Title: Creating an Employer of Choice Environment and Transforming HR
1Creating an Employer of Choice Environment and
Transforming HR
Wally Boehm VP Human Resources
2Todays discussion
- Organization Profile
- Business Case - NAS
- Employer of Choice Strategies
- Human Resources Scorecard
- Human Resources Transformation
3 ADP One of the largest global providers of
Information Services
- Employer Services
- Brokerage Services
- Dealer Services
- Claims Services
4Were the Business Behind Business
5Goal Fortune Top 100 Companies
Excel
Employee Measures
Financial Measures
Competing
6Employer Services Organization
Employer Services
Emerging Business Services
Major Account Services
National Account Services
Benefit Services
7Organizational Profile - NAS/Benefit Services
8Situation Analysis - Fall of 1998
- Experiencing high growth
- Good, but not great service
- Higher than average ADP turnover
- Lower than average ADP associate satisfaction
- HR strategy not aligned with business strategy
9Future Success
1Billion Business
Employer of Choice World Class Service
10What did we do?
- Embraced Service-Profit Chain business model
- Aligned HR strategies with business
- Compensate using Balanced Scorecard framework
- Increase Associate Satisfaction
- Decrease Turnover
Results
Productivity Cost Savings
11(No Transcript)
12Balanced Scorecard
Employer of Choice
Financial Excellence
Operational Excellence
World Class Service
13Balanced Scorecard Metrics
Employer Of Choice
Revenue Generation 20
Turnover10
Associate Satisfaction10
Financial Excellence
Profitability20
Various Metrics 20
Operational Excellence
Client Satisfaction10
Client Retention10
World Class Service
Accelerators Diversity 10 Training 10
14Decrease Turnover
YTD
15Productivity and Cost Savings
Turnover Reduction 20.2 10.2
- Productivity
- Time efficiencies
- Better service
- Direct hiring costs
- Advertising
- Interviewing time
- Agency expense
FY99 to FY02
24.7 million savings
16Business continues to grow rapidly
(in millions)
Dollars
(Plan)
17HR Means Building Business Value
For ADP.
- Associate relationships impact bottom-line
profitability
For our clients.
- EOC Best Practices are reflected in our services
18What are we doing to build an Employer of
Choice environment?
19Provide our associates the HR best practices we
offer and enable in our clients.
HR Vision
20HR Mission
Lead the delivery of HR best practices to achieve
NAS objectives through people, processes, and
technology.
21Whats the Strategy?
- Build HR initiatives from business strategy
- Fine tune initiatives from listening to
associates - Establish metrics and measure progress
- Communicate successes internally
- Extend value to clients externally
22Listening to Associates
opportunity and culture
What makes ADP your Employer of Choice?
sense of accomplishment
easily balance work and family life
friendly and professional atmosphere
23Working in an EOC Environment
24Whats the Strategy?
Increase Associate Satisfaction
Leverage Human Capital for Growth
- Associate Satisfaction
- Training Development
- Win the Talent War
- Reward Recognition
- Human Resource Planning
- Strategic HR Transformation
25Strategy Drive Associate Satisfaction
- Survey Semi-annual
- Analyze Results
- By Division
- By Business Unit
- Develop Communication Strategy
- Create Action Plan
- By Division
- By Business Unit
- Business Unit Action Plans
- Develop Individual BU Action Plans
- Validate issues through Associate Focus Groups
- Initiate Teams to Work on Issues
- Track Progress Against BU Plans
- Report Action Plan Progress
- Reward Management for Improvement
26Strategy Make Retention a Way of Life
- Reward management for retention
- Use competency-based selection criteria
- Engage group teams for selection process
- Get serious about pre-employment screening
- Invest in associate learning
- Expand new hire orientation mentoring
27Strategy Increase Associate Communications
- Develop Associate Communications Strategy
- Move Associate Communications into HR
- Dialogue w/ associates through variety of
vehicles
Video
Newsletters
- Division-wide - Localized
MyInfoCenter.com
28Strategy Invest in Training
- Institute technology-based learning
- 3 week requirement for technology function
- Use 2 outside vendors
- Increase associate training to a minimum of 40
hours per year per associate
