Work Life Integration - Human Capital Insights - Vol. 6

Maximizing Performance, Productivity, and Profitability
1
®
ADP Human Capital Volume 6
Vacation Policies Around
the World: How Adaptable
Is Your Organization?
Predictive Analytics:
Reaping Rewards
While Avoiding Risk
What Small and Large
Organizations Alike Can Learn
From the First Year of Annual ACA
Sharing Institutional Knowledge Across
Generations Before it Disappears
Passing it
Forward:
A more human resource.
SM

2 ADP Human Capital Insights®
People
Work-Life Integration: Is There an
Employee-Employer Expectation Gap?
Managing work and life means different
things to different generations. Here’s
how to keep up with changing employee
expectations.
Passing it Forward: Sharing Institutional
Knowledge Across Generations Before
it Disappears
What happens when your most tenured and
skilled employees are ready to retire or move
on, taking their experience and knowledge
with them? Knowledge transfer is becoming
an urgent issue that can’t be ignored.
Trends
Vacation Policies Around the World:
How Adaptable Is Your Organization?
To meet the needs of a global workforce,
understanding the variance in laws and
cultural norms is critical.
Change
Three Ways to Get Leaders to Buy-In to
a Unified Global HCM Solution
The ability to enjoy high employee efficiency,
regardless of location, is just one benefit of a
unified HCM system.
What’s Your Agility Quotient (AQ)?
Outpacing the competition means being an
agile organization — and that starts with agile
leadership.
Beyond the Bottom Line: How An HCM
Strategy Can Help Corporate Success
How to build an HCM strategy that aligns
with broader measures of success, driving
a greater impact on society while still
supporting profitability.
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Contents
Risk
What Small and Large Organizations
Alike Can Learn from the First Year
of Annual ACA
There’s nothing like getting a little experience
under your belt. Read five tips for dealing with
the task of ACA compliance moving forward.
Predictive Analytics for HCM: Reaping
the Rewards While Avoiding Risk
By analyzing a wide array of workforce data,
leaders can enhance their ability to identify
patterns and take proactive actions. But where
to start?
Guidebook to New DOL Overtime Rules
Recent changes to overtime rules will make
4.2 million currently exempt workers eligible
for overtime pay. Here’s help for developing a
strategy to stay compliant and control costs.
Real Stories, Real Impact
Learn how two organizations are driving
business impact with a strategic approach
to HCM.
For more articles and insights
that can help you ignite the
power of your workforce, visit
our blog for large business
leaders at adp.com/spark
4

3
ADP®
publishes ADP Human Capital Insights magazine free of charge. This content provides
practical information concerning the subject matter covered and is provided with the understanding
that ADP is not rendering legal advice or other professional services. ADP does not give legal
advice as part of its services. While every effort is made to provide current information, the laws
change regularly and laws may vary depending on the state or municipality. The material is made
available for informational purposes only and is not a substitute for legal advice or your professional
judgment. You should review applicable law in your jurisdiction and consult experienced counsel
for legal advice. The ADP Logo, ADP, ADP Human Capital Insights, and ADP Research Institute are
registered trademarks of ADP, LLC. ADP A more human resource. is a service mark of ADP, LLC.
All other trademarks and service marks are the property of their respective owners.
Copyright © 2016 ADP, LLC. ALL RIGHTS RESERVED. Questions: Please call ADP at 1-800-225-5237.
When it comes to managing a global workforce, sometimes the only constant is
change — from new technologies and compliance hurdles to shifting employee
expectations regarding how, where and, most importantly, why work gets done.
A study from the ADP Research Institute®
, The Evolution of Work: The Changing
Nature of the Global Workforce, finds that today’s workforce is increasingly
guided by a search for meaning or doing important work, rather than simply
earning a paycheck.
And it’s not just employees who feel this way. According to PwC, 76 percent of
CEOs believe measuring corporate success is about more than just profit, too. For HCM leaders, this raises
an interesting challenge — how to build an HCM strategy that aligns with changing measures of success.
The latest issue of ADP Human Capital Insights®
magazine offers some insights into achieving this alignment.
Our editors also take a look at hot issues on the minds of global HCM professionals, including:
• Agility — Transformational workplace change is not only happening, it’s accelerating. Success means
being an agile leader. We designed an assessment so you can see how you rank compared to your peers.
• Health Care Reform — With year one of the Affordable Care Act now in the rear-view mirror, the real
challenge begins.
• Data-savvy HR — Predictive analytics has the potential to enhance a multitude of HR strategies
significantly, including workforce planning, leadership development, diversity, and employee education.
• Knowledge transfer — As Baby Boomers continue to exit the workforce, how can you ensure your
organization retains valuable institutional knowledge?
We’ve designed this issue to offer some insights into the workforce of today and tomorrow, and to spark
dialogue within your organization. As always, we welcome your feedback at insights@adp.com.
We want to
hear from you
Send us an email at insights@adp.com
For more information, visit
adp.com/large-enterprise
Mark Benjamin
President, Global Enterprise Solutions
How are you transforming your business?

