| As part of the SSON HR series in association with | | | | expenditures.That means we were spending more |
| Enwisen, SSON spoke to client Nissan about their | | | | money than our peers. Since we have instituted the |
| North American HR Shared Services strategy and | | | | HR transformation, we are now in the top quartile, |
| how Enwisen played a pivotal role in cutting costs and | | | | spending the least amount of money compared with |
| adding value. | | | | our peers. |
| SSON: I would like to start by asking you to explain | | | | SSON: How long did it take you to achieve that? |
| Nissan North America's HR shared services strategy. | | | | Dwain: The overall transformation, if you think about it |
| Dwain Stevens: Our strategy was not just to develop | | | | from start to finish, was probably a couple of years - |
| HR shared services, it was to transform human | | | | maybe two to three years - but the transformation to |
| resources throughout the entire company, to add more | | | | the HR service center, which really saved the most |
| to the business. As part of that transformation | | | | money, was probably a year-and-a-half from start to |
| strategy, one of the end products was to develop | | | | finish. If you look at total analysis from implementation, |
| shared services, and the strategy for the shared | | | | of the technology change, and the launch the service |
| services was to basically standardise all the HR | | | | center, that was about three to three-and-a-half |
| practices as much as possible throughout the | | | | months. We did a few months prep work before that. |
| company, as well as remove any administrative as | | | | SSON: What were some of your key performance |
| well as transactional-type tasks from the HR | | | | indicators for measuring success? You have just |
| personnel within the different locations. | | | | explained cost-savings, but how are you tracking key |
| SSON: How have you leveraged technology to | | | | performance indicators and how are you meeting |
| transform HR and effectively lower costs? | | | | them? |
| Dwain: In the past we didn't have an effective way to | | | | Dwain: Our primary KPI's are call-center related, and |
| share information with all employees that was | | | | then service-related. For example, how quickly we |
| HR-centric. We had an employee intranet, but because | | | | answer the phones - that's one KPI. The other KPI is |
| of the way that it was technically designed, all the | | | | to make sure that people don't abandon the call. So |
| employees didn't have access to it, just certain | | | | the first KPI is service levels; the second KPI is |
| employees. So we needed technology, a dynamic | | | | abandonment rate. And then the other key measure is |
| employee portal, where we could put all kinds of | | | | first contact resolution, which is an indication of |
| HR-related information, and make it available to | | | | customer service. On all those three primary KPIs, we |
| employees 24/7. That way, when people have a | | | | are at or above the world-class measures. |
| question, they can look for the answer themselves via | | | | SSON: How many CSR's do you have serving your |
| any computer - and most of our employees do have | | | | population of 12,000 employees? |
| computers, whether at work or at home. What's more, | | | | Dwain: How we are structured may be different to |
| if people needed to make some sort of change that | | | | others, because of what tasks that we're responsible |
| was HR or benefits-related related, they could go | | | | for. We basically have three groups of people, and we |
| online, make those changes, themselves, and not have | | | | follow the traditional tier terminology that many HR call |
| to wait for someone in HR to fill out the forms, enter | | | | centers use, or any kind of call center really does. Tier |
| that data, make that change and then see the change | | | | Zero is our HR knowledge base portal technology; Tier |
| take effect later on. Online access has improved | | | | One is the HR service center staff directly answering |
| everybody's lives - helping employees get the | | | | the phones from employees. For us, Tier Two is our |
| information faster, due to the transactions being faster. | | | | benefits administrators, and then we have our COE's, |
| It has also eliminated a lot of duplicate entry and | | | | which is Tier Three. For Tier One - we have eight |
| non-value-added tasks from HR. | | | | people for 12,000 employees and we have two people |
| SSON: But you moved to a different technology | | | | on nights, and although we might not get any calls at |
| platform, and what was the business case for doing | | | | night we currently do it for employee relations. |
| that? | | | | We are a non-union company, and want to maintain |
| Dwain: The business case was to save money in a | | | | that, so we struck a balance between holding people's |
| much more efficient and effective way. We carried | | | | hands and being available for people - that's why we |
| out an analysis to find out how a portal could help us | | | | have the people at night. I would say this about having |
| do that or how can a shared services center could do | | | | a HR centralized service center: some people would |
| that. And we ran the numbers, and believed, -- and | | | | say, 'well, you took a HR person away from us in the |
| have confirmed -- that it did make us more effective | | | | plant.' But what we really did, instead of one person |
| and much more efficient. | | | | being taken away from the plant, we added eight |
| SSON: What technology requirements did you choose, | | | | people available to you, basically twenty one hours a |
| and why did you choose them? | | | | day, five days a week. By adding eight customer |
| Dwain: Our technology requirements were an | | | | service reps, we have more people available to take |
| employee portal that was available 24/7, and was | | | | your calls, so that improves customer service for |
| available to 100% of our employees. We wanted single | | | | employees. |
| sign-on capabilities, and we wanted it to be HR-centric | | | | SSON: Your self-service platform has obviously been |
