Westpac NZ replaces 26 HR systems to enable skills-based workforce planning

Westpac New Zealand has replaced 26 fragmented HR systems with Workday as it shifts towards skills-based workforce planning, stronger workforce data and greater AI readiness. 

As first reported by Channel Life, the overhaul aims to improve data quality, reduce administrative work and give leaders a clearer view of their workforce, according to Marc Figgins, Chief People Officer at Westpac New Zealand.

"Spreadsheets, sellotape, Blu Tack, homespun apps from defunct garage projects, inconsistent data, loose rivets, knowledge held by a few key people, and a constellation of 26 disparate HR systems cobbled clumsily together, buried in a crowded intranet, and ingenious, cunning and creative workarounds.

"That was my first tentative peek under the bonnet when I took on the role of Chief People Officer at Westpac several years ago."

Since then we've been on an incredible journey of transformation with Workday, and we're now well positioned to stride into an exciting, rapidly evolving world," said Figgins.

From systems to strategy

Westpac has structured its people strategy around culture, capability and capacity, with Workday supporting the wider workforce agenda.

"At Westpac our people strategy has three simple pillars: culture, capability and capacity. Now culture, of course, is everything. It's the collective behaviours we aspire to, like high performance and action orientation. It's grounded in clarity and transparency and trust,” said Figgins.

“Capability is about ensuring our people and leaders have the skills they need now and into the future. And capacity is about whether we're using our time, energy and talent on the work that really matters.

Everything we do in our people function ladders back to those three simple pillars, with Workday as the critical enabler," he added.

The previous systems had made it difficult to access reliable workforce data and had created additional administrative work.

"The simple reality was our systems were actually undermining our three Cs. They created friction and confusion, they provided no meaningful insights on the workforce, and they consumed capacity and workarounds and noise. When people don't trust the data, confidence erodes quickly, and for a people function, that's a real problem," Figgins also noted.

Building a skills-based workforce

Westpac treated the implementation as a business transformation rather than an HR technology project, with ownership extending across the organisation.

"At Westpac we were very clear about how we approached the implementation. First, this was a business transformation, not an HR project. Workday touches every leader and every employee, so the business needs to own it. Second, trust was non-negotiable: clean data, clear processes, transparency. Third, we designed for humans: simplicity and inclusion," Figgins elaborated.

The business case eventually expanded beyond operational efficiency to longer-term workforce planning, capability development and career mobility.

"As did their progressive understanding of how well this would set us up for the future of work in terms of skill-based workforce planning, capability uplift, and genuine talent, mobility and career pathways," added Figgins.

HR moves beyond administration

The new platform has digitised processes including expenses, corporate purchasing cards and performance management, while giving employees and leaders greater visibility of workforce information.

"It's given people transparency. People can see their information, their role, their team, how they fit into the wider picture. Leaders and teams are working from the same source of truth.”

“We've taken common pain points, like expenses, P-cards, and clunky performance processes, and made them digitised, modern and seamless. And that matters, you can't aspire to be a high performing culture with tools from the dark ages," said Figgins.

The transformation has also enabled Westpac's people team to move away from transactional administration towards skills and capability.

"With trusted data and simpler processes, leaders are better equipped to have meaningful conversations about performance, development and growth. For our people team, it's enabled a shift from administering transactions, to partnering with the business on skills, roles and future capability," he pointed out.

Productivity and pay transparency

Westpac says leaders are now saving around two hours each week through simplified processes and self-service.

"By simplifying processes, enabling meaningful self-service, we've freed up time - for leaders, for teams, and for the people team. To date, leaders are saving around two hours every week, with more to come," Figgins noted.

The platform's remuneration transparency has also supported progress on Westpac's gender pay gap.

"Workday assumed a level of corporate maturity, so Real Earnings Management (REM) transparency was a bit of a default. There was, of course, a level of discomfort, initially on this, but the collateral benefit is that this positively impacted our gender pay gap," said Figgins.

Westpac plans to extend its use of Workday Learning through its reworked Banker Academy.

"That's why this year we'll leverage Workday even further, to underpin our reimagined Westpac Banker Academy. We're super excited to see the value Workday Learning can bring to this transformation project," added Figgins.

Preparing for AI

The transformation comes as Westpac assesses how AI could reshape roles, skills and productivity. Figgins said the bank is taking a measured approach, focusing on business problems rather than adopting AI for its own sake.

"Personally, I'm cautiously excited about the potential. Cautious, because I think there's a lot of snake oil out there, there's a lot of froth. Rather than trying to apply AI to everything, I think companies need to be really clear-headed in identifying the problems they have that need solving, and avoid signing up to every sparkling offering," said Figgins.

He said reliable workforce data and a clearer understanding of skills will become increasingly important as AI changes the nature of work.

"In this new world, our three Cs matter even more. Culture will mean trust and transparency, people need to know what's true and where they stand. Capability means we understand skills, not just job titles, and we can grow those skills. Capacity means we use intelligent platforms that remove friction, not create more of it," Figgins concluded.

The transformation has required extensive work beyond the technology, including managing complex data and reviewing policies and processes. Westpac's next phase will focus on using its new workforce infrastructure to strengthen learning, skills visibility and future workforce planning.