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Definitive Guide to Strategic Human Capital Management Consolidating Strategic HCM Functionality to Optimize Your Workforce
In the realm of human capital management, theres a new wave of thinking about what it means to be strategic and drive workforce effectiveness. Riding the leading edge of this wave are the savvy human resources executives, driving their organizations with a forward-thinking, strategic and integrated approach to human capital management. This new wave is commonly known as Strategic Human Capital Management (HCM). At its core, Strategic HCM enables a whole set of so-called cross-process workflows, such as integrating recruiting and onboarding or pay-for-performance. They are cross process because they span the classic silos of HR to provide a more efficient, effective approach to human capital management. Below are a classic set of these cross-process flows enabled by a Strategic HCM solution and industry examples to which they can apply.
Talent Management Learning Management Workforce Management Payroll Management
All Industries
Talent development for key strategic competency focus for company
Learning development suggestions and assignments based on competency gaps Incentive compensation based on Performance and schedule adherence Demand driven talent succession, hiring, and development plans based on gaps Schedule based on employee compliance, certifications and/or performance Training schedules aligned with work schedules
Services Industry
Managing variable pay based on contract assignments
Retail Industry
Demand driven hiring of employees and contingent labor based on optimized schedules
SumTotals endto-end Strategic HCM solution enables businesses to track their workforces across the needs of the entire organization, increasing the visibility of budding problems and the efficiency of the initiatives used to solve them
Healthcare Industry
Managing performance based on time spend with patients and critical shifts
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At the highest level, Strategic HCM enables human resources to effectively work with executive management to help create and execute the organizations strategic goals by providing a single source of truth for all workforce-related questions. By providing one, unified employee profile across all HCM processes and making that information easily available for analysis and further correlation with business data, Strategic HCM solutions provide HR and management a true strategic planning tool. More importantly, this planning tool is integrated with all the cross-process HR systems that are needed to tactically execute all HR functions.
Transformation
Enablement
Core HR Record
Infrastructure
HR Transaction Management
Tactical HCM
The diagram above demonstrates the relationship between the Strategic HCM and tactical functions that HR classically executes. This paper focuses on the on the main transformative solutions that Strategic HCM can provide: A Single Source of Truth
Acquire to Onboard Perform to Reward Assess to Develop Plan and Schedule to Pay Closing the Loop
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SumTotals Integrated Strategic Human Capital removes the ine ciencies and inconsistencies of siloed functions and creates a clean prole with end-to-end, real-time capabilities.
Employee Prole
Mary Smith
Mary Smith
By centralizing these functions in one integrated Strategic HCM solution, organizations are able to automate and connect all of the HR information. SumTotal empowers HR managers with the ability to maintain consistency, ensuring that all necessary parties have access to the same up-to-date information by managing one central profile for each employee. A centralized employee profile provides a single source of information on your talent pools information, skills and competencies. The result: providing HR and executives a closed-loop relationship between business and workforce planning and strategy.
Acquire to Onboard
Hiring a candidate to fill an open role is not the end of the process for a business. The onboarding process for a new employee is only complete when that person is satisfactorily productive in a new role. Accomplishing this in a timeframe that meets business needs often requires this candidate to be appropriately skilled and motivated, with a solid understanding how his or her actions affect company goals.
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An essential feature of any complete Strategic Human Capital Management system is that it must allow HR managers to manage their talent pools proactively. Instead of only solving problems as they arise, a successful organization must be able to predict its own needs and act to promote priorities and actions that maximize the chances of success. With SumTotal Talent Management, managers can keep a finger on the pulse of their workforces, know an employees abilities to achieve optimal output, and understand employee weaknesses to guide training and hiring. Bring in the Best - Making changes to your workforce can be risky and expensive, especially when hiring new employees. Having a complete set of information available allows HR managers to quickly and easily identify the best possible candidates for hire or promotion among all those available. SumTotal Talent Management can help managers identify gaps in their workforce and guide them toward candidates who are skilled, trained, motivated and aware of how their performance drives the entire organizations success. Combined with SumTotal Learning Management, organizations can get the best employee for the position on the job quickly and efficiently. Optimize your Talents - Even given the appropriate information, its often far more efficient to optimize your talent pool than to increase it. Consider a situation in which an existing resource is dissatisfied with his or her employment and is considering leaving the company. Meanwhile, in another part of the organization, managers are struggling to fill a vacant position, and the delay is costly. Without the visibility provided by a fully integrated Strategic HCM solution, the managers may never know that a potential candidate already exists within the organization, the source of the employees dissatisfaction or that the employee is dissatisfied at all. The company stands to lose a valuable resource and is still left with the task of bringing on a fully new team member to fill both vacant positions. An integrated Strategic HCM system helps managers approach such issues multidimensionally. The visibility into the current workforce ensures that potential internal candidates are considered, and the individualized talent profile helps organizations prepare employees for advancement. With SumTotal Strategic HCM, companies can nurture talent and maintain morale to limit attrition and prepare for future needs with an actionable leadership development plan outlined below.
