Employees

CLIMB TO NEW HEIGHTS: PATH TO SUCCESS HOW CHROs CAN LEAD THE JOURNEY

At the core of every successful organization is the ability to evolve. However, in a world dominated by turbulent economic headwinds and unpredictable global events, driving positive and sustained change is a serious challenge. The role of modern executive leaders has increased exponentially. Their remit now firmly includes the ability to pivot quickly when the unexpected hits, inspiring innovation at scale in a secure, simple, and repeatable way. Leading significant levels of transformational change isn’t easy—with concerns ranging from sluggish legacy technology and emerging technology management to regulatory reporting, market disruption, and talent and skills challenges. Enterprise leaders and their teams are clearly under more pressure to innovate than ever before. Climb to new heights: How CHROs can lead the journey | 2

1 Base camp: Prepare for your digital transformation expedition As businesses continue to evolve, the functions of CHROs and other HR leaders are also changing. Today, they are at the forefront of supporting digital transformation by introducing the right technologies and business strategies to drive employee productivity, increase efficiency, and reduce costs. They’re continually innovating for better talent decision-making while also managing emerging workforce and talent needs. Climb to new heights: How CHROs can lead the journey | 3

HR strategy is tied to the business strategy. It’s one strategy.” Jacqui Canney Chief People Officer, ServiceNow Source: Human Resource Executive, ServiceNow Chief People Officer Jacqui Canney on Technology and HR, April 5, 2023 For CHROs, the digital transformation journey may at times resemble leading an expedition to scale a mountain. To reach the top, they need to have the right people, understand current climbing challenges, and know the best route. And they need the right gear to make it all possible. Climb to new heights: How CHROs can lead the journey | 4

2 The tandem climb: CHRO and CIO collaboration The strategy of investing in digital HR tools to streamline employee engagement and HR processes is not new. The global HR technology market was valued at $32.6 billion in 2021 and is projected to 1 reach $76.5 billion by 2031. Climb to new heights: How CHROs can lead the journey | 5

However, such investments have largely left enterprises saddled with legacy technology and accidental architecture. Too many HR apps and complex core systems don’t offer the consumer-type experiences users want—and seriously impact employee experiences and organizational agility. Pivoting to digital HR solutions on an enterprisewide intelligent platform empowers Collaborate with the CIO and leaders to respond to fast-evolving talent and IT teams who have a wealth skills challenges and reduce spending. But HR teams alone may not have the deep expertise of experience integrating to successfully manage the technology adoption process. technologies across the Just as with a mountain climbing expedition, enterprise to strategically leaders know it’s critical to assemble an solve business challenges. experienced, diverse group who can work cooperatively to reach the summit. Climb to new heights: How CHROs can lead the journey | 6

of HR leaders con昀椀rm their HR technology solutions and strategy do not match 56% their current and future business needs such as digital transformation Source: Gartner, Top 5 Priorities for HR Leaders in 2024, 2023. GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved. Climb to new heights: How CHROs can lead the journey | 7

3 Scaling the summit: The path to better employee productivity Today, employee efficiency is stymied by spending too much time and effort searching for information because of siloed systems and departments and multiple employee portals. Not to mention the loss of productivity from making do with manual, inconsistent service and support experiences. Climb to new heights: How CHROs can lead the journey | 8

Just imagine if climbers on a mountaineering expedition faced similar challenges because they had to use outdated paper maps and trail markers weren’t maintained. The climb would be slower, and they might go on an accidental detour, putting everyone at risk. Fortunately, an intelligent platform combined with employee workflows can help HR organizations stay on the path of productivity by: • Empowering employees to easily self-serve and navigate complex HR journeys in a single portal • Providing speed, personalization, and convenience on any digital channel • Using AI-driven search to find and share relevant HR knowledge content faster • Boosting productivity and giving employees more time to focus on what matters Climb to new heights: How CHROs can lead the journey | 9

Our technology has helped me turn complex HR processes into simple solutions for large, global workforces, freeing up time for people to do what they do best: innovate, create, connect.” Jacqui Canney Chief People Officer, ServiceNow Source: i4cp, The Future of Work Is Now. ServiceNow CHRO Jacqui Canney on How Leaders Need to Reframe Their Thinking, February 15, 2022 Climb to new heights: How CHROs can lead the journey | 10

4 Overcoming the danger: Rerouting and reducing the cost to serve For CHROs, it’s not news that HR agents still devote too much time to routine employee requests such as password changes and queries about holiday schedules—rather than addressing more pressing and complicated issues that need a human touch. The result? Higher HR costs, increased agent workloads, and negative impacts on agent productivity. Climb to new heights: How CHROs can lead the journey | 11