27 of workforce
54
29Strategy Improve Leadership Development
- 2 million - Sales Leadership Training
- Institute for Service Leadership
- Leading Managing in EOC Environment
- Leadership Development
- Managing for Commitment Diversity
30Strategy Win the Talent War
- Implement electronic careers center
- External access through www.adp.com
- Centralize recruiting for high growth functions
- Technology
- Sales
- Institute competency-based selection process
- Respond to associate worklife needs - flexibility
- Promote employment brand
31Respond to Worklife Needs
- Flexible Work Arrangements
- In-office Services (e.g., dry-cleaning, massage)
- Office Social Gatherings
- ADP Preferred Childcare Discount Program
(US-Wide) - ADP On-site Day Care Facilities
- ADP On-site Medical Facilities
- Continue asking listening
32Strategy Align Reward Recognition
- ACES
- Presidents Club
- Stars
- Quarterly Breakfast
- Numerous Service Awards
- Balanced Scorecard
- What Gets Measured Gets Done
- Variable compensation plans
- 60 of associates
- Stock options
- 40 of associates
- Knowledge Pay Program
33Strategy Systemic Human Resources Plan
Our Processes Tools
- Assess with 360-degree process and feedback
- outside vendor
- Individual development plans
- 6 month review discussions
- Managers as coaches
- Some use of executive coaches
34Strategy Systemic Human Resources Plan
Our Outcomes
- Benchstrength measure
- Gap identification in existing vs. future needs
- Diversity of associate background, talent,
abilities - Structured pipeline for talent infusion
- Associate partnership of career development
35Strategy Delivering on Diversity
Connecting through Surveys, Focus Groups
Leverage progress and work on priority issues
Implementation of Local Diversity Councils
36HR Scorecard
What Do We Measure?
Associate Turnover
- Associate Satisfaction
- Associate Turnover (by Segment, New Hire,
Cost) - Training Hours per Associate
- Competency Gaps of Workforce
- Diversity Representation
- Cost per Hire
- Time to Fill
- Compensation Competitiveness
- HIPO Associates (Bench Strength, Development
Plans)
Associate Satisfaction
Productivity
Human Resources Indicators
Recruitment
Diversity
Associate Training Development
Associate Benefits
37Strategy Transform HR
- Develop measure new HR Competencies
- HR Process Re-engineering
- Electronic self-service
- HR Metrics Digital Dashboard
- Leverage HR in new product development and
piloting
ACCOUNTABILITY
38Strategy Transform HR
Percentage of Time Spent Strategic HR
Planning Consultative/Developmental Execution-Orie
nted Administration
Today 10 25 65
Future 25 50 25
Source Tomorrows HR Management, Dave Ulrich
Michael Losey, 1997.
39What Does This Strategic Transformation Look Like?
- Old HR
- Non-Strategic
- Administrator
- Distributor
- Enforcer
- Translator
-
- New HR
- Business advisor/consultant
- Workforce strategist
- HR Process Expert
- HR Measurement Analyst
-
Process Reengineering
Drivers
- Services
- Customer Service
- HR Program Admin
- Operational Excellence
- Technology Application
- Technology
- Process Integration
- Technology roadmap
- E-HR Strategy
- Measurement Analysis
- Manager/Employee
- Information Access
- Learning
- Decision-making
- Action Taking
40Reengineering HR Processes
Flex Benefits Enrollment
HR Reporting
Reengineering HR Processes through The Portal
HR Metrics
Performance Management
HR Administration
Recruiting Process
HR Planning
41NAS HR Web Portal Strategic Enabler
Benefits Related Information
Mission Statement
Guidelines and Procedures
Forms
Phone Book
New Events
42Conducting HR Transactions
- Skills Profile and Personal Search Agent
- Internal e-Recruiting Solution
- Expense Management
- 401(k) Transactions
- Benefits Enrollment
- Stock Purchase/Stock Options
- On-Line Pay Stubs
43Leveraging Human Capital
- Digital Dashboard
- High Potential Tracking
- Career Development
- Hot Skills Database
- Human Resources Planning
44The Horizon of Practice
Source Corporate Leadership Council
45IN SUMMARY
Creating an Employer of Choice Environment and
Transforming HR is about
- Managing Change
- Creating a Cultural Shift
- Creating Systemic Processes
- Measurement
- Creating...
Value
46 Leverage Human Capital for Growth Reward
Recognition Human Resource Planning HR
Transformation
Associate Satisfaction ASI Training
Development Talent War