Creating an Employer

of Choice Environment
and Transforming HR

Wally Boehm
VP Human Resources
Today’s discussion:

Organization Profile

Business Case - NAS

Employer of Choice Strategies

Human Resources Scorecard

Human Resources Transformation

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ADP: One of the largest global providers of:
Information Services

Employer Services
Brokerage Services
Dealer Services
Claims Services

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We’re the Business Behind Business™

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 Goal: Fortune Top 100 Companies

Excel

Financial Employee
Measures Measures

Competing

5
 Employer Services Organization

Employer Services

Emerging Major National Benefit

Business Account Account Services
Services Services Services

Serving Serving Serving Serving

1-49 50-999 1000+ All sizes

employees employees employees

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Organizational Profile - NAS/Benefit Services

Highly skilled Unskilled

4600
(Software (Shipping
Engineers)
Associates Clerks)

16 Operating Pay 7 million Administer Benefits

locations people for 9 million people

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Situation Analysis - Fall of 1998
Experiencing high growth

Good, but not “great” service

Higher than average ADP turnover

Lower than average ADP associate

satisfaction

HR strategy not aligned with business

strategy 8
Future Success

Employer of Choice $1Billion

World Class Service Business

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What did we do?
Embraced Service-Profit Chain business
model
Aligned HR strategies with business
Compensate using Balanced Scorecard
framework
Increase Associate Satisfaction
Decrease Turnover
Results

Productivity & Cost Savings

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11
 Balanced Scorecard
Employer of
Financial Choice
Excellence
20%
40%
20%
20%
Operational
Excellence
World Class
Service

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Balanced Scorecard Metrics

Revenue Turnover
Generation Associate
10%
20% Satisfaction
10%

Profitability Various
20% Metrics
20%
Client Client
Satisfaction Retention
10% 10%

* Accelerators
Diversity 10%
Training 10%

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 Decrease Turnover

20.2%

15.2%
13.7%
10.2%
9.0%

FY'99 FY'00 FY'01 FY'02 FY'03

NAS/Benefit Services Associates
YTD

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 Productivity and Cost Savings

Turnover
Productivity
Reduction
Time efficiencies
20.2% Better service
Direct hiring costs
FY’99
to = Advertising
Interviewing time
= $24.7 million
FY’02
Agency expense savings

10.2%

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 Business continues to grow rapidly
Revenues
(in millions)

1000

800

600

400

200

0
FY 98 FY 99 FY 00 FY 01 FY 02 FY03
(Plan)

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HR Means Building Business Value

For ADP….
Associate relationships impact bottom-
line profitability

For our clients….

EOC Best Practices are reflected in our
services

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What are we doing
to build an
Employer of Choice
environment?

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 Provide our associates
the HR best practices
we offer and enable in
our clients.

HR Vision 19
HR Mission

Lead the delivery of HR best practices

to achieve NAS objectives through
people, processes, and technology.

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What’s the Strategy?
 Build HR initiatives from business strategy
 Fine tune initiatives from listening to
associates
 Establish metrics and measure progress

 Communicate successes internally

 Extend value to clients externally

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 Listening to Associates

What “opportunity and

makes culture”
ADP “sense of accomplishment”
your “easily balance work
Employer and family life”
of “friendly and
Choice? professional
atmosphere”
The Bottom Line:
“It’s what keeps me coming
back every Monday.”
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Working in an EOC Environment
Learning & Growth
Training & Development
Coaching, Feedback, & Support
Career Opportunities

Employer of
The Basics Choice Work
Values Environment
Recognition & Appreciation
Competent Leadership
Work Life Balance Interesting & Challenging Work

Competitive Compensation & Benefits Open Communication

Involvement & Empowerment

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 What’s the Strategy?
Increase Associate Leverage Human
Satisfaction Capital for Growth
Associate Satisfaction Reward & Recognition

Training & Development Human Resource Planning

Win the Talent War Strategic HR Transformation

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Strategy: Drive Associate Satisfaction
Survey Semi-annual Business Unit Action Plans
Analyze Results Develop Individual BU
Action Plans
By Division
Validate issues through
By Business Unit Associate Focus Groups
Develop Communication Initiate Teams to Work on
Strategy Issues
Create Action Plan Track Progress Against BU
By Division Plans
By Business Unit Report Action Plan
Progress
Reward Management for
Improvement

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Strategy: Make Retention a Way of Life
Reward management for retention
Use competency-based selection criteria
Engage group teams for selection process
Get serious about pre-employment screening
Invest in associate learning
Expand new hire orientation & mentoring

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Strategy: Increase Associate Communications
Develop Associate Communications Strategy
Move Associate Communications into HR
Dialogue w/ associates through variety of vehicles:

Video
Newsletters
- Division-wide
- Localized

MyInfoCenter.com
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 Strategy: Invest in Training
Institute technology-based
27% learning
of workforce
3 week requirement for
technology function
Use 2 outside vendors

Increase associate
54 training to a minimum of 40
hours per year per
associate
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Strategy: Improve Leadership Development

