So, you’ve made the decision to consider an outsourced payroll provider. You may even have a few bids out to test the waters and see where products and fees align compared to your goals. However, before you enroll with an outsourced payroll service, prioritizing the organization of your internal payroll and human resource (HR) processes is crucial for easy sharing with a potential payroll provider. This will help streamline the process for you, your provider and your team. Here are some tasks to check off your list during the organization process and items to have on-hand before you sign your next contract:
Identify strengths and weaknesses in current operation
If you have been processing payroll in-house since the inception of your business, you have likely undergone significant changes in the way you process payroll and handle other aspects of your HR over time. When was the last time you updated your process documentation? Documenting your processes thoroughly is necessary to provide a clearer picture of your business to a potential provider. With documented processes, the payroll provider can better understand how you currently operate and any potential areas for improvement. As professionals who serve a variety of clients in size and industry, outsourced payroll providers will use your documentation, along with their experience with similar operations, to provide the best possible solution for your needs. Additionally, identifying your current system’s strengths and weaknesses, and your desired outcomes through outsourcing, will assist the provider in understanding how their product can best serve you.
Identify clear expectations for results and budget
After you’ve documented your processes and identified your strengths and weaknesses, you must set clear expectations, goals and benchmarks for how you envision an outsourced partner working with your business. If you enter into negotiations without a clear understanding of your expectations for the transaction, your chances of poor implementation, product fit, pricing structure are greatly increased. Do your research and learn what types of products are available, how they work, and how their price points compare with others in the market. Furthermore, should you receive a proposal or contract, perform a detailed examination of the pricing structure and any potential add-ons you may not expect or anticipate up-front, which could end up costing you big. Transparency will be key in a lasting relationship with your payroll provider.
Identify an ideal partnership
Not every outsourced payroll provider is right for every company. For example, if you are a small operation of 30 employees, a payroll provider who specializes in large multi-national corporations may not be a good fit, and vice versa. Small companies and start-ups will likely need more hands-on, approachable, and available customer service support during implementation, as well as throughout the relationship, to maintain optimal efficiency down the road. Larger companies will also need dedicated customer service, but may require a more robust platform to integrate with their various benefit programs and handle the complicated matters which can arise with hundreds of employees. Do your research, talk to peers in your industry, and identify which providers are likely to suit your needs and culture.
Prepare your staff
If you are switching from in-house to an outsourced payroll provider, and you have staff who are currently responsible for that function, consult with them on what this means for their position going forward and what expectations you will have for their position. If they are to serve as the liaison to the provider, bring them in on demos and negotiations. If their role is changing completely, provide plenty of time for training and transition. When implementing a new process or platform to improve time and energy output, engage the people impacted by this drastic change.
Get your paperwork in line
Once you’ve chosen your provider, prepare all relevant paperwork, documentation and contracts so they can hit the ground running with implementation of accurate data. The more prepared and organized you are inside your business, the easier implementation and start-up will be. Set aside time to ensure benefit provider contracts, federal and state documentation, and any unique employee circumstances are order. Implementation can be hectic and overwhelming, and the more organized you are, the better you will feel throughout the process.
Follow these tips before enrolling with an outsourced payroll service, and you will be more prepared and organized going into the bidding, buying and implementation processes.
Today SD Worx, the global HR and payroll service provider, revealed that out of 1,800 HR and payroll professionals, 44% do not know what the General Data Protection Regulation (GDPR) is. However, of the 56% that are aware of the impending GDPR, 81% feel they will be ready by the May 2018 deadline.
The findings, conducted among nine European markets, show surprisingly polarised views when it comes to the new legislation.
Of the 56% of HR and payroll professionals that are aware of GDPR, the majority are collaborating with other departments or outsourcing providers. 84% of respondents revealed that they are getting help from other departments in the organisation, yet 73% believe that GDPR compliance would be easier if HR and payroll was outsourced. In addition, the survey found that 91% are likely to look for additional skills outside the organisation to help with GDPR preparation.
Of those that are aware of GDPR, 55% of respondents believe GDPR is a risk to the HR industry, leading them to implement various preparations. 68% of respondents are absorbing as much as possible on the subject and reviewing and updating all existing policies and processes related to data protection, and 49% are assessing the need for changes to current business relationships (including with data contractors).
