Future HR

Has Technology Weakened HR?

Picture: 周小逸 Ian : Flickr
12 May 2016

This seems somewhat of an odd statement to make in todays technology obsessed world – surely HR technology has allowed People practitioners to greatly improve efficiency by reducing manual and paper-based activities, improving data access & reporting, reducing errors, helping employees make better decisions and ensuring compliance to policy and procedure.

This is of course true at a transaction level, but herein lies the problem. The way vendors have generally designed HR technology is not an accurate reflection of how professional HR and Talent managers think, nor does it signal an understanding of the complexities in Professional HR Management. In fact the slicing-up of HR into different software modules along ‘logic’ and ‘transaction’ lines of thinking has created and perpetuates the view that HR is simply a set of somewhat loosely interrelated basic transactions.

And surely that can’t be too difficult to get right! ah, yeah!  But yet time and time again we see HR functions under attack for poor performance and low value contribution. With these perceptions abound, no wonder there is doubt among some C-levels that HR is needed.

If only HR Management was so simple and logical. But it isn’t. There are a significant amount of people dimensions used by HR professionals which are not logically inclined or lend themselves to be developed into a ‘transaction’, let alone a software module. Think about important people management facets such as ‘Ethics’ , ‘Style’, ‘Diversity’ and ‘Values’ – these are key HR influences in achieving particular strategic business outcomes, and they are fundamentally intertwined into such things as learning, performance, development, communication and knowledge sharing. But they are ‘non-existing pieces’ in the HR software puzzle.

This is not a jibe at HR Software vendors. In fact some vendors clearly understand the impact of these gaps and are working hard to address them. Particularly those vendors who are focused on superior technical integration between modules.

They realize that while they have in many cases reduced HR to modular transactions to make it easy for end users, they also understand that the all-important ‘HR complexity value factor’ is partly resolved when effective and seamless integration across these modules occurs. The combination of modular interaction offers some support in achieving strategic HR objectives. Keep going vendors, there is lots more to do in this space!

HR Technology has inadvertently contributed to a weakening of professional HR outputs, but the finger should however point directly at the HR leader who has allowed the function to be reduced to a set of modules and transactions.

It’s an easy way out for poor performing HR leaders, and provides an opportunity to shift the blame onto technology. Professional HR management is not an easy job, in fact it is highly complex, with over 40 major elements or activities being continuously juggled to produce desired business outputs. Those that are successful also understand how HR technology should be used and positioned to enable people to achieve great things.

Do you have an opinion on this?

5 STEPS TO BOOSTING DIGITAL HR LITERACY & TRANSFORMATION

Upskilling and introducing new competencies into HR will help ensure digital transformation initiatives succeed, writes Rob Scott

Original article published by Inside HR Magazine (Feb 2016)

Given a digital workplace is undeniably the future we are rapidly heading towards, the skills any future employee will need to be effective and remain market-competitive is an important consideration for HR and talent managers. HR functions have had first-hand experience of resistance from executives to hand over strategic accountability, mainly because their business skills and acumen have been lacking.

The HR function is not immune to the disruption of modern technology; in fact, the advent of Cloud and SaaS technologies in the HR space is ahead of many other business functions. It’s an advantage that HR leaders should capitalise on to secure the relevance of the function in a digitally minded work environment.

Being digitally literate for HR is a prerequisite for the next wave of business transformation. So what are the competencies, knowledge areas and behaviours required to ensure HR professionals can deliver optimised future service? I have identified five focus areas, each of which houses a number of different subsets.
Digital HR literacy

1. Computer and platform literacy
This competency area is often mistaken as the equivalent of digital literacy. Rather, this skill set is a predecessor of digital and includes understanding how desktop PCs, laptops, smartphones and tablets work. This includes how these systems are best consumed and how they connect, and managing software applications. For many, these are skills associated with IT specialists. These skills are no longer an IT domain but have become general business skills which form a fundamental base to foster digital innovation and creativity.

2. Data design and ethics
These two components may seem like distant cousins, but how and what data we collect and derive is both a powerful business opportunity as well as one that borders on intrusion, invasion of privacy and manipulation. This skill set involves an understanding of other disciplines such as marketing and finance, as well as how things such as graphics, video, Internet of Things (IoT) feeds and other non-transactional data are integrated and designed to produce evidence-based outcomes.

