HR Technology

A Merger “Like No Other”

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In mid-April of 2020, there was a formal announcement regarding the completed merger between two HR technology-based software companies, Kronos Incorporated and Ultimate Software. Given the state of the pandemic-related chaos impacting organizations across the globe, it seemed a bit unusual to find these two companies proceeding in, what appeared to be, a business as usual approach. As noted in the announcement, the CEO of the combined organizations acknowledged the impact of these turbulent times, while pointing out the successful collaborative efforts of both companies to continue providing HR-focused customer support. While the announcement of the completed merger appeared in April, the plans for that merger were identified earlier on, as noted in this analysis, published this past February. There is no doubt that the negotiations over the strategic alliance happened over a lengthy period of time, well in advance of any public communications that may have appeared this year.

On the surface, this merger is indeed “like no other.” HR technology-based tools are usually targeted for specific tactical or operational functions. Kronos Incorporated provides workforce management tools, such as time and attendance tracking. Ultimate Software focuses on the transactional payroll side of HR, along with talent management software, which includes a very strong focus on the Canadian HR market. Each party brings with it a separate puzzle piece. Once they are put together, they form a completely new entity, with a new name, in order to provide a wide range of HR software applications. From our strategic human resource planning studies, we know that this type of merger gives us a real-life example of a consolidation.

With this type of merger, there are multiple impacts on both internal and external stakeholders. While this is an exciting opportunity to increase the strength of HR technology-based systems, a consolidation of this kind comes with risks regarding market competitiveness and customer service. As noted in the analysis provided by the US-based Society for Human Resource Management (SHRM), HR customers may find increased competition, decreased availability of what they are used to, and having to go outside their existing HR technology-based ecosystem.

The reality for success, internally and externally, remains to be seen. One would hope that, as these two merging organizations are HR-based technology companies, they will proceed along the rocky path to successful consolidation with sound HR practices and strategic plans in place.

Discussion Questions:

  1. What are the cultural implications of this type of merger (consolidation) between these two technology-based HR software providers?
  2. Based on the information provided so far, what types of positions or departments might be declared redundant as a result of this consolidation, even with plans to increase the number of employees over the next three years?
  3. In your opinion, what type of restructuring plans should be put into place?
  4. What benefits does this merger offer to the HR profession?

Is Artificial Intelligence a Digital Doomsday or a Bonanza for HR?

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Artificial Intelligence (AI), natural language processing, and deep learning are all current technology trends which will impact the working world. What will all this advanced technology do to current workplace relationships and HR Departments?

Will it be a digital doomsday where intelligent machines radically eradicate all jobs with the precision of a laser cutting through butter? Or will it be a bonanza for workers and HR with the rise of intelligent, more productive machines that will allow humans to be more innovate and creative?

Let us discuss both perspectives. There has been a long understanding that during any technological revolution that disrupts society it will also displace workers.

At one point in time, there were only two jobs in society: hunters and gatherers. Then, we became farmers which lead to the displacement of 90% of the hunters and gatherers. Farm equipment became more efficient, which put 90% of farmers out of work and the farmers had to transition into factory workers. Then, the knowledge workers started to replace the factory workers.

You can easily see the historical trend in which technology disrupts the workplace.  We can see that AI may start to replace knowledge workers such as doctors, lawyers and accountants. Deep learning machines can now process information and learn from it much faster than humans do.  What will the workers of the future do?

Odds are that AI technology will significantly disrupt the traditional workplace. How can HR be a part of the digital AI revolution? According to an article published in HRD by Rachael Ranosa, which summarizes a CIPD study, there are five things an HR Department can do:  (Click here to read the article)

  1. Develop an implementation strategy for AI and current work integration
  2. HR needs to use AI to make new jobs more meaningful
  3. Allow employees to become more innovative in the workplace
  4. Involve employees in the technology change
  5. Continually develop employees

It may not all be doomsday for workers, according to CIPD. AI and technology are creating as many jobs as they are eliminating.

If history repeats itself, AI and new technology will disrupt a significant portion of the workforce, But if HR is involved and implements the correct strategies, it can lessen the impact on employees and create more meaningful jobs in the future.

Discussion Question

  • Research and create a list of which jobs or professions in the next 10 years may be displaced by technology. Pick two and develop a HR strategic plan to reduce the impact on those employees.

Mass Hiring Made Easy?

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In our recruitment and selection studies, we focus on the importance of ensuring that all of the processes we use as HR professionals follow a consistent and well-planned approach to individual hires.

We spend a lot of time, both in theory and in practice, making sure that we use the right approach to select the right person for the right job. The question arises, how does this approach support mass hiring as a recruitment project?

Mass hiring takes place when an organization has to recruit and select numerous candidates for multiple jobs within a very short time frame. This differs from the concepts linked to individual selection processes. Typically, the scope of a mass hiring recruitment plan is based on filling as many positions as quickly as possible with the most likely candidates who fit a broad set of job-related requirements. Call it a bulk, volume, or mass recruitment project, the basic elements of sound human resources practices must still be in place in order to make solid hiring decisions as the end result.