Jean-Luc Barbier, International Managing Director at SD Worx, commented, “This survey has revealed the clear divide in the HR industry. Even though those who have heard of GDPR are preparing for GDPR and think they are likely to be ready by the deadline, the other half of the industry has not heard of GDPR. Therefore, you would assume that the ones who aren’t aware aren’t making the necessary changes to their department. It’s great to see that those who are aware are seeking skills to help them from a variety of sources, both internal and external. What this survey tells us though is that a significant amount of education still needs to be done.”
When it comes to GDPR-readiness in the nine markets, the survey also highlighted various differences between countries. For example, only 67% of respondents in Austria believe their HR team will be fully GDPR compliant by the deadline, whereas in Ireland the rate was 90%. In addition, when asked if outsourcing for the HR and payroll department will make becoming GDPR compliant easier, 56% of Swiss respondents said yes, whereas Belgium (85%) and the United Kingdom (73%) were much higher.
Although the HR industry seems to be polarised, for those who have heard of GDPR, the benefits are recognised. When asked what the key benefit of GDPR is in the HR and payroll industry, 71% believe improved data security will be the biggest benefit, whereas only 3% believe that GDPR will bring no benefits at all.
There are plenty of reasons why outsourcing payroll strategies can be hugely beneficial to your company. Typically, it is the financial arguments that are used, not the emotional ones. However, there are many ways in which outsourcing your payroll can improve the wellbeing of your employees and can restore their work-life balance.
It’s well known that happier employees are much more likely to commit themselves fully whilst at work, bringing increased employee retention rates. Yet, many employers don’t realise that changing your payroll strategy can have an incredibly positive effect on the happiness of your employees. Here’s five reasons why:
1. Reduced workload
If your team is overworked and understaffed, an outsourced payroll strategy is the perfect way to get things back on track. An outsourced payroll strategy takes away the need to recruit and train an additional team member, and can dramatically reduce the workload of your staff much more quickly than getting a new member of staff.
Reducing this workload will make your employees instantly happier as the amount of potential overtime required will fall. Working fewer extra hours will allow employees to improve their work-life balance and will free up time for them to do the things they really love outside of work.
2. Reassuring the workforce
Payroll duties are sometimes given to members of staff who already have packed schedules with their own duties and responsibilities, which can lead to an anxious workforce.
Some employees may also feel concerned about other staff members having full access to their salary details. Moreover, relying on an over-tasked employee to process payroll can create tension for employees who expect to be paid accurately and on time each month.
By outsourcing payroll, an impartial person has access to salary details, which will eliminate any personal tensions surrounding payroll. Knowing that an outside specialist has sole responsibility will also reassure employees that their payroll matters are being taken care of, leading to a more relaxed workforce, a better work-life balance, and a better company culture.
3. No delays
Internal payroll managers are subject to the same demands on their time as everyone else in your company. If a company is going through a busy period where everybody’s help is required to solve an urgent issue or meet an external deadline, those members of your team responsible for payroll are no exception to this.
By outsourcing your payroll to specialist company, you hand over a big responsibility that would require lots of time, money and pressure on payroll employees. The payroll process becomes the outsourcing company’s top priority, so the internal team can focus on other tasks. There are few things which disgruntle an employee more than delayed pay, so offer your employees guaranteed on time payment by using an outsourcing partner to handle your payroll.
4. Lifting the pressure
Managing payroll is a huge responsibility, since you are personally responsible for the livelihoods of everyone in the company, many of which will be close personal friends and colleagues. This can put a lot of moral burden on an employee.
Outsourcing your payroll removes the personal element, as the person making sure that everybody is paid each month won’t individually know the people whom they are paying. Taking this emotional burden away from one of the members of your staff will relieve them of a huge weight, meaning that they are less likely to have to put in long hours to get the payroll sorted in time and will be able to regain a much better work-life balance.
5. Lead by example
Making a positive action such as changing the way you run your payroll will have a trickle-down effect throughout the business. Firstly, it will show employees that their payroll is an essential part of the business, and will lead the way for other changes in different areas and departments.
Many workplaces suffer by not adapting their strategies as the business grows and develops. Outsourcing your payroll strategy is a great example to show your teams of how to be proactive about making changes for the better that will set the business up well for its next phase. You’ll be amazed at how influential such a decision can be, and how large an impact it can have on the mindset of your workers.
HR departments are the last thing fast growing companies pay attention to. In the race to become lean hypergrowth machines, many executives in the tech industry see HR simply as a nice to have, if not a symbol of the corporate culture they want to avoid. While it’s become common to start off without an HR department, now we’re seeing fast growing companies reach past the 50 person mark without any formal HR in sight.
