The Next Frontier in Shared Services | The HR Tech Weekly®

The Next Frontier in Shared Services

For anyone who’s answered an email or text from a project team member on a weekend (and that’s just about all of us), it comes as no surprise that digitization has profoundly disrupted the way we work. However, this “new normal” of always-on, instantaneous communication among networks of teams is now dovetailing with another force that is equally as disruptive: a changing workforce, led by increasing numbers of Millennials. Together, these forces are impacting the service delivery landscape and calling upon the HR shared services organization to engage with employees via digital tools, often in entirely new ways.

A digital employee experience is no longer optional; it’s a necessary survival skill for those seeking to attract, retain, and facilitate engagement with the next-generation workforce. At a recent Deloitte workshop, we explored what makes Millennials different, (backed by the findings of the 2016 Deloitte Millennial Survey), along with strategies for meeting their elevated expectations. Among the characteristics put forth at the event, Millennials:

·      Are digitally native, and, by and large, they would rather use their phones for text or email than talk to people.

·      Expect “consumer-grade” experiences.

·      Tend to shun purely financial motivations, as they feel employee satisfaction and treating people well are the most important values in terms of long-term business success.

·      Crave leadership opportunities, with only 28 percent of the respondents in the Deloitte Millennial Survey believing their organizations make full use of their skills.

·      Expect to have mentors bring them up in the firm.

·      May have little, if any, loyalty to companies and may leave quickly if they believe their leadership skills are not being developed or if the company puts financial performance above everything else.

So, what does this mean for HR shared services? Nearly every company today, but especially those in traditional industries such as mining, manufacturing, and energy & resources, must find a way to replace growing numbers of retirees by attracting Millennials and elevating them to leadership roles quickly. This path toward reinvigorating the workforce by engaging Millennials runs directly through HR.

To attract and retain next-generation employees, HR organizations increasingly must deliver consumer-grade services through shared services by adopting digital tools and making the cultural adjustments required to leverage them fully. Many service delivery organizations have started to do this by transforming their contact centers, mainly by moving toward web self-help, email, and mobile channels to address simple inquiries, and reserving voice channels for answering more difficult questions. This makes sense given Millennials’ resistance to talking live, although the electronic component of these interactions has to be customer friendly. The technology has to work, without too much clicking or form-filling, or Millennials might move on—abandoning the interaction, and if the dissatisfaction persists, perhaps abandoning the employer altogether.

The strategic importance of digitizing the contact center was further emphasized in the findings of the 2015 Deloitte Contact Center Survey. Of note, 85 percent of organizations surveyed view the customer experience provided through their contact centers as a competitive differentiator, and half (50 percent) believe the contact center plays a primary role in customer retention.

While many HR shared services organizations are in tune with the engagement challenges next-generation workers pose, Millennials aren’t the only game in town. Baby Boomers and Gen Xers still must be served, and their customer satisfaction ratings are also important. While Millennials may view texting as a genuine form of human engagement, older groups largely do not. They want to talk to someone, and they view personal interactions as a preferred, and largely more effective way to solve problems, particularly complex ones.

Serving the needs of a multigenerational workforce today requires organizations to introduce digital employee experience tools, especially those that promote self-service and collaboration, while preserving existing voice-channel capabilities, at least in some situations. However, maintaining multiple platforms can be expensive and cumbersome, and stranding existing IT investments is rarely an option.

