Sharpen your pencils''

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Sharpen your pencils..

• A real-live human being is available to speak
  with you at your HMO if you call within a
  47-second period each day. When this period
  occurs depends on the number of other callers
  during that day. Assuming your city's population
  is 300,000, and 1/3 are covered under a managed
  care plan, and 16 of those covered are covered
  by the same plan as yours.

2
What percentage of the time will you get
voicemail?
3
HR Trends Technology

• February 20th, 2007
• Adam Dansby ADP, Inc.

4
How Important Is Workforce Effectiveness/Productiv
ity To Your Companys Overall Results?
5
How Important Is Workforce Effectiveness /
Productivity For The Success Of Your Business?

• The single most important factor
• Among the top two or three factors
• Important, but not a top factor
• Not Very Important

CFO Magazine Survey of 170 CFOs, 50 from
businesses with under 100M in annual revenue.
6
Which workforce issues and opportunities are most
on your mind?
7
Which Workforce Issues Concern You Most?
Top 4 Responses From CFOs

• Cost of healthcare other benefits
• Availability of qualified employees
• Need to train/develop existing employees
• Need to align workforce with company strategy

70
62
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CFO Magazine Survey of 170 CFOs, 50 from
businesses with under 100M in annual revenue.
Multiple answers allowed.
8
Which Workforce Issues Concern You Most?
Top 5 Responses From HR Leaders

• Cost of healthcare other benefits
• Need for HR to launch initiatives that impact
  bottom line.
• Need to control HR costs
• Managing employee turnover / retention
• Scarcity of qualified employees

Twenty/Ten Research Survey of 300 VPs HR
Multiple answers allowed.
9
How much does your company spend on its HR
department? How much on employees?
10
Snapshot - Costs
Companies spend 800 per employee per year for HR
(SHRM)
60-70 cents of every dollar go to to
Employee-Related Expenses (HR Magazine, 2003
Research Quarterly)
11
Would your CFO say he/she fully understands the
ROI of your employee-related and HR investments?
12
Did You Know?
85 of CFOs
say they dont fully understand the ROI they get
on their human capital investments (Mercer CFO
Research Services)
13
Did You Know?
13 of CEOs
say they are very satisfied with the
contributions from their HR teams(Accenture)
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THE PERFECT STORM
People Are Our Most Expensive Assets
Increasing Focuson Human Capital
Budgetary Pressure
HR
Increasing Scarcity of Skilled Workers
Increasing HR complexity
Rising Healthcare Costs
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Coming Shortage of Workers 1
US Compound Annual Labor Force Growth
Source Watson Wyatt
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Coming Shortage of Workers 2
There will be a shortage of 5-10 million skilled
workers by 2010.
There will be fewer working 25-44 year olds in
2010 than there were in 2000
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Signs Of Change Employees In Control
As Reported in Feb 2006 HR Executive Magazine

• 67 of surveyed executives are not satisfied with
  their current jobs.
• Of these, 78 plan to change companies in the
  next six months.
• Source ExecuNet, Norwalk Connecticut

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Cost of Turnover

• Estimates Range from 50-200 of Employees
  Salary. Includes
• Cost of temporary replacement or overtime
• Cost to recruit replacement
• Cost to train replacement
• Cost in lost productivity (assume 3 6 months
  for replacement to get up to speed)
• Cost in lost organizational knowledge

19
Which Employee-Related Costs and/or
Administrative Burdens Are Growing At The Fastest
Rate?
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Rising Cost Of Healthcare
Total Health Benefits Premiums Per Employee
(Includes Medical, Dental Other Health
Benefits)
Source 2000-2005 Data from Mercer HR Consulting.

21
Did You Know
Spends More On Healthcare Than On Coffee?
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Rising Cost Of Healthcare
"The dilemma for mid-sized employers is that they
must compete with the largest employers for
labor, and thus must offer a comparable benefit
package. Yet they often do not have the
purchasing power of large employers, nor do they
benefit from the same economies of scale." Judy
Fawver, Vice President, Employee Benefits of
Marsh's officein Minneapolis.
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Employees - Whats More Complex?
Source Fidelity
24
Employees - Time Well Spent?

• 200 in productivity lost per employee per year
  due to poor HR Benefits communications

Source Employease Research
25
What kinds of trends news do you see regarding
employee leave?
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Cost Of Employee Leave

• Time-off and disability program costs averaged 15
  percent of payroll in 2001, up from 14.6 in 2000
• An employee earning 40,000 annually is paid
  6,000 for time away from work

Source Mercer
27
What percentage of time does HR Spend on
transactional vs. strategic Issues?
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Context Why Employers Need Help
Time Well Spent?
Source Forrester
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Is your company planning to invest more in your
HR function?
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76 of mid-sized companies are pressuring HR to
cutspending.

• Source Watson Wyatt

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HRs Challenge
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HR Executive Magazines 2007 Forecast

• Accelerate integration and consolidation of HR
  systems to create a firm foundation to support
  efficient data administration and service
  delivery.
• Significantly expand Web-based HR delivery to all
  HR customers.
• Blend in-sourced and outsourced technology
  solutions with an emphasis on the software as a
  service model.

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HRs Answer
Source Wachovia Securities
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How do you weather and win in this HR Perfect
Storm?
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In a word.TOOLS

• The proper tool will allow the user to maximize
  their time
• An intuitive tool will allow less experienced
  users to accomplish more
• An effective tool will allow tasks to be
  delegated to the end user
• An efficient tool will allow automation of task

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What are your options for an HRIS?Here is a
sample of vendors A-E.

• There are almost as many vendors touting their
  HRIS as there are customers. Here is just a
  sampling
• SimpleHR- HRIS, Vacation and Benefits
  (http//www.simplehr.ca)Auxillium West
  (http//www.auxillium.com)ABS Staff Files
  (http//www.staff-files.com/)Administrative
  Business Resources (http//www.ABResources.com)An
  swers in a box (http//www.answersinabox.com)
• ADP, Inc. (http//www.adp.com)Apex Business
  Software HR, Leave, FMLA (http//www.IHRsoftwar
  e.com)Ascentis Corporation (http//www.ascentis.c
  om/)ASL HR Information Technology
  (http//www.aslconsulting.com)Aspiration
  Software (http//www.aspiration.co.za). Atlas
  Business Solutions Staff Files
  (http//www.abs-usa.com/)Avanti Canadian Payroll
  and HRMS Software (http//www.avanti.ca)BeakWare
  (http//beakware.com)Best Software Abra
  (http//www.best-software.com/Products/HumanResour
  cesandPayroll/index.asp )Checkpoint HR - HR
  Software (http//www.checkpointhr.com/)Compease
  Compensation Administration Software
  (http//www.hrnonline.com)Computers In Personnel
  (http//www.ComputersInPersonnel.com)Copraxis
  (http//www.copraxis.co.uk)Comspec
  International, Inc. (http//www.comspec-intnl.com/
  )CompKeeper Software (http//www.jenss.com)Concu
  r Technologies, Inc. (http//www.concur.com/)CORT
  Directions - Human Capital Management
  (http//www.cortdirections.com/?hr-guide_com)CMS
  - Sage Abra HRMS (http//www.cmshris.com)Cozart
  Consulting Human Resource Management Software
  (http//www.hrapps.com)CWS Software
  (http//www.cws-software.com)Cyberaid Australia
  (http//cyberaid.com.au)Cyber Managers Software
  Solutions (http//www.cybermanagers.com)Cyborg
  Systems (http//www.cyborg.com/)Data Simplistic
  Software Inc. (http//www.datasimplistic.com)Data
  tel (http//www.datatel.com/)Delphi Software -
  Leading provider of HR and Payroll software
  (http//www.delphisoft.com)E-Benefits
  (http//www.e-benefits.com/)EDC, Inc.
  (http//www.univers-edc.com/)eHRM
  (http//www.src.si/en/products/ehrm/default.asp)e
  -HRpro (http//www.e-hrpro.co.uk)Employease
  (http//www.employease.com)Enterprise Workforce
  Management HRIS (http//www.fluous.com)Eugenisys
  (http//www.eugenisys.com)Excel HRM
  (http//www.excelhrm.com)ezyHR - HR Software for
  Small Business (http//ezyhr.com.au).

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So how does one choose?What are the
different models?
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4 Basic Models

• Licensed/Legacy Software
• Open-Source Software
• Homegrown Systems
• Software as a Service

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Where is the market moving?
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SaaS Growth in the Marketplace
3 billion annual HCM software market





Source Forrester Research
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Software as a Service

• Also known as on demand
• Evolved in the late 1990s-ASP model
• Applications accessed over the Web
• Multi-tenant architecture
• Hosted by vendor
• Updates are pushed out automatically

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SaaS versus Legacy/Licensed
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Client Ownership Experience for SaaS

• Fast implementation
• High Configurability
• Continual Upgrades
• Best Practices and Expertise

I have long believed in a subscription model
that can adapt to shifting customer requirements
and which forces vendors to take responsibility
for getting their software to work. -Larry
Ellison
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Maximizing Benefits from SaaS

• Align solution cost with business results
• Negotiate Service Level Agreements (SLAs)
  carefully
• Be a willing partner with the vendor
• Leverage the vendors expertise
• Take advantage of new flexibility

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Why are companies choosing Saas?

• Significantly lower cost of ownership
• Faster time to benefit
• Lower risk
• Continual improvement
• Better single vendor support
• More vendor expertise

46
What type of organizations stand to win with
Web-based HRIS?

• Multi-location
• Low IT budget
• Fast growing
• Empowered employee base
• Competing with larger firms
• Risk adverse

A key premise of the SaaS model is that the
software firm invest in the technology, hardware,
and ongoing support services instead of the
customer. -Software Information Industry
Association, 2005
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Leveraging Technology

• Online recruitment
• Employee self service
• Manager self service
• Compliance management
• Online Open enrollment
• Online Performance review
• Direct connect to insurance carrier

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Online Recruitment

• Ability to create custom job descriptions
• Post URLs to job boards and website
• Online application form
• Automatic notification and applicant filtering
• Online workflow including hiring manager
• Robust reporting

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Self Service

• Access to intranet
• Ability to schedule life change events and
  personal info
• PTO/Vacation requests
• Total Compensation statements
• Run what if scenarios
• Secure messaging

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Compliance Management

• Security
• Notification
• Editing
• Routing
• Calculations
• Qualifications
• Reporting

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What to look for in a HRIS?

• Compliance
• Performance Management
• Leave Management
• Recruitment and Applicant Tracking
• Compensation Analysis
• Report Writer
• Benefits Statements
• Integration
• Invoicing/self-billing
• Secure Messaging

The SaaS model for HRIS compels vendors to
continuously enhance their offerings based on
customer feedback which results in better
products. -Upside Magazine, 2006
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In summation.

• Due to internal and external factors-HCM is more
  important than ever
• HR departments are going to shift from
  transactional to strategic
• HRIS is the financial tool to manage human
  capital
• SaaS is the model that more vendors are
  delivering their solutions

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Questions?