With the onslaught of HR tech tools many companies are opting instead to buy solutions that will take care of everything from recruitment & onboarding to payroll and L&D. This is not only a trend affecting startups, bigger companies are now beginning to use HR tools to decentralize many processes placing them into the hands of managers and even the users themselves.
Unfortunately, HR has been relegated to the equivalent of the office hall monitor for way too long. Is this the end of the HR profession? Are we moving towards an age when HR can be completely replaced by tech?
What Tools Can Do:
People want choices. They want to be able to have some sort of control over the processes that affect them and not have to deal with paperwork or waiting. In this fast moving digital age there is an app for everything, including traditional HR functions such as: recruitment, onboarding, payroll, perks and vacation tracking, performance management and L&D. Self-service is becoming a trend, not only in our personal lives but also in the workplace.
Is HR Still Needed?
The answer is, more than ever. The millennial workforce is much more demanding than any other generation. What’s more, they’re much less likely to stick around if their demands aren’t met. A recent article by Gallup demonstrated that millennials are the generation that’s least engaged in the workplace and most likely to switch jobs, with six in ten saying they would be open to new job opportunities. Today with new tech tools that help your competitors recruit, even passive candidates, there’s no time to lose.
This means that employers need to create a more hands on unique experience to keep young talent engaged starting the day they come in the door. This includes curating and integrating tools into customized processes to make them more efficient, employee focused and reflect a company’s unique employer brand. Ultimately, tech tools are facilitators, not solutions. It’s now HR’s job to design a new type of organization that caters to the needs of its employees. Here are four ways the role of HR will change due to the rise of HR tech:
Creating the Employee Experience
Creating the ultimate employee experience has been recognized in Deloitte’s Human Capital Trends Report for the past few years as the key to attracting, retaining and engaging talent. No employee experience program should be the same. To not only attract talent but to attract the right talent, it’s essential to create a unique employer brand. With the rise of websites like Glassdoor, the more time HR spends creating a great experience for current employees, the more likely they’ll become brand ambassadors for the company.
Likewise, your people are different, give them options… but not too many. One of the most important roles Deloitte foresaw in its 2016 report was the need for HR to become a curator for this overly connected generation. With so many options for eLearning tools, communication channels and perks available, sometimes what this generation needs is a guide who can select and whittle down the vast array of distractions and choices presented on a daily basis.
While traditional HR functions may be moving more towards user oriented self-service, it’s HR’s job to choose tools that meet their people’s needs and work best within the organizational framework they’ve designed.
Another key aspect of creating the ultimate employee experience is to reinvent and rehabilitate decades old processes that employees distrust or even hate. Performance appraisals are one such process that have often gotten a bad rap. In traditional stack ranking style, they were unabashedly used to decide who would stay and who would be shown the door.
Today many HR departments are starting the process of rehabilitating performance management by getting rid of or reinventing the process to make it more focused on employee growth and development. Cementing the change they’re replacing reviews with employee driven feedback interactions, more frequent coaching conversations and even the opportunity to give upward feedback – a major departure from the so called ‘rank and yank’ system.
Each company has its own unique culture, whether it reflects what executives envisioned is another question. It’s not necessarily the job of HR to create their company’s culture but to take its values and mission and infuse them throughout all processes within the organization. A company’s core values are often described as its moral compass. As many recent cases show, this should not be taken lightly.
After fast growing tech company Zenefits was charged with taking short cuts on online broker license certifications they came out with a statement announcing that, “Zenefits now is focused on developing business practices that will ensure compliance with all regulatory requirements, and making certain that Zenefits operates with integrity as its No. 1 value.”
However, what must be remembered is that words and reality can be two different things. Your top leadership can profess a company’s values but you need a constant reinforcement of those values at every level of the organization to ensure they’ll really be followed. As the architect behind all people processes, putting HR in charge of strengthening and infusing values (with full support from top leadership) is the best way to ensure they’re fully integrated into your culture.
Translating People Data
Employee experience is not something that can be designed and put in place for life. Just like companies that aren’t constantly innovating their product, those which are not innovating their employee experience will lose out in the talent market. That’s why HR must create an always on engagement culture by frequently measuring and analyzing. People data can tell you when engagement levels are low but it can’t tell you what the root of the problem is. This is where HR must learn to identify the triggers through processes like employee journey mapping and then effectively communicate to executives the changes which need to be made through storytelling.
