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Highlights
- To hire and retain the best talent, enterprises must quickly reinvent their traditional HR transformation agenda.
- Only 11% of companies elevated employee experience with HR transformation, finds the study.
- Our outside-in view of HR market trends, best practices, and use cases will help futuristic organizations to create irresistible workplaces.
In this article
HCM excellence matters
The global pandemic has disrupted traditional HR practices of companies of all sizes. Companies with flexible technology platforms could hire, nurture, and engage their employees seamlessly.
But companies that are slow on digital adoption are learning the ropes to achieve HCM excellence in a hybrid work era. Employee retention is becoming a critical HR challenge in the post-pandemic era. According to the Bureau of Labor Statistics (BLS), nearly four million people changed jobs in May 2021 alone.
We believe HR transformation is quintessential in reinventing business models to propel growth and transformation.
TCS commissioned The Josh Bersin Company for a research report on human capital management (HCM) excellence. It analyzes the market disruption of technology in HR driven by the pandemic and the shift to remote work, and recommends a detailed framework for HCM implementation.
Putting people first
Cloud-based HCM systems have swept across businesses. According to our study, today the cloud HCM market is more than USD 8 billion in size.
Despite the popularity and adoption of cloud-based HCM systems, our research finds that many of these systems underdeliver on promises. Only 15% of companies feel their HCM transformation project fully achieved its goals, and only 22% adhered to their cost budgets.
Cloud-based HCM systems are no plug-and-play platforms. To unlock new value from HR data, enterprises must configure, design, and integrate it with their ERP systems to avoid cost overruns and false starts.
In a talent-constrained environment, companies must adopt consumer-grade experiences to reduce attrition. Setting up people analytics is the first step, but getting the right data to churn insights will help enterprises understand employee behavior better.
During the pandemic, companies needed data to identify location, stress, work habits, and productivity. Now, companies are monitoring employee engagement and burnout rates, looking at employee development needs, and using people data for overall business survival.
Our report finds companies with advanced people analytics are:
- 4.3 times more likely to create a sense of belonging
- 4.8 times more likely to be seen as a great place to work
- 7.3 times more likely to engage and retain employees
- 2.6 times more likely to exceed financial targets
- 6.7 times more likely to adapt well to change
- 7.7 times more likely to innovate effectively
Source : The Josh Bersin Company, 2021
HCM implementation “projects” should not be thought of as “projects” but instead as continuous technology transformations that endure long into the future.
A new HCM maturity model
Our research with leading companies identified clear trends driving HCM excellence.
We developed a four-level maturity model for HCM excellence based on many months of interviews and discussions. These findings help organizations determine where they stand and present actionable steps to move towards a mature HR model.
Level 1
Technology-centered
Focus on installing a technical system, automating processes, and reducing costs.
Level 2
Process-focused
Focus on operational efficiency, processes, procedures, and transactions, often with waterfall approaches.
Level 3
Outcome-driven
Focus on business outcomes, success criteria, and strategy alignment.
Level 4
Business transformation
Focus on people, design thinking, journey maps, and HR capabilities to balance operational, strategic, and transformation excellence.
Reinvent HR with Workday
We interviewed 12 global companies in detail about their Workday implementations and ongoing operations. The findings are astounding.
Here are six key takeaways:
- Start by simplifying your technology ecosystem to reduce integration costs and maintenance.
- Create a pool of experienced project teams and, work with strategic partners to embrace Workday success.
- Define clearly established success targets and constantly measure, iterate and course correct.
- Leverage our 15 core principles to evaluate, nurture and grow the best talent.
- Use iterative design approach to create global roles and minimize siloed, local HR policies.
- Treat employees like customers—create employee personas and journey maps to elevate workplace experience.
Enterprises must quickly rethink and reinvent HR in today's hyper-competitive talent marketplace. We believe "The Definitive Guide to HCM Excellence" will be your trusted source in your HR transformation journey. And, don't miss out on getting actionable takeaways from Adobe, Boeing, and GE's HCM transformation journeys.
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