The Era of Global HCM Technology-enabled Services

Finding time for talent managementAs companies become more global, the HR challenges that arise become central to their success or failure. It is much harder to align staff to the overall corporate strategy and cope with the very different rules in each location limiting the speed to take advantage of new opportunities.

89% of companies believe that having a complete view of their employees is “critical.” Yet only 30% of them actually have that complete overview2

International success requires HR to have a complete view of its talent, which can only be achieved through standardized processes, technology and services. Yet, organizations try to rely on broken processes, multiple systems or vendors requiring endless consolidation. This increases costs, compliancy issues and the ability to make good and timely talent management decisions.

1. Quantifying Great HCM, ADP Research Institute 2013

2. A worldwide employee view fosters good decisions and better results, ADP 2011

3. Quantifying Great HCM, ADP Research Institute 2013

Introduction

Only 8% of HRs time is devoted to talent management1

With non-value adding tasks such as administration, benefits and payroll estimated to take up to 50% of HRs time,3 this barely leaves any time for activities that can support the business or provide strategic value, let alone manage talent on a global scale.

DISENGAGEMENT

Multiple challenges

COMPLIANCE

TALENT

ACQUISITION

LEVERAGING

TALENT

1

3

4

5

HIDDEN COSTS

It is vital that global HR and its leaders can take back their lost time to focus on the factors they need to deal with. This includes supporting the business and the very real pressures they face.

4. UNCTAD 2011 World Investment Report

5. UNCTAD 2011 World Investment Report

6. State of the workforce – Results from PWC/Saratoga 2013/2014 HC Effect Report

7. True Cost of Compliance, Benchmark Study of Multinational Organisations, Ponemon Institute, 2011

8. Trends in Global Employee Engagement, Aon Hewitt, 2011

9. Indeed, 2014

10. Job Candidate Trends, ADP Research Institute, 2013

11. ADP Global HCM Study, 2014

GLOBAL MOBILITY

Global recruitment, HR and payroll processes Two of the biggest areas that slow HR down in any location are recruitment and processing of HR functions. Recruitment Process Outsourcing (RPO) is part of a growing trend towards multi-process HR outsourcing (e.g., core HR, benefits and payroll) – where businesses can achieve overall cost savings of around 43%, improve compliance by 34% and through both of these benefits, can then also access greater talent flexibility.12

Why HCM?

By utilizing cloud-based software services and support that is always up-to-date and continually improved, companies can:

• decrease time-to-hire by up to 88%13

• benefit from standardized reporting

• have better quality of hires

• reduce agency support

12. State of the Outsourcing Industry, HfS Research, 2013

13. Nelson-Hall, in-depth study on the RPO industry, 2014

The smart use of HRO and RPO creates more predictable business scenarios. By consolidating talent, HR and payroll services, and using a single cloud-based platform that services the entire organization, firms are proven to perform better.

Those organizations that show higher-than-average adoption of talent management, business intelligence, and social media solutions have been shown to outperform those with average or less technology adoption in terms of 16% higher revenue per employee and 35% higher profit per employee.14

More predictable business

Can you really afford to ignore these numbers?

Why HCM?

14. CedarCrestone’s 2014 Annual Review of Global Organizations: Learning from the Best Global Organizations

An effective multi-country solution would address platform compatibility, integrate data, centralize information and provide accurate insight on talent and support compliance. But technology will not solve everything.

International HR service delivery requires a network of in-country HR specialists with deep knowledge of local legislation and HR details, requiring significant investment outside of any organization’s core business.

Technology alone is not enough

Why HCM?

Today, HR needs to combine technology, talent and services to provide greater insight enabling performance and global compliance that matches with business objectives.

Having a solid HR partner by your side that is able to provide 24x7 support with software and expert services no matter where your company operates will:

• assist with compliance obligations

• help mitigate risk

• improve business process efficiencies

• and help growth

It is their core business not just to have the technology but also the expertise to provide the service and the level of insight to support the clients’ business.

The era of technology-enabled services

Features

ADP’s suite of technology-enabled services provides HR leaders with the tools to focus on its crucial processes, provide visibility

into their talent while taking care of the day-to-day tasks that used to dominate so much time anywhere in the world.

• Expand globally while staying compliant with contracts, tax and social security.

• Boost employer brand while addressing the talent acquisition challenges around background screening, time-to-hire and fill-rates.

