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Extending CRM to ERM: Best Practices for Employee Relationship Management

Explore extending CRM themes to employees & examine ERM best practices, scenarios, and implications for e-Business Programs.

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Extending CRM to ERM: Best Practices for Employee Relationship Management

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  1. “I’m a person, not a number!”

  2. The next Big Thing:ERM (Employee Relationship Management) David Viney Centrica plc BCS K&C 12 November 2002

  3. Objectives To examine the extent to which familiar CRM themes can be extended to suppliers & employees An evaluation of best practice, scenarios, processes and architectures for ERM To identify the implications of such new thinking for the typical e-Business Programme

  4. “There is no new thing under the sun."   -- Ecclesiastes 1:9

  5. Current Strategic Value Current Strategic Value All supply relationships All supply relationships New Product Development Potential Strategic Value Potential Strategic Value Strategic Sourcing Full Contact History Full Contact History Full Contact History Accurate Master Data Accurate Master Data Full Contact History Full Contact History Credit Rating & History Credit Rating & History Credit & Billing History Credit & Billing History Credit & Billing History Recorded Channel Preferences Recorded Channel Preferences Recorded Channel Preferences Analytics Measure of Employee Value Marketing Permissions Marketing Permissions Marketing Permissions Measure of Employee Potential Potential Customer Value Potential Customer Value Potential Customer Value Datamarts Current Customer Value Current Customer Value Current Customer Value Accurate Employee Data All Benefit holdings Accurate Master Data Accurate Master Data Accurate Master Data Customer Segmentation Resource Planning Full Employment History Training & Development History All product holdings All product holdings All product holdings Up & Cross Sell Campaigns Performance History Management Succession Single View

  6. Self Serve Payment Chasing Self Serve Payment Chasing Self Serve Call-off Purchasing Self Serve Call-off Purchasing Self Serve Terms of Trade Self Serve Terms of Trade Increased Customer Loyalty & Retention Reduced OpEx Self Serve Supplier Details Self Serve Supplier Details Assisted Payment Disputes Assisted Payment Disputes Face-to-face Relationship Management Face-to-face Relationship Management Face-to-face Relationship Management Face-to-face Relationship Management Face-to-face Relationship Management Assisted Service Recovery Assisted Service Recovery Assisted Service Recovery Channels Self Serve Information Assisted Sales Transactions Assisted Sales Transactions Assisted Sales Transactions Self Serve Employee Administration Self Serve Basic Services Self Serve Basic Services Cost to serve Self Serve Basic Services Self Serve Skills Training Self Serve Basic Services Self Serve Personal Administration Self Serve Personal Administration Self Serve Personal Administration Face-to-face Employee Counselling Reduced Cost to Serve Reduced Cost to Serve Assisted Employee Development Self Serve Information Self Serve Information Self Serve Information Face-to-face Career Planning Increased Profit per Customer Increased Employee Loyalty & Retention InteractionManagement

  7. A recent survey by the American Management Association states the average cost to replace an employee is 30% of their salary. A recent survey conducted by RHI Consulting revealed that the annual turnover rate for a typical IT Department in a larger US company was more than 25% (based on responses from 1400 CIOs from a random sample of U.S. companies with more than 100 employees) The 2002 Microsoft Certified Professional Salary Survey gives an average salary for an IT Professional of approx. $60k The “Great Place to Work” Institute surveys companies worldwide in an effort to understand successful strategies for employee motivation and retention. In the UK, it’s results are published in ‘The Times’ and, in the US, in ‘Fortune’ magazine. Year on year, the companies that feature highest on the list are financial and high-tech companies. Why? Arguably, these are the companies who best understand how technology can be used to enhance their business and turn this learning in on their people! This frees HR professionals & line managers to manage people, not tasks! Does employee retention matter? This gives, for a typical ‘large’ IT department: 1000 employees x $60,000 x 30% x 25% = $4.5 million pa !

  8. Directory CiscoCast (Newsfeeds) Executive Information System Cisco Employee Connection IP TV FAST Start (Induction) VoD Training Travel & Expense End-to-End Staffing Benefits Enrollment Technical Support Corporate Procurement Lessons from Leaders • 93.4% users access CEC at least once per day • 79.3% many times per day • User satisfaction 4.23 out of 5.00 5306 PA e-strategy

  9. Assisted service channels Self Service Employee Analytics Web IVR Maintain person data Email Phone Mail F2F Generate person intelligence Employee Interaction Management Operate channel services Manage Case Route & allocate interaction Segment persons Employee Relationship Management Manage employee contact Process enquiry Process issue Personalise interaction Manage personal details changes Manage person prospecting Employee Relations Organisational Effectiveness Business & Line Manager Support Resourcing Reward & Benefits Employee Development HR Consulting/ HR Development Manage leaving Manage long service awards Manage recruitment & transfers Develop new services Manage discipline & grievance Manage people development Performance Management Attendance Reporting Manage benefits Manage temporary workers Manage relocation Learning & Training Organisation restructuring Management Info Succession planning Manage bonus & recognition Manage data warehouse Analyse data Resource Planning Manage employment relationship Induction Manage manpower availability Manage pay Report KPI Shared Services Compliance Finance & Procurement Integration Manage content Print & despatch Headcount Reporting Comply with Inland Revenue /Taxation Comply with Corporate Governance Comply with Health & Safety Manage Expenses Manage documents ERM Process Architecture Common Centrica process Specific process External process

