Optimising the HR Delivery Solution

Bill Farrell

PricewaterhouseCoopers

2

Agenda

Shared Services - optimal solution ?

The Key HR Delivery Channels

Positioning technology in the delivery model

Where to next

Group Exercise

3

Why change the HR delivery model ?

Reinvention - the HR value Proposition

Cost Reduction

New Generations

Information Pull

Technology Push

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Optimising the Delivery Model

• Shared Services• Self Serve• Line management• Technology

• Cost Effectiveness

• Service Level

• Centrally• Regionally• By country• By BUs

• Capability Level

• Operational Dependence

• Supporting the business

• Innovation

• Whole-sale outsourcing

• Buy In/Vendor Manage

• In Source

Current Performance

Location

Strategic Relevanceand Impact

Supply Source

ServiceDelivery

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Strategically HR needs repositioning…...

10% StrategicPlanning

30% Customer Service/

Consulting

Administration60%

10% StrategicPlanning

30% Customer

Service/Consulting

Administration60%

20% StrategicPlanning

60% Customer Service/

Consulting

Administration20%

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Recent research shows HR organisations are predominantly traditional and administration-

based

80%

60%

40%

20%

54%

42%

43%

67%62%

63%

Financial services

Financial services

Telecom’s

Technology

Technology

Transport

Source: PwC HCS Survey 2001

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HR support staff FTE ratio for HR departments with and without shared services >5,000 employees

0

20

40

60

80

100

120

140

160

145

120

Employees per HR support staff FTE

Source: PwC HR Benchmarking Survey 2000

Shared services

No shared services

HR shared services has led to cost reductions

The Key HR Delivery Channels

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Group

BU

Shared Services

Corporate policy Corporate strategy

Decision support specific to the BU

Business analysis specific to the BU

Advisory Support Specialist Services to be

shared across organisation Transactional processing

Lean

Lean

Bulk of resource for support functions

Service culture toward Corp/BU’s

HR Shared Services delivery model

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HR Delivery Channels

Line Mgr

BU HR

Group HR

Call Centre

Specialist

Talent Management

HR Admin

Employee Self Service

Business Unit

Shared Services

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Strategic need

Capability

Cyclical HR processes, driven by corporate objectives

Planned HR interventions,

addressing critical Corporate and BU

specific needs

Administrative HR activities driven by employee life cycle

needs

Specialist HR Services, requiring

expert design, interpretation and

advice

Typically embedded in business unit

Strategic Need

Capability

Business Unit

Shared Services

The roles of BU HR versus Shared Services

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Understanding your customer, is key to successful delivery

Corporate

Employees

Managers

Business Unit

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Process example - recruitment and selection

Define strategyand job

requirements

Recruitment Policy

New StarterOrientation

GHR BU Shared Services

Advertising Short listingCandidate

Management

Interview andSelection ofCandidate New

Hire Admin.

End To End Process Design

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The optimal service delivery model for an The optimal service delivery model for an

organization may include some combination of organization may include some combination of

SELF-SERVICE, SELF-SERVICE,

SHARED SERVICE, SHARED SERVICE,

OUTSOURCED SERVICE,OUTSOURCED SERVICE,

all accessible and branded through a portal.all accessible and branded through a portal.

Optimising the HR delivery Model

Technology

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B2E’s Brief But Important History

A year ago:

‘B2E’ = B2Employee and was all about web-enabled HR functions

Several months ago until now:

‘B2E’ = B2Enterprise

Evolving into:

‘B2E’ = B2EVERYTHINGB2E is the platform for a new way of working more efficiently, more effectively, more productively, and with less cost.

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What Is B2E?

A single channel for communicating with employees—instantly, consistently, globally.

A platform and vehicle for a new way of doing business, where employees can access information anywhere, anytime.

A link for employees with customers and suppliers, internal teams, tools and work… maximum flexibility and increased productivity.

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People prefer the web

Inquiry HR Online Call Center

Verify Employee Data

Compensation

Salary Adjustments

Salary Ranges

Stock Options

Leadership Development – Performance Management

US Savings Bonds

Profit Sharing

Holidays

16,385 Hits

15,815 Hits

15,815 Hits

3,802 Hits

3162 Hits

1,675 Hits

1,341 Hits

1,206 Hits

569 Hits

29 Calls

14 Calls

19 Calls

1 Call

9 Calls

1 Call

8 Calls

1 Call

3 Calls

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The Savings are Well Proven

Company On-Line Service Savings /Employee

Sprint Employee Data $20/yr

Olin Pay statements $9.25/yr

HP Policy Manual $9.75/yr

F/S On-boarding $42.51/yr

PwC Travel reservations $34.5/yr

Energy Co Web server consolidation $16.30/yr

E-Services Co Training Administration $70.90/yr

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Implications

HR Capability

Clearly Defined Touch Points

Technology as enabler, make it easy to use - think access

Process Consistency and Simplification

Technology Push

‘eat your own dog food’

Discussion Points