HR June 2010

Things HR and Personnel people need to know

by Fluid

June 2010

Contents3-4 Introduction to Fluid5-6 Terminology7-20 Strategy, real-life

examples21-24 Shared services,

Cambridgeshire CountyCouncil

25-27 Pay28-29 CIPD qualifications whilst

working30-33 Surviving the downturn34-35 Assessing the contribution

of HR36-37 Making HR more credible 38-39 Make the HR intranet work40-41 Exercise42-53 Outsourcing54-55 Case studies56-57 Conclusion and questions

Introduction

Introduction to Fluid• Fluid Consulting Limited (Fluid) is a specialist

human resources consultancy headed by Tim Holden MCIPD

• 10 years in banking• 10 years in Human Resources consultancy• Fluid trading since 2006• The core services provided by Fluid are:

- Retention- Selection- Attraction- Remuneration & Reward - Outplacement- Training & HR consultancy

Terminology

Terminology

• TERMINOLOGY• Change management• Coaching• High-performance working• HR business partner• Human capital• Knowledge management• Shared services• Talent management• Total reward

Strategy, real-life examples

Strategy, real-life examples 1 of 13

• CROYDON COUNCIL-THE CHALLENGE AND WHAT THEY DID

• Croydon Council is the largest employer in the borough, spending more than £900M each year. However it was felt that the council’s HR service was struggling; decentralised and with no overall strategy

• The council developed a people strategy, aligned with the council’s community strategy and corporate plan

• Introduced a new leadership academy to develop talent

• Workforce planning was focused on new ways of working for integrated workforce of council, police and health staff

• Strategy monitored through annual plans


• CROYDON COUNCIL-BENEFITS AND ACHIEVEMENTS

• Croydon is now the best-performing London council for reducing sickness absence, now down to 5 working days

• The council went from 68th to 6th in the human capital best value indicator for local authorities

• The annual government inspection highlighted rapid improvement and increased productivity

• More than £1.6M was saved in recruitment advertising and agency contracts


• HM PRISON SERVICE-THE CHALLENGE AND WHAT THEY DID

• A new HR strategy was launched, aiming to deliver more effective working practices among its employees

• Replaced large prison-based teams with a dedicated shared service centre, with HR business partners recruited to implement change

• Sold the business case-reduction in costs by £148M over five years-to the board

• Set challenging goals to improve diversity, restructure training, increase employee engagement, develop leaders and introduce qualifications for officers


• HM PRISON SERVICE-BENEFITS AND ACHIEVEMENTS

• BME representation has risen from 3% to 6% in a ten year period

• New training plans were created for 600 people with increased training requests

• A recent survey revealed that 75% were satisfied with their jobs, 72% felt they were treated with respect, and 88% were clear about what was expected from them

• 2000 candidates have taken a new NVQ

Strategy, real-life examples 5 of 13• LANCASHIRE COUNTY COUNCIL-THE CHALLENGE AND

WHAT THEY DID• The council provides a wide range of public services

directly and through partnerships to citizens. It recognised the time-bomb of a ‘demographically imbalanced’ workforce propped up by costly agency staff. The council wanted to target different types of jobseekers and connect them with the authority

• Developed a public sector work trial scheme called WorkStart, creating a route back to work for long-term welfare recipients, reducing agency costs

• Re-engineered the apprenticeship programme to address demographic trends

• Founded Future Horizons, which gives young people qualifications, career advice and a work placement


• LANCASHIRE COUNTY COUNCIL-BENEFITS AND ACHIEVEMENTS

• Developed a ‘grow your own’ culture by recruiting apprentices, saving £120000 a year

• Arranged placements for 60 people through WorkStart, with 43 securing employment

• New workforce models have contributed towards £1M in savings on agency staff

• 18 young people completed pilot Future Horizons programme, with 14 going on to secure an apprenticeship with the council

Strategy, real-life examples 7 of 13• MCDONALDS-THE CHALLENGE AND WHAT THEY

DID• McDonalds needed to transform its reputation

and reclaim the phrase ‘McJob’. Enhancing the brand would bring about improvements in recruitment, retention, customer and staff satisfaction as well as profitability

• Friends and family contract, enabling two friends or family members to cover each other’s shifts