| - in other words, we didn't want generic or standard | | | | quite effective, because if you can reduce it to eight |
| service center portal or call tracking technology. We | | | | people responding to 12,000 employees, would you |
| wanted an integrated solution -- not two separate | | | | agree with that? |
| solutions that we would have to integrate ourselves. | | | | Dwain: Yes, I do, but it is hard to quantify how many |
| And, again, single sign-on capabilities, which then directly | | | | people get their questions answered from the |
| tie to our HRMS system - those were the primary | | | | technology. We know how many people access the |
| requirements. After extensive research, including lots | | | | technology, but we don't know how many people get |
| of analysis, and lots of demos, we chose the Enwisen | | | | their questions answered by it. We do know, because |
| AnswerSource HR Service Delivery suite, because it | | | | of the technology dashboards, that the portal does get |
| met our technology requirements, and it was a great | | | | a lot of use. When people call the service center, |
| value. | | | | typically their questions are more complicated than just |
| SSON: Did you consider other technology providers | | | | simple information, so that the length of calls is longer. |
| before Enwisen? | | | | That's ok with us; that's why we're here, to answer |
| Dwain: We did look at a lot of different technology | | | | those complex calls. I will also say that our Tier One |
| providers. What made Enwisen stand out was that | | | | people on the phones, do other things besides answer |
| they met all the technology requirements, and we | | | | calls, because call volume is unpredictable, and there |
| were convinced that the speed of implementation | | | | are times when call volume is low. So we have taken |
| would be faster -- and the amount of work that our | | | | administrative tasks that can be done in between calls, |
| people would have to do was going to be much less | | | | or we can take somebody off the phone to give them |
| because the vendor, Enwisen, would take that on. We | | | | the time to do these administrative tasks. By taking on |
| were up and running in less than three-and-a-half | | | | administrative tasks at Tier One, and it removes work |
| months. | | | | from other higher, more expensive Tier Two and |
| SSON: Fantastic, and what were the challenges in | | | | Three staff. And we have also centralized some of |
| moving to the new platform and integrating the new | | | | those tasks that used to be done by the local |
| system? | | | | nationwide affiliates. So we are able to better utilize |
| Dwain: The main challenge that any organization faces | | | | our resources. |
| is change. Since we were basically transforming | | | | SSON: Are there any other metrics that you could |
| human resources, we were going to change the way | | | | share from the 'Win' HR project? |
| in which HR services were delivered throughout the | | | | Dwain: Our service levels are in the mid eighties, so |
| entire company. It affected employees, the managers, | | | | that means that we're answering 84-85% of the calls |
| and especially the HR people. We found that | | | | within sixty seconds or less. Then our average talk |
| communicating what we were doing, and when and | | | | time is four-and-- half to five minutes. Our first contact |
| how, and doing it in a way that encouraged the | | | | resolution rate is not as high as I would like, but there is |
| employees to believe that it was going to be better for | | | | a factor in there that is beyond our control. Our first |
| the entire company worked best. That was one of the | | | | contact resolution rate is when the rep is able to |
| major changes, because if you think about it, we were | | | | answer the first question at the first call: and that's in |
| going to change their jobs, what they did, where they | | | | the low to mid eighties, anywhere between 82-84% |
| did it, and the technology that they used. We basically | | | | typically, sometimes higher. The reason it is not higher, |
| upset their entire world. And then from the employees' | | | | is that we have partnered with other groups that don't |
| perspective, they were used to seeing HR people, | | | | fall within the HR umbrella. For example, payroll does |
| more HR people in the facility answering their | | | | not fall under the HR umbrella, neither does a group of |
| questions, instead of looking for information on their | | | | people called lease car, a benefit that we give our |
| own. So, through the technology we encouraged | | | | employees. Because we don't have total access to |
| employees to do more for themselves. That was a | | | | the information that those groups do, and we're the |
| big challenge. Many people, including myself, like | | | | center point of contact, employees who call us with |
| somebody to hold my hand. | | | | payroll-related questions, or their lease car questions |
| SSON: Do you think you've mastered that now and | | | | require more time to research. And we're able to |
| has it been really accepted at ground level? | | | | answer those questions anywhere between 60-70% |
| Dwain: I think that it has definitely been accepted, | | | | of the time, first contact resolution. But that brings the |
| because I would say that while they don't have any | | | | overall score lower. If we took out lease car, and if we |
| choice but they still have the HR people in the affiliates. | | | | took out payroll, our first contact resolution would be |
| But what HR people are doing in the plants is very | | | | over the mid nineties. |
| different to what they were doing before. And it is still | | | | SSON: What other areas of HR do you see being |
| accepted because our call volume is still steady, and at | | | | transformed in the next two to three years? |
| times it grows. When we have HR initiatives, we do a | | | | Dwain: From the service center perspective, even |
| very good job of communicating what those initiatives | | | | from day one after we launched - we went live in |
| are - it could be a simple benefits change, it could be a | | | | September within three to four months - we started |
| massive benefits change, and it could be | | | | an initiative to change the way we provide health |
