HR and Business Are Looking for Data Analytics and Insights

Stacey Browning, President of Paycor

Today our guest is Stacey Browning, President of Paycor.

Since 2001, Stacey has played an integral role in every aspect of Paycor’s operations. As president, she fosters collaboration across the business and ensures executional excellence in product development and service delivery.

Paycor is a trusted partner to more than 33,000 small and medium-sized businesses.Known for delivering modern, intuitive recruiting, HR and payroll solutions, Paycor partners with businesses to optimize their people management.

Paycor’s key areas of specialization include Payroll Management, Human Resources Solutions, Benefits Administration, Time & Attendance Solutions, Tax Filing & Compliance, Workers’​ Compensation and Employment Screening Service.

Recently Paycor announced Workforce Insights, a new data visualization solution that extracts rich and actionable insights from people data to bring valuable C-level and operational insights to key business stakeholders.

The interview is hosted by Alexey Mitkin, Founder, Publisher and Editor-in-Chief, The HR Tech Weekly® Online Media Co.

  1. Hi Stacey, and first of all thank you very much for this interview with The HR Tech Weekly®. Straight away, why you have developed Workforce Insights and how it will complement other Paycor products?

Our innovation is driven by uncovering ways to better serve our clients, and Workforce Insights is no exception. Last August we surveyed our clients about the features they wanted to see in future product releases. After reviewing more than 1,000 client responses, we found that the overwhelming majority were looking for data analytics and insights.

In addition to evaluating our client’s feedback, we also looked at industry trends that show HR professionals are striving to prove their strategic value to executives. One way we can help them is by organizing their key people data in a manner that helps with business execution.

For example, through the Workforce Insights overtime dashboard, information from our time platform is correlated to OSHA incidents reported on in our HR platform. Leaders can uncover safety thresholds exceeded by location, department or manager to home in on where a performance issue may be occurring.

  1. What key benefits and advantages does Workforce Insights have when compared with other tools on the market?

Most other tools on the market force standard charts and data visualization. Workforce Insights allows customers to view their data in the way that is most impactful for their unique business needs.

Another key differentiator is the one-click sharing functionality. Users can take their insights and share that information with the appropriate parties without having to import or export data. The custom reporting and one-click sharing allows users to not only have access to the data, but to make it meaningful and actionable.

  1. Why do you think small and medium-sized businesses need their own HR technology solutions?

Employees at small and medium-sized businesses (SMBs) are often forced to wear multiple hats, and sometimes that even means taking on responsibilities like payroll. HR technology solutions help relieve the administrative burden of payroll and benefits while ensuring reliability and security, while also protecting against the risk of compliance infractions.

What Paycor offers seems to be what’s desired most by SMBs – a platform or suite of functionality at the right per-employee-per-transaction and per-month price point that doesn’t require a customization. A solution that can be implemented and have value derived in three days to three months, and that can adapt with them as their organization grows.

  1. Paycor has run its operations since 1990. How have your clients needs during this period changed, and what is the secret sauce for long-term success?

Since 1990, the technological needs of our clients have changed dramatically. In 1990 computers were large and expensive, “the cloud” didn’t exist, and phones were connected to a landline or, for a select few, in a bag in your car. Since then, clients have had to react to the demands of their workforce; faster access from any device, and our products have had to evolve accordingly.

Our secret sauce for long-term success may be the only thing that has remained the same since 1990 – putting our clients first. We were founded because our CEO believed there was a better way to serve the needs of our clients, and it’s that passion that still drives us today.

  1. Achievements in big-time sports are based on grassroots sports. What can you recommend to HR Tech startups on how to get into the highest league?

The energy around new HR tech offerings through start-ups informs the entire industry. For some of these startups, success looks like being acquired into a larger company and human capital offering. For those wanting to progress into a higher league more independently, I recommend having an openness to partnerships and distribution options, and feedback to the offering itself. The best emerging technologies in HR are built and market-tested quickly.