3. Analytics
Analytic skills are closely aligned with data design and ethics. It’s far more than producing quality outputs, which is increasingly becoming a science in itself, and has a strong emphasis on ensuring the right information is being analysed and interpreted to inform business- and people-related decisions. Just as HR faced rebuke by becoming pseudo psychologists with off-the-shelf psychometric assessments, this skill set is embedded in formal data-science education.

4. Social intelligence
Social tools are ubiquitous and increasingly straddle our private and work lives. Understanding how search, content and social media work together requires technical understanding such as SEO as well as strategic alignment and tactical execution skills. Creating, observing and responding activities are reliant on a creative mindset, communication, writing and PR skills.

5. Innovative mindset
SaaS solutions as well as hardware are continuously being updated and improved, to the extent that new features are being “dropped” by the vendors every few months. Ignoring new features and capabilities for extended time periods is not a good strategy; rather, HR should embrace an agile and continuous improvement approach to its operating model. Skills relevant to support innovation include novel, critical & adaptive thinking, problem solving and design concepts.

Most seasoned HR professionals won’t fall into the “digital native” category, meaning that many of these concepts will be foreign and confronting. However, upskilling and introducing new competencies into the HR function will ensure digital transformation initiatives are executed with insight and purpose.

The scope of digital HR literacy

  • The next wave of business transformation will develop around the creation of a digital work ecosystem.
  • Being digitally literate is not the same as being computer literate. It’s about understanding the creation, consumption, management, manipulation and interpretation of information across multiple platforms to achieve business goals.
  • HR should capitalise on their lead in Cloud and SaaS technology deployments to further develop their digital skill sets and influence.
  • Some digital literacy skills – such as being computer literate – are general competencies; others such as data analysis are specialist skills supported by formal qualifications.
  • Digital skills should be spread across many HR roles, rather than thinking they are inherent in a single individual.

Your future HR System will “Persuade” you

It isn’t a new idea that computers, mobile phones, websites and wearable technologies can be built in ways which influence your behaviour or causes you to think in a new way over time. While one could argue that this is akin to brainwashing, when used appropriately it can be very beneficial to end users as well as system owners. Just think how your smart-phone or Fitbit health band has altered your behaviour without you realizing it.

The idea of “persuasive computing” was first coined around 1990 by Standford University researcher Dr BJ Fogg. Much of his current work centres on teaching technology developers the psychology of behavioural change, and how to facilitate behaviour change via their technologies. Hello, isn’t this what HR people are supposed to be good at given that Psychology is the foundation of most HR professionals education? It begs the question as to why HR software vendors have not built their solutions with more “persuasive computing” thinking which could motivate end users to behave in a way that would benefit themself, HR and the organization.

Most HRIS vendors have developed visual dashboards, alerts and many use gamification techniques to encourage end users to do things, but in my view these are largely fear based design principles rather than motivational ones. These vendors are wedded to the “principle of standardization” ~ that a system process should be applied consistently to all users irrespective of their current habits, behaviours or motivation level. We need HR software that takes an individual’s current state as a base-line and uniquely “shapes” the HR software to suit that user. In the process of “shaping”, the end user is more likely to react in a particular way, do things suitable to their current state of behaviour & motivation level all while providing HR with a platform to influencing future behaviour of that individual.

BJ Fogg makes a great point that we cannot do complex things when our motivation level is low. Likewise we have windows of opportunity to do hard and complex things when our motivation level is high. SaaS HR tools in particular gather a lot of important Meta data that could quite easily be used to measure a users’ current state of motivation or other states of mind. When a users motivation is low for example, the HR system should “reshape” to encourage easy activities, while taking advantage of times when the end user has high motivation to get more difficult and perhaps more things done, while at the same time facilitating behaviour change so that these hard tasks become easy over time and can be done when motivation is at a lower level.

As HR people, our goal must be to think outside our rigid and standardisation boxes. To much of what HR achieves in our organizations are “feats of compliance” rather than value adding benefits. This is because we are standardisation-centric rather than employee centric. I would much rather a line manager do HR tasks that he or she is motivated to do, which add real business value and develop correct habits which facilitate personal growth in effective people management than forcing a person to comply to something because “HR says so!” – technology can help us achieve this.