People
Work-Life Integration:
Is There an Employee-
Employer Expectation Gap?
According to Ernst Young,1
24 percent of U.S. employees said work-
life integration is becoming more difficult to manage. Even in an era
in which flextime — designed to improve work-life balance — has
increased, recent data from the U.S. Bureau of Labor Statistics2
(BLS)
indicates that the average full-time employee is working more hours
per week and working more on Saturdays and Sundays.
1
Study: Work-Life Challenges Across Generations, Ernst Young, 2015.
2
American Time Use Survey Summary, U.S. Bureau of Labor Statistics, 2016.

5
This problem is not exclusive to the
United States, either. According
to the ADP Research Institute®
study, The Evolution of Work: The
Changing Nature of the Global
Workforce,3
more than a quarter
of working people in the United
Kingdom report unhappiness with
their work-life integration.
These statistics come at a time
when managing work and life
means different things to different
generations all over the world. For
the “Sandwich Generation” —
people in their 40s and 50s who are
caring for both their parents and
their children — it means trying
to balance work and family, while
making enough money to support a
growing household.
In 2013, nearly one in seven
American adults in the Sandwich
Generation were financially
supporting both an aging parent
and either a small or adult child,
according to a Pew Research
Center4
report. Across the globe,
the burden on Asian families to
care for both parents and children
is increasing, as well, according to
Economist Insights.
The Harvard Business Review5
reports studies from the National
Institutes of Health and the Centers
for Disease Control and Prevention
show that the work-life integration
issue has real consequences for
both worker productivity and
personal health. Basically, longer
hours and increased stress are at
odds with what workers value in
their lives.
The Changing Workforce
Expectations in the global
workforce are changing, and
workers’ expectations of freedom
to do their work when, where,
and how they want are higher
than ever before. For example,
according to The Evolution of
Work study, 44 percent of workers
in the Netherlands believe they
should “define” their own work
schedule and 95 percent of Chinese
employees believe they will soon
be able to do the majority of
their work using a mobile device
— beliefs that reflect a need to
work in a different way in order to
accommodate personal obligations.
Leaders should be cognizant of the
changing workforce and how work-
life integration affects employee
well-being, productivity, and
organizational performance.
Flexibility for Different
Reasons
According to The Evolution of Work
study, 81 percent of employees view
their ability to work from anywhere
in the world positively, but the
rationale for that positivity varies for
different generations. The Sandwich
Generation, in particular, is a group
of employees seeking better
work-life integration. Gail Hunt,
president of the National Alliance
for Caregiving, told Monster.
com that the number one thing
members of this generation want
from employers is flexible time.
That presents both a retention
and recruitment opportunity for
leadership. By catering to varying
needs, you can show your existing
employees you understand that
work-life balance comes in all
shapes and sizes and highlights
Longer hours
and increased
stress are at
odds with what
workers value
in their lives.
3
The Evolution of Work: The Changing Nature of the Global Workforce, ADP®
, 2016.
4
The Sandwich Generation: Rising Financial Burdens for Middle-Aged Americans, Pew Research Center, 2013.
5
Your Work-Life Balance Should be Your Company’s Problem, Harvard Business Review, 2014.

to potential, talented, employees
just how much you value your
employees’ happiness outside
of work.
What to Do?
If Hunt is correct, that the number
one thing members of the
Sandwich Generation want from
employers is flexible time, then
organizations that offer this have
the potential to attract highly
skilled employees at the expense of
employers that do not. HCM leaders
should prioritize the implementation
of technology and policies that
both enable flexible work time and
show employees that their voices
are being heard.
An example of a technology
that can enable flextime and keep
employees productive includes
a mobile-friendly collaborative
enterprise social network, such
as Yammer and Oracle, that
employees can use to communicate
and collaborate on projects. As
The Evolution of Work report
suggests, the vast majority of
global employees believe they can
work from anywhere in the world,
and many are already using social
technologies to communicate and
connect with people. Employers
should find it easy to gain adoption
of those technologies and keep up
with the trend.
When it comes to creating policy
around flextime, there is one simple
solution to include: encourage
employees to take all of their
vacation. MarketWatch6
reports that
employees in the United States take
only half of their paid vacation time.
Employees in China take even less,
according to the same article.
As technology and employee
preferences continue to blur the
lines between where work actually
gets done — at the workplace
or remotely, during or outside
of standard business hours —
organizations must provide new
ways to support productivity,
while helping employees achieve
balance in this new norm.
HCM leaders
should prioritize
technology and
policies that
enable flexible
work time and
show employees
that their voices
are being heard.
6
Americans take half of their paid vacation, but Chinese take less, MarketWatch, 2015.

7
Passing it Forward:
Sharing Institutional
Knowledge Across Generations
Before it Disappears
When one generation retires, you’re left with a new generation of less
experienced workers. Taking steps to forge deeper connections across the
generational lines can facilitate the transfer of information and keep your
organization running at its best.

