Transforming HR - European Corporate Realities and Research

10/25/2016 1© Copyright Fosway Group Limited. All Rights Reserved.

Transforming HR: HR Realities in Europe 2016 ResearchDavid Wilson, CEO / [email protected] / @dwil23 @Fosway

in partnership with

mailto:[email protected]


Fosway Group - Europe’s #1 HR Analyst


2016 EUROPEAN RESEARCH

66% Respondents from Organisations

> 5000 Employees

94% of respondents

European

Over 500 survey respondents overall

Unique market data from our strategic research partnership with


have a role

with Global Responsibility

70% EUROPEAN INSIGHTS – BUT GLOBAL INFLUENCE


What did they tell us?

HR


EUROPEAN HR - OPERATING IN PERFORMANCE AND PROFITABILITY FOCUSEDORGANISATIONS

Currently, what are your organisation's most significant business challenges?

Increasing Organisation

Performance & Profitability

91%

For 63% this is a Major Challenge

€

Reducing Costs

87%


€

87%ImprovingCustomer

Satisfaction & Service Quality



The same level as Improving Customer Satisfaction & Service Quality

see

Business Agility

as a

Challenge

87%

=

EUROPEAN HR – KEY BUSINESS CHALLENGES


European HR’s Top Priority as an HR Organisation is to be a Strategic Business Partner49%

30% Improving Employee Engagement38% Increasing the Consistency of HR Processes43% Better Leadership & Management32% Enhancing the Talent Pipeline31% Improving HR Service Quality and Provision36% Enhancing use of Analytics in decision making

HR’S TOP HR PRIORITIES 2016


CENTRALISED HR– IS NOT THE DOMINANT OPERATING MODEL

62% are in either a

Decentralisedor FederatedHR Operating Model

This has massive implications for HR Tech choices, approaches to change management and the effort / impact / opportunities / success of standardisation


FUTURE SUCCESS = CHANGING HR ?

73%believe Future HR Success is dependent on New or Enhanced Processes

74%believe Future HR Success is dependent on Upskilling HR Teams

60% believe Future HR Success is dependent on Re-organisation to create better business alignment

If we’ve done what we’ve always done, we’ll get what we’ve alw


EMPLOYEE ENGAGEMENT IS THE LEADING MEASURE OF SUCCESS FOR EUROPEAN HR STRATEGY 2016-17

Top Measures of Successfor HR Strategy

1. Employee Engagement2. Employer of Choice3. Strong Talent Pipeline4. Company Profitability5. Lower Cost HR Ops6. Reduce Employee Turnover

Employee Engagement is

seen as 6x more important as a

measure of success than having a

HR presence at Board level


FUTURE INVESTMENT IN EUROPEAN HR – 2016

#1 HR Tech & Innovation

2%

79%

5%

76%

#2 Develop HR Expertise

ExpectIncrease

ExpectIncrease

ExpectDecrease

Expect Decrease


HR HEADCOUNT IS THE BIGGEST FOCUS FOR REDUCING INVESTMENT IN HR

30% Expect to see a Reduction in Investment in HR Headcount73% Expect investment in Headcount to Stay the Same or Reduce


1. High Quality Data &

Analytics

2. Quality HR Systems

3. Next Gen Technologies

4. Integration of HR& Business Systems

5. HR Influencing

Skills

but.. Outsourcing HR Processes still only seen as Critically or Very Important for

<15% of respondents

TOP 5 LEVERS for Future

Success of European HR

Operations

43% Critically Important

78% Critically or Very

Important


Important



Important



Important

80% Criticallyor Very

Important



Fosway Group - European HR Realities Research 2016 with HRNTo be announced October 2016


Fragmented HR Tech in Europe

only 35% have standardised HR systems

65% Fragmented HR Systems

35%Standardised HR Systems


THE HIGHEST LEVELS CONSISTENCY IN EUROPEAN HR TECH…

Performance Management - 60%Core HR – 45%Talent & Succession – 40%Recruiting – 40%


LOWEST CONSISTENCY IN HR TECH

1. Onboarding (16%)2. Workforce planning & organisational design (24%)3. Analytics (25%)4. Employee Engagement (29%)5. Payroll (33%)6. Learning and Development (34%)

Rated as “VERY STANDARDISED”


0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Payroll

Core HR

Reward - compensation & benefits

Performance management

Workforce management

Analytics

Talent & succession management

Employee engagement

Onboarding

Learning & development

Recruiting / talent acquisition

When were your current HR solutions implemented or last upgraded?

Over 5 years ago 3-5 years ago 1-3 years ago Less than 1 year ago Currently being implemented Awaiting implementation


HR Systems most likely to be part of the HR Suite

Core HR - 75%Workforce Management - 47%Performance Management - 46%Payroll – 44%Analytics – 43%


Most likely to to be a Specialist System

Employee Engagement - 75%Payroll – 52%Analytics – 45%Learning - 39%Recruiting – 38%Onboarding – 39%


CLOUD TRENDS - in European HR Tech

0%10%20%30%40%50%60%70%80%90%

100%

Recruiting /talent

acquisition

Learning &development

Performancemanagement

Talent &succession

management

Reward -compensation

& benefits

Onboarding Employeeengagement

Core HR Analytics Workforcemanagement

Payroll

Where are your HR solutions deployed?

On-Premise Privately hosted In the Cloud Don't know


CORE HR, PAYROLL & ANALYTICS STILL MAINLY ON PREMISE


Most common in HR Tech in the Cloud


SIGNIFICANT OPPORTUNITY AND RISKS FOR VENDORS OVER THE NEXT 3 YEARS…

Over 50% envisage changing their

Analytics, Talent Acquisition, Onboarding, Reward or

Learning solutions within the

next 3 years


MAJOR SHIFTS IN HR TECH ON THE WAY…

>40% envisage changing their

Analytics, OnboardingLearning, Recruiting, Reward, Talent, Performance, Core HR, Employee engagement or Workforce management solutions within the

next 3 years


1. Quality of End User Experience2. Need for Enhanced Analytics3. Lack of Business Agility and Flexibility4. Current Solutions Functionality5. Level of Innovation

THE TOP 5 DRIVERS FOR CHANGING HR SYSTEMS


User Experience is a MAJOR Driver for changing HR Tech

80%


Lack of Business Agilityis a MAJOR Driver for changing HR Tech

70%


We also asked European HR Customers … how well doyour HR Systems suppliers?

Understand your needs

Exceed User

Expectations

Deliver GREATService

Innovate their

Offering

Deliver Value for Money

Positive Impact


How often do your suppliers understand your needs...

46%

All HR Tech


0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Payroll


Core HR






Analytics

Employee engagement

Onboarding

How often do your suppliers understand your needs...?

Always Frequently Occasionally Rarely Never


How often do your suppliers have a positive impact on your organisation...

24%

HR Tech Overall

76%

HR Tech Overall


0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Core HR

Payroll




Onboarding




Employee engagement

Analytics

How often do your suppliers have a positive impact?

Always Frequently Occasionally Rarely Never


RESEARCH INFOGRAPHIC

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Or get a copy and discuss withone of our analyst team

on Stand 405in the exhibition

Report series to follow Q4/Q1

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Fosway GroupEurope’s #1 HR Analyst

www.fosway.com @fosway

David Wilson, CEO / [email protected] / @dwil23

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Transforming HR - European Corporate Realities and Research