Posted tagged ‘HR Technology Conference’

The CedarCrestone HR Systems Survey and HRO: Part 1

December 7, 2012
Linda Merritt, HRO Research Analyst, NelsonHall

Linda Merritt, HRO Research Analyst, NelsonHall

Lexy Martin, CedarCrestone’s research and analytics vice president, debuted the 2012-2013 HR Systems Survey at the HR Technology Conference. I always enjoy pouring over this research, particularly now as it is in its 15th year and is full of trends and insights into what is happening with HR technology. The findings are especially interesting this year as we see the emergence of newer technologies come into usage and high expectations for the future growth of HR SaaS HRMS, analytics, social, and mobile technologies.There is a lot of good news for HRO service providers and HR technology vendors. As we know, technology investments have seen some lean years recently. This year, the survey of 1,246 respondents from HR, IT, finance, operations, and executives indicates that 50% of large and medium-sized organizations will be increasing HR technology spend for 2013. Interestingly, the largest increase will be from organizations outside of the U.S. and Europe (59% to 44%).

The top HR technology initiatives for 2012-2013 include:

  • Business process improvements and innovations
  • Talent management processes and automation
  • Service delivery improvements
  • Business intelligence/workforce metrics.

While the greatest growth over the next three years is expected for workforce analytics/planning (142%), social media tools (81%), and service delivery (57%), it is important to remember that adoption of the more common technologies is not at 100%. HR administration is highest at 95%, but service delivery applications, which include employee and manager self-service is only at 49%. Check the full report for results by size and industry. For example, large enterprises have higher adoption rates, and industry varies with early adopters seen in high tech, financial services, and retail and late adopters seen in higher education and public administration.

Key Observations

  • A shared services delivery model that includes an HR help desk application and self-service delivers the highest level of efficiency to enterprises and saves at least 15% in administration costs
  • Basic workforce management technologies including time management self-service, absence management, labor scheduling, and labor budgeting can grow operating income faster
  • An integrated HRMS and talent management solution can yield up to 33% higher revenue per employee.

The survey is not about HR outsourcing, but it sure applies. Between the HR technology initiatives, state of adoption of HR technologies, and evidence of results who better to help a client out than your friendly HR service provider!

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HR Tech Another Success: Part 2

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.

Interested in reading the latest HRO news from NelsonHall? Subscribe to our newsletter by clicking here.

HR Tech Another Success: Part I

October 16, 2012

Gary Bragar, HRO Research Director, NelsonHall

HR Tech was again a very worthwhile investment of my time. Here are some highlights of the new Outsourcing Track presentations I attended:

  • Cisco Uses RPO to Help Hire Up to 15,000 a Year:Using a hybrid co-ownership model, the Randstad Sourceright recruitment team works alongside the Cisco recruitment team to provide services including sourcing, recruiting, and onboarding. Services provided are primarily in the Americas, but may expand into EMEA and possibly Asia where Randstad Sourceright has a presence. Using the hybrid model, Cisco has been able to cut its $120m talent acquisition spend in half.
    • Mark Hamberlin, VP HR Global Staffing, Cisco
    • Rebecca Callahan, President RPO, Randstad Sourceright
  • Ericsson Outsources Global Payroll in Manila:Ericsson issued a RFI to 25 vendors, then created a short-list of 5, and ultimately selected Talent2. Managed payroll services provided by Talent2 for Ericsson in Southeast Asia and Oceania include 4,500 employees in 12 countries, which prior to outsourcing had 12 different payroll processes. Manila is the shared service center. Major benefits obtained by Ericsson thus far include: reduced risk management, minimized complexity of dealing with local tax laws, and ease of expanding into new countries.
    • Mark Howes, HR Director Asia Pacific, Ericsson
    • Mary Sue Rogers, Global Managing Director, HR Managed Services, Talent2
  • Whirlpool Leverages RPO to Transform Talent Acquisition:Pre-RPO recruitment was decentralized and lacked consistency and methodology in its sourcing approach. Business partners were also spending a lot of time doing transactional work including screening and reviewing resumes. Kenexa’s RPO services include: sourcing, screening, administration, candidate management, creation of employment value proposition, and management of the candidate experience primarily in North America with some testing in Europe. KPI’s include: time to fill, quality of the candidate slate, diversity slate, and end-user satisfaction.
    • Lynanne Kunkel, VP of HR, Whirlpool North America
    • Rudy Karsan, CEO, Kenexa

Here are highlights from my RPO meetings:

  • Pinstripe and Ochre House: Pinstripe has won 12 new RPO contracts YTD and its partner Ochre House continues to win new contracts in EMEA including North Africa and the Middle East as a result of its acquisitions of TAAHEED and Carmichael Fisher in early 2012.
  • ManpowerGroup Solutions: New contract wins YTD include 40+ RPO deals globally in 20 countries. It has also expanded existing clients into new geographies including a U.S.-headquartered firm that expanded into China and Southeast Asia and a Spanish-headquartered firm that expanded throughout Europe and Latin America.
  • Randstad Sourceright: Currently with ~100 RPO clients, it won 18 new contracts YTD. Four of its new wins are global deals as a result of the merger of Randstad and SFN Group, which was completed in September 2011. Its fastest growth has been in the mid-market.
  • The RightThing, an ADP Company: Total RPO client count is at 80+. YTD wins include several enterprise and mid-market clients with ~50% as new clients and ~50% as existing ADP clients that added RPO services.
  • WilsonHCG: Primarily serving large and mid-size clients, WilsonHCG also has small clients with <500 employees. The company has a 94% satisfaction rating with candidates and hiring managers across clients.

