Why is it that a company that is willing to spend big bucks on Enterprise Resource Planning software is sometimes reluctant to make a significant investment in a Human Resource Management System? There are usually several reasons:
• HR processes often receive serious attention only when things go wrong. Executives are used to taking a reactive approach rather than a proactive approach for handling needs and requirements in this department.
• Historically, HR has been given only limited access to the “strategy table” where long term business goals are discussed. Many HR professionals lack experience gathering objective data on HR processes, developing a strategy for improvement, and communicating this information to executives in a compelling way.
• Employers are well versed in outside market factors that can influence profitability but unaware of internal compliance issues that greatly increase financial risk.
A business that wouldn’t dream of using outdated technology to track customer orders or inventory may still be using a legacy system for HR. If an employer believes that HR needs only a database to store information on employees, this mindset makes a certain amount of sense. However, the functionality necessary to retain, distribute, analyze, audit, and leverage data to effectively manage a workforce is only available in an actual HRMS. A Human Resources department cannot reach its full potential without this tool.
HRMS Components & Benefits
Payroll, benefits administration, workforce management, and time/attendance are the four basic components Clay Scroggin lists in his excellent article on HRMS. Each one of these plays a role in allowing an employer to track and control costs. More sophisticated workforce management systems that incorporate applicant tracking, employee development, and succession planning features offer much more. They can be used to fully realize the potential of each worker and of the employee base as a whole. These programs may also include ESS and MSS portals that further reduce HR labor while increasing end user satisfaction.
The fact that more processes can be automated using an HRMS is one thing that makes it attractive to executive decision makers. This is an area that HR should focus on when making a business case to acquire an HRMS. Another important characteristic of a well designed system is that it increases compliance. For example, few employers know all the rules for retention of various types of workplace documents. At Emerald Software, compliance is our #1 focus. Our Universal Onboarding application is an example of a module that can be added to any existing HRMS system to decrease the risk of fines, penalties, and litigation.
Thursday, February 24, 2011
Monday, February 21, 2011
More HR Tech Best Practices
Last week we looked at a couple of items from Workforce Management’s latest technology whitepaper (go here to get your free copy). This time, let’s explore a few more concepts from the paper’s contributors and how they relate to onboarding practices and HR software.
Virtual Learning for Leadership
John Ambrose from Skillsoft points to the benefits of using online training to develop new leaders within an organization. The lower cost and higher convenience level of web-based education make this a popular option for many employers. It’s a particularly helpful technology for newly hired managers who need to get up to speed quickly without spending too much time away from the workplace.
From the perspective of social support, virtual interaction can be helpful in mentoring employees at every level to encourage leadership growth. Online training and skills testing implemented during acculturation onboarding can also make it easier for employers to identify high-potential employees early on. Emerald Software’s products support integration with virtual training vendors and internal social networking platforms to help achieve these objectives.
HR and Employees Benefit from Tech Trends
Sumtotal Systems offers a roundup of 6 trends that can dramatically increase strategic performance for HR. The move toward software that captures information for analysis is one of the most interesting. HR needs solid business intelligence data to boost productivity and decrease operation costs. In onboarding, this type of data can be collected and used to measure the average time to productivity for new hires and areas for HR process improvement.
Another trend is the implementation of employee self service portals. Putting an onboarding module in place is the logical first step for organizations that want to make workers more self-sufficient and ease the burden on HR. A well designed onboarding application can be set up to automatically distribute error and omission free new hire data to an ESS platform. From there, it can be updated by the worker as changes occur over time.
Virtual Learning for Leadership
John Ambrose from Skillsoft points to the benefits of using online training to develop new leaders within an organization. The lower cost and higher convenience level of web-based education make this a popular option for many employers. It’s a particularly helpful technology for newly hired managers who need to get up to speed quickly without spending too much time away from the workplace.