As the time-to-fill-rate for a mass hiring process is critical, the use of technology based tools provide for the elimination of time wasting steps which bring little value to an overall bulk recruitment strategy.  This includes the use of mobile texting to make the application process simpler and faster. The Canadian Home Depot retail chain has recently implemented a ‘Text-to-Apply’ process in order to fill thousands of possible vacancies across the country.

Click on the link to read about Home Depot’s mass hiring process.

As noted in the article, while Home Depot has implemented easy steps for potential candidates to apply, they continue to maintain a standard set of requirements for all applicants.  In order to be considered, candidates must meet at least two fundamental business needs which include the delivery of ‘excellent customer experience’ in a ‘values driven team’ environment.  These business needs are articulated on the company’s website, which also gives us another example of a technology-based tool that is used for effective recruitment practices.

  Click on the link to peruse the Home Depot Careers website.

Mass hiring and open-forum recruitment processes, as implemented by organizations like Home Depot, do not necessarily mean a reduction in the quality of candidate requirements. In fact, these processes appear to require an increase in the quality and quantity of effective human resource management in order to ensure that recruitment and selection is clearly aligned with organizational strategy.

Discussion Questions:

  1. Identify three potential risks and benefits of using a ‘Text-to-Apply’ process as part of a mass hiring recruitment campaign.
  2. From a Human Resources perspective, what steps or processes would you put into place that assess a candidate’s ability to fit the business needs identified by Home Depot?
  3. What does the Home Depot – Careers website tell you about its culture and work environment?

How an Organization Views Their Employees Matters!

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Big data it is a huge trend in today’s business world. It’s in the headlines and organizations are trying to gather and use it effectively. Big data analytics has expanded its scope yet again, the hot new topic being employee analytics. Actually, Deloitte has a fancier name for this leading-edge HR trend: High-impact people analytics.

Research conducted by Deloitte illustrates that when an organization reaches a high level of maturity on high-impact people analytics it is significantly more successful. The research demonstrates that organizations using people analytics in effective ways report 82 percent higher three-year average profit than “low-maturity” organizations.

An 82% increase in profit is a huge return. How does organizational success like that come about? Well, Deloitte provides a road map to develop a high-impact people analytics organization.

Click here to see the map.

The Bersin Deloitte consulting study outlines seven key findings on how an organization can mature their people analytics. This blog will focus on one key finding from this study, which is: “using multiple listening channels.”

Click here and scroll until to you see the concept of Enterprise “listening” architecture.

HR in today’s organizations is complex as many organizational problems have multiple causes. If there are multiple causes, the more information channels an organization can access, the greater the probability that it can solve a problem effectively.

This is where the use of multiple listening channels comes in. There are a number of ways to listen to what employees are saying about an organization. For example:

  • Organizational cultural audits
  • Frequent pulse surveys
  • Anonymous feedback tools
  • Performance reviews
  • Coaching programs
  • Exit interviews
  • HR key performance indicators
  • Social media monitoring

Which of the above channels is your organization listening to? Deciding which channels to listen to is key to designing your listening architecture. HR has always been about taking subjective information and making it more objective. By using sophisticated people-analytics and developing the correct listening architecture you can greatly improve your capabilities, which will in turn increase your organization’s chances of success.

Discussion Questions:

Pick three of the above listening channels, and for each one research a system that would allow you to collect credible information.

If you were an HR director, and were asked to pick only one listening channel, which one would you choose as your first priority and why?

 

Upcoming HR Trends, 2018

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HR trends may not be radically changing year after year, but they are becoming more intense and more critical to organization success. Every year the HR professional should consider what the current success driver for HR is in their industry. You never want to be the dinosaur asking, “does anyone else feel it’s getting colder here?” To avoid becoming obsolete in your profession you need to stay on top of what is happening in the external business world, and reflect on industry trends.

  • Here is a 2017 survey that sums up some of the current HR trends:
  • Less transaction, more strategy
  • Less formal but more frequent feedback
  • Less manual process, more data

Click here to read about the Paycor HR trends survey.

These are not radical trends, nor are they particularly disruptive, but they are important changes in HR. Each one should be reflected upon by the HR professional. All HR professionals should ask themselves the following big questions every year:

  1. Which transactional activity does HR do that is obsolete?
  2. What is the most important area of business strategy I should focus on this year?
  3. How can HR improve the employee performance management system this year?
  4. What HR data should we keep tracking? What data should we stop tracking? What data should we start tracking?

Doing this on a regular basis will keep you and your organization current, and will enable your organization to be proactive instead of reactive. This is what Jim Collins calls the flywheel effect in his book “Good to Great”.

Combine the flywheel concept with a reflective HR practice and there is business success in the forecast.

Discussion questions:

Read the Paycor HR trends and survey. Pick the HR trend you feel is the most important, explaining your decision. In addition, research a company that is a leader with respect to that trend.

Click on this link. Pick one of Jim Collins’ articles and create a 3-minute presentation summary of the topic.