The great thing about the rise of HR tech is that it takes away more of the administrative tasks HR has had to deal with in the past and leaves professionals with more time to transform their organizations into great places to work. The challenge HR will face is adopting a new way of thinking about their profession and arming themselves with the tools they’ll need to bring their department and company forward in the future. For more info join our free employee experience email course.
- 79% of employees who were paid incorrectly identified the issue themselves
- Of those that were paid late, 88% perceived their employer negatively
- Around half (44%) of all respondents would consider leaving their job after being paid late
Today SD Worx, the global HR and payroll service provider, revealed that out of 4,000 employees surveyed, 44% had been paid late by their employers and 48% of those that had been paid late had also been paid incorrectly. The survey also revealed that 79% of employees that had been paid incorrectly identified the issue themselves and, on average, 44% respondents would consider leaving their jobs (41% in the UK) after been paid incorrectly, with 55% of German respondents considering leaving, and only 30% of French.
SD Worx conducted an independent online survey amongst employees in six different European countries, the UK, France, Austria, the Netherlands, Switzerland and Germany, to measure their opinions and experiences of receiving delayed and incorrect payment. The survey targeted employees working in organisations sized between 10 to 10,000 employees who had experienced a delay in payment from their employer, finding that employees in the Netherlands were most likely to be paid late (55%), followed by Germany (46%).
The delay in payment caused a predominately negative perception of employers from the employees that SD Worx surveyed. The majority (varying from 80% in Netherlands to 93% in Switzerland) of employees who experienced payment delays felt their perception of their employer had a ‘slight negative’ to ‘highly negative’ impact. In addition, surveyed employees thought that the reason for their late payment was predominately down to poor management (61% of UK respondents) or financially unstable employers (on average 33% in all countries).
Jan Van Mol, Head of Global Alliance at SD Worx, commented: “The results of this survey are shocking in regards to the impact that payroll error has on employee engagement. An increasing number of employees are becoming actively disengaged in their workplace due to late or incorrect payments, something that employers need to fix to ensure that their employees are have high morale and trust in the workplace”.
Alongside whether employees were paid late, SD Worx also asked whether employees had been paid incorrectly. The survey found that of the 44% that had been paid late, a total of 48% had also been paid incorrectly. Among those respondents, the UK is most likely to be paid incorrectly at 61%, with the Netherlands in second at 55%. Of the respondents that were paid late, over 80% of all employees (other than Austria) found the issue and notified their employer themselves.
The reasons for delayed payment varied for each country, with the main two reasons being “Late third-party payments impacting cash-flow” and “System error or outage”, combining for around three-in-five (57%) employees in all countries. In Austria, late third party payment was the cause of delayed payment for 50% of employees.
On average, employees experiencing a delay in payment were delayed between one-and-a-half and two weeks in all countries, except in Austria where the average delay was around three weeks. Payroll and HR is often overlooked as an essential aspect of an organisation, but SD Worx’s survey results emphasise the importance of ensuring that employers are paying their employees correctly.
As a leading European payroll and HR services provider, SD Worx provides a wide range of solutions to customers worldwide including payroll and HR, legal support, training, automation, consulting and outsourcing. Today, more than 63,000 large and small organisations across the globe rely on the more than 70 years of expertise that SD Worx has acquired.
SD Worx’s 3,900 employees operate in ten countries made up of Belgium (HQ), Austria, France, Germany, Ireland, Luxembourg, Mauritius, the Netherlands, Switzerland and the United Kingdom. SD Worx calculates salaries for about 4.25 million employees and recorded in 2016 a turnover of €397 million. SD Worx is the co-founder of the Payroll Services Alliance, a global strategic network of leading payroll companies whose members jointly handle 32 million salary calculations.
Businesses are always looking for new ways to improve and innovate, and the payroll industry is no different. Payroll is arguably the purest form of HR data, providing employers with real-time information that can inform a more intelligence-led approach to business decision-making. Payroll systems that deliver insight as well as a good service for both employers and employees will undoubtedly gain long-term business intuition. Because of this, forward thinking organisations need to embrace a payroll system that can provide an optimum payroll service for employees across all departments and local market. Investing in a global payroll system that encompasses the individual needs of an organisation is the answer, but how can global payroll providers ensure that multinational businesses comply with all in-country legislations?