What happens to organizations when their
most-tenured and skilled employees are ready
to retire or move on, taking their experience
and knowledge with them? As the Baby Boomer
generation increasingly leaves the workforce, the
loss of institutional knowledge — their accumulated
knowledge about your organization — increases,
as well. Knowledge transfer and skilled workers is
becoming an urgent issue that organizations won’t
be able to ignore.
According to the Pew Research Center1
,
Millennials (born 1981 to 2000) made up the majority
of the U.S. workforce in 2015 with 53.5 million
workers. Gen Xers (born 1965 to 1980) were close
behind at 52.7 million workers, while Baby Boomers
(born 1946 to 1964) continued to exit the workforce,
declining to 44.6 million workers.
That shift is sure to continue, causing concern
that institutional knowledge from older generations
will not be transferred effectively. The failure to
retain and transfer institutional knowledge could
result in a steady increase of employee turnover,
further knowledge loss, and less-skilled laborers,
which means higher costs and lower efficiencies.
Some estimates suggest it costs 150 percent of an
annual salary to replace an employee, when factoring
in recruiting, lowered productivity, lost knowledge,
training, and even time for interviewing.2
The Time to Retain and Share
Knowledge Is Now
Knowing there is a need to capture and transfer
knowledge and skills from older generations and
figuring out how to go about it are two very different
things. According to the ADP Research Institute’s study,
The Evolution of Work: The Changing Nature of the
Global Workplace3
, those surveyed “feel an element
of pressure and stress” related to a workplace that
demands rapid learning of new skills. This was evident
in each major region of the world.
As the proportion of the experienced workforce
continues to shrink, organizations must balance
the need to put processes in place to capture their
knowledge and transfer it to the younger generation,
while still remaining productive as an organization.
Members of the younger generation are already
adjusting to the demands of their own workload, so
adding the responsibilities of retiring coworkers or
colleagues who are moving into new roles, requires a
delicate blend of technology, trust, and education.
Passing it Forward
According to The Evolution of Work study4
, over half
of employees believe technology allows them to
have deeper personal connections with their peers.
Additionally, 88 percent of those surveyed believe
that social media is already or will soon become the
preferred collaborative platform for work. The study
also finds that the way employees accrue knowledge
is changing, because of the increased use of
collaborative tools at work.
The Millennial generation is adept at sharing
information on social media, and organizations are
establishing similar “internal” social and collaborative
tools that take advantage of their skills. This can pose
a challenge in the knowledge-transfer process, as Gen
Xers and Baby Boomers prefer email, according to
Marketing Sherpa.5
Knowing there is a need
to capture and transfer
knowledge and skills from
older generations and
figuring out how to go
about it are
two very
different
things.
1
Millennials surpass Gen Xers as the largest generation in U.S. labor force, Pew Research Center, May 11, 2015.
2
How Much Employee Turnover Really Costs You, Inc. August 30, 2013.
3,4
, 2016.
5
Marketing Research Chart: Do different age groups prefer different channels? Marketing Sherpa, March 10, 2015.

9
1. Study your best.
Once you understand what it is
that made longtime members of
your organization successful, you
can begin to organize and funnel
others in your organization who
share those traits into the right
areas to continue that success.
Successful organizations offer
specialized training and job
sharing to help combat this loss.
2. Conduct
experience reviews.
Whether it was an
organizational restructuring
done well or changes that were
communicated poorly, future
strategy will be greatly informed
by the insights of employees
who have been around long
enough to see both the highs
and lows of your enterprise.
3. Create
inter-generational
partnerships.
Encourage Baby Boomers to take on
mentoring roles — coaching employees
who will take over the tasks of retirees.
Create inter-generational project
teams to provide continuous skill
transfer and continued production, and
establish a process for Millennials to
document and share what they learn.
Loss of employees to retirement is inevitable, but organizational knowledge and skills can remain, if
you take steps now to ensure transferability. By far, most employees throughout the world are ready to use
social and collaborative tools as a means for making deeper connections across generations and work more
collaboratively. Organizations that embrace these trends will gain a competitive edge in the rapidly evolving
workplace and marketplace.
With those trends in mind, it should be a priority
to establish a social, collaborative knowledge
management system that facilitates the free flow
of knowledge and skills between the generations
that are working side-by-side in your organization.
These tools allow your employees throughout
the organization to connect with each other, no
matter where in the world they work. In addition,
interactions will be captured and stored in the social
collaborative knowledge management system,
making them available to anyone within
the organization.
Your People Are Still Your
Biggest Asset
Despite the increasing propensity to embrace digital
collaboration, it will still be up to the people who use
these systems to do the bulk of the heavy lifting.
Here are three essential steps you can take to
reduce the level of institutional knowledge you lose
with the loss of skilled employees:
of those surveyed believe that
social media is already or will
soon become the preferred
collaborative platform for work.
88%

Vacation Policies Around
the World: How Adaptable
Is Your Organization?
Employee expectations concerning vacation policies
can vary drastically across different regions of the
world. According to Forbes, while the average
American worker receives 16 days of paid leave each
year, this number may be more than double
in Scandinavia, parts of South America,
and other nations.1
Trends

