Providing Reliable HR Services
in a cost-effective way: steps
made
Marja Ambergen
Objectives
Shared view on progress made towards our
ambition
Best practice: Athenian Breweries
How to make it sustainable: HR capability
Our progress towards our ambition
Provide reliable HR Services in a cost-effective way
Global Status Dec Status Dec
Objective Indicator(s)
ambition 2006* 2007
First time right Error rate on HR data and transactions < 5% NL initiative Reliable Data:
Global HR processes: Data Reliability >97% 81%
Reduce HR (global average) HR cost per employee € 1.400,- € 1.356,- € 1.593,-
function cost
(F2F)
Weighted HR resource allocation Transactional <45% 47% 44%
distribution of
per OpCo (time spend) Employee Life Cycle >40% 39% 41%
HR resources
Strategic HR 6-12% 7% 8%
HR Mgmt. 8% 7% 7%
* 2006 figures include corrections made by some OpCos after June 2006
Weighted distribution of HR
resources
Provide reliable HR Services in a cost-effective way
Global Status Dec Status Dec
Objective Indicator(s)
ambition 2006* 2007
First time right Error rate on HR data and transactions < 5% NL initiative Reliable Data:
Global HR processes: Data Reliability >97% 81%
Reduce HR (global average) HR cost per employee € 1.400,- € 1.356,- € 1.593,-
function cost
(F2F)
Weighted HR resource allocation Transactional <45% 47% 44%
distribution of
per OpCo (time spend) Employee Life Cycle >40% 39% 41%
HR resources
Strategic HR 6-12% 7% 8%
HR Mgmt. 8% 7% 7%
* 2006 figures include corrections made by some OpCos after June 2006
HR time spent is closer towards our
ambition
Reduce HR function cost
Provide reliable HR Services in a cost-effective way
Global Status Dec Status Dec
Objective Indicator(s)
ambition 2006* 2007
First time right Error rate on HR data and transactions < 5% NL initiative Reliable Data:
Global HR processes: Data Reliability >97% 81%
Reduce HR (global average) HR cost per employee € 1.400,- € 1.356,- € 1.593,-
function cost
(F2F)
Weighted HR resource allocation Transactional <45% 47% 44%
distribution of
per OpCo (time spend) Employee Life Cycle >40% 39% 41%
HR resources
Strategic HR 6-12% 7% 8%
HR Mgmt. 8% 7% 7%
* 2006 figures include corrections made by some OpCos after June 2006
Our HR cost per employee increased
significantly in 2007
€1534,- €1356,- €1595,-
Global
ambition:
€1400,-
Does this development raise concerns?
2005 2006 2007
Increase in HR costs has several
causes
+ € 0,4mln
Higher costs for
-€ 0,8
Workforce + € 2,5 mln
Development and mln
Staffing Services
Increase
caused by
higher labour + € 6,0 Total HR
costs per HR mln Cost
FTE
2007:
Total HR € 71,7
Cost million
2006: Labour Outsourcing Technology Other
cost cost cost cost
€ 63,7
million
First time right
Provide reliable HR Services in a cost-effective way
Global Status Dec Status Dec
Objective Indicator(s)
ambition 2006* 2007
First time right Error rate on HR data and transactions < 5% NL initiative Reliable Data:
Global HR processes: Data Reliability >97% 81%
Reduce HR (global average) HR cost per employee € 1.400,- € 1.356,- € 1.593,-
function cost
(F2F)
Weighted HR resource allocation Transactional <45% 47% 44%
distribution of
per OpCo (time spend) Employee Life Cycle >40% 39% 41%
HR resources
Strategic HR 6-12% 7% 8%
HR Mgmt. 8% 7% 7%
* 2006 figures include corrections made by some OpCos after June 2006
From no insight in 2007 towards monthly
measured Data Reliability KPIs
Ambition 2008: 97% reliability
100%
95%
90%
85%
80%
75%
70%
65%
60%
55%
50%
WK 46 Wk Wk 48 Wk 51 Mar 08 apr-08 May 08 jun-08
% Position details % Salary details % Personal grade
% HR Admin folder % MD folder (07) % MD folder (08)
Building blocks for Reliable Data
At Group HR we established the conditions:
– From 5 databases > 1 system
– All HRM Connect users trained
– Common Definitions
– On-line manual and procedures
– 1 point of contact
– Created accountability
– Established discipline
– Made it measurable
The OpCos made the actual difference:
YOU AND YOUR TEAM MADE THE DATA RELIABLE!
Best Practice: Athenian Breweries
Speaker: Natassa Sachlou & Eleftheria
Dimata
Providing Reliable HR
Services
@ Athenian Brewery SA
Natassa Sachlou
&
Eleftheria Dimata
HR value adding Areas (Global HR Conference
07)
Recap: HR adds value in three area’s
Valued
Valued as
as aa key
key
contributor
contributor toto
sustained
sustained profitability
profitability
1 3
Ensure
Ensure thethe 2 Provide
Provide
right People,
right People, reliable
reliable HR
HR
are
are at
at the
the right
right Enhance
Enhance aa Services
Services in
in aa
time
time atat the
the culture
culture that
that cost-effective
cost-effective
right
right job
job drives
drives way
way
performance
performance
The mandate
Getting beyond
“benchmarking”
– Action taking (or educated
decision to take no action!)
Understanding & engaging in Provide reliable
“systems thinking” HR Services in a
– The importance of feedback cost-effective way
loops
– The idea of interdependence
and interconnection for
better decision making (NOT
HR4HR, rather HR with line
for line!)
– The provision for a culture of
“fact-based” or “evidence-
based” management
Winning Credibility
Competing on equal terms
-Winning capital funds
Convincing HR Programs are
investments
-Describing benefits in economic terms “In God we trust,
everything else we
-Help investments flow from less valuable measure.”
uses, to uses generating high returns
--VP of HR, UPS
Proving the business contribution
of HR
-Providing fact based data
-Focusing on interventions with max impact
Enhancing Climate
- Professional Ethics
- Transparency & Trust
Reliable Data PROGRESS
Well…you can’t be a champion
…unless you keep score
Reliable Data Champions League Ranking
100% 95%
92% 93%
90%
80%
70%
60%
50%
March April May
Data Quality Reports/ month
The roadmap to a success
story
Early communication & shared
commitment of HR team to
make it!
Alignment of all local HR
processes to the new model
definitions
Training Line Mgrs on new
model definitions & updated
processes
Active & on time follow up on
project steps
Seeking & gaining support from
our Colleagues of the data
Reliability team
From transactional
Employee life cycle & strategic services
HR Resource Allocation 2005 HR Resource Allocation 2006
9%
28% 11%
49% 46%
2%
21% 34%
Management & Administration Planning & Strategy Management & Administration Planning & Strategy
Employee Life Cycle Transactional Employee Life Cycle Transactional
HR Resource Allocation 2007
9%
12%
43%
36%
Management & Administration Planning & Strategy
Employee Life Cycle Transactional
Food for thought….
You are going into a
hospital for a serious
operation.
You can choose to stay
in one of two units while
you are there.
Would you choose unit
A or unit B, knowing
that unit A has 10
times the number of
reported errors (e.g., in
administering medicine)
as unit B? Why?
Which capabilities ensure reliable HR
Services?
HR Capability that drives Reliable HR Services:
– HR Manager: HRM Connect users:
– Ensuring discipline - Discipline, discipline, discipline
– Organising success - Accuracy
– Steering upon quality - HR system knowledge
– ... - Understanding why
– ... - ...
Reliable Data
Champions League