Erik Marsh, CEO DATIS [email protected] MHCA SPRING MAY 2014 STRATEGIC HUMAN CAPITAL MANAGEMENT WHY HR SHOULD BE ON EVERY CEO’s AGENDA Mary Ruiz, CEO Manatee Glens [email protected] Deborah Kostroun, COO Manatee Glens [email protected]
Strategic HR Presented at MHCA Spring Session 2014
Jul 02, 2015
Learn how non-profit human resource departments can become a strategic differentiator for organizations by utilizing human capital management software to increase efficiency and automation. This presentation is especially beneficial for the health and human services industry.
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Erik Marsh, CEO DATIS
MHCA SPRING MAY 2014
STRATEGIC HUMAN CAPITAL MANAGEMENT
WHY HR SHOULD BE ON EVERY CEO’s AGENDA
Mary Ruiz, CEO Manatee Glens
Deborah Kostroun, COO Manatee Glens
OPERATIONS vs. STRATEGY
WHAT ARE THE EXPERTS SAYING?
WHAT ARE THE EXPERTS SAYING?
IS HR IRRELEVANT?
“Indeed, many human capital departments are at risk of becoming irrelevant. There is no shortage of indicators. For a start, the function is still typically referred to as “HR”—a sign that their role as stewards of prized capital is not yet accepted. “HR is a contaminated brand,” management thinker Charles Handy told HR Magazine last year.” –McKinsey State of Human Capital 2012
HOW DO CEOs VIEW HR?
“Study after study cites chief executives’ lukewarm views about the function. Less-than-favorable descriptors such as “box-ticking” and “detached from reality” are still used as regular criticisms of the function.” –McKinsey State of Human Capital 2012
HR vs HCM – What is the difference?
Traditional HR systems
HR systems of records, which manage information about employees
Human Capital Management
A combination of software and services that aim to attract, develop, and retain talented professionals.
A tough climb ahead!
WHAT ARE THE EXPERTS SAYING?
"In today's global marketplace, particularly in such a hostile and unpredictable business environment, it is imperative that human capital executives and departments place themselves at the heart of strategy development conversations," said Rebecca L. Ray , Ph.D., Senior Vice President of Human Capital, The Conference Board. "Human Capital functions need to break out of their comfort zones, take risks and become a true business partner."
WHAT ARE THE EXPERTS SAYING?
"Right now, human capital departments are struggling to deal with a talent shortage, adapt to a changing workforce, and develop new, flexible working models to meet the needs of tomorrow's workers," said Bryan Hancock , a Partner in McKinsey & Company's Atlanta office. "Human capital departments and executives are also facing a real struggle to make a strategic difference in their organizations. Only by partnering with other parts of the organization will they be able to address critical business issues with long-term, systemic impact on human capital.”
HR TRANSFORMATION: A NEW MODEL FOR HR
BE BOLD IN 2014 Drive transformational change and restructure HR teams • Many of the HR structures and systems get in the way Tackle the basics – Cover “business-critical” support processes • Implement staffing, payroll, compliance training, performance management, labor
relations, compensation planning • Automate, streamline and outsource the “non-strategic” parts operations— and
they provide a laser-focus on high-value areas. Become a Talent Management Organization • Programs like strategic talent acquisition, workforce planning and intelligence,
culture (learning culture, engagement and accountability), new models of leadership and management, and programs to support business agility and innovation are all important to HR.
SOURCE: Predictions for 2013, January 2013, Josh Bersin, Principal and Founder, Bersin by Deloitte Deloitte Consulting, LLP
HUMAN CAPITAL TRENDS 2014
“… early conversations often include the CFO, where the opportunity exists to begin ‘thinking like an economist’.“ SOURCE: Deloitte, Human Capital Trends 2013
WHERE IS THE ROI IN HCM?
Opportunities for Operational Excellence • HUMAN CAPITAL MANAGEMENT • RECRUITING MANAGEMENT • HUMAN RESOURCES
• POSITION CONTROL • NEW HIRE ONBOARDING • SELF-SERVICE – EMPLOYEE/
MANAGER • BENEFITS ADMINISTRATION • TIME & ATTENDANCE • PAYROLL • TALENT MANAGEMENT
• CREDENTIAL MANAGEMENT • GOAL AND PERFORMANCE
MANAGEMENT • LEARNING MANAGEMENT
• WORKFORCE ANALYTICS
RESOURCES • The State of Human Capital Management 2012,
McKinsey & Company / The Conference Board
• Human Capital Trends 2013, Deloitte
• Predictions for 2013: Corporate Talent, Leadership and HR–Nexus of Global Forces Drives New Models for Talent, Josh Bersin, January 2013, Deloitte Bersin
THANK YOU
ACHIEVING OPERATIONAL EXCELLENCE THROUGH HR
Mary Ruiz, CEO, Manatee Glens Mary.Ruiz@Manatee Glens
HOW DOES IT LOOK OUT THERE?