This has left many HR services organizations overwhelmed by the magnitude of technological change that stands before them. That’s why it’s important to take small steps instead of big leaps. For some organizations, implementing a cloud-based platform might be one of those incremental steps. Far from being just another portal, some of these platforms allow subscribers to develop, run, and manage shared services applications without the complexity of building and maintaining infrastructure and underlying technologies. In evaluating such a platform, the technology at a minimum should:

·      Deliver a consumer-grade user experience

·      Streamline processes and automate workflow

·      Simplify transactions by providing personalized content and context

·      Increase effectiveness and decrease cost for shared services operations

·      Make employee interactions and communication with HR simple and intuitive

Regardless of what technologies you choose, an improved digital employee experience is the next frontier in shared services. The overarching objective is to create a digital workplace that capitalizes on a company’s current technology investments by bringing disparate systems together and providing a personalized journey through shared services processes and related content via guided interactions. Why is this so important? Millennials expect nothing less. Your shared services center has to deliver high quality services or the next-generation workforce may gravitate to an organization that can.

For more insights about current HR topics, visit the HR Times Blog.

About the Authors:

Michael Gretczko is a principal with Deloitte Consulting LLP and the practice leader for Digital HR & Innovation. He focuses on helping clients fundamentally change how they operate, often working with large, complex, global organizations to guide transformation programs that enable HR organizations to reinvent the way they leverage digital to improve the employee experience and business performance.

Marc Solow is a director in Deloitte Consulting LLP and responsible for leading Deloitte’s HR Shared Services market offering in the United States. Marc has led the consulting services in support of several global HR transformation, shared services, and outsourcing projects for large and complex clients in a variety of industries, including insurance, health care, life sciences, consumer and industrial products, and energy.

Copyright © 2017 Deloitte Development LLC. All rights reserved.


Source: The next frontier in shared services | Michael Gretczko | Pulse | LinkedIn

Employee Experience – The XXI Century Corporate Super Power

Written by João Duarte, Content Director at Tap My Back.

Interviewing Jacob Morgan

Jacob Morgan is a 3x best-selling author, keynote speaker, and futurist. His latest book is The Employee Experience Advantage: How to Win the War for Talent by Giving Employees the Workspaces They Want, the Tools They Need and a Culture They Can Celebrate (Wiley, March 2017) which is based on an analysis of over 250 global organizations. Jacob’s work has been endorsed by the CEOs of: Cisco, Whirlpool, T-Mobile, Best Buy, SAP, Nestle, KPMG, Schneider Electric and many others.

Tap My Back, a tool that provides the simplest way to provide work recognition recently had the opportunity to talk with Jacob Morgan about the concept relying beyond his latest book, employee recognition. Jacob advocates this concept should be the major focus of companies aiming to attract and retain talent. This article provides a summary of the main ideas explored on the interview. Alternatively,  you can read or listen the full interview here: Employee experience – The XXI century corporate super power.

Nowadays, we’re living in such a rapidly and demanding world that the skills gap issue is turning into a big thing. Therefore, more than ever before the need to attract and retain talent is a huge issue for corporations around the world. In the end, “every organization in the world can exist without technology but no organization in the world can exist without people”. Bearing this in mind, the concept Jacob Morgan approached in his last book, employee experience, comes in the perfect timing. Companies need to seek out to provide the best possible interactions with their workforce, that is the only way to guarantee they have people delivering their best and sticking for the long run.

On the interview Jacob explained that employee experience is sort of the next step in what regards the way company’s manage workforce. It appears as an answer to the fact that “employee engagement has always acted as kind of an adrenaline shot inside of our organizations” –  Jacob Morgan.

He goes through a few best practices that major companies with the likes of Facebook, Google or Microsoft are adopting to improve their staff experience, highlighting three major aspects culture, technology and physical space. Jacob also confessed to Tap My Back that this concept of employee experience is something that the whole company should be aware and responsible for, even though he sees mainly HR related roles pushing it into company’s’ culture.

In the end of the interview, Jacob Morgan was questioned about the best advice he would provide to SMB companies looking to start from scratch implementing and improving the employee experience they provide. You can check his tips and the full interview here: Employee experience – The XXI century corporate super power.


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5 Ways Companies are Delinking Performance Management from Pay

Written by Andrea Hak, Content Writer at Impraise.