There’s a greater role for HR software than simple process and transactional efficiency. For a tool that has so many components linked to people behaviour, we need vendors who understand persuasion and behaviour change though technology to come to the party.

So HR is imperfect!, but so is mathematics – get over it!

photo credit: All rights reserved by shellydelight – Flikr

updated March 2016

It started as a jovial discussion with some office colleagues about the “Meaning of Life” – that yet unanswered question which has plagued human kind since the beginning of our existence. Naturally we considered all unconventional opinions such as that of Monty Python,

“Try and be nice to people, avoid eating fat, read a good book every now and then, get some walking in, and try and live together in peace and harmony with people of all creeds and nations.”

the Hitchhiker’s Guide to the Galaxy,

“The answer to the ultimate question of life, the universe, and everything = 42”

and to the more serious, such as concentration camp survivor Victor Frankl’s resolve to  “Having a sense of purpose that keeps your eyes on meaningful goals ahead” and general theological views which purport “To love and serve your god, and love and serve others”

But it didn’t take long before the flavour of the conversation became focussed on People…. more so the people in the workforce. We found ourselves asking a singular and fundamental question:

“WHY DOES HR EXIST?”

It’s a profound question that may have been asked before, but probably not simply answered.

In trying to answer the question our natural HR instincts lead us to describe HR activities – you know, the tons of things HR gets involved with in-between “Hiring & Firing” such as recruitment, talent development, learning, administration, workforce planning, comp & benefits, strategy etc. We raised our discussion to a “People Impact” and “Value through people” view which got us a little closer, but we were still unable to reach consensus on the proverbial question.

I reached out to my good mate Lyle Cooper, who likes to ponder difficult HR questions. He reminded me that “No person has been able to absolutely define and therefore control human behaviour”- he makes it a life-rule to run as fast as he can from anyone who claims to have a definitive answer about people, culture, life, afterlife etc.

Lyle’s point really goes to the heart of social (or human) sciences, the basis for much of what HR does, in that they are not perfect sciences. No matter how hard we try, we are not going to create the perfect performance management environment, a perfect engagement model or the ultimate user experience.

And it was this point that reminded me of the ongoing debate among mathematicians about the answer to the mathematical statement 00 (zero raised to the power of zero). The arguments as to whether the answer is 1(one), 0(zero) or indeterminate are excruciatingly painful to read and understand (especially if you are not a mathematician like me).

But while there are extreme views, most mathematicians agree  that  00 = 1 is preferable, as it is more useful than the alternative choices, leading to simpler theorems, or feeling more “natural” to mathematicians.

“The choice is not “right”, it is merely nice”, is resoundingly similar to the “lack-of-evidence” and “soft & fluffy” disputes HR finds itself embroiled in.

So, while not perfect in any way, my response to the question “WHY DOES HR EXIST?” is “00. It fits perfectly with mathematician’s dilemma.   Business functions and HR professionals are unlikely to ever agree on a common reason for HR’s existence, but by accepting 00  = 1, HR professionals are able to move forward. HR will make validity concessions, builds faulty frameworks, creates imperfect processes and design software to support an imperfect business environment – and that’s okay!

One day we may find that much of what HR is doing is wrong, in the same way many mathematical assumptions may be questioned if and when someone conclusively proves what the answer to 00 is. But until it’s proved otherwise, let HR execute its stuff…its time to stop focusing on the equation!

HR is imperfect!, but so is mathematics (and therefor finance, procurement and operations management) – the next time someone challenges  your HR framework, assumptions or software choices, be sure to remind them that the meaning of HR = 00.

Rob Scott is the Global Lead: HR Strategy and Innovation for Presence of IT, A global HR,Talent, Payroll and WFM consultancy.

Your (HR) data will find you

I’ve never been a fan of telling other people what to do, think or say. I find it arrogant and demeaning at both a personal and professional level, and aside from situations warranting it (e.g. your immediate safety), you quickly lose respect and credibility. In many ways HR reporting has committed this same offence. For some reason HR leaders continue to produce standard HR reports and dish these out at regular intervals to management and executives for examination and supposed insight into their business operations. I don’t know about you, but I haven’t met too many leaders or managers who are excitedly waiting for the next HR report to land on their desk or email in-box.