Retaining talent and providing the best service for employees is paramount for business leaders – something that has been fueled largely by the advent of new HR technologies. Studies show that if employees are not being paid correctly and on time, the knock-on effect on retention is significant. Employers that do not harness the benefits of global payroll will consequently fall behind in the competitive race, with business penalties spanning the short and long term.
With an increasing number of business leaders starting to understand the benefits that can be reaped from investing in global payroll, how can we expect global payroll to progress in the future? Below are three industry predictions:
1. Improved Employee Engagement
With Generation Z about to enter the workforce, businesses need to look ahead and think seriously about how to cater to the needs and requirements of these digital natives – and that includes playing to their payroll preferences. Generation Z grew up with technology, is comfortable using it, and has come to expect it in the workplace. If businesses can’t cater to these needs, they will struggle to retain the best talent within this workforce bracket.
SD Worx expects to see an increasing number of built-in employee engagement functions within global payroll systems over the coming year, which will include functionalities that improve and enhance the employee experience. These functionalities will be tailored to their users – self-service and user-friendly tools for Generation Zs and Millennials, for example. There will also be an increase in measurement and reporting tools that enable close monitoring of workforce experiences in a way that can then be acted upon to boost employee engagement.
2. Deeper HR Integration
Forward thinking organisations will begin to integrate payroll with wider reward and recognition benefits to create a single, comprehensive system. With the line between work and home life becoming increasingly blurred amidst the ‘always-on’ culture, businesses need to ensure that they have the right technologies and systems in place to help combat this and deliver positive workforce experiences. Payroll systems that incorporate add-on rewards and wellbeing benefits will therefore become increasingly commonplace in coming years.
3. More Data-Driven Predictions
As mentioned above, modern payroll systems now provide much more than a monthly back office function – with the right solution, they can deliver on-going business critical insight into an organisation. The desire for global business insight is increasing year-on-year, and if managed in an optimal, systemised way, accurate payroll data will increasingly begin to provide the source of this much sought after visibility. When combined with other data sets such as employee performance and talent management, the collective insight this delivers can enable business leaders to act upon information in a reactive way, but also in a predictive context to support future planning. Key examples include being able to better identify employee attrition and absence patterns in order to correctly forecast recruiting needs and save costs.
Global payroll providers not only ensure that employers are complying with global legislations, they also guarantee that local requirements are met too. Local legislation frequently changes – like Australia adopting Single Touch Payroll this year, for example – and many large organisations have already been the target of fines due to breaking compliance with local payroll requirements. Every country had different regulations, and it is the job of a global payroll provider to tailor their offering with the needs of each organisation.
The future is often uncertain at times, but global payroll with local capabilities can improve forecasting and planning, giving the business a strong and more insight-led direction. It is clear that the growing trend for global payroll with local capabilities will remain a key business requirement as businesses expand internationally and the world becomes ever more globalised.
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:
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
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.
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 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.
In this transformation era, most of companies want to lead with better financial results and with more customer engagement, satisfaction and experiences. Every organization wants to have success before their peers. The transformation is already taking place, mainly starting with Human Resources within the Organizations and Digital HR plays a vital role whether in standardizing and streamlining processes or in helping organizations to transform their HR practices and employee experiences.
SuccessConnect 2016 Vienna has definitely provided the opportunity where one can spend time with people who are successfully navigating through these changes. Learn why they began and how they are proceeding through the journey, including value and results they are achieving.
For those who are not aware of SAP SuccessConnect events, the premier event for human resources (HR) professionals. World’s leading HR executives, business professionals, industry experts, and thought leaders gather who are shaping the way companies are transforming businesses in the digital economy.
Definitely recommended if you want to know how, why and where you need to start the journey to Digital Transformation. Here are some of the recents and upcoming ones.
Let’s now share our experiences recently from Vienna, the latest SuccessConnect event. What is important at this time is to know over the experiences, knowledge and challenges in the transformation with Digital HR from the organizations who are already leading their journey.
There are lot of feedback and knowledge sharing from these leading organizations at SuccessConnect. Keynote address with SAP SuccessFactors President Mike Ettling, “Simply Human Show” has provided such experiences of the journey from UCB, Swiss Re and Erste Group Bank.
Franck Cohen, President, SAP Europe, Middle East and Africa, and Mike Ettling, President, SAP SuccessFactors discussed over leadership and diversity. Highly motivated thoughts and styles from two leaders from SAP.