  1. Since its founding, Paycor has grown to 1,460 people onboard. What do newbies need to know about the company in order to have a successful career with you?

First, excel at the job you are given, and then look for ways to take on more responsibility. It can be dangerous to be too eager to move to the next level without first nailing the task you are given. At the same time, becoming complacent doesn’t allow you to be a change agent in the organization.

To take on that next challenge and excel to the next level it is critically important that associates know and own their personal brand. Your personal brand is what people say about you when you leave the room. Think about the impression you want to leave, and make it.


If you want to share this interview the reference to Stacey BrowningPaycor and The HR Tech Weekly® is obligatory.

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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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Evolving Trends in Talent Management Transformation

Evolving Trends in Talent Management Transformation

There are differences in how Talent is defined across industries and organizations. Some companies prefer to adopt their own determinations rather than accepting general definitions. Let’s focus on a general definition for both Talent and Talent Management:

”Talent consists of those individuals who can make a difference to organizational performance either through their immediate contribution or, in the longer-term, by demonstrating the highest level of potential.”

Basic and simple meaning of Talent could be:

  • Ability, aptitude, bent, capacity, endowment, faculty, flair, forte, genius etc.
  • Unusual ability to do something well that can be normally developed by training.
  • Person or people (‘Talent Pool’) with exceptional capabilities.

Whereas: ”Talent Management is a set of business practices that refer to attracting highly skilled individuals, integrating new talents, and developing and retaining existing talents to meet current and future business objectives.“

Actually it manages the planning, possession, development, retention and growth of Talent Pool who are of particular value to an organization, because of their leadership capabilities, prospective for the future, or even because they are satisfying business critical roles and which could actually lead to organizational sustainability, efficiency and excellence in order to achieve business goals.

The term of Talent Management was first casted by McKinsey & Company following a study and gradually it became a very useful term as it describes an organization’s commitment to hire, manage and retain talented employees. It embraces all of the work processes and practices related to retaining and developing an exclusive workforce.

The process of attracting and retaining effective employees results in increasing competition among the companies because of its strategic importance and also known as “The War for Talent.” Talent Management which is sometimes also called as Human Capital Management is now an essential management practice; before it was exclusively attached to recruitment process while now covers a wider area. Talent Management implies that companies are strategic and conscious in how they source, attract, select, train, develop, retain, promote, and move employees through the organization.

On the other side definition of talented employees can involve all kinds of components, from their educational qualifications and skills, previous experience, strengths and additional training they have undertaken, to their abilities, potential and motives, qualities and personalities. Most companies practice Talent Management in a way which includes recruitment of individuals, career planning, training and development, performance management and various compensation and reward options for the top performers. It generally depends on the business strategy, commitment to employees and other factors. What are the core components of Talent Management?

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Talent Engagement and transformation are top priorities for the leaders nowadays and the major challenge is the ability to attract and retain top talent while making sure the existing talents are fully engaged to deliver extraordinary results. For this reason Talent Engagement is considered to be a crucial factor.

End-to-end Talent Management encompasses five main pillars: Recruitment and Onboarding, Performance Management, Compensation Planning and Rewards, Career and Succession Planning, and last but not least, Learning and Development. Previously there were four pillars to be considered under Talent Management but gradually Career and Succession Planning has been added to make them five.

Leaders must have absolute clarity in purpose and focus to avoid business disruption as change without strategy is just a substitution of business development. Therefore, leadership is considered to be one of the most important component of the Talent Management.

Onboarding and Recruiting

An exclusive definition of Onboarding from Bersin by Deloitte states:

“The process of hiring, orienting and immersing employees into their new role and into the organization’s culture.”

Onboarding increases productivity, improves employee engagement, provides consistent and relevant information about the organization to all the new employees and gives understanding of employee expectations and hence helps building relationships.

