Hewlett-Packard Net Success for HR: A Case Study






Hewlett-Packard Company was an original proponent of open architecture, client/server systems. In the mid 1970's, HP made a strategic commitment to open systems, both for deployment internally and for our produt strategies. This positioned HP in the vanguard of digital communication innovaors.

In 1980, HP Labs implemented an e-mail system which allowed them to correspond with external research bodies for product development and information exchange. Three years later, HP's internet was further extended to include US-wide Engineering. As early as 1986, worldwide Internet access was added for Research and Development and Manufacturing. By 1989, all corporate applications switched to TCP/IP.

As a pioneer of this technology, HP was an early leader in commercial application of the Internet. In 1993 it introduced customer access to HP's intranet through Access HP (www.hp.com), one of the first corporate web sites. As a result of this journey , HP today owns and operates the world's largest private internet or intranet, running all aspects of its US$31.5 billion business on a private intranet TCP/IP backbone.

HP's Intranet


Hewlett-Packard (Canada) Ltd.
Hewlett-Packard (Canada) Ltd.
As part of the HP family, Hewlett-Packard (Canada) Ltd. (HPCL) utilizes and benefits from the corporate IT infrastructure. HPCL employs 1,600 people in 28 offices and three manufacturing divisions. In 1995 revenues for HPCL topped C$1.2 billion.

The Corporate Challenge
In 1994, the Human Resources Department was faced with a formidable challenge. Lew Platt, HP President and CEO, asked all departments and divisions for better return on corporate assets. For the HR department, the main corporate asset is the company's employees. No other department could be expcted to take'ownership' of the employer-employee relationship, nor absorb the department's information-intensive functions in a 1,600- person organization. Moreover, a diminishing supply of qualified IT professionals was beginning to force the HR Department to protect those assets from corporate raiding and the temptations of contract work.

Employee retention was clearly identified as a key strategy for improving return on these assets. Like many large, flourishing enterprises, HPCL has an extensive employee benefits package that includes everything from medical coverage to education and investment counseling. In 1994, a completely new and innovative pension plan was introduced. It was urgently felt that a better understanding of the comprehensive benefits plan by employees would help solidify their commitment to HPCL.

At the same time as HPCL Human Resources department was looking for new and better ways to explain this benefits package, Hewlett-Packard Corporation was rolling out over 70,000 copies of Netscape navigator to all offices worldwide. The Intranet became the obvious choice as a delivery and access vehicle. HPCL went on-line in June 1994 with a Human Resources home page that has been continuously developed and enhanced ever since. Following is a summary of the ways in which Internet technology has assisted the HR department in meeting corporate objectives for improved return on investment in the Company's assets.

A Hardworking Home Page
The HR department created a fully interactive home page emphasizing substance as well as image. At the time of writing, 1,780 visitors are accessing the site per month. Beginning with a "What's New on the Personnel Home Page", the viewer is given a wealth of choices to scan, including a list of new files added or updated in the last ten days. If none of the choices displayed correspond to the employee's interest, clicking the Search Tool button prompts users with a few key words. The system then responds with a list of documents containing those words, and the employee can select the appropriate document.

Career Development Tools
The IT profession is a mobile one, with workers on the lookou tfor positions offering career growth and development opportunities. HP's objectives include provision of the opportunity for training and education to upgrade employees' skills and capabilities and increase their satisfaction. Hence every job vacancy is posted, in part to ensure that HPCL employees are given first consideration for openings that would constitute a promotion or opportunity for professional development. This reflects HP's 'promotion from within' philosophy.

An employee wanting to view all current job postings throughout the company can easily do so by selecting the appropriate button on the home page. To apply for a position, he or she can simply download the appropriate form and complete it. In the same section, candidates will find helpful topics such as: Preparing for the Job Search, Researching a Department, Preparing for the Interview, What Managers Look for in a Potential Candidate, Performance Skills, Professional Presence, How to Market Yourself Internally and Work Ethic.

Management Tools
Also available at the click of a mouse is a section designed with the specific needs of managers in mind. As part of their responsibility for meeting or exceeding their business unit's objectives, managers at Hewlett-Packard are responsible for expectation setting, coaching and reward. The Management tool section contains performance evaluations for yearly review, ranking tools and associated distribution guidelines to help managers determine which employees need attention and which are setting new standards of performance. This section also provides centralized access to frequently used tools and forms as well as links to topics of interest to HPCL managers.

Due to the globalization of HP's business, Canadian employees may have managers in the US while some US employees have managers in Canada. To address any issues associated with this, a section is included for non-resident, cross-border managers to educate themselves on Canadian practices.

Customized Communication Tool
HP's incentives philosophy is to provide a benefits, pensions and financial services package that is comprehensive, balanced, competitive and flexible. Flexibility, in particular, necessitates a degree of customized communication for the particular benefits an employee chooses. The HR home pageenables employees to access detailed information about their particular benefits. Other areas of help include contacts and telephone numbers, assistance on selling or issuing shares, changing contributions in the stock plan and retirement plans Employees can use the home page to update beneficiary(ies), home addresses, marital status and medical/dental coverage or exercise stock appreciation rights - all conveniently on-line and on demand.

Training and Development Tool
The goal of HPCL Education is, "to provide the right learning products at the right time and place to help create the most highly skilled, innovative and resilient workforce in the industry". To meet this goal, the educational offerings are varied, constantly updated and provide information on classroom and self-paced training alternatives. By making the education curriculum accessible on-line, HR assures employees of the most current information. Training calendars, and course descriptions and objectives on everything from leadership to environmental health and safety, inform and motivate employees. This section includes process details such as education price lists and importantly, registration information on courses being held at other locations.

Tools and Toys
Although its name sounds frivolous, this section provides considerable value. In addition to the basic compensation forms such as medical and dental, it provides a number of interesting tools for employees' benefit. One is what we refer to as a Compensation Modelling tool, developed to facilitate an HPCL employee's comparison between total compensation (salary + company paid benefits) at HPCL and another company.

Another useful tool was created to help employees prepare for the 1996 income tax year with respect to their own RRSP contribution level under HPCL's new Pension Plan. A related tool in this section is a pension modelling program which helps employees choose their retirement plan contribution level. In addition, it projects future account balances assuming different levels of contribution and investment returns.

'NET RESULTS

"As a new manager, I place importance on being able to access policies and procedures as the situation arises. The HR web site provides me with virtually all the information I need to manage my group of professionals. It enables me to be self-reliant, without having to engage the HR department for answers to simple questions."

Don Bradley, District Sales Manager,Computer Systems Organization.
Through its web site, the HR department is supporting their vision of "delivering world class human resources solutions, any time, any place". Much has been accomplished to date, and the focus on what is possible means no resting on any laurels.

The real benefits of this project to date are five-fold:

Over the past five fiscal years, HP has more than doubled in revenue. Our ability to innovate and adapt has fueled these results during a period of real industry upheaval. What has not changed is HP's basic character. We are proud of the people we have in our organization, of their performance and of their attitude towards both their job and the company. HP has been built around the individual, the personal dignity of each and the recognition of personal achievements. The successful development of the Human Resource Department's home page demonstrates that the combination of opportunity, talent, commitment and open-mindedness is strong at Hewlett-Packard.

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