| communications from the CEO. So when we | | | | coverage. Instead of the traditional PPO plan, we went |
| communicate to the employees, they will call the | | | | to a consumer-driven health plan, which is major |
| service center. The service center has become a hub | | | | change for how healthcare is delivered. Within twelve |
| for many different types of initiatives when the | | | | months the entire company was on this new CDHP |
| employees have questions. After the initial | | | | health plan. Now that amount of work took a |
| communication goes out, they direct the calls to the | | | | tremendous amount of time -- not just from our CEO, |
| service center, for those kinds of things, as long as | | | | but from the service center, too, and we were able to |
| they are routine, and it has become much more | | | | do that within a year. And this was with a newly |
| accepted. | | | | launched service center with new people and newly |
| SSON: What do you think are the major benefits of | | | | launched responsibilities and, we did that very |
| moving to the new platform? As well as integrating a | | | | effectively. |
| multi-tier approach? | | | | So we have found ways to constantly standardize |
| Dwain: The major benefits affect different groups of | | | | our processes, consolidate our policies, automate our |
| people differently. From an employee's perspective, | | | | processes, and streamline things -- in other words, |
| because we have a HR portal, a lot of HR-related | | | | more ways of doing more with less. A good example |
| information - for example, policies, even cafeteria | | | | for this is when we launched this new CDHP plan. |
| menus -- directly links into their pay system. They can | | | | When it came time for people to enroll -- it was a |
| see their payslips to vendors, can find all kinds of | | | | mandatory enrollment for 13,000 employees at that |
| information, such as what do they do when they have | | | | time -- and we were looking at how we were going to |
| a baby, get married, or just life events. With that | | | | take the call volume, with eight reps, we considered |
| technology, it encourages people to help themselves. | | | | hiring more reps and even outsourcing the Tier One |
| People want information when they want it, and don't | | | | calls. It was estimated that we needed seventy people |
| want to have to wait for somebody else to provide it, | | | | to take all the calls based on our population and the |
| so it improves their quality of life. | | | | type of plan that was changing. Nissan is very frugal, |
| Then when it comes to transactions, there's less paper | | | | that is part of our culture and we are very aggressive |
| to fill out. For example, they don't have to fill out the | | | | on cost, too.. So, we literally hired twenty-four people |
| piece of paper with the change form - they do it online. | | | | ourselves, trained them, gave them some intensive |
| So the problems of the form getting lost, or delays | | | | training on the new technology as well as the new |
| when somebody receives it to when somebody | | | | plans, and then with the right tools, the right training and |
| enters that information, are gone. It speeds up the | | | | the right time, they were able to take the new call |
| transactional process, from the employee's | | | | volume with the new CDHP enrollment. And our |
| perspective. | | | | service levels, even though our call volume went up six |
| From HR perspective, since we removed that | | | | times the average of the norm, our service levels |
| administrative/transactional stage from some of the | | | | were in the mid- nineties, with only twenty four |
| HR people, we're able to focus on different types of | | | | additional people -- which is a testimony to our people, |
| work. We have a group of people at the HR service | | | | as well as on how we did the training and how we |
| center that focus on the administration as well as the | | | | partnered with our contractors but also a testimony to |
| transactional side, but we also partner in the service | | | | the technology that we used. |
| center with other groups of people, like the business | | | | SSON: The automobile industry was very affected |
| affiliates, when they have a major change. We are | | | | through the recession., Have you seen any 'green |
| their partners in the administering the change, and we | | | | shoots' of recovery? |
| are partners with expertise when it comes to the | | | | Dwain: Yes, HR really led the way in the re-engineering |
| conversation of benefits. Because we have data | | | | the efforts; it started a couple of years ago. The |
| information, we know what the employees questions | | | | company has found ways of restructuring itself |
| are and we partner with them to share information to | | | | without affecting too many people - we hardly had |
| say, 'here is what they like, here is what they don't like,' | | | | any layoffs, we had people that volunteered to leave, |
| and they're better able to come up with a better | | | | and they were incentivized to do so. Because we |
| benefits change. And then from the business | | | | were very aggressive in our re-engineering efforts, |
| perspective, because we have become much more | | | | and our cost cutting. Again, this is without massive |
| efficient, much more effective, we have saved money, | | | | forced lay-offs, so it put us in a position to save |
| and saved time. So, everybody wins: the employee, | | | | money. So we were able to turn around a profit -- I |
| HR and the business. | | | | think we lost it one quarter, and then we turned it |
| SSON: Dwain, how much you have saved since | | | | around the following quarter. So it couldn't have |
| integrating the system? Or can you put a percentage | | | | happened without that aggressive re-engineering, not |
| on it? | | | | just within HR but from the other parts of the |
| Dwain: I think the amount of money that we saved | | | | organization. In fact, our market share had gone up |
| would be confidential, but let me say this: when we did | | | | during this recession, while othershave lost it. This is |
| the analysis of HR, we were in the bottom quartile of | | | | without any government bail outs. |