Enabling Technology

It is unmistakable that the HR technology industry has been revolutionized. Cloud-based HR systems are now available from many of the largest vendors in the market. These systems integrate payroll, HRMS, talent management and analytics processing into a single cloud-based service. Many HR leaders are challenged with mobile tools and new social recruiting systems that are making many of the legacy HR systems obsolete.

NY HR Week 2005 Trumps Expectations – Up 32% to 3710 Registered Attendees

HR Executives In Record Numbers Attend HR Conference —

Top Issues Include Outsourcing, Diversity, Benefits & Technology

Milford, CT,April 20, 2005 NY HR Weeks conference directors today released recordattendee totals for the 2005 NY HR Week held April 12-14, 2005 at the New YorkHilton, making it the nations second largest HR event. Registered attendeestotaled 3,710, with conference attendees numbering 706.  The totals represented a 32% increase overthe 2004 totals, and included a record 106 media attendees.

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PwC: Almost All Fast-Growth Companies Outsourcing HR Functions

PricewaterhouseCoopers Trendsetter Barometer interviewed CEOs of 360 privately held product and service companies identified in the media as being among the fastest growing U

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Hewitt Associates to Provide HR BPO Services to PepsiCo

Firm Continues Growth of HR BPO Business, Signing Eighth Deal Since Close of Hewitt and Exult Merger

LINCOLNSHIRE, Ill. — Hewitt Associates (NYSE: HEW), a global human resources services firm, announced today that it will provide comprehensive HR business process outsourcing (BPO) services to PepsiCo (NYSE: PEP), a world leader in convenient foods and beverages. Financial terms of the deal were not disclosed.

Under a ten-year agreement, Hewitt will provide HR BPO services in the U

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To Outsource or not to Outsource, These Are the Final Questions

Part three of our three-part series on deciding whether or not to outsource your HRMDS.

by Naomi Lee Bloom

As promised, this is the third and final column that poses the questions related to HRM outsourcing activities for which HR leaders need ready answers. Theres a clear pattern in these questions, which began in the January/February issue of the magazine, with ensuring that HRM outsourcing decisions are grounded in our business and HRM strategy.

 

Last month, we looked at our current levels of HRM outsourcing activities, a topic well continue this month. Well also focus on the things that could go bump in the night if you fail to pay sufficient attention to them. Here are the final questions you should be asking yourself when making a decision to outsource your HRM delivery system (HRMDS):

 

Would more or less outsourcing affect costs in a positive way without adversely affecting the quality, timeliness, other important measures of process outcomes, or required business outcomes?

 

What are our decision criteria for when, how, to whom, and with what service level agreements (SLAs) we will outsource each type of HRM process, collections of HRM processes, and integrated collections of HRM processes, including shifting major responsibility for the overall HRMDS to the provider?

 

Who makes these decisions and are there any pending opportunities to influence them? Should we?

 

How do we decide on the scope of each outsourcing relationship? Are we inclined toward one-off or more integrated arrangements? Why or why not?

 

How do we manage these relationships? What are the governance structures and processes? What are the performance incentives? Are there any problems with these relationships? If so, what problem resolution techniques are we using, and are they working?

 

What is the HRM business model against which we consider processes for outsourcing? Does it match each SLA already in place? What changes, if any, should we be considering in our HRM business model and in the related outsourcing relationships? Do we even have an HRM business model (i.e. an integrated view of our HRM processes, data, business events, etc.)?

 

What is our process for monitoring the financial and market health of our providers? Are we the first to know if there is a pending M&A? What about a management change or a change in their offering? Or a nasty scandal? Are we investing enough in our competitive intelligence effort? Are we able to monitor the financial health, market performance, and future direction of our providers well enough to ensure the success of our outsourcing relationships? Can we identify new providers that we should consider?

 

Are there any changes or expected changes affecting our providers? Are they to our good or not?

 

Would we be better able to achieve our HRM business outcomes with the capabilities of our HRMDS enhanced by further outsourcing and/or more integrated outsourcing? If not, why not? If yes, why?

 

Are there any nasty surprises awaiting us within our in-house HRMDS platform components? What about from Oracles acquisition of PeopleSoft? What about maintenance issues if were the last firm running on Tesseract, Integral, or another older platform? What if the vendors for our talent management, workforce management, performance management, etc. software decide its time to cut their losses?

 

Answering these questions, as well as the ones presented in the previous two columns, is important to our successful use of HRM outsourcing as a means of achieving high-quality HRM outcomes in support of the organizations business outcomesand that is the real purpose of HRM. But no matter how prepared we are, there are always those unexpected, and often unwanted, outsourcing suggestions that our colleagues provide. So that were not sidetracked by suggested adventures in outsourcing, next months column will help us consider such suggestions.

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Switzerland Inn Picks The Castleton Group for HRO

Asheville, NC Jim Stilgenbauer, Vice-President of Client Services at The Castleton Groups Asheville office, has announced that the firm has been chosen to provide comprehensive human resource outsourcing services for Switzerland Inn, located in Little Switzerland, North Carolina

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Case Study: Lifestyles of the Rich and Outsourced

Multi-million dollar Anderson Companies still likes to save money through HRO.

by Marsha Kendall

 

The Anderson Companies are a real estate development operation focusing on recreational and residential communities. Founder Lyle Anderson defined this market in the early 1980s with the creation of exclusive golf communities in north Scottsdale, Arizona. Current properties are located in Santa Fe, New Mexico; on Hawaiis Kona coast; east of Phoenix, Arizona; and Scotland. With a variety of business interests in luxury homebuilding, golf-related enterprises, and investment properties, the HR department had to juggle numerous employees in different regions and with different needs. It made Anderson the perfect candidate for outsourcing.

