Global Human Resources

Oracle Human Capital Management (HCM) Cloud

HCM PRODUCT STRATEGY | ORACLE WHITE PAPER | OCTOBER 2014

Table of Contents
Executive Overview

Introduction

Oracle HCM Cloud: Global Strategy

Global Best Practice Considerations

Global Foundation Architecture

Global Standard Processes

Local Considerations

Payroll options

Data Privacy and Security

Conclusion

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Executive Overview

If you cant explain it simply, you do not understand it well enough.

Albert Einstein

As organizations explore their opportunities to expand globally, beyond their borders, they will find
global experts emerge from every corner. Every vendor/partner will claim global expertise to support
a global enterprise and express the complexities involved. This can be overwhelming and daunting for
those responsible for planning. Going global is in reality not complicated when one understands the
global and local practices /requirements, knows ones own ambitions and plans accordingly.
In todays business environment shaped by globalization, every organization deals with these realities
not only in their core business activities, such as supply chain and customer management or
regulatory reporting but also in their search for and management of talent. As a result, organizations
must define unique HR process steps in light of a common process framework.

In order to remain competitive, organizations today must continue to think globally and become better
at it. This includes expanding their customer, manufacturing, service fulfillment or materials supply
base beyond current borders to include a presence outside of their locale as well as expanding their
potential talent pool. By doing this, organizations will create initiatives that improve employee
management and result in a more effective, efficient and compliant atmosphere.

In the past, many organizations deployed multiple Human Capital Management (HCM) solutions from
varying vendors or multiple installations of a single vendor solution in order to comply with global and
local processes or rules. This type of strategy obviously results in multiple challenges at both a
corporate and local level. They stretch from inaccurate headcount and compensation reporting to outof-date data and inconsistent human resource process administration. As a result, global corporate
culture is not defined and supported, nor is the global workforce engaged as a global organization. In
hindsight, many of the same organizations are now seeing the benefits of deploying and maintaining a
single solution by providing extensions to meet local needs from a legislative as well as culturally
recognized process. Obvious benefits include common data definitions, global processing and
reporting. Other, less visible, benefits include minimizing administrative overhead as well as the ability
to define competencies globally in order to equitably rate and pay workers. This enables organizations
to ensure the most efficient processes are being deployed consistently to ensure accurate global
reporting and management of talent.

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When we think about the specific global needs, we must also think about the varying practices for
managing human capital locally. This includes understanding the needs of the shrinking skilled
workforce, the multi-generational workforce, broad use of mobile as well as alignment with local
customs and practices. We are rapidly moving from a requirement to maintain accurate job information
on a worker, to the ability to keep track of future career opportunities, analyze to ensure proper
planning from a worker engagement and budgetary perspective. Such a high-impact strategy requires
HR organizations today to justify their projects by quantifying their HR programs and initiatives. By
providing tools that not only track the current and proposed direction of an employee, but also has the
capacity to continually analyze that direction, HR departments become more relevant and accountable
for investment decisions. Again, when you know what is needed, when it is needed, then, you are able
to plan and ensure compliance at every location you require.

It is impossible to think about global human resource administration without thinking about data privacy
and security. Data privacy is already a concern within the boundaries of a single country, but even
more so when data is accessed across borders. The progression of adoption of data privacy laws and
policies has grown exponentially in the past five years. It should be a primary focus for any
organization allowing employee data access and processing within a single geography as well as
across borders. We are finding that many countries are adjusting their data privacy laws, as well as
practices, to work in this changing world, but this is ever evolving. As a result, we recommend
organizations to continually assess and review their own practices as they support their global
workforce.

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Introduction
The top five reasons cited for international assignment programs are to provide specific technical skills not available
locally (47 percent), to provide career management/leadership development (43 percent), to ensure knowledge
transfer (41 percent), to fulfill specific project needs (39 percent) and to provide specific managerial skills not
available locally (38 percent).
May 14, 2013
International Assignments Expected to Increase in 2013
SHRM

As organizations expand their global presence, there will be a need to manage the movement of their workforce.
As seen by the reference above, organizations are expected to significantly increase the management of these
movements worldwide. Oracle HCM Cloud solutions aim to meet the needs of all organizations, whether they
operate in one or many countries. Oracle provides a secure global human resources management solutiona
solution that enables multinational organizations to meet specific requirements unique to a country or region.
Oracle has created this white paper to give you a better understanding of the best strategy for deploying Oracle
HCM Cloud global applications. Well examine:
Oracle HCM Cloud Global Strategy
Deployment considerations

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Oracle HCM Cloud: Global Strategy