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Awarding higher pay and bonuses to top performers seems like the straightforward way to incentivize and retain great employees. The most popular format being performance based bonuses, which keep base pay manageable and provide incentives for better performance. However, research shows us that this may not be as simple as it seems.

A study by Willis Towers Watson found that only 20% of employers in North America actually believe merit pay is effective in driving high performance.

Traditionally money was seen as the main incentive used to motivate employees. Higher productivity results in higher salaries and bonuses. For companies, it’s been used as the main tool to attract, retain and engage employees. Today we’ve learned that the key to motivation is much more complex than that.

What psychologists and thought leaders have found is that money can actually demotivate employees from working at their peak performance by leading to a prioritization of rewards over learning and innovation. In one of the most widely viewed TEDTalks, career analyst Dan Pink explains that it’s actually intrinsic motivators like autonomy, mastery and purpose that drive real motivation.

To provide their employees with more opportunities to grow and develop, many companies are now moving to continuous, peer based and ratingless systems. The key question that many of them face is how they can continue to make compensation decisions, without inhibiting the feedback process.

In a recent eBook we identified five trends companies are following to delink performance from pay. Here is a summary of what we found:

1.  Keeping one annual review for compensation decisions

The most commonly used method is to introduce more continuous informal feedback and quarterly performance reviews, but continue to keep one annual review specifically for making compensation decisions. Rather than being in the dark until the annual review, employees will know where they are and how they’ve improved at each quarterly check-in. Compensation is still linked to end of the year feedback but the feedback they receive throughout the year is focused on growth and development.

2.  In ratingless systems

With more and more companies switching to ratingless reviews, this question has emerged as the main obstacle: without ratings how do we calculate compensation? Some companies have taken the position that ratings based reviews leave too much potential for bias. For example, a person’s communication skills can often be assessed differently depending on how communicative the rater is or how much they value communication within the team. However, when compensation decisions are based on a qualitative review the potential for rater bias actually increases, giving managers more leeway to decide how they want to award pay. Here are two ways companies are overcoming this:

Performance Calibration

Calibration meetings include a group of managers who discuss the performance of each employee.Together they come up with the best way to allocate pay and bonuses. Including multiple perspectives into the decision process is meant to separate rater bias from reviews and allow for a more accurate allocation of pay

Peer Reviews

Who better to ask about an individual’s performance than their teammates? Instead of depending on managers to make the majority of the decisions, some companies are basing pay solely on peer reviews. To avoid introducing ratings, employees are asked a series of questions about their peers, for example:

  • “How much did this person grow over the past 3 months? Please provide examples.”
  • “This person is your strongest team member. Explain why.”

3.  Objectives and Key Results

Setting Objectives and Key Results (OKRs) is the process made famous by companies like Google, Intel, Adobe and Linkedin. The idea is that allowing employees to set their own goals provides greater clarity in what’s expected and what needs to be done to perform well. On top of this, individual OKRs can more easily be aligned with team and company objectives. How these companies set compensation:

  • Employees regularly set their own OKRs with manager approval.
  • At the end of the performance period, compensation decisions are made by assessing whether and how well employees reached their OKRs.
  • Employees may not always complete their OKRs but assessing how they went about achieving them is taken into account.
  • This is combined with a review process during which information is gathered about their performance from their self-assessment, manager and peers.
  • Compensation is then decided based on OKRs, plus factors such as skill development, collaboration, leadership abilities and their contribution to the team/company.

4.  Getting Employees to give more feedback

Rather than trying to separate pay from feedback, some companies are actually using bonuses based on peer feedback to boost engagement. A joint study by SHRM and Globoforce found: “Peer-to-peer is 35.7% more likely to have a positive impact on financial results than manager-only recognition.” And dramatically, “When companies spend 1% or more of payroll on recognition, 85% see a positive impact on engagement.”