 $2 million - Sales & Leadership Training

 Institute for Service Leadership

 Leading & Managing in EOC Environment
 Leadership Development
 Managing for Commitment & Diversity

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Strategy: Win the Talent War
Implement electronic careers center
External access through www.adp.com

Centralize recruiting for high growth functions

Technology
Sales

Institute competency-based selection process

Respond to associate worklife needs - flexibility

Promote employment brand

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Respond to Worklife Needs
Flexible Work Arrangements
In-office Services (e.g., dry-cleaning, massage)
Office Social Gatherings
ADP Preferred Childcare Discount Program
(US-Wide)
ADP On-site Day Care Facilities
ADP On-site Medical Facilities
Continue asking & listening
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 Strategy: Align Reward & Recognition

$$ Reward $$ Recognition

Balanced Scorecard ACE’S

What Gets Measured Gets
Done President’s Club
Variable compensation Stars
plans
60% of associates Quarterly Breakfast
Stock options Numerous Service
40% of associates
Awards
Knowledge Pay Program

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Strategy: Systemic Human Resources Plan
Our Processes & Tools:
Assess with 360-degree process and
feedback
outside vendor
Individual development plans
6 month review discussions
Managers as coaches
Some use of executive coaches

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Strategy: Systemic Human Resources Plan
Our Outcomes:
Benchstrength measure
Gap identification in existing vs. future
needs
Diversity of associate background, talent,
abilities
Structured pipeline for talent infusion
Associate partnership of career
development
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Strategy: Delivering on Diversity

Connecting through
Surveys, Focus Groups

Leverage progress and

work on priority issues

Implementation of Local
Diversity Councils

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 HR Scorecard…
What Do We Measure?
Associate
 Associate Satisfaction Turnover
Associate Productivity
 Associate Turnover
Satisfaction
(by Segment, New Hire, Cost)

 Training Hours per Associate

Diversity Recruitment
 Competency Gaps of Workforce
 Diversity Representation
Associate
Associate
 Cost per Hire Training &
Benefits
Development
Time to Fill
 Compensation Competitiveness
 HIPO Associates
(Bench Strength, Development Plans)

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Strategy: Transform HR
Develop & measure new HR Competencies

HR Process Re-engineering

Electronic self-service

HR Metrics – Digital Dashboard

Leverage HR in new product development and

piloting

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 Strategy: Transform HR

Consultative
Strategic and Execution-oriented
& Administration
Developmental

Percentage of Time Spent Today Future

Strategic HR Planning 10% 25%
Consultative/Developmental 25% 50%
Execution-Oriented & Administration 65% 25%
Source: Tomorrow’s HR Management, Dave Ulrich & Michael Losey, 1997.
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 What Does This Strategic
Transformation Look Like?
Old HR
New HR
•Non-Strategic
•Business advisor/consultant
•Administrator
Process Reengineering •Workforce strategist
•Distributor
•Enforcer •HR Process Expert

Drivers
•Translator •HR Measurement Analyst

•Services •Technology •Manager/Employee

•Customer Service •Process Integration •Information Access
•HR Program Admin •Technology roadmap •Learning
•Operational Excellence •E-HR Strategy •Decision-making
•Technology Application •Measurement & Analysis •Action Taking

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 Reengineering HR Processes
HR Reporting Flex Benefits
Enrollment

Reengineering HR Processes through The Portal

HR Metrics Performance
HR Administration
Management
Recruiting HR
Process Planning

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NAS HR Web Portal – Strategic Enabler
Mission Statement Benefits Related Information
Guidelines and Procedures Forms

Phone Book New & Events

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 Conducting HR Transactions
Skills Profile and Personal
Search Agent
Internal e-Recruiting
Solution
Expense Management
401(k) Transactions
Benefits Enrollment
Stock Purchase/Stock
Options
On-Line Pay Stubs

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 Leveraging Human Capital
Digital Dashboard
High Potential
Tracking
Career Development
Hot Skills Database
Human Resources
Planning

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The Horizon of Practice
At the Horizon
HR anticipates strategic
issue and leads effort
Progressive Practice
HR partners
on solutions “My Portal” - Customized
Web-based / vision of
paperless administration
Manager & EE
Standard Practice HR responds direct access;
to requests HR aligns activities
with business strategy Precision workforce
planning / emphasis on
HR retention and relationship
Business Partnership processes extension
transactions HR proactively sources
talent to fill pipeline;
managers fill openings Talent management
Service Delivery via desktop technology links development,
HR recruits
career planning, talent
for open jobs
assignment and
Talent Acquisition developing future
Job posting; leaders
vertical paths
Job posting;
vertical paths Real-time workplace
Career Development experiential
learning
Stand-up supported by
classroom interactive
Management Development Stand-up training technology
classroom
and Training training

Source: Corporate Leadership Council 44

IN SUMMARY…
Creating an Employer of Choice Environment
and Transforming HR is about:
Managing Change
Creating a Cultural Shift
Creating Systemic Processes
Measurement
Creating...

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Associate Satisfaction Leverage Human Capital for Growth
ASI Reward & Recognition
Training & Development Human Resource Planning
Talent War HR Transformation

High Performance Organization

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