• Deliver true global payroll including optimized disbursement, allowances and benefits to over 100 countries.

• Enjoy knowledgeable local services and support worldwide to support technology adoption and evolution.

• Benchmark operations against peers/industry to drive strategic decisions.

• Adopt leading performance management and employee development practices to ensure solid bench strength and employee retention.

PARTNERING WITH ADP ALLOWS BUSINESSES TO:

Features

To deliver effective and compliant global HR services requires global solutions and services that grow with your company, turning HR into a real driver of corporate culture.

HR can grow their visibility and credibility with the business and can have real impact due to the information they provide and the speed at which it is collated.

If HR wants to stay relevant, the opportunity is there for those who want to take it. Thanks to technology-enabled services, HR now has the ability to be both global, but local, and can turn inefficiency into competitive advantage.

Skills gaps – what 65% of CEOs say they’re most worried about15 can be turned into skills mapping and engagement creation.

Responding to change

Change is all around us. Those that respond to it best will come out on top.

15. SIA

Contact ADP

ADP provides a comprehensive and global Human Capital Management solution designed to manage your entire employee life cycle - from recruitment to performance management, learning and development, payroll management and HR administration.

If you would like to find out how ADP can transform your HR for business success contact us:

Are you ready for HCM?

General Contact information

www.linkedin.com/company/adp

Disclaimer: Please note to the extent possible ADP’s technology solutions will assist clients in complying with legislation by supporting their strategy however, on their own, they may not meet all of clients’ legally-required obligations as an employer.

CONFIDENTIALITY NOTICE

This document is intended solely for ADP’s clients and/or prospective clients. It is being made available to communicate ADP’s business plans. All information in this document concerning ADP’s business affairs, plans and product strategy is confidential and proprietary to ADP and may not be disclosed without ADP’s prior written consent. No rights in this confidential information are granted. ADP reserves the right to modify its business plans and product strategy mentioned in this document and while this information has been prepared in good faith, no representation or warranty, express or implied, is or will be made and no responsibility or liability is or will be accepted by ADP or by any of its respective officers or employees in relation to the accuracy or completeness of this information. In particular, no representation or warranty is given as to the achievement or reasonableness of any future projections, management estimates or prospects contained in this information.

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.

Multiple challenges

GLOBAL MOBILITY

COMPLIANCE

TALENT

ACQUISITION

LEVERAGING

TALENT

HIDDEN COSTS

1

3

4

5

It is vital that global HR and its leaders can take back their lost time to focus on the factors they need to deal with. This includes supporting the business and the very real pressures they face.

4. UNCTAD 2011 World Investment Report

5. UNCTAD 2011 World Investment Report

6. State of the workforce – Results from PWC/Saratoga 2013/2014 HC Effect Report

7. True Cost of Compliance, Benchmark Study of Multinational Organisations, Ponemon Institute, 2011

8. Trends in Global Employee Engagement, Aon Hewitt, 2011

9. Indeed, 2014

10. Job Candidate Trends, ADP Research Institute, 2013

11. ADP Global HCM Study, 2014

DISENGAGEMENT

GLOBAL MOBILITY

Just over 100,000 multi-nationals now employ more than 70 million people between them.4 The number of multi-national companies has tripled in the last 20 years, but is now growing at 6% per year.5 The pressure to attract and retain talent is getting harder.

Multiple challenges

GLOBAL MOBILITY

COMPLIANCE

TALENT

ACQUISITION

LEVERAGING

TALENT

HIDDEN COSTS

1

3

4

5

It is vital that global HR and its leaders can take back their lost time to focus on the factors they need to deal with. This includes supporting the business and the very real pressures they face.

4. UNCTAD 2011 World Investment Report

5. UNCTAD 2011 World Investment Report

6. State of the workforce – Results from PWC/Saratoga 2013/2014 HC Effect Report

7. True Cost of Compliance, Benchmark Study of Multinational Organisations, Ponemon Institute, 2011

8. Trends in Global Employee Engagement, Aon Hewitt, 2011

9. Indeed, 2014

10. Job Candidate Trends, ADP Research Institute, 2013

11. ADP Global HCM Study, 2014

DISENGAGEMENT

DISENGAGEMENT

In the 2nd globalization wave, it’s getting harder and harder to align staff to an overall corporate vision. Combined with high disengagement put at around 55% of employees,8 the result is low productivity and reduced competitiveness.