  • To implement this, some companies are allocating budgets to each employee. They can then use this to award cash bonuses to peers along with positive feedback. Rather than leaving pay solely up to managers, this system includes everyone in the decision process.
  • One of our clients came up with an innovative way to gamify peer feedback. Employees are given the opportunity to award gold, silver and bronze ratings to each piece of feedback they receive. Those who have shared the top most helpful feedback with their peers receive a bonus.

5.  Complete transparency

Some companies are rejecting individual performance based bonuses altogether in favor of complete transparency. For example, Buffer has come up with their own salary formula based on the person’s role, experience level and loyalty (years with the company). This essentially eliminates the compensation question altogether. In this type of system, everyone knows exactly where they stand and feedback can truly be focused solely on growth and development.

Alternatively, some companies have decided to slash the idea of individual rewards altogether, instead basing pay on team performance. Keep in mind that a study by PWC found that the ideal team size in this type of system is under five employees, with 60% of people becoming demotivated over five and 90% becoming demotivated in a team of over ten. Familiarity with team members was also an important factor.

Conclusion

It’s important that you find the best system for your culture and company objectives. Whether you place emphasis on teamwork or want to give individuals more autonomy over their personal development, it’s essential to research and understand which method will work best for you. No matter what you choose, the most important thing is that you clearly communicate to your managers and employees how this new system will work and how it will impact them.

About the Author:

Andrea Hak

Andrea Hak works as a content writer at Impraise, a web based and mobile solution for actionable, real-time feedback at work. Impraise turns performance reviews into an easy process by enabling users to give and receive valuable feedback in real-time and when it’s most helpful. With Impraise, employees can better analyze their strengths and learning opportunities, track their progress and pursue their personal and professional goals all year long. Managers can easily set up 360 degree feedback for their team or themselves, resulting in more meaningful 1-on-1s and more engaged people.

Contact Details: andrea@impraise.com


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Emerging Talent: The Trends, Challenges and Opportunities at TLCon

Emerging Talent. Our Speakers

Emerging Talent is not void of the many changes taken place over the past year. Plugging the skill gaps with EU workers is under threat from Brexit however does the apprenticeships levy pose to fix that issue? Are graduate schemes at risk? As young people look for more than just a good salary from work, is retention becoming more difficult? Can we do anything about it?

On the 27th April, talentleadersconnect. will be hosting for the second time, TLCon: Emerging Talent that will give 70 Head of early careers, HRD’s, graduate recruitment, apprenticeships and talent acquisition professionals the opportunity to learn, share and network around a theme that is getting more and more important each year. The agenda will have case studies, research and thought leadership from the likes of L’Oreal, Cognizant, Centrica, LaunchPad, The Chemistry Group plus more.

We’ll be starting off the day with research from the Graduate Recruitment team from L’Oreal on the graduate talent population and their expectations and career priorities. Within this same event, Bright Network have carried out research of their own on this topic which should provide a good comparison of the results. Furthermore they’ve been implementing some really great initiatives to gamify how they attract and retain candidates. They’ve told us a little bit on this and we were stoked at the ideas. We’re sure you will be too once you hear it!

We then dive deep into AI and Machine Learning. Don’t worry, there won’t be a whole bunch of code put on slides however we will be looking at an overview of the trends and how this affects your work in recruitment and HR. Will Hamilton from LaunchPad will guide us through the latest innovations in what will be a very futuristic presentation.

We continue to trailblaze into the future by looking at Apprenticeships in the New World. It’s no doubt, there’s a lot of division between viewing the apprenticeship levy as a tax or investment and Erica Farmer, Apprenticeships and L&D programme lead for Centrica is best placed to fill us in on the benefits; she represents Centrica at the National Apprenticeships Service’s lead employer Apprenticeship Ambassador Network.

After our time travel into the future, we go back to student recruitment 101. You may be excited about all the new tools and changes that will affect how you go about graduate recruitment but “You can’t harvest fruit from the trees you haven’t planted yet.” Brian Sinclair, Head of Student Recruitment for Cognizant will give you practical advice on everything, from requirements gathering to pipeline reporting with some useful templates and tools to help explain and position best practice with key internal stakeholders.

