Speed-to-Source: A Guide for Chief HR Officers

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“As a Chief HR Officer, you know only too well how critical the HR function is to your business. Fully efficient HR operations can help drive business value across your organization. And yet, can you honestly say that your HR operations are optimized to help the rest of the organization achieve their goals? If not, then you may have some way to go in making HR a true partner in your business.

If HR is to become fully recognized as a partner at the highest level of your business, then making the right sourcing decisions is vital. An optimized HR sourcing strategy will deliver key business benefits, while allowing you to focus on talent management, workforce retention, and succession planning. And by optimizing transactional processes such as employee administration, payroll, and benefits administration you can free up time for more strategic HR issues.

That’s easier said than done, and one thing is for sure: you won’t be able to make all the required changes on your own. That’s where we can help.”

John Willmott CEO NelsonHall

Cover picture. In 1859, the publication of On The Origin of Species by Charles Darwin inspired Francis Galton to invent psychometrics, which is widely used in personnel recruitment in the modern era.

Make HR a true partner in your business

NelsonHall can support you in: z Making better HR sourcing decisions -

develop optimized HR sourcing strategies that strike the right balance between insourcing and outsourcing

z Taking the pain out of HR sourcing - increase the efficiency of your HR sourcing process by as much as 50%

z Finding the right HR partners fast - generate optimized vendor shortlists quickly.

Fear of failure is a ‘top 3’ concern for sourcing managers

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The first level of optimization is to decide the right balance between insourcing and outsourcing, both for HR overall and for each HR process area. To find that balance, you’ll need to identify:

z The current profile of insourced and outsourced HR processes adopted by your peers - we reveal your peers’ HR sourcing strategies through our surveys and query mechanisms

z The best HR sourcing practice within your sector and in the industry at large - we can help you identify where viable external HR supply markets exist by means of our market analyses, case studies, and direct analyst support

z What’s working and what’s not - our buy-side research tells you what the user satisfaction levels are for each type of HR service currently outsourced, and why

z The most suitable geographical locations for HR processes - our location analyses can support you in developing an optimized HR sourcing strategy by location.

Make better HR sourcing decisions

In 1949, Henry Taub founded the first manual payroll processing service.

Multi-country payroll is the No. 1 requirement for organizations with 15,000+ employees

Social media recruiting is used in 49% of RPO contracts

E-learning accounts for 55% of training delivery

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Having identified potential areas for HR Outsourcing (HRO), the next step is to generate optimized vendor shortlists.

z We have already audited the capabilities of HRO suppliers to give you a head-start in shortlist selection

z We’ve done the background work so that you don’t have to, and we remove the risk inherent in using unreliable public information sources

z We are unique in evaluating HRO vendors not just on their ability to deliver immediate benefit but also on their ability to build in innovation that will help transform your organization over the life of your HRO contracts.

Find the right HR partners fast

Contact vendors when readyOur HRO analysts can get you supplementary information without revealing your identity or intent to the market, giving you protection from vendor sales teams until you are ready to start formal discussions or issue RFPs to your optimized shortlist.

We can also assist you with RFP preparation and ongoing support throughout your vendor selection process.

Reduce HRO vendor shortlist time by 75%

In 1957, automated punch cards for payroll processing were used for the first time.

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Speed-to-Source & the NEAT toolNelsonHall has developed its ‘Speed-to-Source’ methodology to enable you to take 50% of the time and cost out of traditional sourcing processes.

‘Speed-to-Source’ works by allowing you to screen all relevant market and vendor information in stages, saving the bulk of the time usually spent on finding and assimilating the intelligence that is so vital to your decision-making.

In 2013 NelsonHall introduced NEAT as part of its Speed-to-Source methodology, taking the pain out of the sourcing process

Use the NelsonHall Evaluation & Assessment Tool (NEAT) to screen vendors according to your own priorities.

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As a NelsonHall client you gain access to the most comprehensive HRO market and vendor intelligence available, plus direct access to our experts.

The richest source of HRO intelligence available

In 1980, 401(k) was invented as the key platform for defined contribution plans.

Market analysesDetailed reports on specific HR sub-processes or HRO hot topics, covering range of processes outsourced, vendor offerings and delivery capability, market dynamics, and success factors. Understand the art of the possible from first principles.

Case studiesFocused case studies of real-life HRO engagements by your peers, identifying scope of process outsourced and changes in cost and process performance achieved.

Vendor assessmentsVendor profiles based on rigorous interviewing, revealing the facts about individual vendor offerings, delivery locations and tools, clients, partnerships, strategy, strengths & weaknesses, and outlook.

We publish 600+ HRO reports and articles every year

We track, analyze and profile HRO vendors worldwideYou can access 300 HRO vendor profiles online

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Multi-process HRO z Benefits administration and recruitment are the

most frequent add-on services to core MPHRO

z SaaS-based MPHRO services are gaining traction, with over a quarter of vendors launching or expanding such offerings

z India remains the top offshore delivery location for MPHRO with the Philippines and China growing in significance.

Payroll Services z Traditional bureau models are being replaced

by SaaS payroll and managed payroll services

z Payroll vendors are developing HR cloud offerings and interfaces with HR cloud technologies

z Payroll aggregators are investing in own in-country operations to improve competitive pricing.

Benefits Administration Services z Delivery is predominantly onshore-based with

only 20% of delivery from offshore

z Multi-country benefits administration services is slowly emerging among MNCs, and accounts for 5% of benefits administration market

z Greatest areas for expansion in benefits administration are H&W, and the development of more flexible reward packages to attract and retain key employees.

Recruitment Process Outsourcing (RPO)

z Multi-country contracts represent around a third of all RPO contracts

z RPO services have evolved to include analytics offerings and “on-demand” services

z Vendor consolidation will continue as RPO firms expand to meet demand for multi-country RPO.

Learning Services z Less than half of Learning BPO contracts are

instructor-led due to the increase in e-learning

z Buyers are increasingly budgeting for social learning

z Use of simulations, gaming, m-learning and collaboration continues to increase.

Every area of HRO well and truly covered

The early 00s saw the invention of social media, nowadays a key tool in generating employment pools in RPO (LinkedIn in 2003, Facebook in 2004).

We can help collaboration by providing:

z Unbiased information - a great basis for management buy-in and collaborative agreement

z A consistent and rigorous approach to market analysis and vendor screening

z The NEAT tool for visualizing and sharing vendor information in a way that facilitates agreement

z Analysts who are available to work with your team members and stakeholders directly

z Access to our data for everyone in your organization, to help facilitate collaboration and buy-in.

If HR is to become fully recognized as a partner at the highest level of your business, then making the right sourcing decisions is vital. The good news is that NelsonHall’s service for buy-side decision-makers will help you and your fellow stakeholders operate on the same wavelength.

See our HRO NEAT evaluations, and tailor your own views, for free here:

z HR Outsourcing

Find out more about our in-depth research in every key area of HRO here:

z Multi-Process HRO

z Recruitment Process Outsourcing

z Payroll Outsourcing

z Benefits Admin

z Learning BPO.

Helping you collaborate across your business

Achieving successful collaboration between stakeholders is the number one sourcing issue faced by organizations

To get the full picture, go to research.nelson-hall.com or email us at robert.dagge@nelson-hall.com.