Oracle HCM Cloud solution is designed and developed using the latest technology and incorporating the best
practices from thousands of organizations, deployed across multi-national organizations headquartered on every
continent. Delivering global processes, to maximize the use of common data definitions, or to effectively interpret
and analyze data, is critical to timely Human Resource management. It is also critical to recognize that there are
local and cultural requirements that must be adhered to.
By delivering global processes leveraging a common data model and, at the same time, meet local requirements or
local practices, with additional functionality, we provide a compelling, comprehensive solution. This functionality is
planned, developed and maintained by experienced global HR experts, based locally across the globe.
We believe that delivering both local and global capabilities, in one solution, gives you significant business
advantage; helping you to strategically manage your global workforce with global processes yet helping you comply
with any global, regional or local operating needs.

Global Best Practice Considerations

Global best practices have changed significantly over the past ten years. This is attributed to the changes in
technology offerings as well as the speed in which organizations are expanding. The Cedar Crestone Survey for
2012 -2013 found that 25% of respondents are planning to globalize their HCM support.

Cedar Crestone 2012 2013 HR Systems Survey

This will require organizations to not only define their global corporate culture but to translate it in their HCM support
and socialize it locally. Organizations are finding that using their headquarters, as the base of their global solution is

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not the best approach to any global deployment. This approach implies that the first country is the ideal or role
model for the base process, when in fact it does not represent a standard process for the global organization.

Global Foundation Architecture

Oracle HCM Cloud is build to be both Global as well as local. To the end user the system appears as a local system,
while on a higher level, all these local solutions are part of an integral, single installation of a Global solution,
providing a global, overall view across your organization.
Oracle HCM Clouds Global Foundation provides both the functionality required for each country worldwide, as well
as the features required to be a truly global system:
Country-specific security requirements
Country-specific Data Privacy requirements
Country-specific Personal Identifiable Information (PII) support
Support for statutory compliant Legal Entities (including multiple legal entities)
Support for local Time zone
Support for local currency (including the ability to run Multi Currency)
Support for local language (Unicode and bi-directional (Hebrew and Arabic))
Ability to run multi-lingual in a single instance
Support for local Data Formatting including
Name
Address
Dates
National identifiers
Person and employment data

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If not directly delivered by Oracle via deep country localization, the required country functionality can be enabled by
configuration and setup. Oracle HCM Cloud can accommodate over 200+ worldwide country requirements.

Global Standard Processes

HR process standardization is not a new concept and everyone has a different definition and expectation when
discussing global HR standard processes. Discussions cannot begin with one country or location as a starting point.
Common processes must be the starting point for discussions with expansion into the details to ensure that true
global standards are defined and approved. More critical is the socialization of this global standards for which a
technology solution can support. As a result, many organizations look at smaller operations as their first deployment
to ensure that the implementation team has an opportunity to define those global standard processes while giving
the ability to access more complex markets.
Oracle HCM Cloud solutions supports organizations in the deployment of global standard processes through the
definitions of Legal Entities, Business Units and Sets to define data rules associated with locations, business
segments or countries. This expands from Core HR to other processes including Compensation, Absences, Benefits
and Payroll.

Local Considerations
When organizations consider the opportunity of either consolidating to a single installation or deploying multiple
installations of their HCM application globally, many requirements and practices must be considered. Planning and
global involvement is imperative to the success of any global deployment. Moreover, it is critical that communication
is clear and requirements of all locations are considered and provided with a solution. This communication plan must
be executed upon early and consistently to ensure acceptance and rapid adoption of the global HCM installation.
There are obvious benefits, which include:
Deliver HR content consistently
Create a global data model
Store past, present and future data in one place
Report business metrics from one source with real time access
Quickly get a consolidated view of the organization
Simplify administration by supporting one solution
Manage data privacy effectively and securely
In order to accomplish this, the following is also required:
Ability to deliver multiple languages
Support multiple currencies and the conversions
Support multiple character sets
Support variances in Name, Address and National ID formats
Deliver options for the capture of locally relevant data

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English

Arabic (bi-directional)

French

Chinese

Managing a Global HCM environment is challenging without all of your plans and considerations in place. Oracle
HCM Cloud provides decades of global experience and technology tools in place to support your successful project.
Local expertise in legislative and regulatory requirements as well as cultural preferences and practices are also
required to ensure success.
Oracle has customers deployed in over 200 jurisdictions with localized functionality to support unique requirements
and preferences. Listed below are some examples of localized functionality delivered with Oracle HCM Cloud; this is
not an exhaustive list.

Australia

Supports person, employment and organization information such as, ABN, registration number per
state and designated employer group. Superannuation

Canada

Provides Social Insurance validation as well as element classifications.

