Optimising the HR Delivery
Solution
Bill Farrell
PricewaterhouseCoopers
Agenda
 Shared Services - optimal solution ?
 The Key HR Delivery Channels
 Positioning technology in the delivery model
 Where to next
 Group Exercise
2
Why change the HR delivery model ?
 Reinvention - the HR value Proposition
 Cost Reduction
 New Generations
 Information Pull
 Technology Push
3
Optimising the Delivery Model
Current
Performance
Service
Delivery
• Cost
Effectiveness
• Service Level
•
•
•
•
Shared Services
Self Serve
Line management
Technology
• Capability
Strategic
Relevance
and Impact
Lev
el
• Operational
Dependence
• Supporting the • Centrally
business
• Regionally
• Innovation
• By country
• By BUs
• Whole-sale
outsourcing
• Buy In/Vendor
Manage
• In Source
Location
4
Supply
Source
Strategically HR needs repositioning…...
10%
Strategic
Planning
10%
Strategic
Planning
30%
Customer
Service/Consulting
Administration
60%
30%
Customer Service/
Consulting
Administration
60%
5
20%
Strategic
Planning
60%
Customer Service/
Consulting
Administration
20%
Recent research shows HR organisations are
predominantly traditional and administrationbased
80%
67%
60%
54%
40%
20%
43%
42%
Source: PwC HCS Survey 2001
6
62%
63%
HR shared services has led to cost
reductions
160
140
145
HR support staff FTE ratio for HR
departments with and without shared
services >5,000 employees
120
120
100
80
60
40
Employees per HR support
staff FTE
20
0
Shared
services
No shared
services
Source: PwC HR Benchmarking Survey 2000
7
The Key HR Delivery
Channels
HR Shared Services delivery model
 Lean
 Corporate policy
 Corporate strategy
Group
 Lean
 Bulk of resource for
support functions
 Service culture
toward Corp/BU’s
BU
 Decision support specific
to the BU
 Business analysis specific
to the BU
Shared Services
 Advisory Support
 Specialist Services to be
shared across organisation
 Transactional processing
9
HR Delivery Channels
Group
HR
BU HR
Line Mgr
Business
Unit
Call Centre
Specialist
Talent Management
HR Admin
Employee Self Service
10
Shared
Services
The roles of BU HR versus Shared Services
Strategic
need
Cyclical HR
processes, driven by
corporate objectives
Planned HR
interventions,
addressing critical
Corporate and BU
specific needs
Strategic Need
Administrative HR
activities driven by
employee life cycle
needs
Specialist HR
Services, requiring
expert design,
interpretation and
advice
Capability
Capability
11
Business
Unit
Typically embedded in business unit
Shared
Services
Understanding your customer, is key to
successful delivery
Corporate
Business Unit
Managers
Employees
12
Process example - recruitment and selection
GHR
BU
Shared Services
Recruitment
Policy
Define strategy
and job
requirements
Candidate
Management
Interview and
Selection of
Candidate
New
Hire Admin.
New Starter
Orientation
End To End Process Design
13
 Advertising
 Short listing
Optimising the HR delivery Model
The optimal service delivery model for an
organization may include some combination of
SELF-SERVICE,
SHARED SERVICE,
OUTSOURCED SERVICE,
all accessible and branded through a portal.
14
Technology
B2E’s Brief But Important History
A year ago:
‘B2E’ = B2Employee and was all
about web-enabled HR functions
Several months ago until now:
‘B2E’ = B2Enterprise
Evolving into:
‘B2E’ = B2EVERYTHING
B2E is the platform for a new
way
of working more efficiently,
more effectively, more
productively,
16
What Is B2E?
 A single channel for communicating with employees—
instantly, consistently, globally.
 A platform and vehicle for a new way of doing business,
where employees can access information anywhere,
anytime.
 A link for employees with customers and suppliers,
internal teams, tools and work… maximum flexibility and
increased productivity.
17
People prefer the web
Inquiry
HR Online
Call Center
Verify Employee Data
16,385 Hits
29 Calls
Compensation
15,815 Hits
14 Calls
Salary Adjustments
15,815 Hits
19 Calls
Salary Ranges
3,802 Hits
1 Call
Stock Options
3162 Hits
9 Calls
Leadership Development –
Performance Management
1,675 Hits
1 Call
US Savings Bonds
1,341 Hits
8 Calls
Profit Sharing
1,206 Hits
1 Call
569 Hits
3 Calls
Holidays
18
The Savings are Well Proven
Company
On-Line Service
Savings /Employee
Sprint
Employee Data
$20/yr
Olin
Pay statements
$9.25/yr
HP
Policy Manual
$9.75/yr
F/S
On-boarding
$42.51/yr
PwC
Travel reservations
$34.5/yr
Energy Co
Web server consolidation
$16.30/yr
E-Services Co
Training Administration
19
$70.90/yr
Implications
 HR Capability
 Clearly Defined Touch Points
 Technology as enabler, make it easy to use - think access
 Process Consistency and Simplification
 Technology Push
 ‘eat your own dog food’
20
Discussion Points