• A hard-hitting campaign of press advertising and in-store posters highlighting their attractive benefits and signed off with the strapline ‘not bad for a McJob’

Strategy, real-life examples 8 of 13• MCDONALDS-THE CHALLENGE AND WHAT THEY

DID• Ourlounge.co.uk, which is a lifestyle, career and

personal development website for employees including the chance to obtain GCSE-literacy and numeracy qualifications through online learning

• A public petition to change the dictionary definition of McJob

• McTime-an online schedule enabling restaurant staff to check their shifts without having to contact the store directly

• Designer uniforms to increase confidence and pride


• MCDONALDS-BENEFITS AND ACHIEVEMENTS• Accreditation from the QCA granting McDonalds UK

awarding body status• Crew turnover reduced by 20% since reputation work

began• 84% said their perception of McDonalds had improved

as a result of seeing the McJob campaign, with a 25% increase in those saying they would recommend it as an employer

• 73% said they feel motivated in their job• The McDonalds UK Brand Index Corporate Score rose

16 points (the biggest sector rise of the 1500 companies monitored)

Strategy, real-life examples 10 of 13• PFIZER UK-THE CHALLENGE AND WHAT THEY DID

• A business transformation driven by internal and external pressures was needed to put the customer at the heart of Pfizer’s operating model. HR needed to lead a reorganisation to develop new ways of working with less resource and flatter structures that would deliver sustainable business growth

• Developed an integrated business strategy, recognising people as the foundation for success and clarifying new business goals, priorities, plans and metrics

• Introduced leadership programmes to develop a talent pipeline Held a ‘One Pfizer’ launch to engage line managers & colleagues

• Recruited 9% of the workforce as behavioural champions to work closely with management and the board to change practices


• PFIZER UK-BENEFITS AND ACHIEVEMENTS• Coaching programme for all line managers is

on target for 95% completion• Latest revenue target is at 105% of budget• Embedded two of the new behaviours to the

extent that 60% (behavioural index count) of all employees believe the behaviours have become part of ‘Ways of Working’

Strategy, real-life examples 12 of 13• THOMSON REUTERS-THE CHALLENGE AND WHAT THEY

DID• Following a global merger a number of changes needed

to take place• Designed and started implementation of a new global HR

function, integrating the two HR functions• Put in place mechanisms for monitoring employee

morale through regular ‘pulse checks’ • Hand picked experienced employees to lead 16

workstreams• Ensured top team ownership of key processes-for

example, the CEO wrote ‘guiding principles’ to inform line managers’ behaviour when appointing employees

• Provided universal access to all jobs across the organisation by integrating recruitment systems


• THOMSON REUTERS UK-BENEFITS AND ACHIEVEMENTS

• Delivered a globally consistent redundancy process

• Rolled out a single performance management system in time for mid-year reviews

• Agreed and delivered a single compensation framework by day one

• Helped appoint more than 500 people to new roles by day one

Shared services

Shared services 1 of 3

• CROSS-ORGANISATIONAL SHARED SERVICES• Be absolutely clear on what shared services will

deliver to your organisations and set specific goals

• Define who its customers are and implement robust review measures to ensure their needs are being met

• Be pragmatic about which activities should be in-house and which should be outsourced, and be clear when communicating your new HR processes to stakeholders


• CROSS-ORGANISATIONAL SHARED SERVICES• Explore all your technology options with a view to

taking the mundane tasks out of processes while keeping important services in place

• Agree on governance structures that will determine the type and standard of services offered, designing procedures that allow adjustment with change

• Develop an agreed internal pricing regime which can include a variety of charging mechanisms, but needs to be modelled so that partners are aware of cost exposure


• CROSS-ORGANISATIONAL SHARED SERVICES• Have service level agreements in place to avoid

disagreements on things such as speed of delivery• Clarify whether the services are hosted by a

separate new business owned by partners or by one organisation on behalf of others

• Determine whether employees will retain contracts of employment or be TUPE-transferred

• Maintain a long-term vision, as it will be needed to overcome any day-to-day problems

Pay 1 of 2

• BBC• Department of Health• Derby Hospitals NHS Foundation Trust• BBC• BBC• BBC• Cabinet Office• BBC• Home Office • BBC

Pay 2 of 2

• FTSE 100• Chief Executive• Finance Director• FTSE 250• Chief Executive• Finance Director• FTSE 350• Chief Executive• Finance Director