Stay tuned for my next blog where I will discuss additional meetings I had with Patersons, IBM, Hogan Assessments, SHL Assessments, Secova, ADP, Equifax Workforce Solutions, HireVue, and JobVite.

In the meantime, NelsonHall just published its fourth global RPO market analysis.

Interested in reading the latest HRO news from NelsonHall? Subscribe to our newsletter by clicking here.

ADP has a Platform for HRO Success

October 11, 2011

Last week, many of us covered announcements from the HR Technology conference.  Among the new service news was ADP’s Vantage HCM SaaS and BPO platform, which was formally launched on October 3rd at HR Tech.

Vantage HCM covers HR administration, benefits, payroll, time and attendance, and talent management. It is an enhanced version of ADP’s successful Workforce Now platform, which was launched in October 2009 and already has more than 10,000 clients. ADP is estimated to have invested 18 months and $600m in the new platform. General availability is slated for March 2012 to allow time for full testing of critical high volume HR activities such as annual open enrollment and end-of-year payroll with 12 pilot clients from a variety of industries with 1,200 to 20,000 employees.

I see a bigger story here: ADP has built a business platform to support execution of its strategies. Here are several elements I see in play.

Support the core. ADP is adding new services while protecting and enhancing payroll, its single largest revenue generator. Payroll is built into the core package of each multiple process HR (MPHRO) system.

Serve your main markets. In payroll, ADP supports every size organization. Now, it offers MPHRO platforms for nearly every size organization: Workforce Now provides core HR needs for less than 3,000 employees; Vantage HCM covers more robust HR needs and talent management for up to 20,000 employees; and Global View supports large, multi-country organizations typically with more than 20,000 employees.

Leverage acquisitions.  Vantage HCM talent management services include succession planning, performance management, and compensation management as the fruits of collaboration between ADP and Workscape, which was acquired last year.

Reuse development investments.  Vantage HCM uses “plug and play” design for fast and easy additions, integration of new modules, or preferred partners, such as Cornerstone for learning.  Access will be immediately available from multiple devices including smartphones, another benefit of development reuse.

Roadmap development and growth. Workforce Now and Vantage HCM are U.S. services. Both will be expanded to Canada, with Workforce Now ready in 2012. In the future clients will be able to choose the basic benefits module or Workscape services for more complex benefits needs.

Buy, build, and go. ADP prefers to buy or build for strategic growth services. It chose to build its own proprietary MPHRO systems. It acquires complementary service lines and players in geographies to quickly establish a beachhead with top tier players. Once it identifies a target, it moves fast, integrates new acquisitions and captures synergy savings.  (ADP just announced acquisition of The RightThing for RPO. Acting fast indeed!)

Go your own way. Most MPHRO providers offer HR analytic packages as an added cost option. ADP is building in related data views, dashboards, metrics, and integrating workforce analytics use right at the point of need.

Do you have a business platform as broad and consistently used as ADP’s?

Linda Merritt, Research Analyst, HRO, NelsonHall

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Finding it Hard to Keep Up with HR Technology? Plan to Attend HR Tech This Year

July 15, 2011

After attending last year’s HR Technology Conference in Chicago, I blogged about my positive experience with themes that included portals, platforms, and self-service and highly recommended attending this year’s conference.  Well, the time to plan for this year has come!   This year’s HR Technology Conference and Exhibition is October 3 – 5 in Las Vegas.  I’ve been given a special discount code for attendees to use when registering.  Enter HRO11(all caps) as the promotion code when you register online to get $500 off the posted rate.  The discount expires September 19th.

Why do I think this is such a worthwhile event? We live in a technology world, but I continue to be amazed at the number of new HR technology offerings that are announced each month, sometimes weekly! As a former HR buy-side client, I can resonate quite well with the masses that are thinking about whether or not to invest in new technology. There are so many things to consider including:

  • What is the latest technology for HR and payroll services, be it an applicant tracking system, a talent management system, an e-learning or multi-country payroll platform, benefits enrollment technology, etc.?
  • Who is providing what?
  • How easy and user friendly is it?
  • How will it benefit my business?
  • If I’m interested in a particular product or service, how do I know who to contact to get a demo for other members of my organization, etc.?

What I really liked about the conference is that you can walk the exhibit floor and attend whatever demo you like and speak with representatives knowledgeable about the products and services and not feel like you are being swarmed upon by vultures.  This is because the exhibit floor is loaded with many other curious HR practitioners and often the booths have so many people interested that group demos are given, so you can watch, learn, and ask questions with others.

Equally as good if not better are the conference presentations.  For example, let’s say you are the director of employment of talent acquisition for your company and you have been hearing about video interviewing.  Further, maybe you heard about Kenexa’s recent alliance with GreenJobInterview to integrate its virtual video interviewing capability into Kenexa’s 2x BrassRing so candidates can be interviewed virtually.  Well, this all sounds good, but isn’t it better to learn more about the benefits and results obtained by video interviewing from another buy-side client?  Well, you can on October 3rd from Mike Grennier, Senior Director of Corporate Recruiting at Wal-Mart, at his presentation titled “Wal-Mart Embraces Video Interviewing for Job Applicants.”

If you read my colleague Linda Merritt’s blog earlier this week on analytics and are interested in learning more, then on October 4th Randy MacDonald, SVP of HR at IBM, will give a presentation on technology and analytics and how IBM helps clients quantify HR results.  I’m a big proponent of technology, but I’m a bigger advocate in my belief that technology is only as good as it is utilized and produces results.  Here, we will learn how IBM helps its clients.

I hope to see you there.

Gary Bragar,  HR Outsourcing Research Director, NelsonHall