The Realities of HR Technology in EMEA - Elearnity
The Realities of HR Technology in EMEA - Elearnity
- 1. Deep insights, pragmatic advice Deep insights, pragmatic advice © Copyright Elearnity Limited All Rights Reserved European HR Realities 2014 HR Tech Europe: Initial Elearnity Survey Results David Wilson, Managing Director davidw@elearnity.com @dwil23 in association with
- 2. Deep insights, pragmatic advice Deep insights, pragmatic advice © Copyright Elearnity Limited All Rights Reserved Accelerate & De-Risk 9-Grid™ Vendor Perspectives Research & Best Practices Accelerated Process & Independent Advice
- 3. Deep insights, pragmatic advice Deep insights, pragmatic advice © Copyright Elearnity Limited All Rights Reserved Research Goal •To understand the realities of key HR Trends, Drivers and Challenges within the European Market •Survey of HR & related Professionals across Europe •Targeted at Corporate Organisations •Over 200 organisations completed
- 4. Deep insights, pragmatic advice Deep insights, pragmatic advice © Copyright Elearnity Limited All Rights Reserved THE RESPONDENTS A PREDOMINATELY EUROPEAN ENTERPRISE PERSPECTIVE 62% Respondents from Organisations > 5000 Employees 95% of respondents European Over 200 survey respondents overall
- 5. Deep insights, pragmatic advice Deep insights, pragmatic advice © Copyright Elearnity Limited All Rights Reserved 39% primary focus HR Systems 39% responsible for at least one aspect of the Talent Cycle 15% respondents primarily Talent Acquisition 13% primary focus HR Operations 6% respondents have a role focused on IT 12% primary focus Employee & Exec Development 93% HR FOCUSED ROLE - A DELIBERATELY HR BIASED PERSPECTIVE
- 6. Deep insights, pragmatic advice Deep insights, pragmatic advice © Copyright Elearnity Limited All Rights Reserved have a role with Global Responsibility 60% EUROPEAN - BUT ALSO GLOBAL INFLUENCE
- 7. Deep insights, pragmatic advice Deep insights, pragmatic advice © Copyright Elearnity Limited All Rights Reserved What did they tell us about HR in Europe? HR Tech Europe Amsterdam 2014 Initial Elearnity Survey Results HR
- 8. Deep insights, pragmatic advice Deep insights, pragmatic advice © Copyright Elearnity Limited All Rights Reserved EUROPEAN HR – KEY CHALLENGES Increasing Organisation Performance & Profitability 95% Reducing Costs 88% 86% Improving Customer Satisfaction & Service Quality Currently, what are your organisation's most significant business challenges? For 66% this is a Major Challenge For 56% this is a Major Challenge For 41% this is a Major Challenge € €
- 9. Deep insights, pragmatic advice Deep insights, pragmatic advice © Copyright Elearnity Limited All Rights Reserved A CENTRALISED HR APPROACH – IS NOT THE DOMINANT OPERATING MODEL 67% are using either a Decentralised or Federated HR Operating Model 33% 55% 12% This has massive implications for HR Tech choices, approaches to change management and the effort / impact / opportunities / success of standardisation
- 10. Deep insights, pragmatic advice Deep insights, pragmatic advice © Copyright Elearnity Limited All Rights Reserved European HR’s Top Priority as an HR Organisation is to be a Strategic Business Partner 56% •56% Strategic Business Partner •42% Better leadership & management •41% Enhancing the talent pipeline •40% Increasing the consistency of HR processes •37% Improving HR service quality & provision HR’S TOP PRIORITIES ARE TO ADD STRATEGIC AND TRANSACTIONAL VALUE
- 11. Deep insights, pragmatic advice Deep insights, pragmatic advice © Copyright Elearnity Limited All Rights Reserved EUROPEAN HR HAS SOME MAJOR CHALLENGES… cite workers councils & unions, data privacy, legislation, culture, language, localisation & travel budgets – as challenges for operating HR in Europe 70%
- 12. Deep insights, pragmatic advice Deep insights, pragmatic advice © Copyright Elearnity Limited All Rights Reserved IN HR TECH WE TRUST… but.. Outsourcing HR Processes is only seen as Critically or Very Important for <20% of respondents TOP 5 LEVERS for Future Success of European HR Operations 87% Critically or Very Important 78% Critically or Very Important 89% Critically or Very Important 88% Critically or Very Important 74% Critically or Very Important
- 13. Deep insights, pragmatic advice Deep insights, pragmatic advice © Copyright Elearnity Limited All Rights Reserved FUTURE SUCCESS = CHANGING HR ? 50% believe Future HR Success is dependent on Re-organisation to create better business alignment 63% believe Future HR Success is dependent on New or Enhanced Processes 65% believe Future HR Success is dependent on Upskilling HR Teams
- 14. Deep insights, pragmatic advice Deep insights, pragmatic advice © Copyright Elearnity Limited All Rights Reserved A STRONG INTERNAL TALENT PIPELINE IS THE LEADING MEASURE OF SUCCESS FOR HR STRATEGY Top Measures of Success for HR Strategy 1.Strong Talent Pipeline 2.Employee Engagement 3.Employer of Choice 4.Company Profitability 5.Cost of HR Operation Building a strong internal talent pipeline is seen as 5x more important as a measure of success than having a HR presence at Board level
- 15. Deep insights, pragmatic advice Deep insights, pragmatic advice © Copyright Elearnity Limited All Rights Reserved HR Systems & Technology in association with
- 16. Deep insights, pragmatic advice Deep insights, pragmatic advice © Copyright Elearnity Limited All Rights Reserved 67% have Partially Standardised HR Systems, less than 20% have Very Standardised HR Systems across their organisation There is a significant overall market opportunity to consolidate HR Systems Suites. FRAGMENTED HR SYSTEMS APPROACH?
