June 2017

How is your Mid-Market OrganizationHR’s core strength and conditioning

Sierra-Cedar HR Systems Survey, 19th Annual Edition

EmployeesService & Solution AreasApplication ServicesBusiness Intelligence

Host & Managed ServicesInfrastructure Services

Integration & Cloud SolutionsResearchStrategyTraining

Delivering industry-focused client success by providing consulting, technical, and managed servicesfor the deployment, management and optimization of next-generation applications and technology.

Industry FocusCommercialHealthcare

Higher EducationPublic Sector

Justice & Public Safety

Sierra-Cedar Fast Facts

Years of Leading HR Systems Survey & Thought Leadership

7 19 950+

5

2

ConsultingProjects

1,500+

Presenters

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Background:● Oversees Sierra-Cedar’s Research Function● HR and OE Practitioner for over 10 years in

finance, retail, and franchised businesses.● VP of Research for Brandon Hall, Director of Research at

Bersin & Associates, Launched HR research practice● Feel free to connect at: www.linkedin.com/in/staceyharris● @StaceyHarrisHR

Background:● Manages the HR Systems Survey● Research at Brandon Hall Group● Learning Administration at ACS● LMS administration and training at MRINetwork● Feel free to connect at: www.linkedin.com/pub/erin-

spencer/6/734/388● @Erin_HR

Erin SpencerResearch Consultant

Stacey HarrisVP Research and Analytics

Sierra-Cedar 2016–2017 HR Systems SurveyOver 19 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

Participate in the 20th Annual Survey Download the 19th Annual White Paper

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Poll OneHave you downloaded and read one of our previous White Papers?

1. Every year!2. Once in a while3. Meant to4. Sad to say, “No”

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Mid-Market Enterprise HR System StrategiesOnly 26% have a Regularly Updated Strategy

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26%

28%11%

24%

11%

Mid-Market Organizations With an Enterprise HR Systems Strategy

Regularly updated

Developing

Rarely updated

None

Not aware

Are You Viewed As A Compliance-Driven HRNo HR Systems Strategy Twice as Likely to be Viewed as a Compliance Function

7

24%

13% 12% 8%

None Developing Not updated Regularly updated

Percentage of Mid-Market HRViewed as a Compliance Function based on

HR Systems Strategy Status

The Value of an Enterprise HR Systems StrategyFor Mid-Market Organizations it is About Going Beyond Compliance

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45%HR Systems Strategies Increases Value to BusinessMid-Market Organizations with a Regularly Updated HR Systems Strategyare 45% more likely to be viewed by all levels of management as contributing strategic value, versus organizations that have no HR Systems Strategy.

15%HR Systems Strategies Impact Business OutcomesNo Enterprise HR Systems Strategy = 2.8 Avg. Business OutcomeUpdated Enterprise HR Systems Strategy = 3.3 Avg. Business Outcomes

HR Systems Strategies Impact All OutcomesMid-Market Organizations with a Regularly Updated HR Systems Strategy are twice as likely to be in the Top 10% of Business, HR, and Talent Outcome measures.

2X

What is An HR Systems Strategy?1. Benchmark – Current State & Benchmark of HR Technology

Environment

2. Blueprint – Enterprise Business Goals & HR Strategies, Enterprise System Strategies

3. Roadmap – Action Plan, Communication, Measures and KPIs

4. Governance – Decision Making, Maintenance, Change Management

5. Budgets & Resources – Required, Contingency plans, Outsourcing

Diagnosis – Guiding Policy – Coherent Action

Benchmarking Requires Self-AwarenessUnderstand What Your Organization Values

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WFMService DeliveryAdmin SocialBI/AnalyticsTM

97%

94%

90%

78%

68%

66%

61%

62%

60%

60%

56%

51%

46%

40%

39%

37%

36%

37%

Are They Early Technology Adopters?

Is Region Important?

HR Systems Strategy Blue Print QuestionsIf You Can’t Answer These, You Can’t Develop a Strategy

● What are your organizations enterprise goals?– Market Share– Revenue– Shareholder Profit– Innovation

● What are your organization’s Key Performance Indicators?– Talent Metrics– Data/Enterprise Metrics– Performance Metrics

● What areas of HR impact goal achievement or key indicator metrics?– Are these areas direct or supporting impact? – Are they working or broken?

