HR

HOW INTELLIGENT IS YOUR HR SYSTEM?

There are three key elements in determining how intelligent your HR system is
Original article written for Inside HR Magazine April 2015

The analytic functionality of modern HR software is meaningless without the right interest, creativity and skill of HR leaders.

You wouldn’t be wrong if the first words that sprung to mind as you read the title were “analytics” or “big data”, as they represent two of the three main components that drive HR system intelligence. Big data is really just a term that represents the massive amounts of information we create and collect in a myriad of digital systems such as email, collaboration tools, HR transactional, talent and payroll systems as well as our online social media activity using tools like LinkedIn, Twitter, Facebook and others.

Nobody really knows exactly how much data we collectively create. Whatever the volume or source, it’s really irrelevant, save to say that every individual in the workplace is creating a significant amount of data on a daily basis that could be extremely useful and valuable in the delivery of business- and people-related goals.

The data, however, is largely meaningless unless we firstly recognise what it is, know what value it will offer our organisations, and are able to apply analytical robustness in a creative and strategic manner to the raw data. Many will be familiar with the movie Moneyball, which highlights the power of using data and analytics to make business decisions regarding sportsmen. It’s now pretty common for top sports teams to measure a specific series of data points for each of their team members. They do this to ensure they invest in the right players from a hiring perspective, through to performance optimisation, risk (injury) management and termination.

system intelligence

This brings me to the third component which drives HR system intelligence – the human factor. While modern HR systems can be set up to provide historic, trending and predictive answers in a quick and consistent way, it takes people to ask the right questions, apply rigorous and causal measurement standards and to interpret the results correctly. System intelligence is far more than a set of logical technology sequences with a sexy user interface; it is a reflection of how the human aspect is applied to data interrogation.

What Moneyball also underscores is the need for absolute focus, commitment and trust in the analysed data. The real-life success of the Oakland Athletics baseball team, which the movie is based around, would not have happened if the right person, who loved and understood the data, was not part of the equation. This is important for HR functional and technology leaders to understand – HR analytics is not an activity you can simply add into your HR generalist’s job description. It’s a contributing factor to why HR departments have not been overly successful with their foray into the world of data analytics.

It’s good to see many HR system vendors actively embracing analytics directly in their HR software. Some provide fairly basic historic and trend analysis through online graphical reporting. Others are providing instant or embedded analytics that display results in a dashboard or by simply hovering your mouse pointer over an icon. More recently, we’re seeing diverse data and complex analysis engines being integrated into HR systems. These offer statistically valid predictions related to employee risk such as likelihood of resignation, best career move and ways to improve engagement.

The provision of complex analytic functionality by HR vendors is important; however, the HR system will not appear intelligent without the right human interest, creativity and skill. As tough as this may sound, your HR system’s perceived intelligence is a reflection of your HR leaderships’ views of data and analytics rather than the system-specific functionality. As we edge towards a completely digital work environment, HR leaders must address their role in future decision making through data intelligence.

HR system intelligence & HR implications

  • HR system intelligence relates primarily to its capacity to collect, analyse and represent data in a predictive manner such that it contributes to business and people decision making.
  • Just as sports teams have realised the value of people analytics in winning, HR must accept that there is significant business value to be gained by properly analysing HR and related data.
  • HR vendors will provide standard analytics in their solutions. These are useful, but should not be confused with the analytics that are unique to your business and HR drivers.
  • Data analytics is a specialist role that requires specific skill, a passion for finding answers in complex data and the ability to convey strategic messages from the results.
  • There is a direct correlation between your HR system intelligence and the level of interest in data and analytics from your HR leadership.

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

Is your HR Technology adding value?

Most of the time, if you ask any HR leader to explain how HR technology is contributing to the achievement of business goals you get a somewhat perplexed expression, supported by an eloquent explanation which suggests it’s being conveniently ignored because it’s too difficult or not practical. Alternatively they reference the vendors marketing rhetoric which promise share-price improvements that would get Warren Buffett excited!

But HR is changing

It’s moving out of the administrative and transactional mould that has defined it for decades, and whilst the transition is often very slow and painful to watch, there are many organisations whose executives are maturing in their understanding of the unique value that HR functions can offer, and their direct contribution to business goals and strategy achievement. HR professionals can’t hide behind the mystique of psychology anymore; they need to show direct linkage from what they do and the outcomes it creates, including the role of HR Technology.

HR leaders are far more business savvy too, they will rattle off their business goals, they are succinct in articulating the meaning of value for their organisations, they understand cost, growth, quality and risk drivers, and they are familiar with industry and global issues, opportunities and constraints.  So what’s the problem – why are so many HR leaders resistant to show how the performance of HR Technology has or could advance the business objectives and strategies?

Addressing the problem

Some of the answer to this question may lie in previous bad experiences with “template” measurement frameworks such as the Balanced Scorecard. These tools are often introduced as off-the-shelf “best practice” which generally lead to disappointing outcomes. It’s the one reason that I loathe HRM software vendors pushing a “best practice” mantra. HR leaders wrongly believe the hard work related to measuring their HR Tech value contribution has been done for them. It can never be true – your objectives, environment and how you want to achieve your business outcomes using HR Technology are absolutely unique. You need to do the hard, detailed work yourself.