Recruiting aims to successfully attract and hire key talent for current and future organizational needs through competency based advertising and interviewing efforts. Hiring talented individuals is crucial to the organization’s success. But in order to hire the most talented people, one must first search and recruit them and it could be a challenging task. It is so true that an imperfectly designed recruitment process can miss capable job candidates especially those who work for the competitors.

Performance Management

If we follow the definition it states Performance Management as ongoing, constant process of communicating and simplifying job responsibilities, priorities, performance expectations and development planning that optimizes an individual’s performance and aligns with organizational strategic goals. Performance Management is a crucial segment of maintaining the best talents. It enables companies to identify top performers and high potentials as well as assists to understand the pitfall of under-performance. It helps companies to make better strategic decisions on increasing excellence, retention efforts and to encourage talents.

Compensation Planning and Rewards

A way to remunerate individuals for important achievements, contributions to the goals of an organization and improving skills and competencies in their jobs is called as Compensation. There is a popular old saying – compensation isn’t the reason employees stay, but it can be the reason they leave. If companies want to keep their best employees onboard, they need an elegant approach to use Compensation as a strategic tool, while staying in line with company’s payroll standards, policies and guidelines.

Career and Succession Planning

Succession Management is a process of recognizing and developing employees with the possibility to fill key or critical organizational positions. Succession Management actually means having the right people in the right jobs at the right time. In other words, it is an organized process aimed to identify and grow individuals for future openings.

Career and Succession Planning actually empowers organizations as they plan for the future. The proper way of Career and Succession Planning increases opportunities by allowing organizations to identify and develop the top talent. In addition to preparing new talents to move into key positions, it can effortlessly identify and rectify gaps in Succession Planning as well. It enhances employees engagement by generating proper career paths for them, along with supporting individual development plans.

Learning and Development

Learning Management Systems have been used for a long time to administrate training courses and programs. Experts say that corporate learning is now coming out beyond firm course delivery to a more natural and integrated experience. The companies are embracing new ways of an employee development and reviewing new learning technologies. Massive Open Online Courses (MOOC), Self-Paced Online Courses, Distributed Open Collaborative Courses are evolving as the future of new learning options and becoming a very popular way of learning. Companies are also focusing on integration of these options into their learning management portfolios.

All these processes are actually providing big opportunities and advantages to the organizations and guide them to the success. Some of the advantages of effective Talent Management are:

  • Improves organization’s effectiveness and productivity.
  • Helps in achieving business goals with high quality performance.
  • Improves organization’s culture and work environment.
  • Increases employees satisfaction.
  • Retains the best talents and decreases turnover.

Talent Management is an important aspect of broader Human Capital Management (HCM) initiatives and Human Resources departments play a significant role there.

While many current HR processes still moving around traditional practices of recruiting, onboarding, training and development, the Talent Management should generate real value by focusing on a company’s most valuable resource: the potential of its Talent Pool. This dedication provides a distinctive competitive advantage over talents and organization’s business model.

After embracing new talent management applications, most organizations realize the need of integration. Apart from process integration technology investments are often made to streamline processes and improve data accuracy. But the full potential of integration cannot be realized when companies have multiple systems of record with disconnected data streams and conflicting processes.

A study shows that HR has a long way to go when it comes to integration. The majority of organizations surveyed report poor to moderate integration of their Talent Management applications.

It is very important to know the future business trends, and new vision for the Human Resource Strategy to handle Talent Management solutions.

How Trends Are Changing?

The HR functions are at a conjugation point and it has been believe that in the coming years there will be a significant transformation. As the current functions are not connected or flexible to business requirements and have no consolidated vision of talent capabilities there is a need of evolution. There are, of course, some key trends that will effect this transformation. Talent Management is one of them for sure. Across the developed and emerging markets there will be a shortage of skilled and appropriate talent. Businesses cannot deliver their best as they are lacking the right talent. Hence the future HR functions would create significant value for the business, given current and future trends.

