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Things HR and Personnel people need to know by Fluid June 2010 Page 2 Contents3-4 Introduction to Fluid 5-6Terminology 7-20Strategy, real-life examples 21-24 Shared services, Cambridgeshire CountyCouncil 25-27 Pay 28-29 CIPD qualifications whilst working 30-33 Surviving the downturn 34-35 Assessing the contribution of HR 36-37 Making HR more credible 38-39 Make the HR intranet work 40-41 Exercise 42-53 Outsourcing 54-55 Case studies 56-57 Conclusion and questions Page 3 Introduction Page 4 Introduction to Fluid Fluid Consulting Limited (Fluid) is a specialist human resources consultancy headed by Tim Holden MCIPD 10 years in banking 10 years in Human Resources consultancy Fluid trading since 2006 The core services provided by Fluid are: - Retention - Selection - Attraction - Remuneration decentralised and with no overall strategy The council developed a people strategy, aligned with the councils community strategy and corporate plan Introduced a new leadership academy to develop talent Workforce planning was focused on new ways of working for integrated workforce of council, police and health staff Strategy monitored through annual plans Page 9 Strategy, real-life examples 2 of 13 CROYDON COUNCIL-BENEFITS AND ACHIEVEMENTS Croydon is now the best-performing London council for reducing sickness absence, now down to 5 working days The council went from 68th to 6th in the human capital best value indicator for local authorities The annual government inspection highlighted rapid improvement and increased productivity More than 1.6M was saved in recruitment advertising and agency contracts Page 10 Strategy, real-life examples 3 of 13 HM PRISON SERVICE-THE CHALLENGE AND WHAT THEY DID A new HR strategy was launched, aiming to deliver more effective working practices among its employees Replaced large prison-based teams with a dedicated shared service centre, with HR business partners recruited to implement change Sold the business case-reduction in costs by 148M over five years-to the board Set challenging goals to improve diversity, restructure training, increase employee engagement, develop leaders and introduce qualifications for officers Page 11 Strategy, real-life examples 4 of 13 HM PRISON SERVICE-BENEFITS AND ACHIEVEMENTS BME representation has risen from 3% to 6% in a ten year period New training plans were created for 600 people with increased training requests A recent survey revealed that 75% were satisfied with their jobs, 72% felt they were treated with respect, and 88% were clear about what was expected from them 2000 candidates have taken a new NVQ Page 12 Strategy, real-life examples 5 of 13 LANCASHIRE COUNTY COUNCIL-THE CHALLENGE AND WHAT THEY DID The council provides a wide range of public services directly and through partnerships to citizens. It recognised the time-bomb of a demographically imbalanced workforce propped up by costly agency staff. The council wanted to target different types of jobseekers and connect them with the authority Developed a public sector work trial scheme called WorkStart, creating a route back to work for long-term welfare recipients, reducing agency costs Re-engineered the apprenticeship programme to address demographic trends Founded Future Horizons, which gives young people qualifications, career advice and a work placement Page 13 Strategy, real-life examples 6 of 13 LANCASHIRE COUNTY COUNCIL-BENEFITS AND ACHIEVEMENTS Developed a grow your own culture by recruiting apprentices, saving 120000 a year Arranged placements for 60 people through WorkStart, with 43 securing employment New workforce models have contributed towards 1M in savings on agency staff 18 young people completed pilot Future Horizons programme, with 14 going on to secure an apprenticeship with the council Page 14 Strategy, real-life examples 7 of 13 MCDONALDS-THE CHALLENGE AND WHAT THEY DID McDonalds needed to transform its reputation and reclaim the phrase McJob. Enhancing the brand would bring about improvements in recruitment, retention, customer and staff satisfaction as well as profitability Friends and family contract, enabling two friends or family members to cover each others shifts A hard-hitting campaign of press advertising and in-store posters highlighting their attractive benefits and signed off with the strapline not bad for a McJob Page 15 Strategy, real-life examples 8 of 13 MCDONALDS-THE CHALLENGE AND WHAT THEY DID Ourlounge.co.uk, which is a lifestyle, career and personal development website for employees including the chance to obtain GCSE-literacy and numeracy qualifications through online learning A public petition to change the dictionary definition of McJob McTime-an online schedule enabling restaurant staff to check their shifts without having to contact the store directly Designer uniforms to increase confidence and pride Page 16 Strategy, real-life examples 9 of 13 MCDONALDS-BENEFITS AND ACHIEVEMENTS Accreditation from the QCA granting McDonalds UK awarding body status Crew turnover reduced by 20% since reputation work began 84% said their perception of McDonalds had improved as a result of seeing the McJob campaign, with a 25% increase in those saying they would recommend it as an employer 73% said they feel motivated in their job The McDonalds UK Brand Index Corporate Score rose 16 points (the biggest sector rise of the 1500 companies monitored) Page 17 Strategy, real-life examples 10 of 13 PFIZER UK-THE CHALLENGE AND WHAT THEY DID A business transformation driven by internal and external pressures was needed to put the customer at the heart of Pfizers operating model. HR needed to lead a reorganisation to develop new ways of working with less resource and flatter structures that would deliver sustainable business growth Developed an integrated business strategy, recognising people as the foundation for success and clarifying new business goals, priorities, plans and metrics Introduced leadership programmes to develop a talent pipeline Held a One Pfizer launch to engage line managers & colleagues Recruited 9% of the workforce as behavioural champions to work closely with management and the board to change practices Page 18 