There are other interesting Keynotes, one with Niki Lauda is one of the best Formula 1 drivers and one of the most fascinating personalities in sports and other with Stefan Ries, member of the Executive Board of SAP SE and CHRO and off course Women in Leadership Luncheon, a really good initiative from SAP for sure.
The one with Thomas Otter and Dave Ragones, both group vice presidents of Product Management at SAP SuccessFactors, is definitely under the surveillance from SAP Partners, Vendors and Customers as a whole. They discussed the future directions and trends shaping the SAP SuccessFactors suite of products, over the new product innovation and newly added functionalities. Which are surely the driving points of the transformation for better customer experiences and results.
There are huge numbers of breakout sessions from SAP, partners and customers, sharing their experiences and capabilities. Not easy to attend all of these but the below ones are definitely interesting especially when one is looking for a proper answer, roadmap and guidance for your transformation journey.
From Partners and Customers:
38167: Lufthansa: Side-by-Side Model with SAP SuccessFactors Solutions
38254: Power and Value of Developing an Actionable HR Strategy and Road Map When Transitioning HR
39184: Transforming Global HR – Is There Any Other Way to Work!
38953: How to Support Company Growth and Organizational Change with SAP SuccessFactors Solutions
38149: Kontron: Full Implementation of SAP SuccessFactors Solutions Based on SAP Rapid Deployment Solutions
40390: Introduction and Road Map for SAP SuccessFactors Extensibility
38121: SAP Success Factors Employee Central: Core HR Road Map
38173: Enabling HR Shared Services in Your Organization: SAP SuccessFactors Employee Central Service Center
38077: Overview of SAP SuccessFactors Learning and Road Map
38164: Introduction and Roadmap for SAP SuccessFactors Intelligent Services
We personally enjoyed the below session where SAP come over the road maps and options for Payroll in cloud and on-premise.
38128: SAP SuccessFactors Employee Central Payroll: Where We Are, Where We’re Going, and How to Get There
SAP clearly indicated that choices and solutions for Global Payroll are totally depend on the customer’s perspective of their current situation. SAP is offering with 4 options currently where the preferences are clearly indicating to SAP SuccessFactors Employee Central Payroll or Managed Payroll. There are a lot of debates going on for these last two options and it is good to know that SAP makes clear indication that those customers who are happy with their current SAP HCM Payroll solution (so far the best option) are not need to move to cloud in hurry.
Transition of Payroll to cloud totally reciprocal to the customer’s satisfaction with their current situation. SAP has also provided two different choices to Payroll delivery for Employee Central, currently the best choice for Core HR on cloud from SAP.
So now it’s upon to the organizations who need to decide their own choices from their current situation and their own future roadmap. Further reading on this is recommended from Phil Wainewright, Diginomica.
There are off course lot of other interesting sessions and there are a lot to discuss and share but we surely need dedicated contents for them. But it is always good to be a part of the most debatable topic, which we have share.
Another interesting best recent announcement from SAP is SAP SuccessFactors Process Library, the process library for SAP SuccessFactors solutions provides a unique and specific body of knowledge created and maintained by SAP. The process library supports the transformation of HR based on the leading cloud solution for HR and enables customers to drive standardization and fast adoption.
SuccessConnect from SAP is a great place for valuable networking as it is dedicatedly provides the opportunity in driving Digital HR for a Digital Transformation journey.
Meeting Experts, Global colleagues, Ex-Colleagues, Friends, Social Media Connections and lots of Partners/Vendors at the same place and during the same time is not at all a bad option for sure, specially when the area (Human Resources) of all innovation, thoughts and experiences are the same.
Meeting experts specially SAP Mentors is very common and expected in event like SAP TechEd but SuccessConnect is neither a bad option especially if you are looking for mentors/experts on SAP HCM and SAP SuccessFactors solutions. It is a big plus for any attendee for sure.
Now if we come to vendors and partners there is a big list of sponsors in SuccessConnect. It’s great to get collaborate with many of them, grabbing their experiences with other customers, partners and knowing future solutions from SAP which could be a a great step to know why, how and where to start the journey to Transformation.
Very impressed with NGA HR, who are one of the leaders in Payroll Services and HR Outsourcing. Actually so far they are mainly known for the Payroll and Outsourcing services. But it’s good to know over their Digital HR services as well where they are also leading HR Technology Consulting, HR Transformation Consulting and AMS services.