CIPD qualifications whilst working

CIPD qualifications whilst working

• Think strategically• Build a support network• Keep your manager in the loop• Be organised• Manage your time• Work on key study skills• Link with continuing professional development• Make the most of resources• Keep your end goal in mind

Surviving the downturn

Surviving the downturn 1 of 3

• Understand the business context• Look at competitors• Protect your talent• Think long term• Do your homework


• Do get your house in order• Do refocus your HR agenda on new business priorities• Do tackle the basics• Do focus on top talent• Do more with what you’ve got• Don’t lose your identity• Don’t stop hiring the best talent• Don’t ignore opportunities to increase revenue• Don’t lose the wrong people• Don’t cancel capital projects that will be needed in the

upturn


• HR INTERIMS• Know yourself• Perfect your CV• Network, network, network• Prepare well for interview• Take advantage of agencies• Use the internet cleverly• Ask people to refer you-and return the favour• Explain your gaps• Be flexible

Assessing the contribution of HR

Assessing the contribution of HR

• Understand the metrics• Collect the correct data• Report the right data to the right people• Use a basket of measures• Develop leading and lagging indicators• Dealing with the data

Making HR more credible

Making HR more credible

• Get the basics right• Spend some time outside HR• Manage risk• Admit what you don’t know• Focus on outcome, not process• Help the line to achieve objectives

Make the HR intranet work

Make the HR intranet work

• Sort out the basics• Get people to log on• Use it as a telephone substitute• Think big on HR self-service• Don’t forget payroll• Think outside the intranet• Get a second opinion

Exercise

Outsourcing

Outsourcing 1 of 11

• TERMINOLOGY• BPO• HR transformation• Infusion• Insourcing• KPI• Lift and shift

Outsourcing 2 of 11

• TERMINOLOGY• Pure play• RFI• SLA• Value leakage• Vanilla service

Outsourcing 3 of 11

• SELECTING A PROVIDER• Put yourself in their shoes• Plan the key messages• Communicate your case• Check, practice and rehearse• Give decision-makers a choice• Now repeat the first five steps• Maintain momentum

Outsourcing 4 of 11

• DRAWING UP A CONTRACT• Scope• Managing service performance• Poor performance• The governance structure• Exit management

Outsourcing 5 of 11

• MANAGING THE CONTRACT• Sign the contract but don’t abdicate responsibility• Develop core competence in contract

management• Ensure board-level support• Select a partner that works to understand you• Establish a collaborative relationship• Consider setting up the contract as a joint

venture• Understand what you currently get out of HR• Retain ownership of the HR policy and strategy

Outsourcing 6 of 11

• RECRUITMENT PROCESS OUTSOURCING• Dos• Don’ts

Outsourcing 7 of 11

• RECRUITMENT PROCESS OUTSOURCING-ins and outs

• Client seeking improved efficiency calls in RO company to handle some or all of its recruitment

• Outsourcing experts assess company’s requirements with in-house HR department and advise on best strategy

Outsourcing 8 of 11

• RECRUITMENT PROCESS OUTSOURCING-ins and outs

• Recruitment process, including advertising, analysis of job applicants and interviews, handles by RO team

• Once employees are hired, outsourcers help them settle into new positions by organising security passes, initial training etc.

• When an employee leaves a RO firm, RO expert interviews them to ensure smooth transition of duties to their successor

Outsourcing 9 of 11

• RECRUITMENT PROCESS OUTSOURCING-Key drivers for growth

• Globalisation is driving down recruitment costs and increasing the opportunities for outsourcing

• Communications technology links the world and drives efficiency gains

• New business models are focusing on shareholder and stakeholder value leading to more transparent recruitment costs

Outsourcing 10 of 11

• RECRUITMENT PROCESS OUTSOURCING-Key drivers for growth

• Risk management techniques mean management is better prepared to evaluate alternative strategies

• Mobility of labour, including migration within the EU and globally, makes recruitment more dynamic

• Diversity of the workforce results in more flexible work patterns

Outsourcing 11 of 11

• PAYROLL• Dos• Don’ts

Case studies

Conclusion & Questions

Conclusion

• Summary• Questions

HR June 2010

Business

Transcript of HR June 2010