Multiple challenges

GLOBAL MOBILITY

COMPLIANCE

TALENT

ACQUISITION

LEVERAGING

TALENT

HIDDEN COSTS

1

3

4

5

It is vital that global HR and its leaders can take back their lost time to focus on the factors they need to deal with. This includes supporting the business and the very real pressures they face.

4. UNCTAD 2011 World Investment Report

5. UNCTAD 2011 World Investment Report

6. State of the workforce – Results from PWC/Saratoga 2013/2014 HC Effect Report

7. True Cost of Compliance, Benchmark Study of Multinational Organisations, Ponemon Institute, 2011

8. Trends in Global Employee Engagement, Aon Hewitt, 2011

9. Indeed, 2014

10. Job Candidate Trends, ADP Research Institute, 2013

11. ADP Global HCM Study, 2014

DISENGAGEMENT

COMPLIANCE

Increased compliance will continue to bog down HR departments and increase costs. The average compliance cost for global organizations stands at $3.5M with the average costs of non-compliance being 3x times higher.7

Multiple challenges

GLOBAL MOBILITY

COMPLIANCE

TALENT

ACQUISITION

LEVERAGING

TALENT

HIDDEN COSTS

1

3

4

5

It is vital that global HR and its leaders can take back their lost time to focus on the factors they need to deal with. This includes supporting the business and the very real pressures they face.

4. UNCTAD 2011 World Investment Report

5. UNCTAD 2011 World Investment Report

6. State of the workforce – Results from PWC/Saratoga 2013/2014 HC Effect Report

7. True Cost of Compliance, Benchmark Study of Multinational Organisations, Ponemon Institute, 2011

8. Trends in Global Employee Engagement, Aon Hewitt, 2011

9. Indeed, 2014

10. Job Candidate Trends, ADP Research Institute, 2013

11. ADP Global HCM Study, 2014

DISENGAGEMENT

TALENT ACQUISITION

More than half of job searches are now on mobile devices9 and with nearly 60% of jobseekers not wanting to wait more than two weeks between having a job interview and receiving an offer,10 the gap between recruiters and job-seekers need to be reduced. Investments in a global employer brand, the right metrics and talent communities need to be made.

Multiple challenges

GLOBAL MOBILITY

COMPLIANCE

TALENT

ACQUISITION

LEVERAGING

TALENT

HIDDEN COSTS

1

3

4

5

It is vital that global HR and its leaders can take back their lost time to focus on the factors they need to deal with. This includes supporting the business and the very real pressures they face.

4. UNCTAD 2011 World Investment Report

5. UNCTAD 2011 World Investment Report

6. State of the workforce – Results from PWC/Saratoga 2013/2014 HC Effect Report

7. True Cost of Compliance, Benchmark Study of Multinational Organisations, Ponemon Institute, 2011

8. Trends in Global Employee Engagement, Aon Hewitt, 2011

9. Indeed, 2014

10. Job Candidate Trends, ADP Research Institute, 2013

11. ADP Global HCM Study, 2014

DISENGAGEMENT

LEVERAGING TALENT

Most businesses are not short of talent, but with 37% of companies’ data left sitting in Excel or similar types of databases,11 they often don’t know where the best talent is, or how to move it to the right place.

Multiple challenges

GLOBAL MOBILITY

COMPLIANCE

TALENT

ACQUISITION

LEVERAGING

TALENT

HIDDEN COSTS

1

3

4

5

It is vital that global HR and its leaders can take back their lost time to focus on the factors they need to deal with. This includes supporting the business and the very real pressures they face.

4. UNCTAD 2011 World Investment Report

5. UNCTAD 2011 World Investment Report

6. State of the workforce – Results from PWC/Saratoga 2013/2014 HC Effect Report

7. True Cost of Compliance, Benchmark Study of Multinational Organisations, Ponemon Institute, 2011

8. Trends in Global Employee Engagement, Aon Hewitt, 2011

9. Indeed, 2014

10. Job Candidate Trends, ADP Research Institute, 2013

11. ADP Global HCM Study, 2014

DISENGAGEMENT

HIDDEN COSTS

63% of HR’s Total Cost of Ownership is hidden.6 Without a complete view of all the costs, making the right decisions when transforming will provide limited impact.