Strategy, real-life examples 11 of 13 PFIZER UK-BENEFITS AND ACHIEVEMENTS Coaching programme for all line managers is on target for 95% completion Latest revenue target is at 105% of budget Embedded two of the new behaviours to the extent that 60% (behavioural index count) of all employees believe the behaviours have become part of Ways of Working Page 19 Strategy, real-life examples 12 of 13 THOMSON REUTERS-THE CHALLENGE AND WHAT THEY DID Following a global merger a number of changes needed to take place Designed and started implementation of a new global HR function, integrating the two HR functions Put in place mechanisms for monitoring employee morale through regular pulse checks Hand picked experienced employees to lead 16 workstreams Ensured top team ownership of key processes-for example, the CEO wrote guiding principles to inform line managers behaviour when appointing employees Provided universal access to all jobs across the organisation by integrating recruitment systems Page 20 Strategy, real-life examples 13 of 13 THOMSON REUTERS UK-BENEFITS AND ACHIEVEMENTS Delivered a globally consistent redundancy process Rolled out a single performance management system in time for mid-year reviews Agreed and delivered a single compensation framework by day one Helped appoint more than 500 people to new roles by day one Page 21 Shared services Page 22 Shared services 1 of 3 CROSS-ORGANISATIONAL SHARED SERVICES Be absolutely clear on what shared services will deliver to your organisations and set specific goals Define who its customers are and implement robust review measures to ensure their needs are being met Be pragmatic about which activities should be in- house and which should be outsourced, and be clear when communicating your new HR processes to stakeholders Page 23 Shared services 2 of 3 CROSS-ORGANISATIONAL SHARED SERVICES Explore all your technology options with a view to taking the mundane tasks out of processes while keeping important services in place Agree on governance structures that will determine the type and standard of services offered, designing procedures that allow adjustment with change Develop an agreed internal pricing regime which can include a variety of charging mechanisms, but needs to be modelled so that partners are aware of cost exposure Page 24 Shared services 3 of 3 CROSS-ORGANISATIONAL SHARED SERVICES Have service level agreements in place to avoid disagreements on things such as speed of delivery Clarify whether the services are hosted by a separate new business owned by partners or by one organisation on behalf of others Determine whether employees will retain contracts of employment or be TUPE-transferred Maintain a long-term vision, as it will be needed to overcome any day-to-day problems Page 25 Pay Page 26 Pay 1 of 2 BBC Department of Health Derby Hospitals NHS Foundation Trust BBC BBC BBC Cabinet Office BBC Home Office BBC Page 27 Pay 2 of 2 FTSE 100 Chief Executive Finance Director FTSE 250 Chief Executive Finance Director FTSE 350 Chief Executive Finance Director Page 28 CIPD qualifications whilst working Page 29 CIPD qualifications whilst working Think strategically Build a support network Keep your manager in the loop Be organised Manage your time Work on key study skills Link with continuing professional development Make the most of resources Keep your end goal in mind Page 30 Surviving the downturn Page 31 Surviving the downturn 1 of 3 Understand the business context Look at competitors Protect your talent Think long term Do your homework Page 32 Surviving the downturn 2 of 3 Do get your house in order Do refocus your HR agenda on new business priorities Do tackle the basics Do focus on top talent Do more with what youve got Dont lose your identity Dont stop hiring the best talent Dont ignore opportunities to increase revenue Dont lose the wrong people Dont cancel capital projects that will be needed in the upturn Page 33 Surviving the downturn 3 of 3 HR INTERIMS Know yourself Perfect your CV Network, network, network Prepare well for interview Take advantage of agencies Use the internet cleverly Ask people to refer you-and return the favour Explain your gaps Be flexible Page 34 Assessing the contribution of HR Page 35 Assessing the contribution of HR Understand the metrics Collect the correct data Report the right data to the right people Use a basket of measures Develop leading and lagging indicators Dealing with the data Page 36 Making HR more credible Page 37 Making HR more credible Get the basics right Spend some time outside HR Manage risk Admit what you dont know Focus on outcome, not process Help the line to achieve objectives Page 38 Make the HR intranet work Page 39 Make the HR intranet work Sort out the basics Get people to log on Use it as a telephone substitute Think big on HR self-service Dont forget payroll Think outside the intranet Get a second opinion Page 40 Exercise Page 41 Exercise Page 42 Outsourcing Page 43 Outsourcing 1 of 11 TERMINOLOGY BPO HR transformation Infusion Insourcing KPI Lift and shift Page 44 Outsourcing 2 of 11 TERMINOLOGY Pure play RFI SLA Value leakage Vanilla service Page 45 Outsourcing 3 of 11 SELECTING A PROVIDER Put yourself in their shoes Plan the key messages Communicate your case Check, practice and rehearse Give decision-makers a choice Now repeat the first five steps Maintain momentum Page 46 Outsourcing 4 of 11 DRAWING UP A CONTRACT Scope Managing service performance Poor performance The governance structure Exit management Page 47 Outsourcing 5 of 11 MANAGING THE CONTRACT Sign the contract but dont abdicate responsibility Develop core competence in contract management Ensure board-level support Select a partner that works to understand you Establish a collaborative relationship Consider setting up the contract as a joint venture Understand what you currently get out of HR Retain ownership of the HR policy and strategy Page 48 Outsourcing 6 of 11 RECRUITMENT PROCESS OUTSOURCING Dos Donts Page 49 Outsourcing 7 of 11 RECRUITMENT PROCESS OUTSOURCING-ins and outs Client seeking improved efficiency calls in RO company to handle some or all of its recruitment Outsourcing experts ass
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