• Back Office/HR Centric
• Compliance/Process Driven
• Complicated & Hierarchical
• Burdensome to Staff
• Lack of Scalability
• Underinvestment in Technology
HCM FUNCTIONS vs BUSINESS VALUE
Business Strategy
Talent Management and Decision Support
Tactical Support Recruitment, Compliance,
Employee Relations
Transactions Payroll, Benefits, Records
BUSINESS-DRIVEN HCM: LESSONS FROM IT
• 3-5 Year Time Horizon
• Anticipates Threats and Opportunities
• Aligns Workforce and Culture to Strategy
• Drives Value and Business Performance
TRADITIONAL BUSINESS DRIVERS
• Productivity
• Volume
• Payer Mix
• Cost
• Workforce
• Accounts Receivable
EVOLVING BUSINESS DRIVERS
• Growth/Mergers
• New Competitors/ Collaborators
• Access
• Customer Experience
• Operational Excellence
• Pay for Performance
• Audit and benchmark current performance for gaps • Map changes needed to execute business vision
Define Required HCM Capabilities
• HCM structure and scope of services • Staffing, Outsourcing, Automation, Process
Redesign, Analytics
Design End-State HCM
• Analyze current costs and savings • Develop HCM financial model and metrics
Develop Should-Cost Financial Model
• Identify key business priorities • Develop HCM strategic milestones and
performance metrics Create Go Forward
HCM Road Map
ELEMENTS OF AN HCM STRATEGIC PLAN
MENU: HCM TACTICS FOR BUSINESS RESULTS
• Scales to Growth Strategy
• Curates Culture of Agility, Flexibility and Innovation
• Prioritizes HCM Projects Based on Value to Business
• Aligns HCM Timelines with Business Strategy
• Develops forecasts and analytics
MENU: HCM TACTICS FOR BUSINESS RESULTS
• Identifies Quick Wins for Staff and Business
• Promotes business accountability with metrics
• Proposes staffing solutions to lower cost and promote innovation
• Suggests improvements to key business processes
• Nurtures new program and product launches
CEO CHECKLIST FOR HCM
• Recruit HCM staff of the future
• Bring HCM to the strategy table
• Develop HCM Strategic Plan for Business Results
• Invest in HCM IT and reduce total cost of ownership for HCM
• Design and scale HCM for business transformation
Increasing Top Line Revenue • ABILITY TO TRACK PAY FOR PERFORMANCE
• QUANTIFY STRATEGIC GOALS, INCENTIVES AND REVENUE • CONTROLLING REVENUE GENERATING VACANCIES WITH OVERHIRES
DECREASE EXPENSES • CENTRALIZED CONTROL OF SCHEDULING • MANAGING OVER-TIME/PRN COSTS
ELIMINATE PAPERWORK WASTE & MISTAKES
• APPLICANT PROCESS ON LINE ~ ABLE TO MANAGE CHAIN FROM START TO END THROUGH TECHNOLOGY BY MULTIPLE USERS
• ONLY QUALIFIED CANDIDATES GET THROUGH • QUICKER REVIEW BY MANAGERS • APPLICATION PROCESS MEETS ALL COMPLIANCE STANDARDS • AUTOMATED TIMESHEETS SAVE HR 3-DAYS STAFF PROCESSING TIME
• AUTOMATED EVALUATIONS SAVE SUPERVISORS HOURS • DIRECTOR OF NURSING HAS OVER 50 EVALUATIONS ~ NOW IN COMPLIANCE ~
SAVED APPROXIMATELY $12,000 • MANAGERS FREED-UP BY BEING ABLE TO ACCESS HR FUNCTIONALITY FROM
HOME OR MOBILE APP WHICH ALLOWS FOR FLEXIBLE WORK TIME
ELIMINATE PAPERWORK WASTE & MISTAKES
INCREASE EFFICIENCIES ACCURACY AND COMPLIANCE
• POSITIONS TIED TO BUDGETED FTE’s, NO HIRE, OR JOB CHANGE WITHOUT APPROVAL UP THE CHAIN • NO HARD COPY PAPER NEEDED • JOB CODES CONTROL POSITIONS ROLE, INSURES COMPLIANCE • ABILITY TO CLASSIFY MOST STAFF AS SALARIED NON EXEMPT, CONTROLS FLSA ISSUES • AUTOMATED REPORTING FLAGS
• OVERTIME ISSUES
• AUTOMATE SYSTEM • HOURS WORKED FOR BENEFITS ELIGIBILITY (ACA) MONITORED THROUGH AUTOMATED SYSTEM
FAIR LABOR STANDARDS ACT CONTROLS
• ORGANIZATION SELECTS EXEMPT/NON-EXEMPT CATEGORIES, FOLLOWS FAIR LABOR STANDARDS ACT (FLSA) GUIDELINES
• JOB CODES ARE CLASSIFIED, NOT PEOPLE • MANATEE GLENS’ HAS CHOSEN TO ONLY CATEGORIZE MANAGEMENT AS
EXEMPT, OTHERS HOURLY • CLINIC AND SUPPORT STAFF “PUNCH IN” • OVERTIME REPORTS GENERATED BY SYSTEM AND MANAGED BY PROGRAMS • ALLOWS TIGHT MANAGEMENT OF HOURS WORKED COMPARED TO
PRODUCTIVITY WHILE STILL IN MAXIMUM COMPLIANCE WITH FLSA.
INCREASE EFFICIENCIES ACCURACY AND COMPLIANCE
MANAGING THE STRATEGIC FUTURE THROUGH CAPITATED MANAGEMENT
• REVIEW STRATEGIC DIRECTIONS (I.E. CORPORATE OBJECTIVES) • REVIEW HIRING/RECRUITING PRACTICES FROM HR REPORTING
SYSTEM (WORKFORCE ANALYTICS) • TRACK COMPETITIVE GOAL RATE BASED ON COMBINATION OF
MARKET, NEEDS AND TRENDS • INTEGRATE STRATEGIC TRAINING NEEDS INTO AUTOMATED STAFF
DEVELOPMENT SYSTEM
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