Standard HR reporting has reached retirement age, and should be put out to pasture. It’s a reactive way of looking at your business and people management, and has its roots in a time when HR had to spend hours and days collecting, fixing and consolidating information into spreadsheets before distributing a report that added little value. Managers don’t need a report to tell them they have 3 vacancies unfilled, or that it took 47 days to fill a position or that 7 appraisals are still outstanding. They know all of that before they get the report. Sadly I still see many HR functions fixated on producing their “monthly report”.

Most modern HR systems have dashboard, trend analysis and mini analytics that replace the need for Standard HR reporting. This is much more effective and removes the constraints (and arrogant assumptions) of standard reporting by offering line managers a choice of information to support their decision making, and more importantly, they get it immediately. At a minimum you should be providing this approach to managers.

This approach doesn’t however go far enough. If line managers don’t know what questions to ask or what data or information is relevant, they won’t get the best outcome. This shouldn’t be seen as a loophole for HR to get back into a telling mode, but rather an opportunity to define how information finds the line manager based on their people related and enterprise social on-line activity.

Its good to see some of the leading HR vendors moving into this space together with strong predictive analytic tool-sets. The algorithms behind these tools are complex, but also configurable to suit your environment and solutions. It does however require a significant rethink about decision making in general, not just related to HR information, but including the interplay between other internal and external data sources.

Check out my previous blog “Is WFM  the new HR?

How to get the best value out of HR systems

originally posted in Inside HR Magazine  http://bit.ly/13ocsjj
There is a correlation between technology and organisational maturityThere is a correlation between technology and organisational maturity. Source: iStock

There is a direct relationship between organisational maturity levels and the value derived from HR systems, writes Rob Scott

Clients often ask me what the primary influencer is when selecting new HR software, and are generally surprised when I respond that they should first ask their executive management team what they really think of their HR department and what current and future expectations they have of this function.

The executive view is generally very telling, and while there are many factors which influence the selection of HR software – including key business drivers, people focus areas, industry challenges, budget availability and existing vendor relationships – one overriding influencer, and one that is rarely applied sufficiently, is the impact of organisational maturity. Your maturity level is a direct result of how your executive team defines and drives the concept of value (including people value) through the business. It is also the lead indicator of what the HR function will succeed at, and hence the likely value an organisation will get from an investment in HR software.

Your views of people
I like to think about HR software as a mirror. It generally reflects the reality of management’s view of people. In many cases, I see HR departments being blamed for “poor service” and “terrible software” – and while HR incompetency may be a contributing factor, the real issue is often a misalignment of what the HR function does and what the organisation needs in relation to its maturity level.

Some organisations see people primarily as a cost, whereas others see people as a means of producing broad financial and societal returns. While there is no right or wrong position, what your organisation maturity level reveals is the true “expectation” executives have of employees. It also frames any value they would assign to proposed HR initiatives and tools.

According to the Maturity Institute’s framework (ARC) there are nine other “pillars” aside from how people are viewed that when measured together, determine an organisation’s stage of maturity . The “stage” effectively shows the current limit of HR’s value and expectations.

Aligning to maturity levels
When a company has a low level of organisational maturity (e.g. stage 1 or 2), it is unlikely that senior management would regard the HR function as strategically influential, nor see significant benefit in introducing solutions like performance management, career & succession and analytics. In this scenario we often see HR managers using a “stick” approach to drive process compliance with line managers, but few managers actually derive any business value from these HR tools, because the executive team fundamentally don’t see the need to use them to execute their goals. At a maturity level of four or five, there is a completely different expectation of people by executives who understand the importance of these tools to create business value.

arc

The argument against using maturity for software selection is tied into the “HR best practice” and “best practice technology” belief. Stories of engaged employees, massive cost savings and improved shareholder value are the typical rationale provided by software vendors to buy all their software. I am yet to meet a vendor who is prepared to accept financial accountability if the “best practice” they want you to buy does not work.

Aligning your HR software selection and purchases with your maturity level will give you the greatest opportunity to succeed in HR and build credibility at the executive level. As you improve your maturity level, the need for more strategic and sophisticated HR systems will become obvious and support from executives will easily be attained.

