Accenture Software for

Human Capital Management

Reinventing
Human
Resources
By Heiko Mouhlen
Three ways to manage
the workforce of the future
Finding flexibility Embrace digital
Developing the workforce of the future is one of business Digital technologies are reshaping the HR function. As
leaders’ top priorities today. Without the right people with the boundaries of HR are shattered, the way HR practices
the right skills, organizations will find it hard to differentiate are managed and run is becoming more dynamic, nimble
and compete—especially in a digital world. Accenture and embedded in the business. The task of attracting,
Strategy research found that 41 percent of C-suite developing and retaining talent does not rest with HR
executives believe that difficulty in attracting and retaining alone. Digital extends processes out into the organization,
talent is the greatest risk they will face in the next 12 empowering employees and managers to perform many of
months.1 To meet the changing demands of the HR role the functions that typically would have been centralized in
and adapt to the “new normal” created by digital disruption, the past. And the Internet of Things (IoT), which could add
HR leaders must prioritize reinventing the delivery of HR US$14.2 trillion to the global economy by 2030,2 is poised
services. to support the workforce in daily tasks. Augmented reality
means employees can be safer, such as wearing a wireless
HR departments are the backbone of effective talent multi-gas detector that tracks exposure to harmful gases
management, yet their processes are often labor-intensive and helps plant managers monitor their status, location and
and fraught with regulations and risks. HR leaders should safety,3 and employers can be more productive, such as
consider three core priorities to be better prepared to farmers having access to data and analysis on diagnostics,
manage the workforce of the future: fully embracing digital crops, fertilizers and other factors important to improving
technologies, proactively partnering to grow operational crop yield.4
capabilities, and improving data migration, conversion
and quality. The HR function needs to adapt—and keep up with a
proactive workforce. An Accenture Strategy survey has
shown that more employees than employers are prepared
for digital. Sixty-four percent of employees said they were
A leading manufacturer of industrial proactively learning new digital skills and 62 percent said
and automotive components has they were assessing the skills they may need—as opposed
to the 66 percent of employers who said they are either
a global workforce with more than not prepared or barely prepared to transition the skills
21,000 employees in more than and job mix of the workforce.5
33 countries. The company decided
Digital is here to stay. By enabling new approaches to
to move its HR operations to SAP delivering HR services, driving the democratization of talent
SuccessFactors’ cloud-based management and acting more like a marketing
HR solution to support a range organization, winning HR organizations can fully embrace
of processes, including recruiting, digital. And once the burden of the extensive time spent on
routine processes and administrative work has been lifted,
payroll and workforce analytics. HR executives are freed up to work, not only more
The solution has helped with employee efficiently, but also innovatively, using software and
engagement. The client has seen solutions that streamline tasks.6

improved online course performance

because of the solution’s learning
management system, which tracks
training and delivers content via
employees’ mobile devices. And
with greater transparency in areas
such as succession planning and
compensation, employee satisfaction
has increased.8
Partner proactively In reality, most HR organizations are running multiple
applications—Excel spreadsheets, Access databases, SAP
Digital technologies are not the only route to being ready ERP systems, to name a few—making the option of cloud
for the workforce of the future—a new mind-set toward migration a complex business. But the issues around data
partnerships can also help the HR function. As workforces management are the same, whether on premise or in the
flex and grow, HR departments must find a way to make cloud—maintaining data quality, efficient data conversion
informed decisions, keep costs low through rigorous and and accurate testing.
automated data checks and make sure that sensitive data
is not exposed to unauthorized personnel. The diversity There is no one-size-fits all—like many other solutions,
and scope for what needs to be achieved means there is tailoring software to meet the individual needs of the HR
no time for splendid isolation; HR professionals must operation is often required. For example, inherent in the
look outside for solutions that do not involve the cost of HR role is the production of employee documentation, yet
controlling everything in-house or on premise. As digital Accenture has found that 82 percent of HR professionals
players have shown, developing an ecosystem of partners take more than 30 minutes to create a document.
involves a new way of doing business that can complement
or extend traditional practices.
Data conversion and migration
A partner ecosystem can increase an organization’s Moving from legacy systems to Employee
resource pool exponentially—the scalability potential Central can see a 30 to 50 percent reduction
means a dramatic increase in productivity and opens up in project time, saving approximately
the potential to deliver new products and services faster. US$100,000.
The rapid growth of the platform economy is a good
example of the financial and competitive benefits of Test data and optimization
working more collaboratively. Platform growth relies Regression testing can realize savings
on the power of network effects, where more market in the region of US$20,000 to 40,000 a year
participants means more customers attracting more and reduce regression testing times by 30 to
merchants and partners. It is largely due to platforms that 50 percent.
the most successful start-ups have reached US$1 billion
valuations after just four years when, on average, Fortune Data validation and monitoring
500 companies have taken twenty years to do so.7 External payroll costs can be reduced
by US$50,000 a year to as much as
Partnering is fundamental to a sharing economy. Many HR US$240,000 a year.
professionals who are turning to the flexible and scalable
solutions offered by cloud computing are discovering
partnerships of enormous value. Using SAP SuccessFactors
and adapting the SAP Cloud Platform with further add-ons, The power of choice
supplied by SAP partners, HR leaders can not only meet
ongoing human capital management challenges, but also Managing the workforce of the future requires organizations
rapidly innovate with comprehensive mobile, collaboration, to reinvent HR services—driving their own digital disruption,
big data, and analytic services. In the cloud, frequent developing partner ecosystems and better handling the
updates of new features and content are easily accessed demands of data migration, conversion and quality that are
and readily available—what benefits one HR department essential to “keep the lights on.” The attributes of cloud
benefits many. technologies have a clear fit with the scope, scale and
flexibility necessary for the new normal HR organization.
At Accenture, our own partnership with SAP has been active
for more than 30 years—and the fruits of that partnership Yet some HR organizations are hesitating to embrace cloud,
can be seen in our extensions for SAP SucessFactors which not because of concerns over data security but due to the
ease the cloud journey. Collective key strengths help to choice of tailorable options. With functional business apps
deliver innovative solutions to the market rapidly and better that provide the exact service an enterprise needs to run
prepare the HR function for the workforce of the future. human capital management in the cloud, HR professionals
can continue to enhance productivity, growth and
performance and be better prepared to manage the
Manage data workforce of the future.

Innovation may be the lifeblood of successful organizations

but the practicalities of day-to-day functionality are still
vital to HR performance. After all, even if your house has
a new door, you must still make sure it is locked for it to
be truly effective. HR professionals must seek out solutions
that are “loosely coupled and deeply integrated.” With
multiple data sources and an increasing number of
applications that generate data, the fundamental need
to manage data effectively—convert, migrate, validate,
monitor and regression test—is as vital as ever.
Author References
1
A
 ccenture 2015 CEO Insights and “Shattering the Boundaries of HR”,
Accenture, 2015
HEIKO MOUHLEN 2
Winning with the Industrial Internet of Things , Accenture 2015
+49 6221 3106 34044 3
H
 elping Achieve High Performance Safety Using Intelligent Industrial
Mobility, Accenture, 2013.
[email protected] 4
B
 ig Data Comes to the Farm, Sowing Mistrust Seed Makers Barrel
Into Technology Business, by Jacob Bunge, Wall Street Journal,
February 25, 2014
5
B
 eing digital: Embrace the future of work and your people will embrace
it with you, Accenture Strategy 2015
6
Content taken from ADocComp internal comm
7
F
 ive ways to win with digital platforms, Accenture for the G20 Young
Entrepreneurs’ Alliance Summit, China 2016
8
Building the digital HR organization, Accenture 2015

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