Top 10 Tips for Going Global - ADP MOTM 2015

Copyright © 2014-2015, ADP, LLC. 1

Going Global: Top 10 TipsJulie Fernandez, Partner ISG

March 22, 2015


Going Global: Why Do We Care?

Business is changing rapidly, driven by a global economy

• The workforce and its employees are changing dramatically

– 21st century workforce is global, connected, tech-savvy and demanding

– By the end of 2017, 45-50% of the total global workforce will be

considered non-traditional or non-employee (Ardent Partners, 20xx)

– Critical new skills are scarce and unevenly distributed – mobility matters

• Technology is now pivotal to HR and will further rock our world

– New HR technology drives transformation to self-service

– SMAC-everything (Social, Mobile, Analytics, Cloud… Robotics)

– Broader impact of the “Internet of Things” will alter organization design and roles

• Social and regulatory shifts are changing the focus of

business, forcing us to balance Global and Local


Global Workforce Visibility is a Top Priority

Global HR systems rollout is top of mind and dollar for HR

• According to ISG’s 2014 HR Technology and Services Survey

• SaaS HCM systems as a key enabler for global HCM and Talent – Local formats, edits and statutory formats built in and maintained as “standard”

– Making incredible strides with data security and data privacy for PII in the cloud

• More than 80% of respondents felt that adopting fully implemented

shared services (internal and outsourced) had either exceeded or met

their business case

#1

– Improving user experience is #1

priority for systems & service

delivery initiatives

– 52% of participants expect to

upgrade, replace or switch to SaaS

HCM between 2014 and 2016

– The time is now for SMAC (social,

mobile, analytics, cloud)


Consolidate Global Payroll Strategically

Articulate a global payroll strategy that reduces payroll

suppliers as well as financial and compliance risk

• Global Payroll strategy may not mean a single system or supplier

– “Right-size” payroll scope for each country

– Match your global footprint with suppliers’ capabilities and experience

– Expected fee range and an actionable business case

– ISG whitepaper and tools for “Bringing Order to Global Payroll Chaos”

• Using the same supplier in multiple countries does not achieve the leverage that global companies are seeking

– Separate contracts, pricing, SLAs and account governance

– Large heritage payroll companies have many different payroll solutions

to offer; choosing the best fit is not a simple procurement P*Q exercise

• Due diligence and contracting can be tricky when multiple countries are involved; an advisor can reduce time to contract, validate competitve pricing, and ensure you are leveraging best practices

#2


Monitor Broad Rollouts and Initiatives

Regardless of your own span of control, be aware of major

implementations underway in HR, Finance, and IT

• Identify any of the following change initiatives underway, all of which will have a direct impact to your payroll solution

– Rollout out of global HCM solution – often by region

– Financial consolidations (General Ledger, Legal Entities)

– Corporate merger and acquisitions, spinoffs, or reorganizations

• Time and attendance is frequently addressed during transition only for high volume, automated countries in need of replacement

• Global Business Services is model that is of increasing interest

– In-country resources are needed to support multiple transitions while

being targeted for headcount reduction

– Surveys show that Shared Services is leveraged across functions more

than 50% of the time, but IT, Legal, Tax, and Finance are most likely to

be consolidated.

#3


Prepare for Increased Employee Mobility

Lots of emphasis in recent years to find and manage talent,

including global talent systems and processes

• Origins of SaaS technology are here, but limited to salaried workers

• HR must accommodate increasingly virtual teams and projects

• Leadership development trending to diverse geographic assignments

– Mobility and relocation policies require niche suppliers and activities

– Expatriate payroll is a unique market worth considering for 50+

– Understand the niche suppliers, their offerings, and how they fit

• Languages and time zones for support

– Multi-sourcing is common in HR and requires broader coordination of

employee inquiries, transactions, and case management

– There is no scale or logic to supporting every language in every country

– English as a business language is more frequently required of in-country

managers

#4


Understand Options to Enter New Countries

No matter the headcount expected, projects to establish

presence in a new country are a lot of one-off HR effort

• Small-to-moderate size pilots will require employees in-country– Facilities and local legislation are top of mind

– Consider a project-based recruiter to source and select local talent

– Legal entity, payroll, and banking arrangements are often made locally

• Single person or small teams may have other options– Expatriate, in-pats, third country nationals strategy (consider expat services)

– Payroll providers offer banking/treasury services to avoid in-country presence

– Outsourced providers offer temps or PEO type staffing to avoid full set up until

the business is committed and growing

• Large populations are often M&A or spinoffs with ultra-short timeline– Brand new HR technology platform needed across the board

• Set up a framework if your business is likely to repeat frequently

#5


Drive Harmonized Processes Strategically

Global HCM and Talent systems are increasingly SaaS

• Configuration not customization; adhere to common practices

– Global and/or regional templates will define the “standard” with local

input needed to determine how to best choose and apply possible rules

• Organizational hierarchy must be defined in order to drive self-service and automation

– Requires employee, manager and various HR roles (talent)

– Standardization of approvals and escalations is of high impact

• Appoint a process owner or global Center of Expertise (COE) for policy and governance

– Finding or developing leaders that can lead the charge globally is a top

priority in organizations today

– Expect strategic regional and country variations in each function, but a

difference in approach for strategic vs regulatory variations

#6


Talent Management – Global, but Broken?

