Gamification

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.

Is WFM becoming the new HR?

For many years HR practitioners have been fighting among themselves and with their executive management about the value and importance of HR, Talent management and HR technology. It’s often been an ugly and public battle of personal believes and experience rather than factual and evidence based findings. What’s more, HR people have very strong opinions about being the people behavioural experts and find it very displeasing when they are challenged in this area of how to best manage people in an organization.

Coupled with this is the lack of a clear relationship between HR and company profits and value. Certainly most of the operations people I have met, don’t fully understand the value link that HR purports to have, and often are following processes which HR drives (e.g. Performance management, Goal setting and Career planning) from a compliance perspective rather than a clear business value perspective. While I have no doubt that professional HR has got lots of value to offer, in the most, these departments are too keen to adopt the ‘next flavour of the month’, implement someone else’s ‘best practice’ and expect line managers to love their technology solutions that mostly make the HR’s departments life easier, but are often seen as extra work for the operations and line managers.

It’s a sad state of affairs, but it’s not all doom and gloom…..someone has been listening and doing something about it.

Unfortunately it’s not the general HR fraternity, but rather Operations managers and WFM vendors. After years of experiencing the effects of HR’s ongoing battle with itself, Ops managers have decided to ‘just get on with it’ and are enhancing and using WFM people solutions that are linked directly to the P&L account, have the ability to show exactly where money is being spent, can use real-time data to enhance business decisions and in the process, engage with their employees and optimize productivity – just what the executives ordered!. And as business leaders continue to drive out unnecessary cost and increase productivity, the business cases behind these new WFM tools is simple. Quite often they can easily save an organisation a minimum of 1-2% on annual employee costs and can generate a return on investment (ROI) in months.

All this is quietly happening while HR continues to argue among themselves and promise their organisations that {insert your favourite HR fad here} will change the world.

In some cases HR has ownership of WFM tools, but mostly they are not the primary owners, but rather have a secondary role ensuring the accuracy of data flows between HR, Payroll and the WFM solutions. Many in HR may be thinking the core of a WFM solution is nothing different from the Time management functionality in their HR system which provides scheduling and rostering capability. While there are many similarities between HR and WFM solutions, over the last 5 years the complexity around awards and labour agreement interpretation, as well as the need to plan and optimize people, assets, geo-location, customer needs and competitive business strategies, has seen the explosion of specialist functionality in WFM tools that would not easily be replicated in HR solutions, especially newer SaaS based HR software.

And while HR is demanding to be the source of truth for all things people, but never quite getting the alignment with day-to-day business practices right, WFM vendors saw the gap to add functionality into their software that has traditionally been the domain of HR and Talent systems. It’s now pretty common to see WFM software solutions with Employee self-service (ESS) capability, Mobility, Leave & absence management, Competency & skills management, Employee costing & budgeting management, Planned versus actual task management (goal setting) and even Engagement capability which support team or individual recognition (often using gamification), shift swapping based on personal needs and survey capability to highlight how staff are feeling about their assigned rosters and work assignments.

What WFM solutions are achieving in the people management space is nothing short of amazing – HR is envious! The reason it’s so successful is the seamless integration with operations management activities. And it doesn’t stop there. Modern WFM tools are branching out and building links and capability to Planned-maintenance, Sales & forecasting, Contingent labour management and Financial management solutions.

In many respects WFM is winning the people effectiveness battle at the operations level. Some WFM vendors are not stopping their advancement into HR’s space either with a number of HR and Payroll acquisitions by WFM vendors taking place recently. Perhaps it is WFM that will become the new HR, at least at the operating and tactical level, leaving the strategic people activities to the current HR functions. Watch this space.

Thanks to Shane Granger @gmggranger for promting the idea over the week-end

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.

The Clash of the (Social) Titans is Near

2012 ushered in a new era for HR software solutions. It will be a year that we saw some really big deals going down as the big boys of the ERP world manoeuvred themselves into  strategic positions within the cloud ecosystem. The writing was on the wall and vendors that didn’t have a cloud based solution and strategy (or at least claim they had one) were likely to  face some difficult times financially and competitively over the next three years.

With the advent of HR cloud based tool, we also saw the introduction of social and gamifcation layers being added directly into these new products. Not just as optional extra’s, but often forming the epi-centre of the product driver. Particularly in areas such as Performance Management, where communication and discussion needs between employee and manager were ripe for something new to spur what was typically a dismal failure in most organisations.

As society was settling down to the acceptance of social media as a legitimate means of sharing knowledge, ideas generation and general chin-wags in the work environment, the HR vendors saw the gap to add this functionality into their solutions to drive out better HR and Talent management. And the good thing is it works ~ you have to be prepared to adapt your work environment, leadership styles and accept that the control that was prevalent in hierarchical organisations may not work in a social environment, but if you get that right, there is a lot of good stuff that HR can do. That’s not the problem!

Who owns the social layer?

