Pyaterochka and IBS discuss the results of digital HR transformation across the chain
Nationwide supermarket chain Pyaterochka announced the results of its digital HR transformation project implemented in partnership with Russian company IBS, a provider of comprehensive IT solutions
31 July 2017
Nationwide supermarket chain Pyaterochka announced the results of its digital HR transformation project implemented in partnership with IBS, a provider of comprehensive IT solutions. During the project Pyaterochka leveraged IBS’s expertise to centralise, automate and outsource support for transactional HR processes. This includes personnel management and management of internal HR services for the chain’s employees, as well as the process of mass recruitment of frontline staff. The first public presentation of the project was delivered during Russian Retail Week 2017.
Due to intensive growth of its store numbers, Pyaterochka faced a significant increase in the burden on resources for internal personnel services in personal recruitment and maintenance of staff processes. As a result, it was unable to effectively manage HR functions using traditional methods on account of the companies’ ambitious growth plans.
In 2015, the company hired up to 8,000 new employees every month, and by 2017 this figure had increased to 12-14,000. Two years ago around 70% of the company’s HR resources were targeted towards the execution of routine manual transaction processes, contributing to a lack of resources to address strategic problems. In addition, about 60% of master data on personnel processes was incomplete or substandard, meaning management lacked the information to understand the effectiveness of HR services and make strategic decisions to develop the commercial network. With the goal of transforming the management of HR functions and HR data the company’s leadership decided to turn to an external partner, IBS.
The video of the project presentation is available on IBS’s official Youtube channel: As a result of the collaborative project, the handling of HR transactions was outsourced to a service centre using IBS resources, integrated with the client’s internal HR services. A catalogue of HR services with several levels of service delivery was developed as part of this model: from the self-service portal where employees can receive services independently, to integrated services demanding the attention of highly qualified specialists. At the same time, the services were put in order, centralised and in some cases digitised.
The parameters for the provision of all HR services were strengthened through a Service Level Agreement (SLA). Finally, in the catalogue of services there is the provision for their adjustment, flexible scaling, as well as adding new services depending on user feedback, changes in the number of employees and new business needs.
Transparency and efficiency in the management of the catalogue of HR services is provided by an information system for process management that registers all user requests and is designed to work with accounting systems, receipt of documents, etc. The system allows for ergonomic management of processes and control of the quality of their execution at a visual level. The system is closely integrated with the client’s information systems, as well as the systems of external service providers, for example, to track the movement of personnel documents by logistics companies.
“Given the volume, speed and number of HR transactions, the manual maintenance of relations with the service centre, manual tracking of applications, mistakes and quality level would be impossible. One of the key factors in our choice of IBS as a HR partner was its strong IT expertise, which allowed us to solve our business problems by deploying modern technological solutions,” said Tatyana Knyazeva, HR Director at Pyaterochka.
The system’s analytical capabilities allow companies to use qualitative baseline data to make personnel decisions that would previously have been impossible while working with documents on paper and without centralisation of data.
In this way, over the course of the project the main transactional functions of Pyaterochka’s HR departments were centralised and automated. A scalable model of HR services was created which flexibly evolves and expands with the development of the client company. The company’s HR has transformed into a hi-tech service function. The use of an external outsourcing centre allowed the company to implement the transition to a new model in the shortest possible time — within six months.
“As a result we have created a modern and hi-tech digital foundation for the management and development of HR, allowing us to take decisions based not on intuition but rather on data, and gives us the opportunity to solve strategic questions with reliable support,” said Ilya Tovbin, IBS Director for Key Client Operations.
As a result of the introduction of a unified model of HR services the share of resources to support transaction processes has fallen to 15%. Moreover, up to 40% of HR specialists’ resources are now directed towards strategic projects and increasing operational efficiency.
As part of the project IBS has introduced a range of IT solutions that help optimise labour costs, reduce hiring time and the number of mistakes in documents, and minimise manual labour. In particular, the automatic process of hiring employees is provided by a single candidate registration platform (ATS), developed by IBS. The programme shows the implementation of the employee recruitment plan in real time and the conversion of potential candidates to new employees. To optimise labour costs for recruitment specialists, IBS has introduced automated text recognition systems for resumés (Daxtra), and also technology for recognising handwritten texts and printed documents.
“We have built an employee-focused system with the assistance of professional HR services for their tenure in the company, so that management can take decisions based on data and switch the focus of HR services from the support of manual operations to strategic tasks and projects,” said Dmitry Prokhorenko, Director of the HR Outsourcing Division at IBS.
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