Posted tagged ‘HCM’
October 17, 2012

Gary Bragar, HRO Research Director, NelsonHall
In my blog earlier this week, I wrote about highlights from the new Outsourcing Track at HR Tech as well as the RPO meetings I attended. In related news, my fourth global RPO market analysis report was published on Monday.
In addition to walking through the exhibit hall and attending technology demonstrations, my additional meetings at HR Tech included:
- Patersons: Its 2012 revenue growth is 70% YTD, driven by multi-country payroll. Safeguard World International has also reported similar success due to high growth for multi-country payroll services according to a business update two weeks ago.
- IBM: The company is experiencing increased demand for its RPO and learning services and many of its key learning clients have renewed in 2012. New learning contracts include one in South Africa and pipeline activity includes a large global bank. The Kenexa acquisition will bring in new RPO and talent management opportunities that IBM will enhance with its social and analytics capabilities.
- Hogan Assessments and SHL Assessments: Both companies provide personality assessments to predict work performance. SHL has also issued a talent management report with key findings showing that Eastern Europe ranks 1st in supplying IT and essential business skills; the U.S. ranks 23rd.
- Secova: The benefits administration provider offers online enrollment, a 24/7 call center, eligibility verification, billing management, and leave management services that are delivered from their ISO/IEC 27001:2005 certified platforms. Services are provided from California, New Jersey, and Chennai.
- Equifax Workforce Solutions: This was formerly operating as TALX, which rebranded as a result of its increased emphasis on the provision of workforce analytics and business intelligence to help clients improve their company’s performance.
- HireVue: Offers a Digital Interview Platform that saves time, travel, and costs by allowing clients to create online interview guides with scientifically proven questions. Candidates then record answers via a webcam, which recruiting and hiring managers then view on demand, including from smart phones, to build digital talent pools.
- JobVite: Provides a modular SaaS-based recruiting platform for applicant tracking, recruiter CRM, and sourcing talent.
Highlights from ADP include having ~30,000 clients for its cloud-based HCM platforms including:
- ADP Workforce Now: Launched in October 2009, it supports clients with 50 – 1,000 employees. The majority of its 20k+ clients purchase the broader HCM suite.
- ADP Vantage HCM:Piloted in October 2011 with general availability launched in June 2012, this platform, which targets employers with >1,000 employees, already has >30 clients. ADP has been adding ~5 – 6 new clients a month with a high percentage buying talent management, benefits (H&W), and time & attendance in addition to payroll. New wins include:
- A national restaurant chain with ~24,000 employees
- An employee healthcare staffing company with 15,000 employees
- A retail chain with 4,500 employees.
- ADP GlobalView: It now includes ADP Talent Management globally and has won several major clients including an electronics manufacturer with 85,000 employees in 29 countries including the Americas, EMEA, and APAC, which recently added the compensation module.
- ADP Talent Management: It provides recruiting, performance, learning, compensation, and succession in 14 languages and 80 currencies for ~4,000 clients.
- ADP Mobile Solutions: Deployed globally and offered in 12 languages, the app has ~30,000 clients and ~450,000 users.
See you all next year at HR Tech in Las Vegas October 7 – 9, 2013.
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Categories: 2012 HR Technology Conference, ADP, hr outsourcing, hro, IBM, Patersons
Tags: ADP, ADP GlobalView, ADP Mobile Solutions, ADP Talent Management, ADP Vantage HCM, ADP Workforce Now, applicant tracking, benefits administration, billing management, business intelligence, compensation, Digital Interview Platform, digital talent pools, eligibility verification, Equifax Workforce Solutions, H&W, HCM, HCM Suite, HireVue, Hogan Assessments, HR Tech, HR Technology Conference, IBM, JobVite, Kenexa, learning, leave management services, multi-country payroll, nelsonhall, online enrollment, Patersons, payroll, performance, personality assessments, recruiter CRM, recruiting platform, rpo, RPO market analysis, SaaS, Safeguard World International, Secova, SHL Assessments, social and analytics, sourcing talent, South Africa, succession, talent management, TALX, time & attendance, workforce analytics
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September 18, 2012

Linda Merritt, HRO Research Analyst, NelsonHall
It’s common for major HRO announcements to be followed by a conference call, and sometimes one-on-one briefings are also offered for analysts as in the case of the IBM and Kenexa deal. Naturally, the NelsonHall HRO team including myself, Gary Bragar, and Amy Gurchensky took advantage of both opportunities.