While the HR vendors were thinking about how to leverage social layers within their products, the Enterprise social guru’s were making strong headway into major organisations. Tools like Yammer have moved many organisations into a new ‘Knowledge Management” and information sharing era – building stronger communities and starting to see good paybacks on tacit knowledge lying wasted around in their staff’s grey matter.This is good too!

So what happens when Mr HR Director goes ahead and purchases a subscription to a new cloud based HR solution that also uses a proprietary social layer tool?  The reality is that many of these tools rely on the end-user using the solutions social layer, not a third party tool. OK, well having more than one social tool is not a big deal, I hear you say, we have more than one in our private lives like Twitter, Facebook and Linkedin, so things should work out.

This is where I think the proverbial paw-paw hits the fan and it’s going to get worse. If I look at the emergence of other cloud tools in the Finance, Rostering & Scheduling, Procurement and other business areas~ many of these tools are integrating proprietary social layers into their products just like the HR vendors, and they all have an expectation that you need to use the SM layer.

If I’m a user of the Finance tool and use its social layer, I might find that I’m having to repeat my knowledge post, great idea, message of recognition or piece of gossip on the HR tool – that’s of course if I remember to do that when I next use the HR tool. Not to mention the owners of the Enterprise Social layer who will be putting pressure on all employees to share and discuss on the corporate system. Then of course there is the confusion of whether I said something via email or on a social layer, or was it perhaps a text message.

Who will win the battle?

Maybe someone will come up with a clever technology layer that can plug into all these new emerging social tools embedded within discreet products to help manage the data flow and curb the likely confusion and risks. Until then I can see a number of battles taking place, with someone loosing and someone winning. The looser unfortunately may also see value disappear  from their beloved cloud solution. What we should acknowledge is that custodianship of the social tools is not an HR right!

I think we will be seeing a bit of fur flying in 2013 – a good thing in my view. Its the only way we will see the need for something new to help us manage our changing work places.

Let me know your views.

The Future of HR with Gamification

When one first encounters the term ‘Gamification’, the impressions and images created in ones mind tend to focus around the word “game” – Images of your 14 year old son spending hours in front of his game console protecting the planet from a group of renegade creatures with fire power that would impress any military leader. It’s these images that for many HR people is a trigger to dismiss the notion that the principles of gaming have no place in the realm of HR or HR Technology.

If I cast my mind back, HR has actually used gaming principles in much of its work, particularly in areas like learning. Think back to some of the training courses you have attended, where you had to work in groups to create an output that was compared to the other groups, or your team output may have been ranked or voted as ‘best’ , your facilitator may also have used a visual display of how teams were tracking overall against each other. You may have attended an assessment centre where you were ‘playing out’ the role of a manager or at the end of a training session you received an award for being the ‘best participant’. Outside of the learning space, gaming principles have been applied to recruitment and performance management, and typically result in a form of recognition.

Gamification is really talking to the natural human needs and desires to achieve, compete,be recognised, have some control over the outcome and be entertained. The advent of technology has allowed these human needs to be expressed through computer based games – its a highly successful industry, to the extent that it has over taken video and DVD as the number one form of entertainment in the UK.

So the question is, can these computer based gaming methods and approaches that satisfy human nature and instincts, be transposed into the broader HR technology environment? The answer is absolutely yes, but not necessarily in all parts ~ and it should be focussed on peoples behaviour, not the HR system per se. I asked my colleague Andrew Butow, who has great experience in gamification to identify some of the critical success factors for gamification in HR technology. He suggested the following:

  • people interact with the tool frequently
  • people have a variety of interaction points
  • there exists a community that people care about recognition in
  • interaction points are easily quantified
  • adoption is a high priority
  • frequent feedback is important

These are valuable guidelines and should prevent organisations trying to add gaming principles that wont have any value. As an example, if you were thinking about adding gaming principles to your HR ESS system, it probably wont achieve its objectives as ESS is not a frequently accessed tool in most companies, nor does it add any value to place me in position “1” on the leaderboard for changing my home address. However if you had a knowledge management tool, or were using tools like Yammer, gamification could be a very clever way of building a culture of knowledge sharing. Saba has recently announced a product that does just that (see article). I can also see gaming being applied in the areas of recruitment (eg. Referral schemes, or agency effectiveness), Performance Management ( recognising excellent behaviour, sales achievements, accolades received from peers), Learning ( turning e-learning into a business simulation game, your contributions to knowledge sharing and mentoring).

What HR does not want to do is use gamification as a form of control or mechanism to get staff to comply to HR administrative needs – gone are the days of being the ‘People Police’ – if used in this way, it is likely to backfire and create negative perceptions of the HR function. I also think that gamification needs to be integrated into a company culture – for people over 35, the gaming principles wont be new, but the application through technology will be. The younger generation will easily accept and play along (excuse the pun), but older employees will need encouragement and assistance over time (remember to move from an in-box on your desk to email days).

Let the games begin !

20120324-154804.jpg