Define Career Goals
Integrated goal mgmt. Integrated employee profile
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Knowing that its most prolific time of business comes in the last quarter of the year, a national photography company expands its workforce annually from a core of 4,000 to a peak of 20,000 in a few months and then back down. The company needed a solution to both find and management this amount of talent, particularly because the temporary employees seemed to keep losing track of their goals and core employees were not effectively able to transfer their knowledge. These problems not only made the new hire experience in learning how things worked extremely arduous and time consuming, but also tended to create a system of positional power for those who did hold that knowledge, which could diminish the companys representatives overall ability to work cohesively toward a goal. Using SumTotal Talent Management, the company was able to develop and disseminate requisitions for candidates with specific skills. After the HR department sourced and filtered these candidates using guidelines set out by the company and held in SumTotal software, the companys priority was to onboard the new workforce quickly so that the employees were prepared to meet business needs in a specific timeframe. Instead of having an HR department that had to invest too many resources in managing the bureaucracy that can come with quintupling the workforce seasonally, the department is able to use SumTotal to find and develop the necessary candidates to have a profitable year.
Track potential
Integrated succession planning Integrated analytics
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Definitive Guide to Strategic Human Capital Management 2009 State of Global Talent Management
Perform to Reward
Perhaps the greatest measurable benefit in Strategic HCM comes from the relationship between performance management and compensation management. These two processes encompass the management, tracking and execution of the organizations strategic and tactical business goals, as well as the management of the organizations largest controllable expense and best resource employees. The result of successfully linking these processes can drive real results across the business. In fact, SumTotals own external study of over 300 senior-level HR practitioners from around the globe showed that the integration of performance and compensation management processes correlated to a measurable reduction in voluntary turnover across their organizations. Today, performance management has one the highest rates of automation of any HR process in organizations across North America and is becoming more common in other parts of the world as well. The prevalence of automation has also helped bring about agreed upon standards for goal and competency management and measurement. As a result, the move from simple process enablement to the more valuable HR transformation is in process at many organizations today. Still, organizations lose the efficacy of perform to reward when their methods of planning and executing compensation management are extremely complex and customized often done with desktop tools such as spreadsheets and documents. Without centralized management of the process, including a workflow and business rules engine, compensation management is often riddled with gaps and inconsistencies. The cost of these issues is high for the organization both in financial terms and on employee morale and turnover. Best-in-class organizations integrate these two processes together, creating what is commonly referred to as a pay-for-performance process. This combined process helps to transform the way businesses manage and execute aligning rewards with top performance. Organizations with a pay-for-performance process are able to objectively measure goal achievement and tie it directly to effective incentive programs to increase individual and overall business performance.
In fact, SumTotals own external study of over 300 senior-level HR practitioners from around the globe showed that the integration of performance and compensation management processes correlated to a measurable reduction in voluntary turnover across their organizations.
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Definitive Guide to Strategic Human Capital Management 2009 State of Global Talent Management
Assess to Develop
Whether an employee is newly hired or promoted, an effective training program is essential to minimize the time to productivity. Even existing employees benefit from continued training on new processes or responsibilities. With a learning management system like the one integrated into SumTotals Strategic HCM solution, organizations can streamline on-boarding and employee development.