IBM’s Own View
The initial announcement was largely from the perspective of the IBM Social Business group that will add Kenexa’s HCM capabilities to its combination of social media, content management, and analytics. IBM believes that this creates value through the application of social technology to front office processes and generates ROI by creating social networks of expertise that leverage analytic insights to improve business processes. In sum, a “Smarter Workforce.”
It is the Whole Elephant…
In Part I, I compared the various views of the IBM and Kenexa news to the analogy of the blind men and the elephant. The answer is that all of the following interpretations are rationales of the deal:
- Builds upon IBM’s social media, analytics, and professional services including BPO
- Brings valuable software, HRO expertise, as well as talent management capabilities
- Increases competition and cross-selling to both IBM’s and Kenexa’s base of Fortune 500 customers
- Delivers value to C-suite executives, HR executives, and the whole value chain of management and employees.
…and Much More
The IBM Global Process Service’s HRO team was involved from the start and will be deeply involved throughout the integration process. RPO services will be combined creating an even bigger global footprint with new service centers including three in the U.S. Kenexa’s learning platform will be reverse engineered to support IBM’s learning services. There are also other parts of Kenexa that can be kept or spun off such as compensation services, behavioral sciences surveys and assessments, and middle market customers.
Kenexa will be a wholly-owned subsidiary for the first year to allow time to determine the best options for unleashing the full value of the deal. Kenexa brings innovative and collaborative intellectual capabilities and a portion of the value is greater than the “stuff” that can be divided up. Even with Kenexa’s leadership intact, the decisions will be many, with lots of players due to the matrix nature of the services and opportunities adding to the normal M&A complexities.
IBM’s Smart Workforce incorporates the concept of the boundary-less enterprise that works across the “whitespace” between processes and organizational silos. IBM wants to make human capital management an integral part of business operations by enabling people to unleash their talent when, where, and how it is most needed to create measureable value.
We each see the world through our own lens of experience and expectations, and sometimes the truly new and innovative “elephant” is harder to see. IBM and Kenexa can create the truly new and we should all hope they do. HCM, HR, HRO, HR tech, IT, social media, and more will have to raise their game to benefit from the new technology, services, and consulting opportunities. And that is a good thing!
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Categories: Acquisitions, hr outsourcing, hro, IBM, Kenexa
Tags: Analytics, behavioral sciences surveys and assessments, bpo, C-suite executives, compensation services, Consulting, content management, cross-selling, Fortune 500 customers, front office processes, global footprint, HCM, HR, HR executives, HR Tech, hro, HRO expertise, human capital management, IBM, IBM Global Process Service, IBM Social Business, IBM’s Smart Workforce, IT, Kenexa, Kenexa learning platform, learning services, nelsonhall, rpo, smarter workforce, social media, social networks, social technology, talent management
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September 13, 2012

Linda Merritt, HRO Research Analyst, NelsonHall
I have not seen such a range of varied opinions from members of the HRO and HR tech communities as those about IBM’s acquisition of Kenexa. The commentary showed that many were taken a bit by surprise and weren’t sure how to analyze the news that IBM was acquiring Kenexa for $1.3bn.
IBM Bought Kenexa?
The surprise was not the purchase of Kenexa, which was foreshadowed by the acquisition of Taleo by Oracle and SuccessFactors by SAP. It was more about the fact that IBM was doing the purchasing.