11
A study by employer branding consultant Universum found that Scandinavian, European, and South American
employers populated most of the top global spots for job satisfaction factors and employer loyalty.2
As HCM
leaders look to continuously improve employee retention and happiness, vacation and flextime policies could
be an important element of the overall employee experience. To meet the needs of a global workforce,
understanding the variance in laws and cultural norms is critical.
1. Scandinavia
Four to five weeks of annual vacation
in Sweden and Norway each year is the
norm for Scandinavian workers. And it’s
clear that there’s strong cultural support
behind workers using their full allotment
of vacation days, with 88 percent of
Norwegians and 80 percent of Swedes
feeling “encouraged to take vacations”
by senior management, according to the
Daily Good.3
U.S.-based SAS, for example, is
rated among Norway’s top employers.
In addition to generous vacation,
Norwegian employees enjoy flexible
hours, work-from-home freedom, a bring-
your-children to work policy, and leave to
care for aging parents.4
2. The European Union
According to FindLaw, European
Union law dictates that workers are
given at least 20 to 30 days of paid
vacation time each year, which is often
in addition to paid holidays.5
Despite
those trends, the Daily Good notes
that 90 percent of French workers
feel “vacation-deprived,” and only
49 percent of Germans feel actively
encouraged to use their allotted
days off.6
However, time away from
work isn’t Europe’s only investment
in worker happiness. The Huffington
Post also notes that legislation and
employee federations are increasingly
encouraging workers to avoid working
during evenings and weekends.7
3. Australia and New Zealand
In Australia, a combined total of over 30 days of paid leave each year is average, according
to Working in Australia, and 76 percent of workers feel encouraged to use their vacation
days.8
Business Insider writes that worker happiness index studies of Australia and New
Zealand put those countries in the 11th and 8th spots, respectively, in global happiness.
The same study discovered that national wealth had minimal impact on worker happiness
and engagement. Instead, a comprehensive culture of encouraging work-life balance —
including generous vacation policies — pushed the region near the top.9
In fact, some of the best-regarded employers in Oceania choose to exceed requirements
for vacation leave, significantly. Warehouse Stationary, for example, is a New Zealand-based
enterprise that offers five additional forms of leave, including time for birthdays, sports
and “long service,” which is additional time off that is redeemable after a long tenure with
an employer.

5. South America
South American vacation laws
can vary, but include some of the
most generous options worldwide.
According to Mondaq, Brazilian
employees are guaranteed 30 days
of vacation, every 12 months, as well
as an additional salary bonus for their
vacation period.12
Time off is also
perceived as a matter of “workers’
health, safety, and well being.” Peru
is also similarly generous, with 30
days of vacation accrued per year of
service, though this may be reduced
in agreement with the employer
according to Baker McKenzie.13
There’s a wealth of different approaches to vacation policies worldwide, and employee expectations vary
accordingly. Global organizations should account for these differences when designing worldwide policies for
vacation, since cultural norms appear to have a strong influence on employee expectations. By concentrating
on shaping policies that address regional expectations, leaders can improve engagement and happiness
across their global workforce.
4. Asia
While Asian countries tend to
surpass the United States in
terms of paid vacation, they’re
still ranked toward the bottom
of the global list. On average,
APAC workers receive 19 days of
vacation and only take 14 days.
In some countries, such as South
Korea, just 7 out of 14 earned
days were taken.10
According to
Reuters, in Singapore, one of the
wealthiest countries in the world,
55 percent of employers reported
they were not doing a good job
developing fair flextime policies.11
1
U.S. The Only Advanced Economy That Does Not Require Employers to Provide Paid Vacation Time, Report Says, Forbes Magazine, 2013.
2
The Countries with the Happiest Employees, Universum, 2016.
3
Vacation Time Around the World, Good, 2015.
4
5
Summer Vacation Time: U.S. vs. Europe, FindLaw, 2015.
6
7
These Countries are so Much Better Than America When it Comes to Work-Life Balance, The Huffington Post, 2014.
8
Annual Leave in Australia, Working in Australia, 2016.
9
The Secret to Australian Workers’ Happiness, Business Insider Australia, 2016.
10
U.S., Asian workers are not using their vacation, CNN, 2015.
11
Sullen in Singapore: Its Workers are the Unhappiest in Asia, Reuters, 2014.
12
Brazil’s Restrictive Legislation on Vacation, Mondaq, 2015.
13
General Summary of Labor Rights in Argentina, Brazil, Chile, Colombia, Mexico, Peru and Venezuela, Baker McKenzie, 2014.

13
Change
Three Ways to Get Leaders
to Buy-In to a Unified
Global HCM Solution
Globalization offers the opportunity for organizations to span multiple continents
and derive value from diametrically different cultures and locales. With that
opportunity, however, comes challenging employee management issues.
Human Capital Management (HCM) systems work to provide the standardization
that multinational corporations need, while offering the flexibility to satisfy very
unique local employee demands. The ability to enjoy high employee efficiency,
regardless of location, is just one benefit of a unified HCM system.

