People in the Cloud: Trends in Human Capital Management · Succession Management . Learning...

People in the Cloud: Trends in Human Capital Management

May 8, 2013

About ADP

One of the world’s largest providers of business outsourcing solutions and services for… Employers ($9B*) Human Resources

Payroll

Benefits

Retirement Administration

Tax Payments & Compliance

Vehicle Dealers ($1.7B*)

2 © Copyright 2013 ADP, Inc. Proprietary and Confidential Information.

* Fiscal 2012

“The granddaddy of SaaS” – Computerworld

1 of 4 non-financial companies rated AAA by both leading U.S. rating agencies

Large recurring revenue base; consistent cash flow

Low capital requirements

Committed to shareholder-friendly actions of returning excess cash to shareholders through dividends and share buybacks

ROE of over 20% the last 5 years

Financial Strength and Capital Allocation

3 © Copyright 2013 ADP, Inc.

Agenda Understanding the HCM Market

Exploring Four Key HCM Trends

Your Questions

4 © Copyright 2013 ADP, Inc. .

The Human Capital Management Spectrum

Performance Management

Time & Labor Management

Engagement, Goal Alignment

Recruiting:

Sourcing, Screening,

Selection

Recognition, Merit, Compensation

On-Boarding, Learning

Retirement, Succession Planning

Benefits Administration

Career and Individual Development

5 © Copyright 2013 ADP, Inc.

HCM Market: Large and Growing

6

Sources IDC, Nelson-Hall, Gartner, Everest, Bersin, Census Bureau, BLS, ADP and competitor filings, and ADP

© Copyright 2013 ADP, Inc.

U.S. market size in $ billion

10 8

8 7

4 5

3 2

2 2 1 1 51

Insurance Retirement BPO Benefits Talent Management Payroll – Service Bureau Payroll – Software HRIS Time and Labor Management Accountants Tax Credit Services Expense Management Total

HCM $90 billion global market

Agenda Understanding the HCM Market

Exploring Four Key HCM Trends

Your Questions


© Copyright 2013 ADP, Inc. . 8

Four Critical Trends for Today’s Business

Pressure to be more Strategic

~20K new pieces of legislation worldwide annually

Affordable Care Act

American Taxpayer Relief Act

Less time to implement state / federal employment tax regulations

Days vs. months

Intensifying Compliance Burden


Trend #1 - Compliance


ADP Research Institute: Addressing HCM Shifts


Attracting / Growing and Retaining People

83% of CEOs list talent management as their #1 priority*

– Managing skills shortage

– Driving engagement and productivity

– Retaining your people

Managing the entire employee life cycle is critical


Trend #2 – Talent Management

* Price Waterhouse Coopers 14th Annual CEO Survey, June 2011


The Pillars of Talent Management



Compensation Management

Succession Management

Learning Management

Talent Acquisition






Learning Management

Talent Acquisition

Electronic I-9 Screening

Background Screening

Drug Testing

Interface with job boards

Resumé management

Candidate management

On-boarding

New Hire Reporting





Learning Management

Talent Acquisition


Goal setting and alignment

Competency management

Goal weighting

Year-round comments

Team performance dashboards

Aligning goals to bonus plans

Talent profile

Competency self-evaluation





Learning Management

Talent Acquisition


Multi-parameter compensation

guidelines

Planning with auto-adjusting

budgets

Visual soft and hard guidelines

Multi-currency, multi-language

Compensation history and data

Compensation statements

Ad-hoc reporting





Learning Management

Talent Acquisition


Career preferences

Competency-based

successor search

Candidate comparison with ranking algorithms

Approval routing

ID high-potential

employees

Tag key skills and talents






Talent Acquisition

Learning Management

Manage classrooms &

resources

Manage online learning libraries

Learning discussion

forums

Employee transcripts

eCommerce learning content

Manager- and employee-

driven learning

Integrate, Simplify, and Unify

On average companies have to manage over 8 HR and Payroll systems and/or vendors*

58% of HR staff time spent on administrative tasks**

19% of time spent on feeding data into multiple systems

Globalization compounds challenges – systems, languages, compliance, compensation, etc.

© Copyright 2013 ADP, Inc.. 18

Trend #3 - Integration

* ADP MNC Market Study, May 2011 ** ADP Research Institute Achieving Strategic HR


HR System of Record

End-to-End Human Capital Management

Talent Management

Time and Labor Management

Payroll

Delivered as a Service

Reporting

Analytics

Por

tal

Mob

ile

Processing Managed Comprehensive

19

Seamless integration. Complete End to End Suite. Cloud Based Delivery

Cloud based Software

© Copyright 2013 ADP, Inc. .

Benefits

Industry Vision: Comprehensive HCM with Robust Multi-Channel User Experience


One source of truth for full spectrum of stakeholders Unique user interactions and intuitive interface Rich analytics

Personalized dashboard Search Business Intelligence Workflow / Inbox Talent profiles Org charts Calendar Reporting Employee self service

Evolving Workforce Demographics

47% of all employees today were born after 1977. Implications:

Consumerization

Mobile

Social

Big Data analytics


Trend #4 - Demographics

* Frost and Sullivan, 2010 ** SHRM Research Spotlight: Social Networking Websites and Staffing, August 2011


Big Data: ADP National Employment Report®

Monthly U.S. nonfarm private employment via ADP transactional payroll data – Launched in 2006 – Data back to 2001

Segmented by industry and company size Unique data set Regional reporting

begins this Friday

© Copyright 2013 ADP, Inc. .

What to Look For in an HCM Provider


• Global reach • Local knowledge • Compliance expertise • Cloud-based access to

full HCM suite • Scaleability • Ease of use • Ability to provide big

data analytics • Service strength

Your Questions & Impressions


People in the Cloud: Trends in Human Capital Management · Succession Management . Learning...

Documents

Transcript of People in the Cloud: Trends in Human Capital Management · Succession Management . Learning...