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Backlog, Pipeline, Customer Satisfaction

General Ledger, Purchasing, Budgeting, T&E Vendor Management

Project Costing, Contracts, GrantsProjects

FIN

CRM

VMS

Talent Management Excellence

Service Delivery ExcellenceAdministrative Excellence

Workforce Management Excellence

Workforce Optimization Excellence

SOA, API, ETL

Enterprise Content Enterprise Workflow

Network Security

Enterprise Social

Mobile Access Integration Platform

Workforce OptimizationWorkforce Planning, Workforce Analytics,

Predictive Analytics

Service DeliveryHR Help Desk, Portal

Self Service/Direct AccessEmployee Self Service Manager Self Service

Workforce ManagementTime & Labor, Absence & Leave Management, Labor

Scheduling, Labor Budgeting, WFM Analytics,

Talent ManagementRecruiting, Performance, Learning, Compensation,

Succession, Career, Talent Profile, Onboarding, TM Analytics

Business Intelligence FoundationReporting/Visualization and BI tools

Administrative Apps Core HRMS, Roles/Competencies (Profile Mgt.), Payroll,

Benefit Admin, Embedded HR Analytics,

Sierra-Cedar HCM Application Blueprint

66%Adoption

92%Adoption

56%Adoption

50%Adoption

38%Adoption

PaaS

Enterprise Data Privacy

Less Maintenance

Continuous Improvement

Expand Your Idea of Transformation… Think Business Value from HR Technology Improvements

Lower Costs

UserExperience

Fewer Resources

Less IT Expense

StrategicData

Process Standardization

66%47% 40% 40% 34%

25% 20% 19% 19% 15%

Bus ProcImprovement

TalentManagement

ServiceDelivery

HR SystemsStrategy

BI/WorkforceMetrics

HR AppsIntegration

All SystemIntegrations

WorkforceManagement

WorkforcePlanning

Replacing HRMS

Mid-Market20% more likely to focus on

Talent Management Initiatives

Top 10 Mid-Market HR Technology InitiativesWhere are you spending 25% of your Time and Resources?

Application Adoption By Organizational Maturity

2.6 2.8 2.8 2.7 2.5

3.3 2.8 2.6 2.4 2.2

3.9 3.2 2.8 2.6 2.7

5.2 5.0 4.2 3.7 3.0

3.43.5

2.9 2.7 2.4

Very Large(50,000+)

Large(10,000 to 49,999)

Medium(2,500 to 9,999)

Small(1,000 to 2,499)

Very Small(<1,000)

Admin Applications Svs Delivery Applications WFM Applications TM Applications BI Applications

15

44%

36%

49%

28%

36%

27%

34%

22%

WFM Licensed

Payroll Licensed

HRMS Licensed

TM Licensed

On-Premise Deployments

Mid-Market HR Systems Cloud ConversationMovement to the Cloud is about transforming the User Experience

n = 980

74%

60%

64%

57%

68%

56%

61%

48%

TM Cloud

HRMS Cloud

Payroll Cloud

WFM Cloud

SaaS/Cloud Deployments

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3.40Average User Experience Scores

3.02Average User Experience Scores

Note these include combination and hosted environments

Today12 Months

Higher Cloud Adoption = More Needs Met?

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31%24%

20% 21%17%

8% 9% 8%

Payroll HRMS WFM TMS

Our HR Systems Always Meets Our Needs

High Cloud Low Cloud

Mid-Market Change Management Practices 21% of Respondents Report a Culture of Change Management

21%

42%

28%

5%

Level of Change Management forHR Technology Projects

Consistent Culture of Change MangementKey Projects that Meet CriteriaSporadically, with No CriteriaNever

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Change Management Increases Strategic Value of HRMid-Market Organizations with a Consistent Culture of Change Management are four times as likely to be viewed by all levels of management as contributing strategic value, versus organizations that have no HR Systems Strategy

4X

A Culture of Change ManagementWhat Does it Look Like….

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Move from Project Change Management to Continuous Change Management Culture of Change

Raising awareness of the importance of innovation, thought leadership, and need to adapt to fast and continuous change.