A few thought that ADP might make such an acquisition since it had already expanded its benefits capabilities with Workscape and SHPS and its RPO capabilities with The RightThing, so wouldn’t talent management make sense? Speculation continued, perhaps Mercer, Ceridian, or even ADP would be the target of an acquisition or merger.
IBM itself was considered likely to continue its acquisitive ways with something more in the talent management / HCM space. Likely targets mentioned included Cornerstone OnDemand, SilkRoad, SumTotal, Saba, with a few suggesting Halogen, Peoplefluent, and others. In short, someone is going to buy something else.
The Meaning of the Deal?
What does this mean we all asked, much like the tale of the Blind Men and the Elephant as was suggested by the leading light Naomi Bloom. Early viewpoints on the acquisition included:
- Continuing IBM’s move into social media and analytics
- Continuing IBM’s move into professional services including strengthening RPO
- Disrupting the HCM market and becoming a talent management player
- Delivering value to the HR executive
- Delivering value to the C-suite and bypassing HR
- Primarily being a HRO deal with some software attached
- Primarily being a software deal with some HRO attached
- Upping competition with SAP, Oracle, Salesforce.com, and even Workday
- Selling into Kenexa’s IBM-like customer base of Fortune 500 clients.
IBM’s news crossed many markets including HRO, HCM, HR tech (software, platform, cloud, etc.), BPO, social media, talent management, and financial and market analysts. Each commenter viewed the same information through the lens of their personal perspective and professional interest, much like the blind men touching different parts of the elephant.
With so many options before it, including IBM’s own announced intentions for the addition of Kenexa, the opportunities are new and exciting. Given the inherent complexities, IBM will face many risks as well. Look for more on The Parable of IBM and Kenexa coming in Part II.
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Categories: hr outsourcing, IBM, Kenexa, recruitment process outsourcing, Talent Management
Tags: ADP, Analytics, benefits, Blind Men and the Elephant, bpo, Ceridian, Cornerstone OnDemand, Halogen, HCM, HR Tech, hro, IBM, Kenexa, Mercer, Naomi Bloom, Oracle, PeopleFluent, rpo, Saba, Salesforce.com, SAP, SHPS, SilkRoad, social media, SuccessFactors, SumTotal, talent management, Taleo, The RightThing, Workday, Workscape
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August 28, 2012

Gary Bragar, HRO Research Director, NelsonHall
Although a bit smaller than the $1.9bn Oracle paid for Taleo (coincidentally at $46 per share as well) and the $3.4bn SAP paid for SuccessFactors, I believe that IBM’s acquisition of Kenexa, a cash transaction at $46 per share or ~$1.3bn and closing in Q4 2012, will have a much more immediate and larger impact than the aforementioned acquisitions.
Both Taleo and SuccessFactors were specifically acquired for their talent management (TM) technology. Beyond the strength of Kenexa’s technology, however, is the provision of TM services including:
- Consulting
- RPO
- Employee engagement
- Leadership development.
According to an IBM study conducted earlier this year, 71% of respondents cited “human capital” as the leading source of sustained economic value, above products and services innovation and significantly higher than technology. Kenexa, as a HCM and TM provider, will compliment IBM’s TM offering, which focuses on the full TM life cycle of attracting, developing, rewarding, and retaining talent. Specifically, IBM’s TM offering includes:
- Recruiting
- Learning
- Performance management
- Compensation
- Succession management.
In addition to its multi-process HRO (MPHRO) offering, which includes TM, IBM also specializes in providing workforce strategy transformation, social technology, and analytics to predict and measure performance.
While RPO is part of IBM’s MPHRO offering, it also provides RPO on a standalone basis to GM. Kenexa’s RPO capabilities, however, will accelerate IBM’s RPO market share, making it one of the largest RPO providers globally with clients headquartered in North America, Europe, and Asia Pacific. Kenexa also delivers RPO services in Latin America including South America in ~25% of its contracts.