HR systems and organisational maturity

  • There is a direct relationship between your organisational maturity level and the value you derive from HR systems.
  • HR systems are like a mirror – they reflect how your organisation views people. When people systems are in disarray, it is often a sign of a low organisational maturity level, not poor software or process.
  • When HR managers and executives understand and accept what their maturity level means, the role of HR and expectations become clear to both parties.
  • Improving your level of organisational maturity is the real catalyst for HR to become a strategic influencer in your company.

Rob Scott is global lead: HR strategy & innovation for Presence of IT, a leading consultancy in HR, talent, payroll and workforce management solutions.

SaaS HR technology: the new face of HR?

Featured in Inside HR Magazine – October 2014

The next three years provide an opportunity for HR to evolve people practices into a modern digital environment

There is significant value to be derived from HR evolving people practices into a modern digital environment, writes Rob Scott

Compared to traditional on-premise or ERP HR technologies, true SaaS technology has fundamentally shifted the business discussion from one focused on getting HR technology to work effectively to an emphasis on how HR can generate business value through people. While not dismissing the value that many companies continue to derive from traditional on-premise HR solutions, there is no denying the comparatively long and often complex journey traditional HR systems demand in order to achieve the desired outcomes.

Time saving and agility: important ingredients
Executives are realising the long-term impact and financial advantage of effectively managing their people value chain. Together with emerging workplace trends such as remote working, ad hoc team creation, social collaboration, project orientation and hyper-specialisation, the luxury of having time to build solutions to support these new work environments is quickly diminishing.

The workforce itself is changing. It’s a more flexible workforce that is fast becoming a collection of diverse, specialised individuals who have different contractual relationships with a company. And there is an expectation that the tools they use to be productive are simple, yet effective – integrated in a way that supports collaboration and is accessible from anywhere on any device. In a recent survey conducted by Microsoft, 31 per cent of employees said they would be willing to spend their own money on an app if it made them more effective at work.

The last thing an organisation wants is to be held back by software that absorbs a great deal of time and takes even more effort to adapt to the changing demands of the workplace and workforce. The need for agility and swiftness are two critical elements for future business competitiveness, and for these reasons, SaaS HR software is being recognised as a supportive catalyst.

We are moving to a digital work environment rapidly, and mechanisms such as social tools, mobility and gamification are providing the platform for enabling HR to step up to a strategic analytic and evidence-based advisory role. While many ERP tools are bolting on some of this digital capability, the underlying technology and design of these products have not been built with a digital framework. True SaaS HR products have been completely rebuilt from the database objects to the user interface and fundamentally support and integrate with digital design thinking.

HR needs a new set of skills
HR professionals, particularly those from a social sciences background, have generally been reluctant to build personal skills and knowledge in technology. In many respects, this has limited their ability to be effective in driving traditional HR technology projects. New SaaS tools have largely solved this problem because of the simplicity in how these tools are set up and maintained. SaaS tools have fewer configuration and modification options than ERP solutions, which in my mind is a good thing for HR. Too often, ERP tools are redesigned at great cost but with little business benefit.

I believe there are other complementary areas where HR functions can build competency and expertise. First, social intelligence – understanding how social thinking is introduced into business and HR strategies and enabled through digital technology. Second, analytic intelligence – making sense of lots of new people-related data that will be created as the digital work environment evolves. This includes data from wearable technology and from everyday objects that are connecting to the internet (internet of things). Analytic intelligence will have a strong predictive focus rather than a reactive statistical slant.

The next three years open up a window of opportunity for HR to evolve people practices into a modern digital environment. There is significant value to be derived, and HR must now become self-sufficient in making this a reality.

Key SaaS trends for HR

  • True SaaS HR software is quite different from ERP products. When you pull back the covers, the underlying design is geared to support a digital HR environment.
  • Modern organisations no longer have the luxury of extended time to redesign their HR solutions – SaaS tools offer agility and simplicity.
  • Now is the time for HR professionals to take ownership of HR software projects with no need to be intimidated by a lack of IT knowledge.
  • News skills for HR in social and analytic intelligence are critical to understand how software will create people value.

Rob Scott is global lead: HR strategy & innovation for Presence of IT, a leading consultancy in HR, talent, payroll and workforce management solutions.