Another reason is simply lack of know-how and practice. Most HR professionals have a social science background which engenders greater qualitative rather than quantitative focus. That’s not an excuse of course, learning how to build a causal-effect model which shows where HR Technology is leveraged, is not difficult~ it just takes some practice and adherence to some basic principles such as:

  • Making sure your selected measures are strategic and aligned to company goals
  • Not making assumptions about the cause-effect relationships. You need to test it and prove its validity
  • Setting realistic targets, not everything needs to be 100%
  • Having clear ownership of the measure. Someone who is passionate about achieving a business outcome, and is constantly tweaking the framework
  • Being practical – don’t overcook the requirements or the data needed
  • Telling your story. Contextualize the results and explain what it means in business terms

By way of a simplified graphical example, I recently had the opportunity to help a client think through a cause-effect model for “Innovation” – one of their strategic business objectives. The HR director wanted to explain how their HR technology was directly contributing and supporting this objective. When we finished the model, it became very easy to explain how this would be achieved. A key learning for the client was to link the HR Technology to “drivers” rather than the performance areas.

I’ll point out again that proving the “cause-effect” (performance areas in graphic below) is critical to establishing credibility. For example, my client had to validate that “Empathy for client’s needs” really did cause “Enthusiasm & Engagement” in their environment. Once that was established the drivers for performance were identified and agreed, and HR was able to determine which HR Technology was required and how it would be used to deliver measurable outcomes.

exampleOf course there is a lot more work and involvement from other business functions behind this simple graphic, but hopefully it’s apparent that with some careful thought and focus, the real value of HR Technology can be measured and explained. Your next business case for HR Technology funding should be much easier to achieve if you have this in place!

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.

THERE’S MORE TO SAAS THAN SIMPLICITY

written for and originally published in Inside HR magazine (Feb 2015)

Despite the simplicity and effectiveness of new SaaS tools, maximum value will only be realised by making fundamental changes to key areas in business, writes Rob Scott

You could be forgiven for thinking the relative simplicity and user-friendliness of modern HR SaaS solutions need less business transformation effort to embed them effectively into a HR and business environment. The oft vendor pitch of having a newly acquired SaaS HR solution “up and running” in a very short timeframe is very appealing to buyers, particularly if they’ve had prior ERP project experiences encompassing flashbacks of complex and error-prone planning, designing, testing and cut-overs etched into their long-term memory.

However, the lure of a swift, pain-free and cost-effective implementation can mask the very real need for a transformed business environment that supports the new SaaS HR solution. The HR SaaS value and business benefits won’t be achieved by simply switching on the software – this is insufficient and must be augmented by making fundamental changes in at least six key areas. The honeycomb below portrays the facets of effective HR SaaS value creation, and as you can see, there is more than “simplicity” at play.

What’s different about HR SaaS?
I am often asked whether HR SaaS solutions are the same as older on-premise solutions, but “just in the cloud”. While functionality is often similar, the principles behind SaaS design, delivery and value creation are fundamentally different and will require a different approach and focus to on-premise projects. As you read the honeycomb elements (see graphic) the obvious “cloud dilemma” is the disparity between the time to implement the SaaS solution (usually four to 12 weeks) and the time required to transform the business. The latter takes much longer and requires careful and advanced planning.

SaaS value

Ownership: On-premise HR solutions are generally owned by the IT function because of the inherent technical complexity and association to hardware; however, HR leaders are becoming the primary SaaS buyer and must therefore take primary accountability for the solution. For many HR lea
ders this will be foreign, but the ownership change is a key driver of value creation.

Skill: HR functions must build system administration (configuration), data management, project management, analytic, social media, mobile and gamification insights in order to appreciate, manage and leverage the capabilities of modern HR SaaS systems. These are not complex skills to learn and should ultimately become standard knowledge areas for all HR staff.

Behaviour: Modern HR SaaS solutions are designed around regular interaction and collaboration with other employees. These are not transactionally dominated systems, but rather tools that remind, inform, connect, advise, analyse, predict, gather, share and enable people’s effectiveness in unique ways. Interventions will be required to activate these new behaviours.

Relations: HR must actively co-ordinate relationships between the CIO, IT function, marketing, finance, the vendor (who owns and houses the software) and external support services. These relations are both strategic and operational in nature and dependent on the new HR skills noted earlier.

Practices: Gone are the days when you apply updates to your HR system annually. SaaS solutions are automatically updated three to four times a year, meaning HR will be accountable to lead a review (with support from IT and others) of new functionality and determine if and how it will be used. SaaS solutions offer “choice”, and HR must think beyond the concepts of standardisation as a best practice.

Leadership: Executives and senior managers dictate organisational maturity. Without the right level of maturity in place, HR is often fighting an uphill battle of acceptance, which will result in SaaS tools being sidelined and unlikely to return business value.

SaaS tools are in many ways a saviour for HR. The simplicity of these new solutions is offering organisations great opportunities to rethink people engagement and value generation using modern technologies. HR must step up and embrace this with understanding and commitment.

