HR Shared Services at SAP – riding the next wave

Thomas Willoughby, SAP

24 September 2013

© 2013 Towers Watson. All rights reserved.

Towers Watson’s 2013 EMEA HR Service Delivery and Technology Forum

HR Shared Services @ SAP

Thomas Willoughby

Global Head of HR Shared Services - SAP Towers Watson EMEA HR Service

Delivery and Technology Forum

© 2013 SAP AG. All rights reserved. 3 Customer

Agenda

SAP introduced shared services in HR over 7 years ago and has an excellent track record in delivering high quality results. We are now looking at further increasing value on the next wave through:

Continuous optimisation and improvement of the current portfolio of services and shared service locations

Shifting more work into Shared Services (e.g. from CoE, HR Business Partners)

Fully leveraging technology

I will talk through some examples of what we are doing and the benefits we see and look forward to a lively discussion and best practice sharing.

© 2013 SAP AG. All rights reserved. 4 Customer

Insert page title

First level

Second level

Third level

World-class HR Services

GUIDING PRINCIPLES

Customer centric

Low Cost High business value

2013 and beyond Optimization Migration Technology

2011-2013 Globalization Stabilization Technology

2006-2010 Organization Migration Technology

Services

Payroll

Recruiting

Data

Rewards

Mobility

External Workers

Goals

ESS MSS

HRdirect Data Processing How

© 2013 SAP AG. All rights reserved. 5 Customer

Metrics and KPIs to drive Process Efficiency & Customer Impact

Clear Location Strategy Reduce SSC

Locations Increase

Scale Co-locate

with other business Shared Service

Next Wave - Optimization

Continuous Improvement through LEAN Methodology

© 2013 SAP AG. All rights reserved. 6 Customer

Next Wave – Dynamic Migration

© 2013 SAP AG. All rights reserved. 7 Customer

Next Wave – Dynamic Migration

Fully automated

global solutions

accessible via

HR portal

Scalable volume

solutions typically

provided centrally

by remote shared

service centers

Country specific

solutions typically

delivered via local

hubs close to the

customer

Functional expert

solutions with

direct customer

interaction

Employee and

Manager Self-

Services &

Information

Local HR

Services

CoE Functional

Experts & HR

Business

Partners

Continuous improvement and migration of tasks for efficiency

HR Shared

Service Center

© 2013 SAP AG. All rights reserved. 8 Customer

Simplification

Truly global processes and approach

Employee-centric approach for career development & learning

Drink our Own Champagne

Learnings for the benefit of our customers

Positive user- experience

Transparency

Shifting role of manager accountability

Business execution maps & tools

Integrated end-to-end talent management

Mindset

Change of people behaviors

Connection of people processes to business execution

Next Wave - Technology – first experience with the Cloud

Thank you

:

© 2013 SAP AG. All rights reserved. 10 Customer

How We Operate

Our HR Delivery Model With HR Channels to the Business

Consulting HR Services

Translation of business needs

Strategic advisors to managers

Personal contacts for employees

Standard HR Services

Self-services as a primary delivery channel

Employee advisors for additional needs

Solution specialists for complex inquiry

HR Planning, Design & Governance

HR service configuration and delivery optimization

Data integrity and service alignment

Functional specialists for Governance

1

2

3

Consulting HR

Services

Standard HR

Services

HR Planning, Design & Governance

Mgmt Employees Top Mgmt

1 2

3

Bu

sin

ess

H

R O

rga

niz

ati

on

© 2013 SAP AG. All rights reserved. 11 Customer

CLICK: The Portal and

HRdirect Online • Employee Services provide

an index of services and

most-often used links

• Manager Services provide

access to Team Reporting,

Performance Management,

Hiring, and much more

• HRdirect Online ticket

capability available on the

Portal to submit inquiry online

• Get more transparency

around status of your active

inquiries

CALL: HRdirect - Phone • Get access to HRdirect via

phone

• Country specific phone

numbers on HRdirect Portal

page

…the Face of HR for Employees and Managers

Contact Channels to HR

COME IN: HR Business

Partner - Assigned • Act as trusted advisors on all

strategic people and

organization related topics

• Personal interface to

employees for counseling on

job related, legal and

personal matters, mediation

in conflict situations

© 2013 SAP AG. All rights reserved. 12 Customer

Global SAP HR Organization

HR

Leadership

Team HR

Operations

HR Center of

Excellence

HR Business

Partner

HR IT

HR Business Partner HR front-end to our customers, consultant,

relationship manager

HR Center of Excellence

Design, initial roll out and local / regional

adaptation of global HR Services and Solutions

HR Operations

Operational delivery of standardized

HR services

HR IT

Delivery of best-in-class IT solutions (based on

SAP solutions) to support delivery of HR services

HR Leadership Team

Decision and governance body

© 2013 SAP AG. All rights reserved. 13 Customer

Global SSCs + Local Country Presence

LATIN

AMERICA

ASIA

EUROPE

NORTH AMERICA

AFRICA

© 2013 SAP AG. All rights reserved. 14 Customer

HR SSC - Services

Recruiting

DMC

HRdirect

Payroll

PRM

Dataorg

Mobility

Job posting

Interview scheduling

Compiling employees

contract

Candidate queries handling

(hotline, e-mail)

Immigration services

(work permit/visa)

Relocation services

Special tax reporting

Legal Travel Advisor

tracking

Performance and variable

pay documents

administration

EE Compensation Letters

(Bonus payout, Equity

Allocations, Equity payout,

etc.) Payroll relevant data

management

Payroll run

HR related requests:

Advisors

Absences & Other

leaves

Benefits & Health

Compensation

Payroll

Learning &

Development

Specialists

Process escalated

inquiries

Provide

Knowledgebase

update

Support HRdirect

services

Hiring

Contractual changes

International transfer

Absences

Termination

Personal changes

Organizational structure co-design

with HRBPs

Create/implement EMEA standards

Support HRBPs: e.g. Headcount

management coordination; Headcount

forecast

Training to HRBPs and HROps Recruiting Dataorg

DMC

HRdirect

Payroll

Success

Map /

PRM

Mobility

© 2013 SAP AG. All rights reserved. 15 Customer

Global HR Service Delivery Model

Access (Tier 0)

SAP Corporate

Portal (ESS, MSS)

Contact (Tier 1)

HRdirect

Online, email

or phone

Deliver &

Consult

(Tier 2,3)

HR SD

Teams** &

HR BPs

HR‘s

Customers

Need

HRdirect = unique

channel for customer’s

inquiries except pre-

defined processes*

* Processes initiated through MSS/ ESS

* Direct entry to dedicated HRBP

**HR Service Delivery Teams = eg. DMC, Employee services etc.

© 2013 SAP AG. All rights reserved. 16 Customer

ESS Scenarios Delivered by the Portal

Skills Maintenance

Leave Request

Address Change

Bank Change

On-Line Pay slip

Emergency Contact

Family/Members/Dependants

Personal Data

Flexible Benefits/Salary Package Modeler

Benefits enrolment

Salary Package Modeler

On call duty and working on weekends

Employment verification

Tax Form Reprint

Employment Equity

Pension Plan

Year end Tax adjustment

My first days

US Tax adjustment (W4)

Global Per Diem

Employment Statement

© 2013 SAP AG. All rights reserved. 17 Customer

Manager Self Services via Portal

© 2013 SAP AG. All rights reserved. 18 Customer

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Customer Satisfaction Survey results – Development of Scores

Since February 2009 we always scored 8.0 or higher.

Since July 2012 9.3 or higher.

July 2013 all-time high of 9.48

Contact Volume

Since mid 2008 the organization has reached a maturity

level with stable customer satisfaction scores.

Customer Satisfaction

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4000

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12000

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16000