AutoZone was able to rollout HCM Cloud in order to improve performance, become more efficient, and attract exceptional talent.
- High turnover rates and a lengthy application process showed AutoZone that they needed to fix their processes in order to improve HR.
- AutoZone needed a more modern HCM Talent Management system to foster their goals for growth in the future.
- An executive sponsorship, business champions and change management can make a big impact on the success of your project.
AutoZone is the largest retailer and distributor of automotive replacement parts and accessories in the U.S. The company is a growing Fortune 300 company with a deep commitment to serving customers. With approximately 90,000 employees in over 6,000 stores across the U.S., Mexico, and Brazil, AutoZone has a revenue of more the $10.6 billion. The company’s headquarters are in Memphis, Tennessee, 40 miles west of where the first store opened in Forrest City, Arkansas in 1979.
Why did you decide to move to the Cloud?
First, AutoZone was having high employee turn-over across the board at its stores. Then, when they were looking for new talent to replace the employees that they lost, they realized that the hiring process was a mess. The online application was lengthy and had a 50 percent abandonment rate. The on-premise PeopleSoft HCM system was also highly customized, so that also made talent management difficult.
Even when applicants did make it through the process, it was very difficult to differentiate qualified candidates in the pool. AutoZone had a lack of analytics and hiring metrics. They knew they wanted to continue to grow the company in the years to come, but that wouldn’t be possible for them without a more modern HCM Talent Management system in place. So, AutoZone decided it was time to move to the Cloud.
Did you decide on a phased approach or a big bang?
After evaluating the options, AutoZone decided on a two-phased approach. Phase One focused on Talent Acquisition and included Sourcing, Recruiting and Onboarding. Phase Two was for Core HR, Absence Management, Payroll and integrations.
What was the key to your success?
There were several components that lead to success with this project. To name a couple, the executive sponsorship, clear mission of the company, established business champions, commitment to ongoing improvement, and early change management really helped make the project run smoothly and successfully.
What benefits have you seen after implementing HCM Cloud?
AutoZone’s previous online application system took over 20 minutes for someone to apply for a position. Now with the Oracle Cloud HCM Talent Management solution, applicants can go through the process in seven to 10 minutes. In the first 30 days post-launch, AutoZone received 93,000 completed applications. That was more than four times the number of completed applications than in the previous year. This will make a big impact by allowing AutoZone to staff existing stores during the busy season and eventually staff brand new stores.
The new mobile applications have also been a big hit because they are tailored to the retail job-seeker audience, and they provide a streamlined experience.
Do you have any tips to share with others looking to move to HCM Cloud?
Here are a few helpful tips that AutoZone came up with after looking back on the project:
- Support team engagement.
- Blend partner and customer methodology.
- Increase collaboration on test cases and extend the timeline.
- Start early with integration management.
- Don’t underestimate the change management effort.
What’s next for AutoZone and the Cloud?
AutoZone has set a few goals for 2018 and the next phase of the project. They want to implement Employee and Manager Self Service, Absence Management and Common Payroll Platform for the U.S. and Mexico. AutoZone also wants to have a common employee database across all countries and improved reporting and analytics, along with MVR and ESPP.
To hear more from companies who use Oracle Cloud, check out 4 Success Stories From Companies Using Oracle Cloud.
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