China

Support for Hukou type and location, expatriate status, number of children and additional contract
information. Termination information, including leave compensation factor and monthly salary paid
days is also supported.

France

National ID SIN, education level, establishment (e.g. SIREN, SIRET, NAF), Reports (RUP, bilan
social, DUE, MMO, DOETH) , work certificate, BIAF

Germany

DEUEV / ESTER- Name, Address Set up and Validation, disability data, REHADAT.

Hong Kong

Ability to track person and employment information such as Chinese and Hong Kong name, Hong
Kong ID with format validation.

India

Supports person, employment and organization information specific to India, such as, National ID,
ECNR information, caste or tribe, Permanent Account Number, Tax Account Number, Provident

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Fund Number and ESI Number.

Ireland

Irish name, PPS number, PRSI information, NES and EHECS data capture

Kuwait

Provides capability to track Kuwati name, national identifiers validations as well as disability, visa
and sponsorship information.

Netherlands

Name ( incl. last name maiden and spouse combination), Address (houseboat, mobile home), BSN
number, 30% tax ruling

Saudi Arabia

Ability to track specific information related to disability, visa sponsor information, contract
information, Hijrah equivalent dates, and visa specific information (i.e. Iqama number).

Singapore

Provides ability to capture employee legal name, National Identifier Type, NRIC and FIN information
as well as supporting number format validation. In addition, you can create and define organization
information specific to Singapore, such as IRAS details and CPF Submission Number.

Switzerland

NNSS, Swiss Legal Jurisdictions, FAK registrations per Canton, cross border worker

United Arab Emirates

Ability to track specific information related to disability, visa sponsor information, contract
information, Hijrah equivalent dates, and visa specific information (i.e. Iqama number).

United Kingdom

Provides national identifier validation and ability to track disability data in accordance to UK
legislative requirements.

United States

Support for all personal and legal employee data, such as social security number, ethnic origin,
veteran status, and I-9 status

In order to ensure the success of a global deployment, organizations must have the proper executive sponsorship to
ensure commitment and governance is adhered to. The lack of success of projects are typically as a result of the
lack of global executive support, which resulted in lack of country management support and poor communication to
the local offices.

Payroll options
In a global HCM context various payroll options are often considered. Depending on the size, the industry and the
preference of organizations in their respective regions and countries a choice can be made for an in-house payroll,
an outsourced solution directly to individual country payroll service providers or global service providers, or a mix
with a hybrid solution of internal and external. Oracle HCM Cloud offers native payrolls for Canada, China, Kuwait,
Saudi Arabia, United Arab Emirates, United Kingdom and United States. Internal payroll provider integrations are
supported via the included Payroll Interface functionality, via templates and prebuilt integrations.

Data Privacy and Security

Data Privacy is a critical issue impacting all organizations around the globe. Countries, states, provinces, cantons,
counties as well as unions, workers council, organizational policies, and individuals are dictating their requirements
to ensure the privacy of individual personal data so it is becoming critical that every organization establishes,
understands, maintains and effectively communicate their data privacy rules and practices. Understanding ones
privacy needs is critical to develop and execute on a security strategy to meet that need. Defining a security strategy
and solution for personal data cannot be accomplished without a comprehensive view of the organizations privacy
requirements. Therefore, it is not just about creating user profiles, it is about understanding where data resides; how,
when, by whom data is accessed and when it is retired. Privacy and security are no longer issues just for
organizations that have cross border data storage considerations; we are finding that organizations, in one location
or many, as well as workers are dictating stricter rules to ensure that personal data is secure. Oracle HCM Cloud
security is roles and rules driven providing you the tools to enable data privacy.

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Conclusion
Organizations continue to struggle with the balance of deploying strategic global HR practices with local
requirements and cultural needs. Finding the right solution, the right partner to support the socialization and
manage your change impacting your global organization is key to your success. Managing a global workforce is a
function that continues to evolve as strategic business partnerships form worldwide. We will see more organizations
perfect this balancing act with the support and guidance of a trusted partner that has managed and completed the
process successfully. Oracle has partnered with the largest organizations globally, based in every continent, and
supported solutions deployed successfully in more than 200 jurisdictions.
Oracle HCM Cloud provides the flexible solution to support your competitive needs locally and globally.
Oracle HCM Product Strategy will continue to investigate opportunities to simplify, optimize and expand the
capabilities that help you manage your global workforce.
For more information, please contact your Oracle Customer Success Manager or Oracle Sales representative.
For additional information on our solutions or product capabilities, please review information located at
www.oracle.com/hcm.

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