Personnel and Human Resources-adding value

by Fluid

March 2010

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Contents3-4 Introduction to Fluid5-7 Business partner8-11 Real-life example of business

partner12-13 Raise the profile of HR14-15 Exercise A16-18 Measurement19-22 Real-life example of

measurement23-32 Outsourcing33-34 Exercise B35-36 Making an informed

contribution to mergers & acquisitions

37-39 Technology and software40-43 Real-life example of

technology44-52 Making an impact53-55 HR as a career56-57 Conclusion and questions

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Introduction

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Introduction to Fluid• Fluid Consulting Limited (Fluid) is a specialist

human resources consultancy headed by Tim Holden MCIPD

• 10 years in banking• 10 years in Human Resources consultancy• Fluid trading since 2006• The core services provided by Fluid are:

- Retention- Selection- Attraction- Remuneration & Reward - Outplacement- Training & HR consultancy

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Business partner

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Business partner 1 of 2

• TYPICAL ACTIVITIES• Business HR strategy/workforce planning• Talent management• People and leadership development• Organisational effectiveness• Labour/employment relations• Total rewards• Performance management• Coaching

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Business partner 2 of 2

• CASE STUDIES• BDO Stoy Hayward• Coca Cola• EDF Energy• Glasgow Housing Association• Iceland Foods• Pfizer UK

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Real-life example of business partner

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Real-life example of business partner 1 of 3

• ABOUT THE ORGANISATION• The AA is the largest motoring organisation in the UK,

providing breakdown cover, insurance and associated motoring products.

• THE CHALLENGE• A change in ownership created the need for a new HR

organisation structure designed to support delivery of the business strategy, targeted with growing profits from £100M to £300M in three years.

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Real-life example of business partner 2 of 3

• WHAT THE ORGANISATION DID• Built a new HR structure around the business

partner role• Business partners managed outsourcing contracts

to help deliver savings to the business• Introduced new employment contracts so 96% of

patrols accept flexible working• Launched performance management measures and

incentives• Introduced a cross-business model of carrying out

pay negotiations with unions

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Real-life example of business partner 3 of 3

• BENEFITS AND ACHIEVEMENTS• Profit has grown to a forecast £257M• AA Insurance reduced employee numbers from

1700 to 1300 in two years whilst attrition fell from 52% to 21%

• AA Insurance achieved a 45% increase in profitability over three years

• Temp costs were cut from £4M to £3M• Employee engagement scores increased from

2.9 to 5 out of 7

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Raise the profile of HR

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Raise the profile of HR

• Establish your service• Find out what others think• Make sure you can do it• Publicise your service• Impress those at the top• Walk the talk• Maintain the momentum

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Exercise A

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Exercise A

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Measurement

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Measurement 1 of 2

• Absenteeism• Accidents at work (and near-misses)• Appraisals• Attrition rates• Employee satisfaction surveys• Exit interviews• Interviews• Tribunal cases

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Measurement 2 of 2

• CASE STUDIES• BSkyB• Malmaison• Thorntons

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Real-life example of measurement

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Real-life example of measurement 1 of 3

• ABOUT THE ORGANISATION• Standard Chartered Bank has increased revenue and

headcount substantially throughout the banking crisis. Despite being consistently ranked in the top 25 of the FTSE100, 90% of its profits come from Asia, Africa and the Middle East.

• THE CHALLENGE• Standard Chartered has aggressive growth aspirations

and the human capital team needs to: plan resourcing accordingly, identify and explore key issues including attrition, evaluate risks, monitor strategic goals including diversity and track trends over time.

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Real-life example of measurement 2 of 3

• WHAT THE ORGANISATION DID• Using standardised data from the global

management information system and its HR shared-service in India, the bank launched human capital scorecards, which measure people-related data and answer key questions on the effectiveness of people processes and their impact on business performance such as capacity for growth, talent mobility and retention.

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Real-life example of measurement 3 of 3

• BENEFITS AND ACHIEVEMENTS• Internally developed software now enables

Standard Chartered to produce 40 dynamic slides from raw data of all 60000 employees in less than a minute and at no cost. Previously it had taken a day and a half to produce each scorecard. All scorecards are now accessible to senior management through a secure website.

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Outsourcing

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Outsourcing 1 of 9

• UNDERSTANDING THE JARGON• Human resources outsourcing• Business process outsourcing• Offshoring• Shared service centres• Key performance indicators• Service level agreements• Transfer of undertakings-protection of

employment

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Outsourcing 2 of 9

• PREPARING FOR OUTSOURCING• Identify how outsourcing fits with strategic objectives• Agree which core competencies should be kept in-

house and which should be outsourced• Identify a complete view of internal HR service

delivery costs, the main cost drivers and the potential savings/investment

• Assess internal outsourcing and explore how shared services may deliver the same benefits but with greater control

• Identify the technological challenges and solutions around outsourcing

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Outsourcing 3 of 9

• PREPARING FOR OUTSOURCING• Develop a clear view of the capabilities and reputation

of each of the main providers• Standardised and simplified processes and procedures

before outsourcing• Discuss in detail the concept of outsourcing with

customers and other key stakeholders• Define the key success measures used to judge the

performance of the outsource provider• Consider the history of the organisation in terms of

managing complex transition processes

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Outsourcing 4 of 9

• KEY QUESTIONS TO ASK WHEN CHOOSING A SUPPLIER

• What is their implementation plan?• What is their delivery model and what resources

will they commit?• Where are the lines drawn?• How binding is their proposal-will they be flexible

and adjust to your requirements?• What are the legal and regulatory issues of the

arrangement?• How are their services priced?