The Cloud Paradigm Shift:• From “requirements” to

“process adaption”• To “Adopt and Adapt” for

business• From “a change” to

“constant change”

Impact on OCM• Iterative cycles of data collection, configuration, validation, and

understanding• Speed of change – high stakeholder involvement, timely

communication, and rapidly evolving training materials are critical• Sustainment Governance to continue agile approach from

project mode to operations• Robust sustainment support model – dedicated OCM team and

business resources

A culture of agile thinking and continuous

experimentation

Considerations1. Defining Sustainment Governance to manage change in an open,

transparent, and accountable way2. Acknowledging Change Management needs as part of continuous

release cycles3. Building organization resilience to continuous change4. Working to foster culture of experimentation5. Acknowledging the changing roles for business and IT

Adopt Adapt

Agile

HR System Strategies Account for Process MaturityData- and Talent-Driven Organizations are More Likely to be Effective

● Transformational: unique, stands above others, contributes to competitive advantage financially and as an employer of choice.

● Effective: aligned, best practice, strategically focused

● Efficient: transaction-focused● Manual: paper-based, non-standardized, ad

hoc, or reactive

Non-DD & TD

Data & Talent

20

High Cloud

21%more likely to

be confident in Data Privacy

processes

Mid-Market Data Privacy & Protection StrategiesOver 55% of Organizations Feel Prepared in this Area?

4%

51%37%

8%

Data Privacy Process Maturity

Transformational

Effective

Efficient

No Process/Manual

High and Low Vendor Satisfaction DriversOnce the User Experience is Satisfactory – We move to Relationships

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32% 33% 35% 35% 37%

User Experience Ability to Customize

Integrated Solution

Best Practice Functionality

Service & Support

Top Benefits Correlated with High Vendor Satisfaction

21% 21% 25%38%

66%

Updates/Upgrades High Costs Not Integrated Lack of Innovation Poor User Experience

Top Challenges Correlated with Low Vendor Satisfaction

40%Greater than

Last Year

Mid-Market Mobile-enabled HR Process Adoption Overall Mobile Adoption Has Doubled in the Last Three Years

13%23%

39%47%

All Organizations that UseMobile-enabled HR Technology

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2014 2015 2016 12 Months

42%

8%21%

29%

Mid-Market HR TechnologyMobile Adoption

In Use 12 Months Evaluating No Plans

Mid-Market Social Continues to GrowTwitter Hits 50% and New Tools Show Up

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Strategic Use in 12 monthsNo plansNot allowedEvaluating Use

Strategic Use Today Individual use only

3%

5%

20%

30%

41%

50%

56%

68%

70%

3%

1%

2%

4%

5%

3%

3%

8%

7%

12%

18%

14%

8%

18%

19%

18%

4%

17%

4%

8%

7%

15%

6%

6%

4%

8%

2%

26%

26%

23%

11%

15%

10%

14%

2%

1%

51%

42%

34%

32%

15%

11%

5%

9%

2%

Tumblr

Snapchat

Instagram

Corporate SN

YouTube

Twitter

Facebook

Collaboration

LinkedInMid-Market Social Tools Use and Plans

Final CheckIns: Takeaways

Enterprise HR Systems Strategy, You Need One

Common Sense Benchmarking and Clear Planning Allow for Realistic Expectations

Change Management is More than A Project

Emerging Technology is about Achieving Outcomes

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Thank you! Please Participate

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www.Sierra-Cedar.com/hrssv95

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Webinar 2: How can an HR “Fitness Program” take you to the next level?

Tuesday, July 18, 201711:00 a.m.–12:00 p.m. (PST)

Join Richard George, VP of Strategic Services, as he shares his in-depth experience in developing an actionable HR “Fitness Program” complete with System Strategiesthat work.

REGISTERhttp://bit.ly/2s5WXLU

By incorporating these strategies into your own

organization, you will strengthen your HR core to deliver stronger business

outcomes.

Survey MethodologySierra-Cedar follows rigorous standards in the form of a nine-step survey methodology, independently validated in 2011 by the Mercer Survey Quality group. Each year, this annual reach provides a wealth of knowledge that is shared openly with the HR systems community. All participants are kept strictly anonymous, and only aggregate data is used.

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