Deploying a Human Capital Management (HCM) system globally, throughout an organization of both corporate
and subsidiary locations, can be a far easier process technologically than managerially. Achieving global HCM
solution buy-in can be a task that succeeds only through a delicate blend of people-centric education and
intricate logistical planning.
Subsidiary or field locations can often be resistant to such systems, despite the clear benefits they offer.
In order to truly achieve understanding and acceptance throughout all levels of the organization, a full HCM
strategy and corresponding network of support must be developed.
Encouraging Local
Subsidiary Buy-In
Worried about facing criticism
and push back as you roll out
your HCM solution? You’re not
alone. Front-line employees, or
employees who identify more
clearly with your subsidiary than
your corporate entity, may feel like
an HCM solution is simply another
piece of software that will scream
for attention, while not delivering
on its promises. That’s why the first
important step toward a successful
HCM deployment is creating
the human capital strategy and
providing your teams with the tools
to support it.
Strategizing isn’t enough,
however, especially when that
strategy is kept solely at the
corporate level instead of combining
The first
important
step toward a
successful HCM
deployment
is creating the
human capital
strategy and
providing your
teams with
the tools to
support it.
it with tactical considerations at the
local and subsidiary level. A lack
of organizational awareness could
ultimately undermine HCM success.
The next step after creating
the overarching strategy — which
should at the very least include
consideration of locally based issues
— is developing the education to
support it. And lest the cart be put
before the horse, education related
to both the strategy and the solution
must precede implementation to
loop in all affected parties.
HCM Wins = Better
Management and
Better Financials
It’s likely that subsidiary leaders
will be surprised by how high the
cost of an HCM solution can be,
especially if they aren’t seeing the
bigger global picture. By including
key human capital metrics within
the strategy and education, you
can begin to relay the appropriate
story for you. Whether through
dollars saved, greater productivity
achieved or a lessened strain on
management resources, those
metrics should become a bedrock
upon which to build a solid and
relatable HCM strategy.

15
Painting the Human
Capital Picture
Lack of understanding, fear of or
irritation with change, or previous
failed integration attempts can
easily turn off a local manager to
the whole concept of an HCM
solution — something that makes
acquiring buy-in that much
more difficult. To get around
those impediments, the fullest
possible picture of human capital
successes must be painted.
Showing its two-pronged benefit
— both how it benefits corporate
locations and subsidiaries alike
— can lead to a shared sense of
both pain (cost) and gain. Those
benefits are best shown through
the comprehensive educational
plan that accompanies an HCM
rollout, as well as examples of
successful HCM implementations.
International Automotive
Components (IAC) is just one
example of an organization that
successfully moved to a unified
global solution. They have a
presence in 22 countries with
over 100 locations and 32,000
employees. As is common in
large multinational corporations,
differing locations implemented
various employee-management
systems — using 30 types of
payroll processing software alone.
Because of this diversity, Bonnie
Tibitowski, IAC’s Senior Director
of Financial Shared Services,
highlighted her organization’s
To truly achieve understanding
and acceptance at all levels of the
organization, a full HCM strategy
and corresponding network of
support must be developed.
need to change to “one global
system across all of IAC to be
able to standardize processes and
procedures, achieving local and
global compliance, and ensuring
accurate and timely pay for their
employees across the globe
to support their organization’s
growth.” For the full story, visit:
adp.com/IAC.
By employing a strategy and
educational plan that shows
manpower and monetary savings
at each level while supporting
your organization’s overall
mission, you can silence the critics
and facilitate a comprehensive
global HCM solution buy-in to
support growth for both your local
and global subsidiaries.

What’s Your Agility Quotient (AQ)?
Workplaces are
transforming, and
change is the new
normal. But keeping up
with your competitors
isn’t enough — you
need to outpace them.
We asked what it takes
to be an agile leader.
You might be surprised
at the results.
72% said 25%
15% said 26-50%
8% said 51-75%
5% said 75%
What percentage of your workforce
is remote today?
Since technology is the
most critical enabler of
your workforce, is HR
driving your technology?
25% said Yes
26-50% said Sometimes
51-75% said No
82% said 25%
12% said 26-50%
4% said 51-75%
2% said 75%
How many of your strategic roles
have been filled with a truly globally
minded hiring process, where you
extended the search
beyond your backyard
to find the best talent?
1.
2. 3.

17
Change is all in a day’s work. It’s your ability to adapt that
makes all the difference. See how your AQ stacks up.
Yes, already
underway
Yes
Yes, in initial
stages
No
Under
consideration
Not an
option
19%
14%
Are you replacing parts of your workforce
with automation, machine learning, and/or
artificial intelligence?
Is personal meaning and societal impact
a differentiator for your organization?
Change is the
new normal.
Transformational workplace
change is not only happening,
it’s accelerating. How will you
keep pace ... thrive ... innovate ...
and outrun your competitors?
Agility is key. Are you an agile
leader?
Take the What’s Your AQ?
assessment to find out.
Visit adp.com/aq to see how
your AQ ranks compared to
your peers.
21% 27% 29% 23%
Uncertain
67%
4.
5.

