succession planning process?


30

What levels of employees are managed for succession planning?

In 43% of respondents‟ organisations, senior management

level of employees are managed for succession planning

Base: those with succession planning (103)

31

What percentage of those who are managed for succession planning in your company spend time in different

international offices?

On average a quarter of those with succession

planning spend time in different international offices.

Mean average= 25%

Base: those with succession planning (103)

32

84%of respondents‟ companies‟ HR activities are aligned

with business objectives

Are your company‟s HR activities aligned with corporate objectives?

No – 10%

Don‟t know – 6%


How a global mindset across the organisation is

managed

33

How do you manage to foster a global mindset across the organisation?

“Board level sponsorship. Top

down communication and

collaboration through working

groups.”

“It is a constant battle to

convince corporate that the

global mindset has to be

flexible enough to cater for

local mindsets.”

“With difficulty. We attempt to do

this through open communication

channels and ensuring all the

different areas understand what is

happening and why.”

“Regular conference calls, a

single point of contact on the

senior management team with

responsibility for HR globally.”

“Standardisation of processes

and policies to fit global ones,

harmonisation as far as

possible, if not applying a „one

company‟ HR philosophy.”

Initiatives to get a local buy-in

34

What initiatives have you put in place to get a local buy-in?

“CEO and senior board visits

to country firms to engage

local management teams.”

“Global policies on

compensation and benefits,

global annual pay review and

bonus process with better

communication.”

“Work very closely with the

local office, build an

environment of trust and

reliability. Open

communication channels.”

“Local involvement and centres

of practice / communication of

local deployment to the wider

audience.”

“Data management strategy –

single repository / home for data

to ensure accurate MI reporting

that in turn drives more informed

decision making.”

Developing relationships with international HR

colleagues

35

How do you develop relationships with international HR colleagues?

“I look after all HR activities in UK

and abroad.”

“Occasionally by exchanging staff

or knowledge where necessary.

Not as a rule.”

“Creation of regional HR teams to

minimise distance. Regular

communication, sharing and

forums.”

“Bi-annual face-to-face meetings

in Western Europe region and

annual meeting by global division.

Regular „same-time‟

teleconferences.”

“Regular phone calls. Visits are very important to

gain face-to-face contact. Monthly HR conference

calls enable all HR colleagues to interact and

learn from one another. Meetings at one

another‟s facilities would help in developing

relationships, however this has not been set up.”

36

93%feel it is very or fairly important to be able to provide

HR data to the management team

Not very important – 6%

Not at all important – 1%

In your opinion, how important is it to be able to provide global HR data to the management team?


37

Does your company use a common HR system to manage its global workforce?

More than half (57%) have a common HR system.


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1- Core HR 94%

2- Performance 70%

3- Compensation management 64%

Currently have

1- Succession & career 30%

2- HR analytics dashboard 27%

3- Employee self-service 23%

Planning to add

1- Multi-language capabilities 34%

2- Local legislation support 33%

3- Integration w/ Outlook/Lotus notes 31%

No plans to add

Which of the following key functionalities does your main HR system software have?


Key functionalities of HR system software they use


39

Which of the following key functionalities does your main HR system software have?

Key functionalities of HR system software they use


40

Do you expect to switch to a common HR system in the future?

More than a third (36%) of those without a common HR system

expect to switch to a common HR system in the future

Base: those w/o common HR process (85)

41

In your opinion, which one of the following functionalities would you like your HR system to have?

36% would like their HR system to have the ability

to provide key metrics / reports.


Summary & Conclusions

42

Key Findings (1)

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HR Data managed across countries:

The HR data managed most commonly across countries are Headcount (78%),

Organisational Structure (69%), and Performance (67%).

Respondents have also expressed their desire to manage Skill Gaps (30%), Succession

Planning (23%), and Competencies (20%).

Absence (37%), Competencies (28%), and Employee Turnover (27%) are three of the

least managed sets of data across different countries.

Importance of competencies and skills sets recommended by CIPD for HR

staff:

Respondents feel it is either very or fairly important that HR staff have the respect for the

countries and communities they deal with (98%) and show an appreciation of the ways in

which culture influences core organisation behaviours (also 98%).

Also important are the capacity for and tolerance of the ambiguities and uncertainties

inherent in new business situations (97%).

Key Findings (2)

44

Main barriers in implementing a global HR system:

Legislative complexity (27%) and the culture of the organisation (20%) are two main

barriers in implementing a global HR system.

Respondents also point out to their fragmented HR process (19%).

45

For more information on Cezanne Software……..

Case studies - www.cezannesw.com/customers/case-studies

Latest news and press releases - www.cezannesw.com/news

Cezanne on-line newsletter - www.cezannesw.com/newsletter

Free webinars - www.cezannesw.com/webinar

Product demonstrations - please call +44 (0)207 202 9300

Cezanne Software Hot Topics Research

Prepared by Gurur Sarbanoglu

Reed Business Insight

Exclusive research by PersonnelToday.com and Cezanne Software on Global HR

Technology

Transcript of Exclusive research by PersonnelToday.com and Cezanne Software on Global HR