Kenexa’s BrassRing technology is one of the two most widely used applicant tracking systems in RPO contracts. Kenexa also brings its Kenexa 2x Recruit platform, which in addition to recruiting and learning contains the following performance management modules:
- Goal setting
- Competencies
- Performance appraisals
- Compensation
- Career development and pathing
- Succession planning.
NelsonHall estimates that Kenexa has more than tripled the size of its RPO business since 2006 with brand name clients including Ford and multi-regional contracts with Baker Hughes and Eli Lilly.
IBM’s price of $46 per share is a 42% premium over Kenexa’s August 24th close, but it will be well worth it. IBM is getting much more than software technology; it is getting assets, including human talent that can make a HCM difference. IBM’s plan is to combine its approach to social business, analytics, and TM to transform business processes to create smarter workforces with measureable business results. Given Kenexa’s record of growth and IBM’s experience with integrating acquisitions, this sounds like a good plan and a great business opportunity for both companies.
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Categories: Acquisitions, hr outsourcing, hro, IBM, Kenexa, recruitment process outsourcing, RPO Offerings, Talent Management
Tags: acquisition, Analytics, attracting, Baker Hughes, BrassRing technology, business processes, compensation, Consulting, Eli Lilly, employee engagement, Ford, GM, HCM, human capital, human capital management, human talent, IBM, Innovation, Kenexa, Kenexa 2x Recruit, Leadership development, learning, MPHRO, multi-process HR outsourcing, Oracle, Performance appraisals, performance management, recruiting, retaining talent, rpo, SAP, smarter workforce, social business, social technology, software technology, SuccessFactors, succession management, succession planning, talent management life cycle, talent management services, Talent management technology, Taleo, workforce strategy transformation
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August 3, 2012

Linda Merritt, HRO Research Analyst, NelsonHall
One of the hottest topics in HR and HRO has been talent management (TM), including everything from recruiting and RPO to performance management and employee engagement. Major ERP vendors have snapped up TM software leaders to strengthen HR product lines, e.g., SAP and SuccessFactors; Oracle and Taleo. Very good moves and very on trend, but let’s not forget about the less flashy powerhouse: workforce management (WM).
TM and WM are both critical components of human capital management (HCM) and depending on definitions and models, there can be a lot of overlap. For my purpose here, TM is about the individual and the capabilities for a specific job position and WM is about groups of workers and managing multiple positions.
TM involves attracting, retaining, and developing people with the required capabilities according to requested volumes and performance management. WM involves workforce planning and forecasting the capabilities and volumes needed and day-to-day scheduling and time and attendance. It takes both processes to have the right number of people, with the right skills, in the right places, at the right time.
Let’s consider two more elements, HR analytics and ROI, that will also benefit from seamless HR systems and processes, which our dear HRO community can enable and deliver. Timely and accurate workforce data is a foundation block upon which HR is built. At least part of the drive for multi-country payroll has been to get better employee data, and there is an important feeder into payroll: time reporting. Today’s leading time and attendance systems offer great flexibility in capturing the detailed data needed for payroll plus analyses of productivity, labor costing, pricing, project billing, workforce planning, etc.
Everybody wants to tie HR and HRO to ROI. Lowering the cost of HR operations alone is not enough. We must show real impact in measurable business results. Simplifying a bit, TM supports improved business results through customer satisfaction and revenues generated; WM supports improved business results through optimizing SG&A via operations and reducing losses.
Many HRO offerings come in basic and advanced levels. HRO providers– ensure you offer both levels of time and attendance, scheduling, and attendance management services. Buyers – take the time to determine whether advanced workforce management services will not only provide better data, but will pay for itself through reductions in overtime and the impact of absences. Also, for many positions and industries, ensuring all customer-facing seats are filled at the right capacity, capability, and time has a direct link to productivity and revenues. Finally, don’t forget about compliance with wage, hour, and labor regulations where accurate records and proactive scheduling are a great defense against fines and losses.