Beyond the Bottom Line:
How An HCM Strategy Can
Help Corporate Success
According to PwC, 76 percent of CEOs believe measuring corporate success
is about more than just profit, citing several measures of success not related to
the financial side of the organization.1
They include innovation, organizational
purpose, and the impact on the broader communities in which the organization
operates. For HCM leaders, this raises questions about how to build an HCM
strategy that aligns with these broader measures of success, to drive a greater
impact on society while still supporting the profitability of their organization.
Innovation
Organizational
purpose
Positive
community impact
1
19th Annual Global CEO Survey, PwC, 2016.

19
Positive Community Impact
A third factor that CEOs view as a measure of organizational success is the impact the organization
has on the broader community; however, impact can mean many things. It could mean helping people in
the community develop job skills (those not working for the company), providing volunteer services in the
community, or supporting local educational initiatives with grants or internships for students.
It will ultimately be your people who drive home a connection between your organization and the
community. With that purpose in mind, you could begin hiring more people with a history of public service
or create employee benefits packages that include paid time off for community service.
Here are three measures that can align your HCM strategy with corporate success.
Innovation as a
Measurement of Success
The PwC report shows that organizational success
could be measured by the innovation produced
by the organization, so it’s no surprise that more
than half of CEOs surveyed called out the need
to fuel innovation. For organizations in which
innovation is a top priority, your talent acquisition
strategy should revolve around exclusively
selecting and onboarding people who are proven
innovators and who will move swiftly to affect
change, helping your organization to grow.
Innovation helps a company break out of
routine, to find success through avenues that,
perhaps, their competitors have not explored.
But, innovation requires process, new ways of
thinking, and risk taking. So, leaders should ask
themselves, “Are we seeking people who are risk
takers and forward thinkers? Is HR encouraging
hiring managers to select for innovation? Are we
truly measuring performance for innovation?”
To truly innovate, you need the right people,
and your HCM strategy should be aligned with
that goal.
Organizational Purpose
and Value
Whether organizations achieve a broader purpose
and add value to customers is another crucial
nonfinancial measure of success. Not only do one
third of CEOs believe they could improve how they
measure organizational purpose and value, but
nearly 60 percent believe they could communicate
the organizational mission more effectively. That
idea is important for leaders to understand because,
according to ADP’s study, The Evolution of Work:
The Changing Nature of the Global Workforce,
“today’s workforce is more and more guided by a
search for meaning or doing important work, rather
than by simply earning a paycheck.”2
To attract new talent, you may need to shift
how the organization communicates its purpose
and values to potential candidates by altering job
descriptions and recruitment marketing tactics to
reflect that message more accurately. Recruiters can
also address the organization’s higher purpose and
the premium the organization places on those who
are willing to fulfill those overarching goals in their
discussions with candidates.
CEOs want to get beyond the bottom line and measure success by how well the entire
organization lives up to its stated vision, mission, and values. HCM leaders can help make
that happen by developing strategies that encourage and promote these ideals to both
the organization and the world at large.
1. 2.
3.
2
, 2016.

What Small and
Large Organizations
Alike Can Learn
from the First Year
of Annual ACA*
There’s nothing like getting a little
experience under your belt, especially when
it comes to complying with the Affordable
Care Act (ACA). But experience in this area
is hard to come by. Although businesses with
50 to 100 employees had to file 1094-C and
1095-C forms in 2015, this year represents the
first time they must meet ACA compliance
deadlines for offering benefits or face a
potential employer shared responsibility
penalty. Larger organizations, meanwhile,
have by now amassed only a single year’s
experience with compliance. There’s a lot to
learn all around.
Luckily, organizations that have worked with a number of companies during the past couple of years
have learned some key tips — for both larger and smaller organizations — that can help with the task of
compliance moving forward.
Risk
*Originally published by Forbes Media LLC as ForbesBrandVoice content.

21
It’s All About The Data
When it comes to the ACA, there’s no getting around doing your homework.
“The whole thing is extremely data-driven,” said John Haslinger, vice president of strategic advisory
services for ADP®
. Haslinger has worked with many companies on ACA compliance. “After this first
year, many organizations are finding that they don’t have the best data,” he said.
ACA compliance requires data from the payroll, benefits, HR and absence management systems.
The biggest data gap Haslinger sees so far comes from the absence of a time management system.
That’s because employers have to factor things like jury duty and family and medical leave into hours
of service to determine who must be considered a full-time employee under the law.
Haslinger anticipates there may be just minor penalties for honest mistakes in these areas for
2015, but there won’t be much leeway in the future.
“So they really have to make sure they get good data for 2016,” he said.
1.

