Beyond the Top & Bottom Line
- People Performance
Erik Berggren
Director of SuccessFactors
Global Research
Chris Lozaga
Principle Analyst,
SuccessFactors Global
Research
Agenda
Who we are
Why smart HCM Matters
People Challenges in the Public Sector
Getting Results
Revolutionizing the World of Work
We work with recognized thought
leaders that share our vision of
productivity improvement, all
while creating a better place for
people to work.
successfactors.com/research/thought-leaders
650+ Years of Research
Dr. Laurie Bassi
CEO of McBassi &
Company and
Chair of Bassi
Investment Inc.
Dr. David Sirota
Founder of
the Sirota
Survey
Intelligence
Charles Grantham
Co-founder of
the Work
Design
Collaborative
Ken Greer
Leader of
Greer &
Associates,
Inc.
Nov Omana
Board
member and
Former
Chairman of
IHRIM
Dr. Peter Cappelli
Professor of
Management at
the Wharton
School of UPENN
Jason Corsello
Vice President
of the Center of
Excellence at
Knowledge
Infusion
Catharine Larkin
President of
MICA
Consulting
Partners
Nick Bontis
Director of the
Institute for
Intellectual
Capital
Research
Rob Bernshteyn
VP of Global
Marketing and
Management of
SuccessFactors
Dr. Jim Ware
Co-founder of
the Work Design
Collaborative
Dr. Jesse Harriot
Vice President
of Research for
Monster
Worldwide
Charles Coonradt
Chairman and
CEO of The
Game of Work
and accredited
author
Dr. Kim Ruyle
Vice
President of
Product for
Lominger
International
Dr. Kirk Hallowell
Senior
Consultant
for Personal
Decisions
International
Josh Bersin
President and
founder of
Bersin &
Associates
Dr. R.J. Heckman
VP and general
manager of
PDI's Leadership
Assessment
Products
Lexy Martin
Lead author and
manager of the
CedarCrestone
HCM Survey
Doug Klein
Sirota's
President of
Consulting
Amy Lyman
Co-founder and
Chair of Board
of Directors of
Great Place to
Work Institute
Dr. Jac Fitz-enz
CEO of
Workforce
Intelligence
Inc.
Karen Beaman
Co-founder
and Editor-inChief of the
IHRIM Journal
Tom Olivo
President of
Success Profiles
Inc.
Bob Paladino
Founder and
Managing
Partner of
Paladino &
Associates
Paul Falcone
VP of HR of a
Fortune 500
firm and
accredited
author
SuccessFactors Primary Research 1(2)
succes
Smart HCM investment
drives financial results
How investment in people
drives top and bottom line
results
Transparency is key to
driving strategy execution
successfactors.com/research
5
SuccessFactors Primary Research 2(2)
Competencies matter for
growth & profit and varies
across industries
Predictive HCM helps
companies manage
tomorrow today
Changes in attitude and
environment drive
changes in HCM
successfactors.com/research
6
Agenda
Who we are
Why smart HCM Matters
People Challenges in the Public Sector
Getting Results
Talent Is A Global Issue
40%
Source: The Economist, Society of Human Resource
Management, SF Research & Monster webinar Jan-08,
SF Research Analysis
Huge Shortage of Skilled Workers Looming
Shortage – Education plus baby boomer retirement
enforces predictions of a skills shortage
SKILLED
JOBS
190
180
Projected gap in skilled
workers by 2020 =
UNSKILLED
JOBS
14 Million
170
WORK
FORCE
160
150
140
2000
2010
2020
Numbers of jobs and workers, in millions (adjusted for multiple job holding)
Source: Hudson Institute, Educational Testing Service,
Kaplan, BLS, American Demographics, SF Research &
monster webinar Jan-08
Employee potential is not being
recognized
FACT:
84% of large
organizations say
they are not using
their workforce to
its full potential
Saratoga Institute Study
Organizations are not getting the
most from their employees
These Trends Add Up
The 500 largest
Training departments see
The average same
companies will lose 50%
1) aligning with HR
employer tenure
2) allocating budget based
of their senior
for U.S.
on business impact
management in 5 years.
employees is 3
70% of companies
report moderate to
severe leadership
shortages.
Unemployment for
U.S. workers with a
graduate degree is
under 2%.
years. For 18-24
year-olds it is 18
months.
3) accurate measurement
…as areas where they are
least effective.
Replacement costs for
management level positions
can exceed 150% of annual
salary.
The U.S. will face a 10
million worker shortage
in 2010.
60% of internal recruiters plan to “significantly increase” use of
social networking technology in ‘06 to target passive candidates
11
Source: Bersin and Associates & SuccessFactors Research, The Role of Competencies in Financial Performance, Webinar 2007, www.bersin.com
So HCM Matters…
No skills
Talent is a scarce resource
around the world
Mobile &
disloyal
People are unaligned,
unproductive, underutilized
and disengaged
Only
difference
Talent is the greatest and
sometimes only competitive
differentiator remaining
Not Just a Problem for Private Business
Talent Shortage Affects the Public
Sector Too
13
Agenda
Who we are
Why smart HCM Matters
People Challenges in the Public Sector
Getting Results
People Challenges in the Public Sector
Motivation
Attrition
• How can we make our current
workforce more effective?