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Outsourcing 5 of 9

• WHERE OUTSOURCING TENDS TO WORK BEST• Employee record-keeping• Recruitment• Reward and compensation• Payroll• Pensions• Performance Management• Talent management

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Outsourcing 6 of 9

• POINTS TO CONSIDER• Be ware that outsourcing inevitably leads to a

loss of expertise and infrastructure in-house that cannot be easily recovered

• Outsource process-based functions, not relationship-based ones

• Don’t underestimate the turmoil of the transition• Transformation won’t be as fast as you hope• Don’t do it purely for cost reasons-look at overall

return on investment

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Outsourcing 7 of 9

• CONCERNS OVER OUTSOURCING• The fundamental difference between the

contractor looking to maximise profit and the client aiming to minimise cost

• Loss of control over service performance• Belief that better cost or service can be

provided in-house

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Outsourcing 8 of 9

• HR MODELS• Shared services• In-house• Full outsourcing

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Outsourcing 9 of 9

• CASE STUDIES• Accenture• BBC• Cable & Wireless• Unilever

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Exercise B

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Exercise B

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Making an informed contribution to mergers

& acquisitions

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Making an informed contribution to mergers & acquisitions

• Understand what’s going on• Get involved early• Develop project plans• Get a handle on legal issues• Identify they key players• Champion positive change

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Technology and software

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Technology and software 1 of 2

• HR SOFTWARE PROVIDERS• Specialist area• Main HR specific products• Compatability/modularity• How administered• Support given• Particular selling points

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Technology and software 2 of 2

• CASE STUDIES• Astra Zeneca• McDonalds

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Real-life example of technology

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Real-life example of technology 1 of 3

• ABOUT THE ORGANISATION• NHS Jobs is the online electronic recruitment service

for NHS organisations in England and Wales, provided by NHS Employers.

• THE CHALLENGE• The NHS consists of more than 500 employing

organisations, and many used their own recruitment processes and procedures. Employers were spending heavily on recruitment advertising to attract candidates-put at between £300000 and £500000 each year-and often recruiting people from neighbouring employers.

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Real-life example of technology 2 of 3

• WHAT THE ORGANISATION DID• Launched NHS Jobs which was adopted by all

employers in the NHS as an electronic recruitment service

• Enabled NHS organisations to advertise up to 150000 vacancies online, whilst receiving and managing online applications

• Allowed NHS trusts to record all recruitment data from a single source

• Implemented an ongoing improvement programme

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Real-life example of technology 3 of 3

• BENEFITS AND ACHIEVEMENTS• Saved the NHS in excess of £40M a year• Vacancies can now be advertised immediately

for applicants to apply online at any time• NHS Jobs links to the NHS HR Management

system to maintain, control and enable easy data transfer

• More than 5000 trained NHS employees use NHS jobs to manage 3M applicants, and the website receives 28M visits each year

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Making an impact

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Making an impact 1 of 8

• Visibility• Originality• Personal influence• Practical relevance (for thinkers)• Commercial impact (for practitioners)

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Making an impact 2 of 8

• PRACTITIONERS-ASPECTS OF ROLE/POSITION

• Ambassador• Respected• Consistency/tenure• Track-record• Leadership• Teacher• Affected groups

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Making an impact 3 of 8• PRACTITIONERS-AREAS OF EXPERTISE• Mergers• Change• Employer branding• Employee value proposition• Human capital measurement• Turnaround• Performance management• Talent management• Diversity• Flexible working/work-life balance• Positive HR thinking

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Making an impact 4 of 8• PRACTITIONERS-PERSONAL QUALITIES• Intelligence• Modesty/selflessness• Understanding/insight• Passion• Integrity• Presenting• Courage• Persuasiveness• Pragmatism

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Making an impact 5 of 8

• THINKERS-ASPECTS OF ROLE/POSITION• Ambassador• Respected• Teacher• Controls something important through

their role

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Making an impact 6 of 8• THINKERS-AREAS OF EXPERTISE• Industrial relations• Employer branding• Engagement• Wellbeing• Change• Psychology• Leadership• Social networking• Performance• Excellence• Human capital• Measurement• Diversity• Business partners

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Making an impact 7 of 8• THINKERS-PERSONAL QUALITIES• Insight• Intelligence• Networking• Experience• Persuasiveness

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Making an impact 8 of 8• CASE STUDIES• BT• Ladbrokes• South Tyneside Council• Thorntons

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HR as a career

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HR as a career 1 of 2

• Understand the business• Network• Know what you want• Mentor• Improve your industry knowledge

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HR as a career 2 of 2

• Early on in an HR career it is possible to make structured moves to cover a number of specialisms, but this becomes increasingly difficult as people progress

• Mid-career HR professionals often have to find a generalist role in order to consolidate progress

• Organisations that have embarked on transformation but have not addressed the issue of building generalist experience have had to seek talent from the outside to fill business partner roles

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Conclusion & Questions

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Conclusion

• Summary• Questions