- 17. Deep insights, pragmatic advice Deep insights, pragmatic advice © Copyright Elearnity Limited All Rights Reserved Only 1 in 10 are Extremely Satisfied with their HR Systems HR TECH FAILS TO IMPRESS… Overall, what is your level of satisfaction with your organisation's HR technologies?
- 18. Deep insights, pragmatic advice Deep insights, pragmatic advice © Copyright Elearnity Limited All Rights Reserved 1/3rd Not Satisfied with either Recruitment, Learning and Development, Workforce Planning, Analytics, Succession Planning or Onboarding solutions The highest levels of dissatisfaction: - Workforce Planning & Organisational Design - Succession Planning 43% 40% HR TECH FAILS TO IMPRESS…
- 19. Deep insights, pragmatic advice Deep insights, pragmatic advice © Copyright Elearnity Limited All Rights Reserved SIGNIFICANT OPPORTUNITY AND RISKS FOR VENDORS OVER THE NEXT 3 YEARS… Nearly 60% envisage changing their Talent Acquisition or Analytics platform within the next 2 years Close to 50% envisage changing their Succession Planning, Performance Management, Reward & Recognition, Onboarding, Learning & Development or Core HR solutions within the next 3 years
- 20. Deep insights, pragmatic advice Deep insights, pragmatic advice © Copyright Elearnity Limited All Rights Reserved THE SUPPLIER WAKE UP CALL! 1.Solutions Business Agility and Flexibility 2.Quality of End User Experience 3.Lack of Analytics 4.Reducing Total Cost of Ownership 5.Deficiencies in Functionality Over a 1/3rd identified User Experience or Lack of Business Agility & Flexibility as a CRITICAL DRIVER behind changing HR systems! THE TOP 5 DRIVERS TO CHANGE HR SYSTEMS 1 2 3 4 5
- 21. Deep insights, pragmatic advice Deep insights, pragmatic advice © Copyright Elearnity Limited All Rights Reserved CLOUD ADOPTION & CHALLENGES
- 22. Deep insights, pragmatic advice Deep insights, pragmatic advice © Copyright Elearnity Limited All Rights Reserved HR Outsourcing? in association with
- 23. Deep insights, pragmatic advice Deep insights, pragmatic advice © Copyright Elearnity Limited All Rights Reserved KEY AREAS OF HR ALREADY OUTSOURCED 54% Payroll 42% IT Systems Support 41% Leadership Development & Coaching 35% Training, Strategic Consultancy, Systems Implementation, Assessment, Recruitment or Industry Benchmarking
- 24. Deep insights, pragmatic advice Deep insights, pragmatic advice © Copyright Elearnity Limited All Rights Reserved TOP 3 AREAS WHERE ORGANISATIONS ARE PLANNING TO USE OUTSOURCING 1.Training & Learning 2.Assessment 3.Administration & Transaction Management 1 2 3
- 25. Deep insights, pragmatic advice Deep insights, pragmatic advice © Copyright Elearnity Limited All Rights Reserved THE DRIVERS FOR HR OUTSOURCING 78% € 77% Reduce Operating Costs Gain Access to Expertise Increasing Governance was the least Critical driver <5% 75% Increase Flexibility to Fluctuating Demands
- 26. Deep insights, pragmatic advice Deep insights, pragmatic advice © Copyright Elearnity Limited All Rights Reserved QUALITY OF SERVICE, COST & CONTRACTING SEEN AS THE BIGGEST BARRIERS TO OUTSOURCING See cost as a challenge to HR outsourcing 70% See complexity of contracting as a challenge to HR outsourcing 66% For 1 in 3 this as a major challenge 75% See Quality of Service as a challenge to HR outsourcing For 1 in 4 this as a major challenge For nearly 1 in 3 this as a major challenge
- 27. Deep insights, pragmatic advice Deep insights, pragmatic advice © Copyright Elearnity Limited All Rights Reserved … and Overall? in association with
- 28. Deep insights, pragmatic advice Deep insights, pragmatic advice © Copyright Elearnity Limited All Rights Reserved OVERALL VIEW OF HR EFFECTIVENESS Overall, how satisfied do you believe your business executive / board are with your HR services? 0% were Extremely Satisfied with Talent Succession or Talent Acquisition No HR Services were able to score an Extremely Satisfied rating >10%
- 29. Deep insights, pragmatic advice Deep insights, pragmatic advice © Copyright Elearnity Limited All Rights Reserved HR EFFECTIVENESS – SPECIFIC AREAS Overall, how satisfied do you believe your business executive / board are with your HR services? Just over 40% were Satisfied with Employee Engagement, Compensation & Benefits or Leadership Development Analytics is a key weakness in perceived HR Effectiveness < 1 in 5 Extremely Satisfied or Very Satisfied Only 2% are Extremely Satisfied
- 30. Deep insights, pragmatic advice Deep insights, pragmatic advice © Copyright Elearnity Limited All Rights Reserved INFOGRAPHIC & VIEWPOINT
- 31. Deep insights, pragmatic advice Deep insights, pragmatic advice © Copyright Elearnity Limited All Rights Reserved Thank You Any Questions? Elearnity 9-Grid™ www.elearnity.com/9-grid.html Elearnity Perspectives www.elearnity.com/perspectives.html davidw@elearnity.com @dwil23