In this year, SAP has announced over SAP APP Center for customers, there are already more than 1200+ apps in the HANA Cloud Platform from SAP. NGA HR also announced about XtendHR, the future-proofed HR apps. The apps – built on the HR HANA Cloud Platform – help organizations to deploy, roll out, configure and manage SuccessFactors Employee Central faster, safer, better and cheaper. Will be available to anyone easily in this mobile world, where people spend most of their time in APPs onlys.
Similarly Accenture HCM Software is also doing a pretty good in boosting productivity on the SAP SuccessFactors Employee Central and SAP on-premise HCM platforms with their own solutions. Similar engagement is also supported by EPIUSE with their own solutions.
All of these three vendors are the premium partners from SAP and there are lot of expectations from the organizations and customers from them who are leading in helping customers in their transformation journey.
Apart from big names it was also interesting to know about some new and potential partners who are doing a fantastic progress with their innovative thoughts and engagement. We are really impressed with Ingentis, iProCon, TalentTeam, iXerv , WalkMe, Launch … and many more, and some of them are even founded and leaded by SAP Mentors and SAP Alumni.
We are also happy to share our collaboration idea with many of the partners especially on disruption on HR and driving Digital HR for transformation. We were especially engaging with lot of potential startups who are really promising with their innovative solution on HR Technologies. We will be happy to get engage with more and more startups, partners and helping organizations and customers in their transformation journey as well.
Please see our DisruptHR section on our website, you can find some of them, still many to get engage.
Overall it is a very successful and impressive conference we attended recently so far. There are a lot of potential for most of the organizations as the journey has just began.
We are thankful to SAP and all the sponsors/partners and hope to continue our journey in this Digital Transformation era as well.
About the Author:
Soumyasanto Sen— Blogger, Speaker and Evangelist in HR Technology who try to think Out of the Box!
Professional Consultant, Manager, Advisor, Investor in HR Tech. Focusing on Strategies, Mobility, Cloud, Analytics, UX, Security, Data Protection, Developments and Integration in HR Technology & Digital HR.
It’s a popular phrase tossed around by growing businesses. As more candidates are needed for steady growth, small and mid-sized business owners feel the strain to keep a firm grip on compliance while ensuring employees receive efficient and thorough transition into roles, up-to-date information and certifications, performance review procedures and follow-ups, job satisfaction, and so, so much more.
When your company is climbing from 20 to 50 to 100 employees, the need for true Human Resources can easily sneak up on you. Before you know it, you’re rushing to find answers to HR problems you hadn’t considered — and why would you? It’s not your area of expertise. And Google only helps so much…
When you add to the mix that millennials have officially overtaken Generation Xers as the largest generation in the U.S. labor force, organizations are scrambling to find, nurture, and retain top talent — and some demands must be met to preserve millennial employees.
But it’s not all nap-rooms and foosball tables.
As millennials reach professional maturity, they’re looking less for a “fun-zone” and more for a professional “safe-place” — that is to say, a workplace that understands their unique concerns, fears, motivations, and needs.
Organizations focusing on the employee experience are embracing their workforce in ways rarely seen in generations passed, a precedent that will undoubtedly play a much larger role as emerging generations build on this empowered foundation.
However, these same organizations are quickly finding snags along the way. From recruitment processes to off-boarding, ensuring employees receive professional value, satisfaction, and leadership nurturing add heavy workloads to an already hectic schedule.
We recently spoke with Pete Luciano, co-founder of Human Capital Management (HCM) provider Balance Point, about the pains most often discussed with clients about their processes. As Pete puts it, “Employees are your best assets. If the best talent for your organization is hired, trained, and given opportunities to succeed — and even fail productively — you’ll see growth before you know it.”
HCMs offer simple, cost-effective management solutions for these growing problems — but ultimately, the wealth they provide is up to the organization’s unique approach to the software.
Organizations are spending much more on recruiting top talent. Keeping a constant flow of viable candidates is difficult to manage, but an HCM remedies this time-blockage by continuously cataloguing candidates — even if organizations aren’t hiring at that second.
A potential candidate simply navigates to the website, uploads her/his resume, and fills out an application. From the organization’s perspective, managers can perform online applicant searches and track applicants throughout the hiring process.
As Pete says, “using an HCM to automate onboarding processes is administratively more sensible.” In days of yore, HR was responsible for collecting employee information and manually entering it into the organization’s system. With HCM software, the candidates are in control of their own information.
