Creating an Employer of Choice Environment and Transforming HR

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Creating an Employer of Choice Environment and
Transforming HR
Wally Boehm VP Human Resources
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Todays discussion

• Organization Profile
• Business Case - NAS
• Employer of Choice Strategies
• Human Resources Scorecard
• Human Resources Transformation

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ADP One of the largest global providers of
Information Services

• Employer Services
• Brokerage Services
• Dealer Services
• Claims Services

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Were the Business Behind Business
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Goal Fortune Top 100 Companies
Excel
Employee Measures
Financial Measures
Competing
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Employer Services Organization
Employer Services
Emerging Business Services
Major Account Services
National Account Services
Benefit Services
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Organizational Profile - NAS/Benefit Services
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Situation Analysis - Fall of 1998

• Experiencing high growth
• Good, but not great service
• Higher than average ADP turnover
• Lower than average ADP associate satisfaction
• HR strategy not aligned with business strategy

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Future Success
1Billion Business
Employer of Choice World Class Service
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What did we do?

• Embraced Service-Profit Chain business model
• Aligned HR strategies with business
• Compensate using Balanced Scorecard framework
• Increase Associate Satisfaction
• Decrease Turnover

Results
Productivity Cost Savings
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(No Transcript)
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Balanced Scorecard
Employer of Choice
Financial Excellence
Operational Excellence
World Class Service
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Balanced Scorecard Metrics
Employer Of Choice
Revenue Generation 20
Turnover10
Associate Satisfaction10
Financial Excellence
Profitability20
Various Metrics 20
Operational Excellence
Client Satisfaction10
Client Retention10
World Class Service
Accelerators Diversity 10 Training 10
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Decrease Turnover
YTD
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Productivity and Cost Savings
Turnover Reduction 20.2 10.2

• Productivity
• Time efficiencies
• Better service
• Direct hiring costs
• Advertising
• Interviewing time
• Agency expense

FY99 to FY02
24.7 million savings
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Business continues to grow rapidly
(in millions)
Dollars
(Plan)
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HR Means Building Business Value
For ADP.

• Associate relationships impact bottom-line
  profitability

For our clients.

• EOC Best Practices are reflected in our services

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What are we doing to build an Employer of
Choice environment?
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Provide our associates the HR best practices we
offer and enable in our clients.
HR Vision
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HR Mission
Lead the delivery of HR best practices to achieve
NAS objectives through people, processes, and
technology.
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Whats the Strategy?

• Build HR initiatives from business strategy
• Fine tune initiatives from listening to
  associates
• Establish metrics and measure progress
• Communicate successes internally
• Extend value to clients externally

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Listening to Associates
opportunity and culture
What makes ADP your Employer of Choice?
sense of accomplishment
easily balance work and family life
friendly and professional atmosphere
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Working in an EOC Environment
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Whats the Strategy?
Increase Associate Satisfaction
Leverage Human Capital for Growth

• Associate Satisfaction
• Training Development
• Win the Talent War

• Reward Recognition
• Human Resource Planning
• Strategic HR Transformation

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Strategy Drive Associate Satisfaction

• Survey Semi-annual
• Analyze Results
• By Division
• By Business Unit
• Develop Communication Strategy
• Create Action Plan
• By Division
• By Business Unit

• Business Unit Action Plans
• Develop Individual BU Action Plans
• Validate issues through Associate Focus Groups
• Initiate Teams to Work on Issues
• Track Progress Against BU Plans
• Report Action Plan Progress
• Reward Management for Improvement

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Strategy Make Retention a Way of Life

• Reward management for retention
• Use competency-based selection criteria
• Engage group teams for selection process
• Get serious about pre-employment screening
• Invest in associate learning
• Expand new hire orientation mentoring

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Strategy Increase Associate Communications

• Develop Associate Communications Strategy
• Move Associate Communications into HR
• Dialogue w/ associates through variety of
  vehicles

Video
Newsletters
- Division-wide - Localized
MyInfoCenter.com
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Strategy Invest in Training

• Institute technology-based learning
• 3 week requirement for technology function
• Use 2 outside vendors
• Increase associate training to a minimum of 40
  hours per year per associate

27 of workforce
54
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Strategy Improve Leadership Development

• 2 million - Sales Leadership Training
• Institute for Service Leadership
• Leading Managing in EOC Environment
• Leadership Development
• Managing for Commitment Diversity