  10. Other Modules Supplier Extranet Planning Systems Mobile worker updating her home address, following a move Office worker requesting leave via the Intranet from home (Simplified) ERM Technical Architecture IVR system Pension Systems Facilities, IS, Pensions & Purchasing Help Desks Core ERP System ERP Client HR & Payroll Help Desks Case & Asset Mgmt Systems Meta- directory Employee Extranet Middle- ware Employee Intranet Non-standard ERP ESS Module

  11. Scenario: Recruitment • View the Job Ad on the Centrica Opportunities section / pages • Make an application and attach my CV • Log-in using my ID and Pin • Book an interview slot online from the available slots • Fill out a travel expenses form • Receive my offer letter and phone & write to confirm acceptance • Pack invites me to go online again using ID & PIN • Hit the desk running on day one with all my admin sorted • Impressed with how organised Centrica is Internet Intranet Extranet • Receive an email inviting me for interview, which includes a 6 digit guest ID number and four digit pin to access the Recruitment extranet • Receive an email confirming my interview and the name of the person I will see • Print-off the attached visitor pass & car parking form • Go for the interview • Online, I fill out Payroll & Bank Details Form, Private Medical Form, Pensions Application & Wish Form, Car Form, etc. • Before I even start at Centrica! • And then the final delight and surprise.. I find that my log-on ID to all the systems I need and my first password are the very same I used during my recruitment “what a great place to work!”

  12. Welcome to the Centrica Help Desk. Please press: 1 for Systems 2 for Facilities 3 for HR 4 for Payroll 5 for Pensions 6 for Purchasing 7 for Finance Or press *0 at any time to talk to an operative Scenario: Maternity Leave IVR • Go onto the Intranet from home through the secure Extranet gateway, using my Centrica ID and Pin • Navigate to the HR Online section and download a copy of the UK Maternity Policy & Guide to my PDA • Read the notes than navigate to the online FAQ to get answers to my more basic questions “they really take care of my needs!” • The following morning on the way into work, I call the Centrica Help Desk from my hands-free kit in the car • I log-on and go through to an operative in the Employee Service Centre • I get a few more answers, but decide that I would like to have a face to face meeting.. • Which I book there and then • Test is positive, so, once in work, I go onto the Help Desk and log-in using my Centrica ID and Pin • Select the Payroll option and check my remaining leave balance, using the automated Payroll service • The meeting with my local HR rep goes well • And I am left feeling secure and happy • Now I only have hubby to deal with.. If only he was as easy to operate as the Centrica ERM processes!

  13. "Art is a step from what is obvious and well-known toward what is arcane and concealed."   -- Kahlil Gibran (A Handful of Sand on the Shore)

  14. Appropriate Interactions Quality Intelligence Powerful Analytics Effective Relationships Improved Performance Enhanced Strategy The all-encompassing Philosophy

  15. Intelligence & Analytics • Does your eHR solution give you more than just employee details? Do you have a single view of their skills, training, performance and management potential? • Can you analyse who your most important employees are and do you use target campaigns and interaction to build loyalty? • When a key event changes the life of one of your employees, such as moving home or having a baby, can you measure the impact this may have on your relationship with them? • Do you really know what the cost is to your business of employee acquisition and employee turnover? Interaction & Relationships • Is your strategy simply to force every employee to deal with you via the intranet? For everything? • What about, for example, your customer-facing, high-value (mobile?) sales force, who need access to systems on the move? Have you even considered a multi-channel approach? • Does you eHR Business Case require you to cut back your HR support function to a bare minimum, or are you instead re-skilling and repositioning them for higher value work, such as retention of key employees? Food for thought

  16. Do you treat your employees as individuals, or are they just a number to you? Do you value them in the same way as your customers? Is Employee Motivation and Retention one of your Company’s top 3 priorities and if not, why not? Strategy & Performance

  17. Which technologies could be deployed across all three spheres (customers, suppliers and employees)? Technology Considerations • Data warehousing • Analytical technology • Case Management • IVR Technology • Portal Technology • Web Hosting (Intranet / Internet / Extranet) • Campaign Management Technologies

  18. (1) Customers are all important, but suppliers and employees matter too! (2) Many CRM concepts (with which your CEO is familiar) apply equally well to the other key stakeholders in your enterprise! (3) Challenge your e-Business approach to date. Is it too transactional in it’s focus? Have you considered relationship management issues at an enterprise level? (4) Have you looked at where you could re-use technologies and deploy them in a wider role? Conclusions

  19. My website http://www.viney.com/DV/eBiz/eBiz.html David Viney BISM, E-Commerce Centrica IS Mobile 07979 567690 david.viney@theaa.com 1F Millstream East Maidenhead Road Windsor SL4 5GD Telephone 01753 492 429 Facsimile 01753 493 422 www.centrica.co.uk My Contact Details Download the Presentation at:

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