From the perspective of social support, virtual interaction can be helpful in mentoring employees at every level to encourage leadership growth. Online training and skills testing implemented during acculturation onboarding can also make it easier for employers to identify high-potential employees early on. Emerald Software’s products support integration with virtual training vendors and internal social networking platforms to help achieve these objectives.
HR and Employees Benefit from Tech Trends
Sumtotal Systems offers a roundup of 6 trends that can dramatically increase strategic performance for HR. The move toward software that captures information for analysis is one of the most interesting. HR needs solid business intelligence data to boost productivity and decrease operation costs. In onboarding, this type of data can be collected and used to measure the average time to productivity for new hires and areas for HR process improvement.
Another trend is the implementation of employee self service portals. Putting an onboarding module in place is the logical first step for organizations that want to make workers more self-sufficient and ease the burden on HR. A well designed onboarding application can be set up to automatically distribute error and omission free new hire data to an ESS platform. From there, it can be updated by the worker as changes occur over time.
Monday, February 14, 2011
HR Tech Best Practices
Workforce.com has a new whitepaper available on Best Practices in HR Technology. It’s free (registration required), so make sure to request a copy. The paper covers different aspects of technology selection and implementation with contributions from major players like SAP, Ultimate Software and Workday. The first segment is about questions HR should ask potential vendors. Not surprisingly, 2 of the 7 questions are about SaaS. Customers expect 24/7 accessibility and selecting a web-based application is one of the easiest ways to ensure this.
Ultimate Software also talks about the latest HR technology buzzword “unified”. So, you can expect to see more discussions comparing pros and cons of unification vs. integration – just like the current discussions about integrating vs. interfacing. Of course, as a suite software provider Ultimate Software has a vested interest in highlighting any problems with integrating applications from multiple vendors. There’s a balance to be struck between the ease of using a unified system and the strategic benefits of selecting and integrating Best of Breed modules. Chuck Ros talks about precisely this topic in his ere.net article here.
A Payroll Provide Weighs In
Perquest offers some interesting insights about the complexity of HR. According to a recent research study, human capital management at many mid-sized companies is as complex as it is for large organizations. The belief that the challenges faced by HR are directly tied to the size of the workforce is widespread but just doesn’t hold true. So, mid-sized employers may be allocating less money than they should to strategic technology initiatives for HR. This can have serious repercussions.
The fact is that a mid-sized company must meet the same standards as a large company for labor law compliance. The actual risks associated with non-compliance in HR may actually be higher for mid-sized businesses than for large businesses. A single costly incident can disproportionately impact an organization with less capital and fewer high-priced lawyers on speed dial.
Perquest noted that the complexity of compliance is one reason employers often outsource various HR and Payroll functions. However, there are some processes such as onboarding that can’t be effectively outsourced (since using a PEO doesn’t necessarily protect against non-compliance penalties). So, HR may want to use a blend of outsourcing and internal process improvements to achieve their compliance objectives. Implementing Universal Onboarding is a good place to start for mid-sized businesses since the costs are low, ROI is swift, and the benefits are easy to communicate to upper management.
Ultimate Software also talks about the latest HR technology buzzword “unified”. So, you can expect to see more discussions comparing pros and cons of unification vs. integration – just like the current discussions about integrating vs. interfacing. Of course, as a suite software provider Ultimate Software has a vested interest in highlighting any problems with integrating applications from multiple vendors. There’s a balance to be struck between the ease of using a unified system and the strategic benefits of selecting and integrating Best of Breed modules. Chuck Ros talks about precisely this topic in his ere.net article here.
A Payroll Provide Weighs In
Perquest offers some interesting insights about the complexity of HR. According to a recent research study, human capital management at many mid-sized companies is as complex as it is for large organizations. The belief that the challenges faced by HR are directly tied to the size of the workforce is widespread but just doesn’t hold true. So, mid-sized employers may be allocating less money than they should to strategic technology initiatives for HR. This can have serious repercussions.