Recount (And Reconsider)
Contingent Workers
It’s never been more important for employers to have clearly
defined worker classifications. Incorrectly defining employees,
contract workers and temporary workers has big consequences
under ACA — especially this year.
That’s because last year, qualifying employers had to make
sure 70 percent of their full-time employees were offered
minimum essential healthcare coverage to avoid penalties.
If a few workers were found to be full-time employees when
the employer considered them contractors, the company still
had a good chance of being below that 70 percent threshold.
This year, that threshold goes up to 95 percent. So a few
misclassified workers could trigger a major penalty.
How major? The penalty for failing to offer minimum
essential coverage to substantially all of your full-time
employees, meaning 95 percent of them, in 2016 is a $2,160
fine for every full-time worker the company employs —
including those who are correctly covered. Keep in mind this
penalty is triggered if the employer does not make an offer of
health coverage and at least one full-time employee enrolls in
exchange-subsidized coverage.
Haslinger thus recommends that companies proceed with
caution when making hiring decisions. If there’s any possibility
that the government could consider a potential contractor or
temp an employee, Haslinger recommends hiring the person as
an employee.
Double-Check Everything Before The Penalty Estimate Arrives
“I think there is a high probability that many employers are going to get penalty assessments,”
Haslinger said. “And why wouldn’t they? ACA is complicated, and everyone was giving it their first try just
last year.”
But just because you didn’t receive a penalty assessment right away — even by the time you’re doing
your filing next year — it doesn’t mean you did everything right. It could take 18 months or more after the
filing deadline for these assessments to reach employers.
Simply put, don’t trust that your methods were perfect the first time around. The fact that you haven’t
heard anything to the contrary yet doesn’t mean anything. Haslinger recommends double-checking all
processes, procedures and, of course, data — filed and otherwise — again and again, and immediately
fixing any mistakes you find.
“That shows good-faith effort to be compliant,” he said. Otherwise, “you’ll probably do the same thing
wrong for 2016, 2017 and into 2018. You could be looking at a multi-year penalty.”
3.
2.
Simply put:
The ACA is a
work in progress,
and it’s going to
keep changing.
ACA

23
Marketplace Notices
Are Forthcoming
When someone applies for a subsidy on the
marketplace and indicates he or she is an employee,
the exchange/marketplace will send a marketplace
notice to the employer to alert it that based on
information that the employee provided on his or
her application, the marketplace determined that
the employee was eligible for a premium tax credit.
The employer then has 90 days to agree with or
contest that claim.
With the exception of employers in a couple of
states, no one has gotten these notices yet, but the
notices should be coming soon. Employers need
to be on the lookout for these forms. Rather than
arriving in the mail at corporate headquarters, they’ll
most likely be delivered to each employee’s worksite.
Executives should alert and train on-site supervisors,
said Haslinger, to look for the notices and be sure
that they don’t get pitched with the junk mail. In
addition to providing training, he recommends that
employers do a sweep through every worksite to be
sure none of the notices have been missed.
Be On The Lookout
For Changes
Last year, the IRS issued new guidance affecting
affordability safe harbors — the guidelines
employers use to calculate whether their plans are
affordable for employees. That guidance changed
some employers’ understanding of the safe
harbors. At the same time, the IRS clarified some
of the confusion employers were experiencing
around how their contributions to employees’
health reimbursement accounts affected
affordability — again changing the way some
employees would file.
And those changes are just two of many. “The
ACA legislation is hundreds of pages long, it’s
really complex, and we are going to get thousands
and thousands of updates,” said Haslinger.
Simply put: The ACA is a work in progress, and
it’s going to keep changing. To stay compliant,
employers should be as vigilant about watching for
forthcoming changes as they are about tracking
their important employee data.
4. 5.

Predictive analytics for HR has the potential to enhance a multitude of HR
strategies significantly, including workforce planning, leadership development,
diversity, and employee education. The Society for Human Resources
Management (SHRM) predicts the “data-savvy HR leader” will become an
increasingly important part of organizational leadership in the year to come.1
By analyzing a wide array of workforce data, including industry and regional
benchmarks, internal records and user-generated information, leadership can
enhance their ability to identify patterns and take proactive actions.
Predictive
Analytics
for HCM:
Reaping
the Rewards
While
Avoiding
Risk
According to research from Deloitte, 75 percent of HR professionals
believe the use of analytics is important.2
The study highlights that
“companies that build capabilities in people analytics outperform
their peers in quality of hire, retention, and leadership capabilities,
and are generally higher ranked in their employment brand.”
1
Get Started Using Data for HR Decisions, Society for Human Resource Management (SHRM), 2016.
2
HR and People Analytics: Stuck in Neutral, Deloitte, 2015.

25
But despite the remarkable potential of
predictive analytics, HR leaders should still be
conscious of potential risks associated with
developing comprehensive data strategies.
Employee privacy and civil liberties should remain
top-of-mind as HR leaders progressively increase
their use of sophisticated tools and strategies for
predictive analysis.
Preparing for Employee
Privacy Concerns
Advocates of workforce analytics argue
that employer monitoring of productivity,
engagement, and other factors is not a new
concept. While legislation could evolve in the
near future, HR’s ability to collect and analyze
employee data currently has few legal limitations.
Despite this, Inside Council recommends a
culture of transparency for organizations adopting
predictive analytics, including clear policies that
establish the organization’s role as data owner.3
In addition, organizations should consider
transparency regarding the types of monitoring
and predictive analysis being performed and
its “business purpose.”Although the employee
data that is used to perform analyses may
not technically fall within the legal definitions
of personally identifiable information (PII) or
protected health information (PHI), organizations
must work to treat the results of monitoring as
sensitive. Appropriate information governance
procedures can facilitate adequately restricted
access within HR teams.
Managing Biometric
Technology Risks
The rise of the Internet of things (IoT), or
personal sensors and other connected devices,
has introduced new forms of big data collection
for HR departments. Sensor-based biometric
technologies can allow for increased accuracy for
factors such as time-tracking, information security
and employee health assessments. However, as
SHRM highlights, those technologies can also
introduce employee privacy risks and evoke “big
brother” concerns among your employees.4
Legislative compliance and the guidance of subject
matter experts, such as technology manufacturers
and internal legal counsel, can be vital resources
while implementing biometric technologies to
verify the civil liberties of your workforce are not
compromised inadvertently.
Sensor-based biometric
technologies can allow
for increased accuracy
for factors such as time-
tracking, information
security and employee
health assessments.
3
Employee and Customer Privacy in An Era Of ‘Big Data’ Monitoring, Inside Counsel, 2015.
4
Workplace Biometric Technology Outpacing the Law, Society for Human Resource Management (SHRM), 2015.