On a mountaineering expedition, climbers wouldn’t waste time arguing over details, such as if it’s smart to carry a compass, at the expense of not noticing larger risks, such as a forthcoming storm or if someone is in danger of heat stroke. Missteps like these could completely derail the ascent. With a single platform for digital transformation in play, HR agents can focus on what matters by: • Using enterprise workflows to solve employee requests faster through automation and an intelligent workspace • Deflecting simple and high-volume inquiries through self-service • Providing a consistent and standardized selection of digital channels for employees to easily access self-service, including mobile, portal, kiosk, chat, and virtual agent • Using AI and chatbots to provide employees with real-time responses to routine inquiries and instant access to relevant knowledge and information across any digital channel Climb to new heights: How CHROs can lead the journey | 12

5 Ascending to new hiring heights: Using a skills-based approach HR leaders are realizing they can shift to a skills-based approach to hiring rather than using static job descriptions and hierarchies. Climb to new heights: How CHROs can lead the journey | 13

Talent shortages, automation, worker expectations, and current economic conditions are forcing the issue. Transitioning to a new hiring model can be a struggle because organizations are blind to what investments they should make in training, reskilling, and hiring to optimize their workforces. Plus, decision-making is difficult with no visibility into workforce skills and emerging talent. For a mountaineering expedition, this would be like putting together a group of climbers with no idea how experienced or skilled they were or if they might need additional training before setting out. Jumping in with incomplete knowledge puts the whole trek at risk. Embracing a skills-based hiring model makes good business sense. With a single system of action combined with intelligent workflows, organizations can: • Use AI-driven skills intelligence to drive better talent strategies • Make smarter talent decisions with better insights into the skills and abilities of the workforce • Capture the evolving nature of modern work with the right tools for better agility and visibility Climb to new heights: How CHROs can lead the journey | 14

When we enable a new operating model with a skills-powered talent marketplace, it’s a game changer. Kelley Steven-Waiss Chief Transformation Officer, ServiceNow Source: i4cp, The Future of Work Is Now. ServiceNow CHRO Jacqui Canney on How Leaders Need to Reframe Their Thinking, February 15, 2022 Climb to new heights: How CHROs can lead the journey | 15

Put intelligence to work The modern enterprise is dominated by change—new expectations, new engagements, new revenues. Increasingly, the CHRO and HR organizations must collaborate with the CIO and IT teams to facilitate the organization’s success in this contemporary era. That’s because compared to the status quo, an efficient and modern digital HR solution yields better and simpler HR processes. It encourages employees to become more productive and work faster and smarter. While the journey to navigate change is never easy, reaching the transformation summit has rich rewards. One intelligent platform outfitted with generative AI capabilities—so HR agents can instantly view cases, associated case histories, and auto-generated suggested resolutions—helps accelerate the entire business Companies can quickly respond to fast-evolving talent and skills challenges, reduce spend to serve, and most importantly, empower the business with the ability to constantly reinvent itself. Climb to new heights: How CHROs can lead the journey | 16

For a deeper exploration of ServiceNow solutions, we recommend the following content: 2 ways to boost employee output & cut HR costs 3 steps to drive employee retention and A modern, purpose-built workspace on a single platform business growth can streamline your HR operations. In this guide, learn how In this guide, learn how to deliver a career hub to your to empower your employees to easily self-serve and how to employees, orchestrate learning and development, and streamline the resolution of employee inquiries to improve enable smarter decisions to help you drive employee retention workforce productivity and reduce costs. and foster business growth. Read Guide Read Guide The ServiceNow commitment to responsible AI Software as savings: The HR leader’s guide to and how we deliver responsible GenAI solutions unleashing AI-powered efficiency in tough times GenAI has the potential to deliver huge benefits. However, it In this ebook, uncover three proven strategies HR leaders can is also a source of concern. In this white paper, uncover how adopt by harnessing the power of AI to reduce costs while ServiceNow is committing to responsible AI and learn more driving growth. about our GenAI solutions. Read White Paper Read Ebook Notes 1 Allied Market Research, Human Resource Technology Market: Opportunities and Forecast, 2021–2031, 2023. About ServiceNow ServiceNow (NYSE: NOW) makes the world work better for everyone. Our cloud-based platform and solutions help digitize and unify organizations so that they can 昀椀nd smarter, faster, better ways to make work 昀氀ow. So employees and customers can be more connected, more innovative, and more agile. And we can all create the future we imagine. The world works with ServiceNow™. For more information, visit www.servicenow.com. © 2024 ServiceNow, Inc. All rights reserved. ServiceNow, the ServiceNow logo, Now, Now Platform, and other ServiceNow marks are trademarks and/or registered trademarks of ServiceNow, Inc. in the United States and/or other countries. Other company names, product names, and logos may be trademarks of the respective companies with which they are associated.