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
December 14, 2011
1
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)
MERCER
Strategic HR Operational HR
HR centers of expertise (Design HR programs)
December 14, 2011
2
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
MERCER
December 14, 2011
3
… 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
MERCER
Operational HR
HR shared service centers
HRIS
December 14, 2011
HR centers off expertise ti
4
… 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
MERCER
HRIS
December 14, 2011
HR centers of expertise
5
… 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
MERCER
December 14, 2011
6
… 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
MERCER
December 14, 2011
7
… 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
December 14, 2011
8
… 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)
Employees MERCER
December 14, 2011
9
… 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
Employees MERCER
December 14, 2011
10
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
December 14, 2011
11
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