Integrated HRMS provides one unified record with all info, for better reporting Integrated Workforce Analytics
Use learning compliance / completed courses as data points that can drive compensation
Speed OnBoarding
Facilitate dialogue with Forums for courses; use Wikis to push out pre-work; Blogs to share info
Assessment Results - A company can assess an employee using a competency gap analysis for the current or future position, self-assessment, 360-degree assessment or a comparison of actual to expected or targeted results. Using one or a combination of assessment results provides a full scope of employee efficacy in current tasks or readiness for a promotion. Knowing a workforces capabilities provides a variety of benefits. A company can plan to:
Develop the workforce further Ensure compliance on training Keep employees updated on newest product or service offerings Measure the efficacy of learning initiatives Make scheduling decisions according to position success Determine if and when new hires are necessary to fill gaps
Development Plans - Employees are an investment, and the faster they become productive, the faster the organization sees returns. However, constantly reinventing the training process for each new resource, or occupying experienced employees with training tasks and the associated evaluation, increases the initial investment. Balancing these dynamic expenses can be difficult. Therefore, an effective training program must be repeatable, systematic, targeted and measurable to appropriately address the issue.
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Definitive Guide to Strategic Human Capital Management 2009 State of Global Talent Management
Whether an employee is in the onboarding process, maintaining compliance or is being developed into a leadership role, knowledge of their competency gaps, track records and company best policies are the first step in generating a plan. Giving employees the chance to learn new skills is a large component in keep an engaged and motivated workforce, so taking advantage of a solution that help a company plan learning milestones will benefit the workforce and the bottom line.
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Fast Facts
Industry: Manufacturing Countries: 17 Countries Users: 3,800 SumTotal Product: SumTotal Performance SumTotal Career Development SumTotal HR Management (HRMS) SumTotal Learning
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Definitive Guide to Strategic Human Capital Management 2009 State of Global Talent Management
late arrivals, early departures or not working on a scheduled day. These features will grant managers the time and information they need to keep their workforce running and help solve issues by clarifying trends.
Analyst Reviews:
the broadest and most mature application suite in strategic HCM specialist space.
SumTotal has established itself as the market share and mind share leader
It seems clear to me that the company certainly has a strong leadership team and a clear roadmap for going forward.
Performance Succession
Compensation
Talent Portal
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360 Feedback
Mobile Devices
Most impressive was the continuity of roles across each of its applications its no easy feat to maintain such consistency. SumTotal is positioned to keep growing its portfolio and gain more customers thanks to its common application platform and architecture, which provide integration of applications, processes and informationIn fact only a few providers have this breadth and depth.
More Information
For additional information, send an email to connect@sumtotalsystems.com
About SumTotal
SumTotal Systems, Inc. is the global leader in strategic Human Capital Management (HCM) solutions that provide organizations with a new level of visibility to help make more informed business decisions and accelerate growth. Recognized by industry analysts as the most complete solution, SumTotal provides full employee lifecycle management, including a core system of record, from a single provider for improved business intelligence. The company offers customers of all sizes and industries the most flexibility and choice with multiple purchase, configuration, and deployment options. We have increased the performance of the worlds largest organizations including Sony Electronics (NYSE: SNE), AstraZeneca (NYSE: AZN [ADR]; London: AZN), Amway (KUL:AMWAY), Seagate (NYSE: STX), Dell (NASDAQ:DELL), and Google (NASDAQ:GOOG). For more information, or to request a demo, please call +1 (866) 768-6825 (US / Canada), +1 (352) 264-2800 (international) or visit www.sumtotalsystems.com
Corporate Headquarters
SumTotal Systems, Inc. 2850 NW 43rd Street Suite #200 Gainesville, FL 32606 USA Phone: +1 352 264 2800 Fax: +1 352 264 2801
EMEA
SumTotal Systems, UK 59-60 Thames Street Windsor, Berkshire United Kingdom, SL4 1TX Phone: +44 (0) 1753 211 900 Fax: +44 (0) 1753 211 901
APAC
SumTotal Systems India Pvt. Ltd. 7th Floor Maximus Towers Building 2B, Mind Space Raheja IT Park, Cyberabad Hyderabad, AP-500081, India Phone: +91 (0) 40 6695 0000 Fax: +91 (0) 40 2311 2727 2012 SumTotal Systems, Inc. All rights reserved. SumTotal, and the SumTotal logo, are registered trademarks or trademarks of SumTotal Systems, Inc. and/or its affiliates in the United States and/or other countries. Other names may be trademarks of their respective owners. 12_0210LS 12_0229NH
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