• What can we do if pay scales
are preset?
• How can we retain our best
contributors?
• Are we ready for their
departure?
15
Motivation: Employees don’t get it
FACT:
95% of employees
don’t understand
their organization’s
strategy
“The Balanced Scorecard: Translating Strategy into Action” - David P. Norton, Robert Kaplan
Employees don’t know how they
can best help their organization
Motivation: Employees wasting time, money
FACT:
50% of the average
employee’s time is
spent on nonproductive work
Corporate Strategy Board research; Measures That Matter
Half of all employee time is
wasted
Motivation: Getting Employees Engaged
Employee engagement is a heightened
emotional and intellectual connection that an
employee has for his or her job, organization,
manager, or co-workers that, in turn, influences
him or her to apply additional discretionary
effort to his or her work.
19
Motivation: Getting Employees Engaged
8 Factors that Drive Engagement*
Trust and Integrity
Relationship with One’s Manager
Nature of the Job
Career Growth Opportunities
Bottom Line: Pay is not the issue, many
other
opportunities
for
increasing
Line-of-Sight between Individual
Employee Development
engagement
Performance and Company
Performance
Coworkers/Team Members
Pride About the Company
*Gibbons, J. (2006), Employee Engagement: A Review of Current Research and Its Implications, The
Conference Board, New York, NY.
20
Motivation: Technology Helps Capture these
opportunities to engage employees
8 Factors that Drive Engagement*
Trust and Integrity
Relationship with One’s Manager
Nature of the Job
Career Growth Opportunities
Line-of-Sight between Individual
Employee Development
Increased Transparency – no surprises
Integrated Career Planning – right direction
Goal
Alignment
and
Skill
Development
–
link
Performance and Company
goals toPerformance
company goals
Coworkers/Team
Members– bring people
Pride About
the Company
Open
Collaboration
together
*Gibbons, J. (2006), Employee Engagement: A Review of Current Research and Its Implications, The
Conference Board, New York, NY.
21
Agenda
Who we are
Why smart HCM Matters
People Challenges in the Public Sector
Getting Results
Attrition
• Over 50% are not completely satisfied with their jobs
• 71% are “poised” for another opportunity if it comes along
• 56% regularly look at new job opportunities
Source: SF Research & monster webinar Jan-08, Monster
Intelligence
3.6 Years on the Job
• Average employee tenure is down to 3.6 years
for younger workers
• Demographics predict accelerated retirement
rates as the population ages
Source: Manpower Professional
Attrition: Tackle Engagement First and
they will stay
59%
of highly-engaged employees have
no plans to leave.
35%
of the moderately-engaged
employees have no plans to leave. 65% are
looking for new employment.
24%
of unengaged employees have no
plans to leave. 76% are looking for new
employment.
25
25
Attrition: Use technology to Bring the
Team Together
David Sirota, PhD.
found a high .36
correlation between
employee satisfaction
and camaraderie.
This is universal
factor among all
tenure groups, races,
genders, and
management levels.
49%
of employees agreed with the
statement “I feel like part of a team”
before implementing their HCM solution at
a major SF deployment.
81%
of employees agreed with the
statement “I feel like part of a team” after
implementing their HCM solution a major
SF deployment.
7%
reduction of turnover of employees
after implementing their HCM solution a
major SF deployment.
26
Attrition: Be Ready for Retirement with
Succession Planning
Value:
 Improve talent review with
consolidated employee
profiles
 Continuity as successors are
ready to step up and perform
when required
 Knowledge doesn’t walk out
of the door because skills
and competencies are
inventoried and any loss is
planned for
 Reduce the search time you
need to find replacements,
and the associated costly
hiring costs
27
Agenda
Who we are
Why smart HCM Matters
People Challenges in the Public Sector
Real Results
Success at Pep Boys
Liviu
Dedes
Director, Org.
Development
and Training
In the beginning…
 New Chairman and CEO
 Shallow talent pool for services business
 Minimal visibility to individual
performance
 Difficult to reward employees equitably
Pep Boys’ Triumph
 Strong visibility into high potentials
across the organization leading to
$150,000 savings through internal
employee placement
 Improvement allocation of
compensation funds, overall reduced
spend
 95% compliance with performance
evaluations
 Struggled to effectively manage a highly
dispersed workforce
Results
“SuccessFactors enabled Pep Boys to have our succession planning initiative up
and running quickly while the technology is proving to be instrumental in
identifying and developing the talent pool necessary to effectively fill business
critical positions within our organization” – Liviu Dedes
29
Public Sector Success
• Research conducted by
thought leader partner Dr.
Laurie Bassi proves that
HCM matters in the public
sector
• What drives performance in
schools? Socioeconomics?
• No, actually how the school
was managed, the maturity
of their human capital
management mattered more
http://www.successfactors.com/research/hcm-non-profit/
30
Massive Impact on Organizational
Performance
Revenue &
Productivity
Growth
Increase Workforce
Engagement &
Productivity
Retain High
Performers &
Improve Bench
Strength
Increase in
Operating
Results
Reduce Turnover
Cost
Reduction
Automate Manager
& Administrator
Processes
Substantial
Operating Cost
Reduction
Thank You!