HR and HRO in partnership can be the bridge to strengthen TM and WM across the entire human capital value chain.
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Categories: hr outsourcing, hro, Talent Management, Workforce Management
Tags: advanced workforce management, attendance management services, customer satisfaction, employee engagement, ERP, HCM, HR, HR analytics, HR processes, HR systems, hro, human capital management, multi-country payroll, Oracle, performance management, recruiting, ROI, rpo, SAP, SuccessFactors, talent management, Taleo, time and attendance, time reporting, workforce data, workforce management, workforce planning
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June 11, 2012
Would you build a $4.5bn facility in Africa if you were not sure you could find the skilled workers to run it? That was the comment of a real CFO at this year’s World Economic Forum in Davos. Human capital management (HCM) was one of the hottest topics at the forum drawing C-suite leaders into a full day of discussions. Concern about talent shortages has reached #2 on the risk management list, and top business leaders are recognizing talent as both a key competitive factor in growth and its lack as a risk factor limiting growth, especially in emerging markets.
This was the opening conversation at Mercer’s analyst forum focusing on its Talent, Rewards, and Communications (TRC) consulting practice and its approach to global talent growth. The TRC group is led by Pat Milligan, Senior Partner and President, and it accounts for $600m of Mercer’s $3.8bn 2011 revenues.
The forum was also about Mercer’s approach to its own growth. Mercer has increased its feet on the ground in emerging markets and is adding to its portfolio of services. Having completed seven acquisitions in the last sixteen months, including ORC Worldwide and CENSEO, expect to see more strategic acquisitions in the near future as Mercer leverages its cash on hand to build scale. Mercer’s TRC practice already has a great start with 55% of revenues from outside of the U.S. and 18% growth in 2011, 11% organic.
Mercer is focusing on more than consulting as a standalone service. It is combining consulting with enabling technology and data to continue to win in its very competitive market space. Along with discussions on talent management, there were demonstrations of technologies and tool kits to gather, monitor, and manage information that helps clients make better people decisions, such as Mercer iknow and Human Capital Connect.
Most clients cannot afford to immediately “rip and replace” their current tools and technologies, so Mercer will also help clients who say, “make what I have work.” Its new Belong portal will be the front door to bringing together the information, tools, and applications – whether it’s Mercer’s own or a client’s blend of programs. Offering HR portals is not new, but Mercer is building in data extractors to offer the most needed information, dashboards, and limited functionality within the portal without having to go out to the full application.
There are other critical components to consider. This is where HRO comes in as part of the build and operations team to ensure cost-effective and viable end-to-end HR services for the participants, HR generalists and COEs, managers, senior leadership, and the enterprise itself.
Whether as a single source of consulting, solutions, and services or by using an ecosystem of preferred partners, is your HRO service provider(s) capable of helping you go from strategy to design, build, operate, and improve your HR capabilities and services to deliver full business value?
Linda Merritt, HRO Research Analyst, NelsonHall
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Categories: HR Analyst Events, hro, HRO Services, Human Capital Management, Mercer, Talent Management
Tags: acquisitions, and communication, Belong portal, CENSEO, Consulting, data extractors, emerging markets, global talent growth, HCM, HR capabilities, human capital management, Mercer, Mercer Human Capital Connect, Mercer iknow, ORC Worldwide, rewards, risk management list, Strategy, talent, talent management, Talent Shortage, World Economic Forum
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June 1, 2012
Last week, ADP held its annual industry analyst day in NYC. Its priorities for the event included communicating its identity and progress as a global HCM company, its innovations in talent management, and its benefit services. Of course no ADP analyst day would be complete without product demos.
To begin the day, Carlos Rodriguez, CEO, spoke about the company’s vision to become the global HCM market leader. With workforces expanding globally, talent shortages, and the need to be more strategic, the international HCM opportunity is huge and ADP is determined to be at the center of it all. Given its large client footprint for its payroll and time and attendance solutions, integrating talent management functions including learning, compensation, and performance will be paramount for global domination in the HCM market.
Well-timed with the analyst event was ADP’s announcement that it launched an integrated end-to-end platform for talent management. In addition to talent acquisition, compensation and performance management, and succession, the talent management suite now leverages advanced learning management tools, learning content from Bersin and Associates, and an enterprise competency framework, and will be available for both its GlobalView and Vantage platforms.
ADP’s HCM toolbox is loaded and ready to be used. The GlobalView platform is available in 81 countries; the general availability date for Vantage has moved up to June; and WorkforceNow, which includes integrated HR, payroll, time and labor management, benefits, and talent management will soon support Canada. On the back-end, it would be great to see some HR BPO opportunities beyond payroll arise, and the company has been busy making enhancements to this portfolio as well.
In addition to its acquisition of the The RightThing, which brought in RPO capabilities, ADP has been quite busy building up its benefits business. There is great potential for benefits outsourcing due to changing regulations and complexities, not to mention the fact that an HCM market leader would not be complete without a strong benefits offering. Investments began with the Workscape acquisition, and continued with Asparity (for decision-support tools, analytics, and reporting) and SHPS (for reimbursement account administration and absence management). Finally, it added a Strategic Advisory Services offering to provide value-added analytics and advice to clients.
Amy L. Gurchensky, Research Analyst, HRO, NelsonHall
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Categories: ADP, HR Analyst Events
Tags: absence management, advanced learning management tools, Asparity Decision Solutions, benefits administration, benefits administration outsourcing, Bersin and Associates, compensation management, decision support tools, enterprise competency framework, global HCM, global workforce, GlobalView, HCM, HR analytics, HR BPO, integrated end-to-end talent management, international HCM, learning, learning content, payroll, performance management, Reimbursement account administration, rpo, SHPS Human Resource Solutions, Strategic Advisory Services, succession, talent acquisition, talent management, Talent Shortage, The RightThing, time and attendance, Vantage, WorkforceNow, Workscape
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March 19, 2012
I attended ADP’s Meeting of the Minds (ADP MOTM) that happened last week March 11 to 14 in Dallas. This was my first time attending, and I didn’t quite know what to expect until I arrived—well, how about ~900 enthusiastic ADP clients. This is an annual event of which ~30% of attendees were first timers.
Sure, there were a few ADP presentations and demonstrations on ADP’s latest products and services, but many of the sessions were not conducted by ADP and were instead facilitated by HR practitioners and clients. Professional development would be a good way to summarize it. As they say, everything is bigger in Texas—how about ~170 sessions that you could attend to learn about everything from Healthcare Reform to Payroll taxes, to RPO, to best practices across a number of services, and functions including shared services, recruiting, change management, etc. There were also hands-on training sessions, of which I attended Learning, part of ADP’s Talent Management.
I could write my entire blog talking about the keynote speaker, Emmitt Smith, and the fun social events, but I’ll shift gears to talk about HRO to keep with our blog focus.
To begin, it’s important to share ADP’s three priorities, as stated by CEO Carlos Rodriguez, that are important to advance ADP as a:
- Technical leader
- Service leader
- Global leader.
Regina Lee, president of ADP’s national and major accounts, GlobalView, and ADP Canada, spoke about four key areas of investments that were made by ADP:
- Integrated Human Capital Management: including Vantage HCM and Workforce Now
- Talent Management: including the integration of performance management, succession planning, and learning. ADP’s talent management platform has over 100 clients
- Benefits Administration and Healthcare Management: having acquired Workscape in 2010 to strengthen ADP’s benefits administration capability, in addition to Workscape’s talent management and compensation capability. On March 8, ADP announced it has entered into an agreement to acquire SHPS Human Resource Solutions (rationale is below)
- HR BPO, including the acquitisition of The RightThing in October 2011 (further details below).
