Next Generation HR Model A discussion document for the University of California December 2011

Scott Bolman Chicago - North Wacker Drive

This presentation Thi t ti describes d ib a service delivery model for HR It is i intended i t d d to t foster f t discussion di i at UC It should not be interpreted as the agreed-upon g direction for UC MERCER

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The “3-legged stool” model of HR Service Delivery

HR business partners t (Broker HR services)

HRIS

HRIS

HR leadership

Strategic HR Operational HR

HR shared service centers

(Strategy and governance) HRIS

(Deliver HR services)

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Strategic HR Operational HR

HR centers of expertise (Design HR programs)

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The key elements of the “3-legged 3-legged stool stool” remain fundamental to HR organizations, i ti but b t there th are other factors to consider for the future of the function including… g

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… the proportional size of each service delivery component

HR business partners

Fewer, more strategic HR Fewer business partners

HRIS

HR centers of expertise and HR leadership will become slightly smaller

HRIS

HR leadership

Strategic HR

Strategic HR

HR leadership Operational HR

Larger, more L functional shared services

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Operational HR

HR shared service centers

HRIS

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HR centers off expertise ti

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… the role that HR leadership plays in governance HR leadership plays a key role in directing the nature of the services delivered by the three other components, providing governance and controls

HR business partners

HRIS

HRIS

Strategic HR

Strategic HR HR leadership

Operational HR

Operational HR

HR HR shared shared service service centers centers

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HRIS

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HR centers of expertise

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… the part played by technology HRIS and related technologies are a key enabler for effective service delivery, and should be the direct responsibility of the HR shared service center

HR business partners

HRIS

HRIS

Strategic HR

Strategic HR HR leadership

Operational HR

Operational HR

HR shared service i centers t

HRIS

HR centers of expertise

HRIS

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… the importance of shared services in making the model work Shared Services will become multi-functional Outsourcing of select activities will continue to be a part of the shared services model

HR centers of expertise will use outsourcing to handle special projects and annual “peaks” HR b business i partners

Strategic HR

Strategic HR HR leadership

Operational HR

Operational HR

HR centers of expertise

HR shared service

Outsourced

Outsourced

HRIS

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… customer interactions

HR provides strategic services to the business and operational services to employees The business

The primary customer t off th the HR business partner is the business

…. but they also design programs for f th the business b i HR business partners

…. and should be viewed as more strategic

Strategic HR

Strategic HR HR leadership

Operational HR

Operational HR

HR centers of expertise p

HR shared service centers deliver services to employees

Outsourced

HR centers of expertise p design g HR programs to be delivered by shared services

HRIS Employees MERCER

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… employee interactions with HR operations The business

Employees can readily access HR information online via a portal, supported by HRIS

HR business partners

Strategic HR HR leadership Operational HR

HRIS

HR case manager

If queries are not resolved, they can contact a call center

HR centers of expertise p

Strategic HR Operational HR

Outsourced

HR Service manager Tier 3

Tier 2 Tier 1 Tier 0

Escalated matters are dealt with by in house resources, (e.g., SSC, HR case managers or HR service managers)

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… the importance of line managers in delivering people management The business

Line managers need to be identified as an explicit part of the service delivery model

HR business partners

Strategic HR HR leadership Operational HR

People development managers will support their colleagues

HR case manager

HR centers of expertise

Strategic HR Operational HR

Outsourced

HR service manager People Dev managers

Ti 3 Tier

Line managers

Tier 2 Tier 1 Tier 0

HRIS

Line Managers will also be supported by HR case / service managers

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The complete picture - next generation HR The business

HR business partners

Strategic HR HR leadership

HR centers of expertise

Operational HR

Strategic HR Operational HR

Outsourced HR case manager

HR country manager

People Dev managers

Tier 3

Line managers

Tier 2 Tier 1 Tier 0

HRIS Employees MERCER

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The Outcome The role of HR will continue to shift and be more: •

Strategic – developing, developing managing and operationalizing the human capital strategy



Focused on metrics and measurement – providing the business with information and tools to guide fact fact-based based decisions



Enabled to execute the fundamentals via technology – using co/outsourcing or internal shared services



Effective in supporting line managers – providing enhanced HR operational support and easy-to-use tools



Efficient in delivering services at the right cost – providing ALL transactional services work from the shared services function should optimize the cost model

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