HR SaaS: what you need to know

  • SaaS HR software solutions are fundamentally different from earlier on-premise solutions and require new business transformation initiatives to get maximum value.
  • SaaS HR solutions are much simpler to set up and use, however, this simplicity and ease of use should not cloud the important business environment changes required to support these tools.
  • Taking ownership and accountability for the HR systems is no longer technically biased, it has moved to a functional level predominantly, which must be led and co-ordinated by HR.
  • The IT function remains important for technology strategy, integration, standards, security and quality control of all systems, but HR must be accountable.

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?

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.

Your Future HR System is an Open Data Platform

technologyLet me start this blog off by drawing a comparison between Banking and the Travel Industry. Think about how you interact with your Bank digitally. You can do general banking at an ATM, on-line or through a smart phone app, you may use applets which help you calculate loan repayments or the future value of your deposits. But that’s where it generally ends. Try applying for a Mortgage and suddenly you’re confronted will loads of paper, duplication of information, signatures in black ink, proving your credit worthiness, physically going into the bank, multiple approval layers and reviews and possibly a lengthy waiting period until you have an answer.

Now think about the travel industry ~ your ability to build a personalized flight itinerary, buy insurance, book a hotel and car, check what others think about your choices, selectively introduce influencing factors such as price, time and loyalty points, get progress alerts and much more ~ all done without much fuss and no people interaction. You can choose which website or apps to use rather than being confined to the actual service provider and even use your smart phone as the mechanism to store and scan your electronic boarding pass. The only time you engage with a person is at the security check and boarding gate. This is a mature digitized industry, and arguably a higher risk one than Banking.

If we compare current main-stream HR/Talent software (including SaaS) to these two industries, most would agree that they are more like the Bank scenario. On the positive side vendors are including functions such as ESS, Social Recruiting and On-line Learning which are empowering users and streamlining processes, but there are some fundamental changes required for HR to achieve equivalent digital maturity, implied efficiency, fantastic end-user experience with choice as that of the travel industry.

Here are some of the key elements that would need to change.

1.       Modernize the Database Layer

The relational database management system (RDBMS) has been the cornerstone of transactional processing and reporting in HR systems for over 25 years. The need for this type of structured storage remains, but as we see new data types such as graphic, recognition, video, voice, gesture and style (eg. what I click on) being generated for work purposes, the RDBMS is not the optimal solution. There is a requirement to introduce non-SQL type databases which are able to leverage and manage the data inherent in these new data types. Non-SQL databases would allow HR to move beyond a fairly rigid and logical-based limitation (think workflow) and introduce personalized services, offerings and actions based on your unique data and interactions.

2.       Standardization to Individualization

Much of the constraint in HR efficiency is inherent in the need to control and dictate a process that supports the HR software rather than focusing on the outcome. We have spent years telling managers that standardization is critical, but in reality we limit the availability of choice in HR processes because of software constraints and by implication to make HR’s life more manageable. HR vendors needs to move past this hurdle and allow users to achieve the same outcome, but through an individualized approach. The underlying data remains the same, but the “How” becomes a choice. (Think about your choices when booking an airline ticket).

3.       A Dynamic Data Hub rather than the Source of Truth

We are seeing some HR solutions starting to venture down this path with interfaces or search capability to LinkedIn, Facebook and other 3rd party tools. The type of data that will be important to HR in the future will be generated outside of the core HR system by individual employees, contingent workers and applicants. We need HR solutions that can integrate to potentially thousands of external and individual databases to share information. The future Workforce will ultimately give employers the right to use their data whilst they are employed and will expect data generated during employment to be shared back to the originating database. The notion of the HR system being the source of truth for people data is outdated and is constraining innovation and creativity.

4.       The HR System becomes a Platform

Removing the need to use the vendors HR software or front-end in order to access data or perform actions will allow for greater integration and ownership by line managers and employees. Much of the frustration experienced by line managers is the need to go into “another” tool to execute an HR activity or get information to support a decision. In a similar way that Expedia.com piggy-backs off the data and system of the individual airlines, hotels and car renters, HR systems should allow for direct transactions through other tools (this is not the same as interfacing). A platform approach will allow for greater flexibility and agility at the company and individual level, and will give rise to continuous improvements in other systems (finance, procurement, workforce planning etc.) to use HR data to achieve a common end result. As an example, think of how a project manager could use his project planning tool to provide performance feedback rather than going into the HR tool itself or the scheduling manager at a consultancy could “pre-approve” leave for employees “on the Bench” from his WFM software.

 

Many of the new HR cloud and SaaS software products are fantastic solutions, but fundamentally they have not changed for over 25 years. I implemented my first networked HR system in 1987, and while we had no smartphone apps, high speed internet or fancy front-ends, most of the modules we have today, existed in those older system.

We are stuck in a logic and transactional mind-set and as we witness the emergence of powerful new data types,   it’s time to break these shackles and build software that will allow HR to surge ahead. If a high risk industry such as Travel can achieve this, there is no reason that HR can’t do the same.

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