HR can expect transformation in every sector in 2018.
By Amy L. Gurchensky
HR partnerships and engagements have remained in a stable state of predictability for years, but changes within the business landscape are now occurring at an increasingly accelerated pace. Organizations are experiencing industrywide transformation, and HR services are being forced to respond. This reaction is yielding great innovation which is happening at a fast rate. This is also driving the need for transparency and investments in technology across all HR functions.
Based on research and this year’s activity, there are key developments within each HR sector from 2017, and a roundup of trends for 2018.
In payroll, the focus is on technology first and services second. By the end of 2017, approximately 80 percent of payroll service contracts will be delivered on cloud systems. Cloud adoption is also beginning to move downstream to the small- to medium-sized enterprise market.
An influx of remote workers means new compensation considerations.
By Jean-Luc Barbier
In recent years, HR departments have witnessed the rise of a whole new type of workforce, one that now includes remote workers. As globalisation, skill availability, and outsourcing practices change, businesses have been taking advantage of freelancers, and the traditional work environment is being reshaped.
According to a recent Gallup survey of more than 15,000 employed workers, 43 per cent said they work remotely at least some of the time. This is a four point uptick from 2012. Many large organisations know that the best talent might not already be at their doorstep, and there is nothing stopping them for looking globally for a new employee.
Although the skill gains can be huge, there are also important considerations that can impact productivity, especially if remote workers are in another country.
Payroll finally gets a much-needed tech upgrade via cloud solutions.
By Paul Bartlett
The payroll function has a well-earned reputation for being one of the least tech-enabled areas of the enterprise. Even in the digital business world of 2017, many organizations still take a paper-checklist approach to payroll management—an approach that’s heavy on spreadsheet-based calendars, manual data uploads, and static PDF reporting.
Increasingly, however, organizations are wising up to the efficiency and cost savings they can achieve by swapping a legacy approach to payroll management for an updated model. Software-as-a-service (SaaS) and cloud solutions are finally seeing significant adoption in the payroll space; according to findings from the Sierra-Cedar 2016-2017 HR Systems Survey, 53 percent of organizations were planning SaaS/cloud payroll deployments in 2016, marking a 12 percent increase over 2015.
By automating tasks throughout the payroll cycle, SaaSbased solutions can equip payroll professionals with more intuitive, efficient ways to execute the process.
Choosing the right reimbursement program pays off.
By Craig Powell
By 2020, mobile workers will account for 72 percent of the total U.S. workforce, according to a recent report by IDC. Given this anticipated growth, it’s imperative that employers fairly and accurately reimburse their employees for any business-related driving expenses. Radio Shack, Walgreens, and Starbucks (see sidebar) are just a few of the organizations that have been involved in reimbursement-related lawsuits, which proves that no business—not even a high-profile one—is exempt from ensuring employees’ business-related expenses are covered.
Lawsuits like these show that many of today’s employers don’t fully understand how to accurately and fairly reimburse mobile employees for business mileage. Many choose to use cents-per-mile programs, which have long been used to because they are easy to administer and can oftentimes be paid tax-free. But many employers don’t have the full confidence that they’re providing the most accurate and cost-effective reimbursement program.
Hold on tight HR: Big things are to come in 2017.
By Amy L. Gurchensky
2016 had its share of trending topics in HR: cloud-based technology, open ecosystems, marketplaces, and robotics process automation. These issues, as well as a few others, will play a key role in shaping the future of the landscape over the next several years.
Developments in 2016 are bound to drive change in 2017. Here are some predictions by HR service line for the next year.
In 2017, NelsonHall estimates that the global payroll market will grow nearly 5.8 percent to nearly $18 billion, driven by the wider HR agenda for change. HR and payroll transformation and the move to cloud-based solutions will position this area for growth.
While the majority of payroll service providers utilize proprietary payroll software, most of which is already available in a cloud environment, the focus over the last year has been on integration capabilities. Nearly 65 percent of vendors are developing or investing in integrations and interfaces with some of the most prevalent human capital management software.
We know that the readers of HRO Today magazine turn to us as a go-to resource in the HR industry that delivers trends, insights, and the top resources for all of their HR operations and service needs. In our annual resource guide, we aim to showcase providers and product vendors across 18 sectors of HR services.
Here, you will find providers of everything from recruitment process outsourcing (RPO) to benefits administration and multi-process HRO, not to mention a treasure trove of HR technology, consulting services, and other ancillary products.
We hope that our 2017 Resource Guide will serve you well as a starting point in your search for appropriate vendors.
SaaS-based compensation solutions offer layers of valuable data that go way beyond just pay.
By Aaron Hurst and Jayson Saba
When all else fails, trust payroll data. The reality is that in most companies, there is no single source of truth for people-related data. Often, companies either have multiple HR systems or rely on spreadsheets to make sure they are reconciling all of the different data sources. In these cases, payroll data becomes the most trusted source. It is hard for a company to mess that up. Plain and simple, if they do, they will either hear it from employees or from the IRS.While the holy grail is a single application for HR, payroll, workforce management, time and attendance, and talent management, most companies aren’t quite there yet. In fact, research fromSierra-Cedar’s annual HR Systems Survey report shows that 98 percent of companies still rely on Microsoft Excel for reporting and analytics, and less than half (43 percent) have embedded analytics in the HR management system (HRMS) of record.
A former boss used to say “Let’s worry about two things first: pay our people, and keep the company out of the papers. Then we can do all the fun stuff.” Obviously, she was talking about accurate pay and compliance.
One of the most important aspects of human capital management is handling payroll processing. It’s the lifeblood of every successful organisation. Payroll is challenging enough when we have to worry about a couple of legal entities in two or three states, each with their own tax rules and regulations. However, these challenges start to grow exponentially when companies grow in scale and begin administering payroll on a global scale. The problem is largely one of compliance. Every country has its own economic conditions, currencies, and laws about how employees can be compensated. Companies must manage their payroll in a way that not only keeps employees compensated and engaged with their jobs, but also measures up to various national and international challenges of payroll processing.
Thought leaders are the informed opinion leaders and the go-to people in their field of expertise. They are trusted sources who move and inspire people with innovative ideas, turn ideas into reality, and know and demonstrate how to replicate their success. We certainly have a great group of thought leaders and innovators involved in our association, as demonstrated by the outstanding group of thought leaders, industry experts, and best-selling authors who speak at our Thought Leadership Councils (TLCs), as well as the people who attend them.
The HRO Today Services and Technology Association provides members with the opportunity to connect with other professionals, share best practices and content on our website, discuss and set industry standards within the HR and outsourcing industry, and to learn. Learning through our TLCs continues to be a member favourite and attract a large audience via the live webcasts and our on-demand TLC library.
by Elliot Clark
This is a signature issue among politicians and a classic example of corporate greed. I love people who cannot pass a budget in any year decrying the earnings of the world’s most accomplished business people. However, it is an issue of some merit and one that HR and board compensation committees had better grapple with soon. After all, the best solution to a business problem is a business solution, not a legislated solution that is likely to backfire.
According to an AFL-CIO report, the average ratio of CEO compensation to average worker compensation is 331:1. That may sound outrageous, but that CEO may have as much if more impact on company performance than 331 average workers. And yet, it still does not feel right. Moral ambiguity aside, the biggest problem I have with CEO compensation is the potential for that 331X impact to be mostly negative. Why the heck do these men and women make so much money when the results are not there? That is the crux of the problem.