I’ll finish my blog focusing on Benefits Administration and RPO.
The Workscape acquisition has proven to be a success, with ADP adding ~100 additional benefits clients annually. SHPS will further strengthen ADP’s benefits administration offering with capabilities including:
- Eligibility and enrollment
- Spending accounts administration
- COBRA administration
- Absence management
- Benefits advocacy.
SHPS will strengthen ADP’s leave administration and reimbursement account administration capabilities, including HSAs and HRAs, which have become increasingly important as more employers offer high deductible benefits plans to their employees. You can read about this in my recent blog.
The RightThing – coming off its best year in 2011 – was ranked by NelsonHall in its 2011 RPO report as the top U.S. RPO provider in terms of North American revenue, bringing in ~80 clients. Prior to the acquisition, ADP provided recruitment administration and technology, but it is now a full end-to-end RPO services provider. Expect an RPO contract announcement soon and much more to come as RPO will continue to be provided as a standalone service and now also in combination with ADP’s multi-process HRO services.
Gary Bragar, HRO Research Director, NelsonHall
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Categories: benefits administration, benefits administration outsourcing, Change Management, COBRA, healthcare, Healthcare Reform, hr outsourcing, hr outsourcing research, HRA, hro, HRO providers, hro research, HSA, Human Capital Management, multi-process hro, nelsonhall, Payroll Taxes, recruiting services, recruitment process outsourcing, Shared Services Centers, Talent Management
Tags: ADP, ADP Canada, ADP MOTM, benefits administration, change management, COBRA, GlobalView, HCM, Healthcare management, healthcare reform, HR, hr outsourcing, hr outsourcing research, HRA, hro, HRO providers, hro research, HSA, Meeting of the Minds, MPHRO, nelsonhall, Payroll taxes, recruiting, rpo, Shared Services Centers, SHPS Human Resource, talent management, Texas, The Right, Workforce Now, Workscape
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February 24, 2012
Can employers be recognized as leadership development advocates and a great place to work and still take advantage of HRO services? Yes—and recent “best companies” announcements provide plenty of examples.
Fortune’s annual 100 Best Companies to Work For list includes a number of companies known to use HRO services. RPO examples include: American Express (Hays RPO), Edward Jones and Intuit (Manpower Group), Microsoft and Novartis (Alexander Mann Solutions), and SAS and Telefonica (Ochre House). Accenture, which provides HRO services, is on the list as an employer.
HRO clients are also among the recognized companies in the 2011 Top Companies for Leaders, another recent Fortune study in association with Aon Hewitt. PepsiCo (Aon Hewitt) and Unilever (Accenture, IBM) are among the multinationals taking the lead in developing leaders. Again we see RPO as a common talent management service selection; Eli Lily and Novartis AG (The Right Thing, An ADP Company), GE and Siemens AG (KellyOCG), and Whirlpool (Kenexa). IBM, another major HRO player, is recognized, as is Wipro. Accenture is noted on the U.S. list and Infosys is on the Asia Pacific list. ADP is included in the 2012 list of 10 Best Companies for Leaders rankings by the Chief Executive.
Business Today has just released its 11th annual “Best Companies to Work for” in India and top companies include HRO providers such as Accenture, IBM, Infosys, Wipro, and TCS. Honeywell International (SourceRight Solutions) also made the list and is on the U.S. list for Leaders as well.
The lists go on and on and you will find companies that use HRO as well as HRO providers among the best of the best. You can be a pioneer in leadership development and use HRO in critical talent management areas. You can achieve greatness in any region of the world. You can even look to some of the HRO providers to share their own expertise as a “best company” in the human capital leadership arena.
Will HRO automatically make you the best company? No. However, HRO will not slow you down and may even provide a committed partner in accelerating your success.