There’ll be a buffet lunch and plenty of time to network with your peers around all these topics so join us on the 27th April with your complimentary ticket at TLCon: Emerging Talent.

Useful Information:

Date: 27th April 2017, 8:15am to 1:30pm

Venue: Foyles Bookstore, 107 Charing Cross Road, WC2H 0DT

Theme: Emerging Talent

Contacts: Edie Kalman, Events Manager, edie@talentleadersconnect.com

Twitter: @TLCon_

Hashtag: #TLCon

talentleadersconnect. is the largest Talent Acquisition & HR event series in the UK & Europe. The events combine industry leading keynote talks, interactive discussion sessions and relaxed social networking opportunities.

3 Ways to Enhance Talent Attraction & Retention through Corporate Philanthropy

Millennials Valunteering

Deeply rooted in today’s society and demonstrated time and time again, Millennials and Generation Z is a need to give back in more personal ways, make a change and find meaning in their work life. Some of the world’s biggest companies like GE and Walt Disney are fulfilling that need through corporate, socially conscious giving programs. But, how does corporate philanthropy really impact attraction and retention?

Corporate philanthropy enhances the employer brand

Millennials make up 75% of the workforce making their needs and desires much more influential when it comes to employer branding strategy. Project ROI found 80% of surveyed Millennials want to work for a company that cares about how it impacts and contributes to society. Over half would refuse to work for an irresponsible corporation. Even from a consumer standpoint, today’s society favors employers that make corporate philanthropy a priority and a part of its core values.

Engagement has become more than simply donating to whatever cause an employer chooses. By taking a strategic approach to corporate philanthropy companies can fuel involvement, personal satisfaction and even grow employees’ skills. From giving employees the chance to choose which charities to give back to, to incorporating skills-based volunteer opportunities, involving employees in the philanthropy process will greatly impact the bottom line.

Corporate philanthropy enhances employee wellness

Every employer wants happy employees, but happiness isn’t the kind of metric you can track. What we do know is, whether happiness is caused by their work or not, happy employees are more productive, satisfied and engaged in their work.

A recent Robert Half survey found 61% of U.S. workers who are involved in philanthropic activities outside of work feel it positively impacts their overall wellness, allows them to find a better work-life balance and it makes them more effective in their work.

Employers can make these effects even more impactful by having a corporate philanthropic program that lets employees put in their social awareness time on the job. This is a precious engagement opportunity that clearly has the potential to increase productivity and satisfaction, ultimately leading to increased retention and a favorable EB.

Corporate philanthropy ties employees to the values of the company

72% of Millennials feel a job where they can make an impact is important to their happiness and 58% would take a pay cut to work for a company with values aligned with their own. When it comes to accepting an offer, candidates prefer to work for an employer that engages in cause work.

From recruitment to engagement to retention, corporate philanthropy marries social responsibility with talent attraction and retention and then some, providing employees outlets that allow them to contribute back to the world while developing their talents, with the support of their employer. Money is an important deciding factor in the career choices people make, but the true motivation lies in how connected they are to their job and the company they work for.

Time continues to change for the better in today’s workforce. By cultivating an environment that embraces a need to find meaning in their work, employers are forced to change or modify their corporate philanthropy strategies in a way that not only makes employees work harder and gets candidates more interested, but directly impacts core values and the bottom line too. How does your company’s philanthropic efforts enhance the talent lifecycle?

About the Author 

Nita KirbyAs Director, Client Solutions at CyberGrants, Nita Kirby is about providing philanthropic strategic development, creating management processes, troubleshooting and ensuring client satisfaction and customer relationship management oversight.

CyberGrants is a software company that provides employee engagement and grants management software to connect the world’s givers to those who can benefit from them the most.


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