 

Our employees serve a very sophisticated clientele, explained Bill Siwek, executive vice president and chief financial officer for the Anderson Companies. In choosing an HR provider it was critical that we partner with an organization that understands our business as well as treats our employees the way we expect them to treat our members.

 

Andersons initial needs were the consolidation and standardization of accounting and payroll functions. However, after re-evaluation, the opportunity for full service human resources and payroll outsourcing was present. In late 2002, Anderson partnered with Core3, Inc., a provider that specializes in human resources, payroll, finance and accounting, and information technology outsourcing for the mid market, with shared service centers located in Phoenix, Arizona and Delhi, India. The company chose Core3 because it provided every level of service from field support for the Anderson Companies employees and management to strategy, recruiting, training, and transaction processing, as well as access to a Phoenix-based shared service center.

 

This is a unique delivery model in that the client wanted to maintain employee visibility to HR on a daily basis, while improving the quality of the function and reducing costs. The provider has on-site staff who are committed to employee and management support, while all strategy, development, and the majority of transaction processing are handled on a centralized basis at the providers shared service center.

 

The first-year results were impressive. Employee satisfaction with HR grew from 74 percent at the start of the relationship to 92 percent by the years end. Accuracy in benefit administration rose from 64 percent to 100 percent in the same time frame, and payroll accuracy has consistently exceeded 99 percent each month.

 

Special projects during the first year included the introduction of a standardized HR Policy Manual, new employee handbooks in both English and Spanish, new hire orientation, customized trainings, and the standardization of job titles and job descriptions, thus reducing titles by more than 20 percent. In addition, through a combination of field and support staff, the service provider was able to successfully partner with two Anderson Companies properties and increase staffing by more than 30 percent to handle the seasonality in the business. Equally important, the outsourcing relationship contributed to the reduction of HR/payroll costs by more than 20 percent, and impacted other related costs, such as a 40 percent reduction in legal fees and tighter controls for severance and relocation packages.

 

These accomplishments were driven by the providers combination of HR expertise, experience with global models, and comprehensive set of delivery tools. Core3s familiarity with global delivery allowed it to take the model a step further and understand the challenges and opportunities surrounding the support and management of thier own employees placed at client sites. Daily calls, weekly phone conferences, and regular site visits, are some of the tools they have has utilized to create a sense of team with its HR staff assigned to this relationship. In addition, through tools such as CoreSupport, the HRO companys new issue identification, management and resolution tool, Core3 has up-to-the-minute access to employee issues and concerns. This information allows them to ensure a timely and consistent response at the property level, report to client executives on the specifics surrounding a particular employee issue, plus identify trends for proactive workforce management.

 

Core3 has enabled the Anderson Companies to focus on our core competencies related to real estate development by addressing all our employee related issues. They truly understand our business and continue to deliver innovative solutions to support our success, concluded Siwek.   

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AAA and RiverStone Group Outsource to Ultimate Software

WESTON, Fla., March 9 /PRNewswire-FirstCall/ — Ultimate Software (NASDAQ:ULTI) , a leading provider of Web-based payroll and workforce management solutions, announced today that AAA Ohio Auto Club and the RiverStone Group Inc

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The Top Payroll Deals of 2004

Who’s paying who to handle their payroll? The top deals of 2004.

by Denise Doig

HRO Todays annual list of the top enterprise-level and mid-market payroll deals as well as highlights from the APAs current research on the market.  

 

Its payday, and whether you confirm your direct deposit account over the phone or online, wait on a long bank line to cash your check, use an ATM to retrieve your wages, or run into your local check-cashing site, you have been compensated in some fashion by your employer. With paperless payroll, pay cards, and even traditional printed checks, employees have numerous payroll optionsimportant not only to the employee, but also to the employer. Employers want to find new ways to enhance the payroll experience for everyone involved. And outsourcing enables employers to provide employees improved administrative support and the latest in payroll technology.

 

HRO Today conducted a month-long survey of companies providing payroll outsourcing services, approximately 65 in all, to find out the major payroll deals of the past year. We focused on mid-market and larger deals, and narrowed the results down to 26 contracts.

 

Listed are the usual suspects, such as ADP. But we also found some interesting activity amongst less well-known providers and across the waters in Europe.

 

With all this activity, we also wanted to know how payroll has changed in the past year and where it is headed, so we contacted the American Payroll Association (APA) (see our interview with Andrew McDevitt, Manager of Government Relations, of the APA on page 19). Each September, the APA celebrates National Payroll Week with the publication of a survey of wage earners. This years results showed many employees have confidence in their employers payroll systems, paperless payroll is a desired function, and 401(k) plans are still extremely popular. The most interesting result was that 63.4 percent of the 22,500 respondents said they would prefer to invest part of their payroll taxes in private investment accounts, as opposed to the current social security plan. We at HRO Today, like all things HR related, are interested in how this will play out under the current administration. Were also interested in what trends and companies will be making a splash in the payroll market in the upcoming year, so stay tuned for more coverage in future issues.  

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