Prior to the start date, W4s, I-9s, employee handbooks, and other documents are accessed and filled out electronically. Giving new-hires access to their own information promotes transparency and trust within the organization — important standards for young people entering the marketplace.
Currently undergoing an evolution, performance reviews provide key insight into the successes and coaching necessary to successfully grow employees.
As mentioned in a recent HR Tech Weekly article, “Employees and their managers can work together on creating performance goals annually or bi-annually and track the progress and closure of the same with feedback and ratings as relevant.”
But every organization has a unique approach that speaks directly to their bottom lines.
HCMs automate performance reviews through tiered processes, measuring competency, goals, and the organization’s core values. Of course, HCMs are customizable in this way, giving each organization the opportunity to tailor performance reviews to their specific needs and standards.
HR, Time & Labor Management, Payroll
Giving employees access to their information, documents, pay grades, calendars, and benefits relieves HR of the time it takes to retrieve this information. Because HCMs are known for their simple, user-friendly interface, minimal training is needed to get employees up-to-speed and editing their information when necessary.
Building these workflows individually, without an HCM, takes time and can be cumbersome to navigate. Having everything located in one place makes it much easier for everybody, from leadership to employees, to manage and maintain.
Employees retire, quit, or are terminated for many different reasons. Exit interviews offer insight into organizations through the lens of an employee who underwent the entire employee experience. Where are improvements needed? What can make the employee experience more appealing for future candidates?
What is done with the information gathered is ultimately up to the organization. However, HCM off-boarding processes ensure the organization gets its property back, terminates benefits, and ensures that nothing falls through the cracks. When it comes to Benefit/ACA reconciliation, people coming and going from the organization’s health insurance can either save or squander funds.
For small and mid-sized businesses looking for efficiency throughout the employee experience, an HCM provides cost-effective solutions to each facet of the employee’s journey while ensuring compliance, simple management, and real-time reporting.
Ever wondered why do companies invest top dollar in HCM applications and then spend on maintaining them, what is the value it brings to an organization, why use it all?..
To tackle these questions and to understand why HCM, i.e. Human Capital Management applications, are basic blocks in the architecture of any organization’s IT landscape, let us look at the features that makes a HCM application what it is and how it empowers employees and HR personnel alike in an organization.
Ease of use: Feature rich and in some cases widget rich HCM systems come fitted with a simple user interface, imagine having to struggle to use and navigate through an application, no one wants that kind of negativity in their lives, the screens always meander towards simple, intuitive and an easy to use and navigate layout. The buzzword here is User Friendly.
Manage a global & dynamic workforce: Organizations are spread across continents with countries having varied tax regulations and rules. HCM systems provide features that support taxation, statutory deductions and year end processing of various countries. Also when employees get deputed and move on to foreign shores, a HCM system enables tracking such movements and related details.
Accommodate industry standard HR processes: Along with the obvious ability to hire employees into the organization, maintain their personal & employment data and record changes as applicable and then process termination on employee exit, HCM systems also enable calculation of periodic benefit deductions, calculation and payment of bimonthly/monthly salaries subject to the home country regulations, payouts of AdHoc bonuses. And employee data from the HCM system of an organization is published to other enterprise applications like Finance, Supply Chain Management etc.
Another group of HR processes that target employee talent management enable recording job related competencies of employees, detect gaps in the employee competency profile vis-à-vis the employee designation and track bridging of the gaps through a structured learning and certification path, HCM systems can also help map and track career plans for employees in an organization and if required create and monitor succession plans as well.
Employee work hours and In and Out times used for billing purposes can also be recorded, monitored and maintained in the HCM application.
Employees and their managers can work together on creating performance goals annually or bi-annually and track the progress and closure of the same with feedback and ratings as relevant.
Employees can also update changes in address, changes in martial changes, child birth/adoptions, view pay slips, view benefits offered by the organization and make choices and even see deductions as they happen, etc.
Anytime anywhere access: This happens to be a very important value-add, mobility is almost a way of life as evident in the past few years, people want the option to access data, approve requests and extract reports while on the go, so a HCM system is smartphone and tablet compatible has a definite edge in the market.
HR Analytics support: As your organization grows and accumulates data, analyzing this data to identify patterns and trends is an all-important activity, HCM systems provide text & chart based reports to support decision making and also ability to interface with external business intelligence tools if your organization uses them.