Significant efforts spent to deploy global talent systems, but

thought leaders are hinting at the process being “broken”

• Ranking- and ratings-based performance management is giving way to coaching and development

– Only 8% of companies say their performance management process drives

high levels of value; 58 percent say it is not an effective use of time1

– High performance teams do not emerge by trying to encourage all

managers to develop all competencies or skills to an inventory checklist

– Subjective feedback and flawed data is expanded with calibration

• Workforce demographics will change

– 70% of Millennials see no reason to come to an office to work2

– Seeking a mentor and a coach, not “feedback”

#7

1 Deloitte 2014 Global Human Capital Trends Survey

2 Courtesy of Dr. Karie Willyerd, VP and CLO, SuccessFactors


Have a Plan to Acquire Local Talent

Talent acquisition has shifted from post-and-fill to building

brand, relationships, and social network

• “Marketing” to build and maintain deep and active candidate bench

• Retention activities shift toward strategies to Develop and Engage

• Global talent is scarce – skills are not readily available to fit demand

– The impact of workforce demographics: motivation, company size,

entrepreneur v employee, alternative

– Local strategies, compliance, and labor force have their own “pulse”

Contingent workforce is on the radar in many ways

• “45-50% of the total global workforce will be non-traditional or non-employee by 2017” according to research by Ardent Partners

• Combined recruiting process for Employees and Contingents

• Workforce administration and HR activities extended to contingents

#8


Emerging Technologies Are Impacting HR

Mobility BYOD

Social Media

Collaboration

Analytics & Big Data

CloudComputing & Storage

Robotics

► Recruiting, performance management and learning all

increasingly leverage social networks and collaboration

tools

► Mobile access (smart phones and tablets) are expected by

managers, employees and HR

► Predictive analytics are beginning to allow HR and the

businesses they support make better decisions for talent

acquisition, development and retention

► Most state-of-the-art HR technologies are available via the

Cloud (SaaS), reducing time and $$ investment to deploy

► Robotics, Artificial Intelligence and digitization are creating

massive shifts in the skillset required in many industries

#9


Reskill HR to Reskill the Workforce

Technology is changing roles across the entire organization

• HR SaaS is shifting roles among end-users, HR, and IT

• The “internet of things” will drive the convergence of IT and other corporate functions like Operations, Marketing, Customer Support

#10


Considerations and Challenges

Project teams are increasingly global and virtual

• Global initiatives are more commonplace, with a centrally-led project rolling out new technology or services to a region or to all countries

• Broad scope and aggressive timeframes may conflict with work councils and can preclude you from change in some countries

• A dedicated change management program can greatly increase success but is often understaffed, unfunded, or an after-thought

• Local practices around the world increasingly affect our own HR and Payroll strategy and delivery, for example:

– Recently, U.K. law required companies to auto-enroll all employees onto

standard pension schemes, making U.S. Benefits expertise a valuable insight

– Europe has long had the greatest expertise with data security and data privacy

standards and legislation


Speaker BioJulie Fernandez

Partner, Americas, HR and Payroll

Phone: +1 248 698 3337

Email: [email protected]

Ms. Fernandez brings more than 20 years of relevant industry and

consulting experience in service delivery models, vendor evaluations and

implementing outsourcing and technology solutions. Julie uses this

experience to help her clients evaluate and execute alternatives for the

design, implementation and management of HR and payroll outsourcing,

shared services and HR technology solutions.

ISG Role

Prior to joining ISG, Julie did work for nearly a decade as an independent

consultant, providing market research, vendor assessments, systems

testing and implementation consulting to a broad community of benefits

administration vendors and human resources departments. Julie started

her career in human resources outsourcing establishing shared service

centers for a national benefits consulting and administration firm.

Career History

As a Director in ISGs HR service group, Julie has led and participated in

multiple engagements related to the evaluation and assessment of

alternatives for multi-process HR service delivery, including workforce

administration, payroll, benefits, compensation, recruiting, learning, and

talent management. She has participated in some of the most complex

global HR assessments and transactions that ISG has performed and

managed ISGs financial analysis competency for the HR practice. Julie

currently serves as the HR practice's process lead for Global Payroll and

manages the review and update of our HR Intellectual Property.

ISG Experience

Julie holds a Bachelor of Arts in French from the Honors College at

Michigan State University, and a Master of Business Administration in

Finance and International Business from Wayne State University. In

addition, Julie is fluent in French and Spanish, has lived and traveled

extensively abroad, and is certified as a Retirement Plans Associate by

the International Foundation of Employee Benefit Plans.

Education and Credentials


DON'T FORGET TO COMPLETE

THE SESSION EVALUATION either

by completing the printed form or

using the session evaluation link in

the ADP MOTM Conference App.

Thank YouMs. Fernandez brings more than 20 years of relevant industry and

consulting experience in service delivery models, vendor evaluations and

implementing outsourcing and technology solutions. Julie uses this

experience to help her clients evaluate and execute alternatives for the

design, implementation and management of HR and payroll outsourcing,

shared services and HR technology solutions.

Julie FernandezPartner, Americas, HR and Payroll

Phone: +1 248 698 3337

Email: [email protected]

Top 10 Tips for Going Global - ADP MOTM 2015

Business

Transcript of Top 10 Tips for Going Global - ADP MOTM 2015