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Strategy Win the Talent War

• Implement electronic careers center
• External access through www.adp.com
• Centralize recruiting for high growth functions
• Technology
• Sales
• Institute competency-based selection process
• Respond to associate worklife needs - flexibility
• Promote employment brand

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Respond to Worklife Needs

• Flexible Work Arrangements
• In-office Services (e.g., dry-cleaning, massage)
• Office Social Gatherings
• ADP Preferred Childcare Discount Program
  (US-Wide)
• ADP On-site Day Care Facilities
• ADP On-site Medical Facilities
• Continue asking listening

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Strategy Align Reward Recognition

• ACES
• Presidents Club
• Stars
• Quarterly Breakfast
• Numerous Service Awards

• Balanced Scorecard
• What Gets Measured Gets Done
• Variable compensation plans
• 60 of associates
• Stock options
• 40 of associates
• Knowledge Pay Program

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Strategy Systemic Human Resources Plan
Our Processes Tools

• Assess with 360-degree process and feedback
• outside vendor
• Individual development plans
• 6 month review discussions
• Managers as coaches
• Some use of executive coaches

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Strategy Systemic Human Resources Plan
Our Outcomes

• Benchstrength measure
• Gap identification in existing vs. future needs
• Diversity of associate background, talent,
  abilities
• Structured pipeline for talent infusion
• Associate partnership of career development

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Strategy Delivering on Diversity
Connecting through Surveys, Focus Groups
Leverage progress and work on priority issues
Implementation of Local Diversity Councils
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HR Scorecard
What Do We Measure?
Associate Turnover

• Associate Satisfaction
• Associate Turnover (by Segment, New Hire,
  Cost)
• Training Hours per Associate
• Competency Gaps of Workforce
• Diversity Representation
• Cost per Hire
• Time to Fill
• Compensation Competitiveness
• HIPO Associates (Bench Strength, Development
  Plans)

Associate Satisfaction
Productivity
Human Resources Indicators
Recruitment
Diversity
Associate Training Development
Associate Benefits
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Strategy Transform HR

• Develop measure new HR Competencies
• HR Process Re-engineering
• Electronic self-service
• HR Metrics Digital Dashboard
• Leverage HR in new product development and
  piloting

ACCOUNTABILITY
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Strategy Transform HR
Percentage of Time Spent Strategic HR
Planning Consultative/Developmental Execution-Orie
nted Administration
Today 10 25 65
Future 25 50 25
Source Tomorrows HR Management, Dave Ulrich
Michael Losey, 1997.
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What Does This Strategic Transformation Look Like?

• Old HR
• Non-Strategic
• Administrator
• Distributor
• Enforcer
• Translator

• New HR
• Business advisor/consultant
• Workforce strategist
• HR Process Expert
• HR Measurement Analyst

Process Reengineering
Drivers

• Services
• Customer Service
• HR Program Admin
• Operational Excellence
• Technology Application

• Technology
• Process Integration
• Technology roadmap
• E-HR Strategy
• Measurement Analysis

• Manager/Employee
• Information Access
• Learning
• Decision-making
• Action Taking

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Reengineering HR Processes
Flex Benefits Enrollment
HR Reporting
Reengineering HR Processes through The Portal
HR Metrics
Performance Management
HR Administration
Recruiting Process
HR Planning
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NAS HR Web Portal Strategic Enabler
Benefits Related Information
Mission Statement
Guidelines and Procedures
Forms
Phone Book
New Events
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Conducting HR Transactions

• Skills Profile and Personal Search Agent
• Internal e-Recruiting Solution
• Expense Management
• 401(k) Transactions
• Benefits Enrollment
• Stock Purchase/Stock Options
• On-Line Pay Stubs

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Leveraging Human Capital

• Digital Dashboard
• High Potential Tracking
• Career Development
• Hot Skills Database
• Human Resources Planning

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The Horizon of Practice
Source Corporate Leadership Council
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IN SUMMARY
Creating an Employer of Choice Environment and
Transforming HR is about

• Managing Change
• Creating a Cultural Shift
• Creating Systemic Processes
• Measurement
• Creating...

Value
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Leverage Human Capital for Growth Reward
Recognition Human Resource Planning HR
Transformation
Associate Satisfaction ASI Training
Development Talent War