Skills gaps are increasing and HR would continuously make sure that their organizations have the right talent. HR would need to quickly tap skills when they’re needed. HR has to transform and adapt towards a global world, supporting new talent sourcing strategies to match talent, and acquiring new management methods, such as encouraging mobile workforces across geographical barriers.

HR should adopt risk management strategies covering everything from protecting confidential information and data, to risks associated with hiring or turnover. Technology, including social, gamification, cloud, mobile, big data and apps, is transforming how people take away their daily work and how HR supports them in that attempt.

Instead of depending on solutions dictated from the top level; organizations should be encouraged with skilled workers who harness social media to create solutions in conjunction with each other, thereby radically disrupting organizational structures, and hierarchy and job titles. As the world becomes increasingly unpredictable, organizations that can adapt to changing business conditions will outperform the market. And HR departments have to reshape themselves so that the HR functions become the critical driver of agility.

HR needs to provide the new thinking and deep insight to attract, organize, motivate and develop the right people for the business. It requires to build the high-performing HR functions to support business goals.

As companies hire talent from around the globe and enter new markets with increasing speed, managing corporate and cultural change will become a critical competence. Already many researches showed, executives expect their company’s HR functions to develop tools and methodologies that support line managers in communicating to employees.

Talent Management tools won’t resolve recruitment, employee retention and other issues by themselves. Companies need to develop a clear plan to navigate Talent Management pitfalls. Social media, cloud, mobile and analytics are changing Talent Management software and the way companies use it.

According to Josh Bersin, with so many vendors in the market and the ERP providers offering talent management software, it’s common for companies to buy software first, and only then figure out how to use it. Today more than 40% of the companies buying HR software are focused on “making it easy to use” and integrating heterogeneous systems, not “solving particular talent problems.”

Companies still want integrated HR systems, but what they don’t want is a complex, integrated ERP software that makes everyone’s life more complicated. In fact, they want life to be simple. More than 40% of the companies according to Human Capital Trends Study are embarking on projects to “simplify the work environment.” 47% of those who are buying new HR software systems cited “ease of use” and “integrated user experience” as one of their top two buying criteria.

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So, as per Bersin by Deloitte, in HR, start to think about employees as “people” – and this is why more and more companies tend to rename their HR organizations as “People Operations” or “People Management.” Sure we have to do HR administration, but ultimately our job is to make sure “people” are engaged, trained, in the right jobs, aligned, and supported.

If we start to think about employees as “people” or consumers, then we’ll think about “Talent Management” in a new way. It’s not just a way to integrate HR processes, it’s a series of strategies, programs, investments, and promises that make everyone’s life, work, and career better.

This is where work is going – we now work in a world of independent free agents, each of them is like a voluntary “consumer” who may choose to stay or leave. The concepts and principles of Talent Management are not going away. But as an area of focus, we in HR have to think more broadly. “Talent Management” is now “People Management” and it has to take on a much broader perspective and holistic approach.

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So, the Talent Management needs to transform to People Management. With more engaging people, simplifying the environment, making the work easier. People management focuses on empowering and improving performance everywhere with continuous learning and continuous feedback processes. The focus is definitely on creating highly engaged workforce and productive work environment. While talent scarcity is still a problem, engagement, empowerment, and environment are now the real challenges that companies are facing. So, this transformation is necessary to overcome all sort of challenges in this area. As the Talent Management industry is changing with social, mobile, analytics and cloud-based technologies, we also need to make sure that the Digital Transformation strategy matches to these changes.

About the Author:

Soumyasanto Sen

Soumyasanto Sen — Blogger, Speaker and Evangelist in HRTech who try to think Out of the Box! Engaging with Companies, Startups & Entrepreneurs in driving Transformation.

Professionally Consultant, Manager, Advisor, Investor in HR Tech. Focusing on Strategies, Analytics, Cloud, UX, Security, Integration and Entrepreneurship in Digital HR Transformation.


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