Mitigating the Risk of
Inaccurate Analysis
Predictive analytics points to future possibilities,
based on past behavior. According to Analytics
Magazine, Hewlett-Packard’s “Flight Risk” score, a
predictive measure of employee retention risks, has
undeniable benefits to the organization.5
But the
article also points out that Hewlett-Packard has a
“great responsibility” to filter the results of predictive
analysis through knowledge and experience, ensuring
that potentially inaccurate results don’t have a
negative impact on an employee’s career trajectory.
Human behavior is ultimately complex. At best,
even the most sophisticated talent and retention
algorithms will only capture a fraction of the
organizational, personal, and cultural factors that
On May 18, 2016, the United States Department of Labor (DOL)
published its highly anticipated change to the Fair Labor Standards
Act (FLSA) overtime rules, in effect doubling the minimum salary for
exemption threshold to $47,476 for salaried workers. Estimates from
the DOL and President Barack Obama predict that the new overtime
rules will make 4.2 million currently exempt workers eligible for
overtime pay.
So what can you do to be compliant? How should you manage
the change and communicate the impact to your employees? And
how do you go about controlling future costs on an ongoing basis,
as a result of these changes? To help sort it out, three of ADP’s top experts addressed these
important questions with the goal of helping you plan the best possible strategy as you move
toward complying with the new FLSA overtime rules. Visit adp.com/overtimechanges to read
more details about the new rules in the FLSA Through the Eyes of the Experts Guidebook.
affect employee behavior within an enterprise.
While predictive analytics can be a powerful means
of identifying rising talent and pointing to risks,
CHROs must establish clear guidelines to make
sure that results are carefully considered and
fairly applied.
Predictive analytics has the potential to ease
talent management pressures and drive cost
savings, but it may also introduce risks concerning
fair treatment of employees and their right to
privacy. HR leaders should work with legal counsel,
technology experts, and information governance
specialists to mitigate these risks, while still pushing
forward to take advantage of the incredible benefits
these emergent technologies provide.
Guidebook to New
DOL Overtime Rules
5
Predictive Analytics: The Privacy Pickle, Analytics Magazine, November/December 2013.

Apria Healthcare, a leading provider of home
respiratory services and medical equipment,
serves more than a million patients every
year. To do that effectively, they needed help
updating and automating their HR systems
to stay compliant and make better use of
employee data. ADP®
helped them improve
their HR workflow processes and give employees
and managers easy-to-use self-service tools, so
everyone could get back to what’s important —
improving their patients’ quality of life.
Watch Apria’s story at adp.com/Apria
and hear from JoDee Mountain, VP Human
Resources Operations, and Celina Scally, SVP of
Human Resources.
Challenges:
· Ineffective manual processes
· Outdated and unsupported HR system
· Piles of paperwork
For over 140 years, Follett has provided
content and school solutions to over
80,000 K-12 U.S. schools and school districts.
Working with ADP®
gave the company a
unified HCM solution with advanced analytics
that let them shift from a transactional
model to a more strategic approach. ADP’s
HR analytics give Follett’s HR partners 24/7
access to data, metrics, reporting, and
dashboards for insights they need to make
better business decisions.
Watch Follett’s story at adp.com/Follett
and hear from Cheryl Brand, VP
Compensation HR Systems, and Irma
Long, VP Talent Acquisition.
Challenges:
· Fragmented HR services
· Decentralized workforce
· No analytics to drive decision-making
Pioneering HCM Solutions that
Drive Business Growth
Automating Solutions for More
Strategic HCM
Real Stories,
Real Impact
27
FollettApria Healthcare

HR Solutions | Payroll | Good Job
ADP, the ADP Logo, ADP Human Capital Insights, and ADP Research Institute are registered
trademarks of ADP, LLC. ADP A more human resource. is a service mark of ADP, LLC.
All other trademarks and service marks are the property of their respective owners.
04-3765v6-076 Printed in the USA Copyright © 2016 ADP, LLC.
#hellowork
Culture – some assembly required.
Building a workplace people are excited about requires finding people you can get
excited about. That’s why ADP® offers insight-driven recruiting and talent management
services to help your company create a work culture that is one of a kind.
Visit adp.com/hellowork and see how we can provide a more human
resource for your business.

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