HR Technology

Saba buys Halogen

News out today (23 Feb)  that Saba Software will acquire Halogen Software for $293 million. So what will the new “SAB-o-GEN” baby look like? What are the Common genes, the Unique genes, and who has the Dominant ones. If you are a current client should you be prepared for ‘baby sitting’ while the infant grows up? Time will tell.

sabogen

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?

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

Dear HR Vendors, are you thinking about Personal Data Stores?

keysWe have all seen the headlines regarding the amount of new data we create every year – it’s in excess of Two Quadrillion Megabytes (that’s 2 with 21 trailing zero’s) – by any standards that is a huge number and it continues to grow, spurred on by growing continuous connectivity to the internet, mobile access and tonnes of free storage space . In this process of creating data, we are also breading a new culture of data ownership – one of personal empowerment, which is giving rise to the Personal Data Store (PDS).
When you think about it, organizations have gathered, stored and managed personal data to serve their own benefits, and allowed employees and managers to access the data on a “right-to-see” basis  – they have had to carry the cost of creating and managing this data too, typically through ERP and cloud based HR/Talent systems. Much of the data organizations want from the workforce is now being created and managed by employees in cloud based tools and applications.
Over the next few years these Personal Data Stores will mature and help individuals to gather, store, access, update, use and share their data in a sophisticated and powerful way. In particular these tools will allow individuals to choose what information they wish to share, with who and for what purpose the data can be used, including the creation and sharing of new data based on the initially shared data. Personal Data Stores won’t just contain employee related data, but will help individuals manage vast amounts of data relevant to different business and personal relationships they create. These could include Health records, Scholastic and Education records, Business transactions, Employee transactions, Identity data, Life events, Government records to name a few.
While this may not initially trigger off too many alarm bells, the more you think about it, the more you’ll realize the implications on your relationships with employees created by the shift in power of data ownership from the organization to the employee. The Personal Data Store will become a new epi-center for business opportunity. Personal Data Stores are destined to become the “electricity supplier” of the 21st Century.
What will this mean for future HR systems as data ownership and management become person-centric ? Here are some of my thoughts:
  • HR systems will need to cater for an individual type API – the ability to interface with multiple cloud based Personal Data Stores or to buy into a PDSaaS (Personal-Data-Store as-a-Service) platform;
  • HR systems will need to export new and updated data back to the individual Personal Data Store;
  • Organizations will need to accept an employees “Terms & Conditions” to use shared data;
  • The ability to pay the employee for use of some data or pay for data used to generate business value or continued use of historic data after the employee has left the employ will become necessary;
  • HR systems or other systems will need to accept disparate data elements that could assist the organization eg. a list of Face book contacts that have access to possible job candidates;
  • Sophisticated OCR, facial,voice and other recognition tools to “read” non-text based shared material;
  • The Personal Data Store will in effect become an ESS tool – updating the PDS will update the HR system; and
  • HR systems will need to accept new types of verification that is attached to the shared data eg. a qualification may come with an integrated verification flag provided by the learning institution.
While I’m sure this is a but “far-out” for many readers, there are  some obvious advantages that this new data ownership model could have:
  • The quality and accuracy of HR data is improved;
  • The richness and completeness of employee HR data can be improved;
  • Reduced cost and effort for HR functions to maintain HR systems;
  • Improved reporting and opportunity to leverage new information for the company benefit;
  • Reduced duplication of data;
  • Richer and easier on boarding for employees and contractors; and
  • Lower data privacy risks
We have a way to go before this becomes main-stream, but it is already starting with some social tools such as LinkedIn. Personal Data Stores are more sophisticated than the current social tools, but if our history of the Internet and technology growth is anything to go by it won’t be too long before this becomes a reality. Lets hope the HR Vendors are leading the charge.