The bad news is that payroll transformation is already long overdue. Less and less of the total workforce may be employed by you, but you still need to be GDPR compliant. Any paper whatsoever in the HR office is a sign of an industry laggard. The gap between HR’s self-perception and business expectations widens every year. HR doesn’t seem to get the funding it needs to become a hero.
But that’s also the good news: It’s never been easier to be a hero in HR than it is right now. We can help accelerate your cloud journey with a strong business case. Just call us, and let’s discuss!
Closing the Gap
The full impact of digital disruption and transformation is well-established at this point. There’s nothing you can do to slow it. Getting started is an imperative. However, as obvious or redundant as that may sound, most companies are not yet doing what needs to be done.
Deloitte found in its 2017 Global Human Capital Trends report that 49 percent of companies worldwide weren’t redesigning their organizations for digital business models. Forty-four percent failed to leverage digital or mobile tools in their HR program. Sixty-seven percent didn’t even use any embedded intelligence to deliver HR solutions.
The gap between what is possible and what is being achieved is called the “productivity gap.” You’re at risk of losing a significant chunk of your current revenues due to this gap.
The gap persists, although no doubt it is closing rapidly as companies continue to adopt and adapt. Employees crave an integrated, modern work experience focused on empowerment and productivity, and companies are catching on. We must shift the focus from cost and compliance to business productivity, keeping in mind that the future of work is all about a compelling experience that unleashes the full potential of your total workforce while securing ethics and trust.
1. Start with the Core!
As the figures indicate, many companies still live with outdated, fragmented and un-flexible legacy HR systems that limit their best efforts before they even begin. Transforming core HR systems and moving to integrated cloud platforms is an essential first step. The target for the new digital version of yourself is in the cloud. Getting there is simply the start. This is the lowest — but most necessary — level of advancement, a decision driven by compliance and release-driven concerns in the hopes of running HR more efficiently. Unless payroll is your business model, you likely shouldn’t keep it. Yes, it is critical, but it is not your core business.
With administrative tasks, regulatory reporting necessities and growing compliance responsibilities often weighing on HR pros, a move to a sound cloud infrastructure is the first step toward meeting today’s technological needs and providing an employee experience that will build a successful culture. From recruiting to onboarding to learning to performance management, starting with the core will provide companies the tools they need to run better and focus on leveraging transactional people data, a hidden treasure for big companies.
It doesn’t end there. It starts there. HR is about people and the value they feel as part of the company. A strong HR cloud foundation allows HR pros to focus on strategic value and evolve their thinking from that of “enhancing process” to that of “enhancing experience.” With that mindset shift, they can shift their efforts from running the company to changing the company.
2. Aim Agile!
Companies often find themselves reacting to technology disruption, trying to keep up with new legislation and new releases. When aiming for agility, HR pros are the ones doing the disrupting, challenging the business and building organizational capability within the endless cycle of balancing business needs with new HR tech. This will accelerate the company to becoming a people- and data-driven business where organizational capabilities and skills management will enable the future workforce to work in fluid organizational structures. How many in your total workforce are capable of doing their job? How do you know?
A multi-year, big-picture HR strategy and dedicated approach allows for a proactive and predictive approach driven by the company’s overall roadmap. Innovation and reinvention can (and must!) become an integral part of the HR culture.
This agility and drive gives HR the power to change the way the company works and the way the workforce interacts. By developing new practices and processes, HR can help the company stay limber amidst constant technological development and global change, strongly positioning the organization for better employee experience and better business results.
Leverage Your Total Workforce with the Three Pillars
At Zalaris, we’ve worked to lay out the journey through the core and into the agile world of HR. Specifically, there are three foundational focus areas that I want to mention here. These three solutions will accelerate your company’s cloud journey and set you on the path to significant HR change in a self-funded transformation where HR monetizes on its own challenges.
1. Multi-Country Payroll BPO in the Cloud
The leading advisors agree: Payroll transformation is long overdue. Payroll isn’t only safer in the cloud; it’s an unmissable step on the journey toward high business value and alignment in HR. Zalaris’ integrated cloud solution for HR BPO combines SAP HCM and SAP SuccessFactors functionality with our network of local service centers to allow your staff to focus entirely on strategic, value-add activities and best-practice processes. The single-platform, multi-country solution delivers end to end at 20 to 30 percent lower cost with full compliance, releasing HR resources to maximize business value.
“The future of work is all about a compelling experience”
– Dr Woerner, MIT Sloan
2. SAP SuccessFactors Employee Central
The user-friendly, intuitive interface of the Employee Central solution uses key workforce data and analytics to support and drive tangible business results. This central hub is designed to revolutionize workforce management, changing external and internal onboarding and training processes to meet the needs of both worker and company. It will reduce turnover and administrative burden, align mobile strategy and improve HR’s overall operational efficiency. Employee Central drives overall productivity and self-leadership, setting the foundation for everything HR wants to do. This is where the real journey starts.
3. Contingent Workforce Solution (“Payroll for Externals”)
Cloud-based SAP Fieldglass, a leading cloud vendor management system, will manage and control quality and cost of external staff — from temporary workers to freelancers to contractors — allowing companies to optimize resources throughout the organization. The solution integrates fluidly with Employee Central, accelerating business outcomes, boosting operational agility and leading to significant cost savings and full GDPR compliance. Our target clients typically have 1,000-plus externals currently controlled by procurement, which is why this solution can finance the total transformation with up to 10 percent lower external workforce costs and full visibility.
Maybe you’ve delayed your transformation out of fear. Maybe you’ve done so out of uncertainty. Maybe change is just a little frightening. Now you have no excuse. HR is leading the way to the cloud globally. Going to the cloud is not the final destination; it’s the first step in a never-ending and agile journey of reinvention to become the best version of yourself.
Two out of every three companies are capable of adapting to disruption inside of three years. Our roadmap is clear in leveraging the power of three above. Start with the core. Aim for agility.
Call us to learn more and start your journey in three steps:
