The State of HR Transformation
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About Aon Aon Hewitt Aon plc (NYSE:AON) is the leading global provider of risk management, insurance and reinsurance brokerage, and human resources solutions and outsourcing services. Through its more than 66,000 colleagues worldwide, Aon unites to empower results for clients in over 120 countries via innovative and effective risk and people solutions and through industry-leading global resources and technical expertise. Aon has been named repeatedly as the world’s best broker, best insurance intermediary, The State of best reinsurance intermediary, best captives manager, and best employee benefits consulting firm by multiple industry sources. Visit aon.com for more information on Aon and aon.com/ manchesterunited to learn about Aon’s global HR Transformation partnership with Manchester United. 2017 Insights © Aon plc 2017. All rights reserved. The information contained herein and the statements expressed are of a general nature and are not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information and use sources we consider reliable, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate profes- sional advice after a thorough examination of the particular situation. Risk. Reinsurance. Human Resources. Risk. Reinsurance. Human Resources. Businesses are experiencing breakthroughs faster than ever. Life cycles for innovation are shortening. 4. HR Technology—Sky-high expectations, yet to b. Across APAC: The Nature of Work evolves and revolves around the ability to learn and adapt at the speed of creation. deliver a. Clarity on HR Technology strategy (irrespective of n There is a sense of certainty around greater self- choice) drives up satisfaction levels among users of service options offered as organisations explore Aon Hewitt’s State of HR Transformation survey 2016-17 was designed to discover best the platforms. the deployment of omni-channels (proactively practices and derive insights on how leading organisations are leveraging technology to reboot identifying the channel of choice based on user and refresh HR to create business impact in a digital world. Now, more than ever, organisations b. Omni-channel support and access enables greater groups). need a journey mind-set with always-on thinking, always-on execution, and #AlwaysOnHR. satisfaction on current deployments. n Learning is shifting to bite-sized and video-based c. While highly-satisfied organisations tend to rate formats as mobile dominates. This will accelerate On-Premise and Cloud platforms similarly, Cloud with Augmented Reality coming into play. deployment scores are very low among highly- Key Findings n dissatisfied organisations. We believe this is due Continuous listening is a must in delivering a superlative employee experience and the shifts on 1. HR Services are pivotal to success 3. HR’s Operating Model is rapidly maturing, but in to heightened expectations and mis-selling in the this front are clear to see. a. Organisations with clarity on HR Service Delivery transition market. Model and HR Technology Strategy are about a. HR Service Delivery is in the early stages of d. Selection of platform partners will become Ongoing disruptions will result in a constant change in 4 times more satisfied on Program Design and maturity; this is based on less than 1/3rd of increasingly anchored on User Experience, demand from businesses and their stakeholders. Execution. respondents saying that they have a well-defined Configurability, Analytics, and Pace of Innovation. HR Service Delivery Model. Of these, only about Organisations set for success are those that design their HR b. Action linked to driving HR effectiveness point 45% have a Shared Services Center. 5. People Analytics needs to get the basics in place transformation strategy around establishing the right set towards a sharper focus on strengthening Service a. 7 out of 10 participating organisations plan to of capabilities to realise business outcomes on an ongoing Delivery.Almost 8 out of 10 participants are b. As mature organisations think of greater integration implement more robust people analytics in the basis. planning to: and apply outcome-based thinking, User next 12 to 24 months, primarily to solve for issues Experience (enabled by end-end process coverage) People Analytics will lead the way as HR leaders grow n around performance, productivity and retention. Upskill competencies of current HR incumbents; and Analytics form the guiding principles that increasingly comfortable with engaging business leaders define their HR Operating Models. using data and talent science. Assuming the enablers n Integrate talent management processes; and b. Lack of consolidated data, capability of current HR Team, and ability to Link analytics to business of HR transformation such as HR Service Delivery, HR c. Shared Services Insights: n Implement technology to better support talent outcomes are top issues that organisations are Incumbents, and HR Platforms continue to deliver at management. optimum levels, HR leaders are well-equipped to support n For organizations with Shared Services, about trying to solve. the journey through data and insights. 50% of transactions are managed at the Shared 2. HR is in the driving seat, but only has half a We’ve only just begun Services level. As a result, administrative load at tank full a. In this #AlwaysOnHR journey, HR will continue to This is the new normal for HR. Or, as we call it, a country level goes down. a. 63% of the respondents have a solid line to HR evolve. The year when the cumulative confidence of #AlwaysOnHR. globally (direct or matrix), demonstrating a n Among respondents who have Shared Services, CHROs exceeds 50% will be the tipping point. stronger control on transformation and resource close to 40% do not have a well-defined HR deployment. Service Delivery Model. This will result in the value and impact of these centers being #AlwaysOnHR b. However, capability of current HR incumbents is a questioned. challenge, especially even more so in large APAC enterprises. n Shared Services have opportunity to increase their footprint, both on process scope and 80% c. Among the different HR roles, HR Generalist comes 100% 70% 50% of all employee 100% 50% coverage. As HR Shared Services expand in the Tipping points Self-service of all people of performance feedback is across as a confused one. Yet, field HR/Generalists of HR processes of all learning is for 2019 employee and decisions are management is captured and domain of Talent Management there remains on mobile video based will have vital roles unique to each organisation’s managers peer driven AI driven reported in a big opportunity to drive consolidation of context. real-time administrative tasks (e.g. Performance, Learning and development). % of CHROs co dent that these tipping points will occur by 2019 57% 57% 100% 80% 51% 67%.