Linda Merritt, Research Analyst, HRO, NelsonHall
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Categories: hr outsourcing, hr outsourcing research, hro, HRO Service Provider, Human Capital Management, nelsonhall, recruitment process outsourcing, Talent Management
Tags: Accenture, ADP, Alexander Mann Solutions, American Express, Aon Hewitt, Asia-Pacific, Edward Jones, Eli Lily, Fortune, Fortune's 100 best companies to work for, GE, Hays RPO, HCM, HR, hr outsourcing, hro, hro research, HRO services, human capital management, IBM, Intuit, KellyOCG, Kenexa, Manpower Group, Microsoft, nelsonhall, Novartis, Ochre House, PepsiCo, rpo, SAS, Siemens AG, talent management, Telefonica, The Right Thing, Unilever, Whirlpool, Wipro
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January 12, 2012
The NelsonHall HRO team is pleased to once again contribute the annual HRO Today thought leaders forecast of trends that will influence the year ahead. ‘Artful Predictions’ covers a range of topics with talent management (TM) as one of the highlighted trends. We have covered the subject of talent management frequently as we see the opportunity for it to become an integral part of HR business process outsourcing.
For some time, I have called talent management a disputed ground and a potentially disruptive force that could shake up the HRO field. Why? This is because TM elements include so much of the human capital management value chain and cross over everything—from HR ERPs, software modules, HRO business process outsourcing, HR consulting and the roles of HR leaders, HR business partners, and internal shared service centers. TM includes performance management, succession and career planning, recruiting and staffing, compensation, and learning. I also include workforce planning and management under the TM umbrella.
In addition to the HR ERP vendors and the specialty TM software providers, there are HRO providers that are also building out their TM capability internally as well as through strategic partnerships and acquisitions.
- Kenexa acquired BHI (Batrus Hollweg) a TM company. Although Kenexa has developed TM expertise internally, the company has also been enhancing its efforts over the past few years through prior acquisitions that have included:
- Salary.com to strengthen its compensation management capability
- The Centre for High Performance Development to further strengthen its leadership development and management training offering
- Gantz Wiley Research to increase its employee survey research capabilities.
- Mercer acquired Censeo Corporation to enhance its TM consulting capabilities and online platform of assessment services.
- Both Kenexa and NGA are partnering with SkillSoft for learning content.
- In July, Talent2 re-branded itself to simplify its talent management focus.
- It also became a reseller of Cornerstone OnDemand, most widely used for its performance management, including succession planning and learning modules.
- Talent2 also added advisory services as a service offering to help clients more effectively deploy the capabilities.
With recruiting as one of the core TM processes, RPO vendors are among the early leaders in developing internal as well as external TM service options. NorthgateArinso has been moving in this area as well, coming from the standpoint of bring it all together into one integrated system and services package. With the acquisition of The Right Thing, ADP signals both a stronger move into RPO and its interest in TM.
The HRO Today article also discusses whether HRO has reached the maturity stage of providing ‘true business value’. I believe that talent management evolving into a full-fledged HRO service with technology-enabled tools, data integration across the full suite of HR data, supported by analytics assistance and consulting is critical to HRO providing true business value results for clients and achieving its own full measure of success as an invaluable industry.
Linda Merritt, Research Analyst, HRO, NelsonHall
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Categories: HR Consulting, hr outsourcing, hr outsourcing research, hro, hro research, Human Capital Management, nelsonhall, performance management, recruitment process outsourcing, Talent Management
Tags: ADP, BHI, Censeo Corporation, Cornerstone OnDemand, Gantz Wiley Research, HCM, HR, HR consulting, HR ERP, hr outsourcing, hro, HRO providers, hro research, HRO Today, human capital management, Kenexa, Mercer, nelsonhall, NGA, NorthgateArinso, performance management, Salary.com The Centre for High Performance Development, SkillSoft, talent management, Talent2, TheRightThing, workforce planning
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