The fact is that a mid-sized company must meet the same standards as a large company for labor law compliance. The actual risks associated with non-compliance in HR may actually be higher for mid-sized businesses than for large businesses. A single costly incident can disproportionately impact an organization with less capital and fewer high-priced lawyers on speed dial.
Perquest noted that the complexity of compliance is one reason employers often outsource various HR and Payroll functions. However, there are some processes such as onboarding that can’t be effectively outsourced (since using a PEO doesn’t necessarily protect against non-compliance penalties). So, HR may want to use a blend of outsourcing and internal process improvements to achieve their compliance objectives. Implementing Universal Onboarding is a good place to start for mid-sized businesses since the costs are low, ROI is swift, and the benefits are easy to communicate to upper management.
Wednesday, February 9, 2011
What Is Your HRIS Input?
HR software expert Clay Scroggin has an interesting perspective on one aspect of HRIS that some clients don’t think about until after they’ve bought a product – how much input will be required? He breaks down the topic into several different categories. First, there’s the data you will have to transfer as a one-time effort. This could include importing from other existing programs such as from a simple employee database into a full service suite. He points out that benefits data is often not directly transferrable and has to be typed in painstakingly by hand (although this is changing in the age of SaaS applications which often have a high level of built-in interoperability).
Then, there’s the data that needs to be updated on a regular basis. An interface can allow this to happen electronically; but there’s often still some human action required to set the process off. Even if it’s as simple as pushing a button to run the importing function once a week, that’s still something that HR has to remember to do - or IT has to set up a script to run the transfer of data automatically. There will always be differences in content between HRIS and other systems (such as Payroll) in terms of real time data unless they are actually fully integrated with one another. There’s a third type of input, but you’ll have to read Scroggin’s article to find out what it is.
What’s the Input for Universal Onboarding Software?
An onboarding module requires input just like any other aspect of HRIS. The first set of data is input by the new hire. Some of this information may actually be imported from a recruiting module if one is interfaced with the onboarding system – but either way that part of data entry is done by the job candidate or new hire rather than by HR staff. Once the new hire’s part is done, the forms are forwarded to the hiring manager and/or I9 administrator for review and final signatures. Input of information into e-Verify may be required at this time. The distribution of data to other back end systems can be carried out automatically based on internally determined rules. HR may also need to add new forms or update old ones from time to time (e.g. company policies). However, all government forms are kept current in the Universal Onboarding library by Emerald Software Group so HR doesn’t have to worry about that particular input.
Then, there’s the data that needs to be updated on a regular basis. An interface can allow this to happen electronically; but there’s often still some human action required to set the process off. Even if it’s as simple as pushing a button to run the importing function once a week, that’s still something that HR has to remember to do - or IT has to set up a script to run the transfer of data automatically. There will always be differences in content between HRIS and other systems (such as Payroll) in terms of real time data unless they are actually fully integrated with one another. There’s a third type of input, but you’ll have to read Scroggin’s article to find out what it is.
What’s the Input for Universal Onboarding Software?
An onboarding module requires input just like any other aspect of HRIS. The first set of data is input by the new hire. Some of this information may actually be imported from a recruiting module if one is interfaced with the onboarding system – but either way that part of data entry is done by the job candidate or new hire rather than by HR staff. Once the new hire’s part is done, the forms are forwarded to the hiring manager and/or I9 administrator for review and final signatures. Input of information into e-Verify may be required at this time. The distribution of data to other back end systems can be carried out automatically based on internally determined rules. HR may also need to add new forms or update old ones from time to time (e.g. company policies). However, all government forms are kept current in the Universal Onboarding library by Emerald Software Group so HR doesn’t have to worry about that particular input.
Tuesday, February 8, 2011
How Can Onboarding Software Be Leveraged To Save Money?
Over the last few weeks, we’ve looked at the ways HR software delivered via SaaS and cloud computing is attractive to business owners; but what about onboarding software in particular? Where does it fit in the strategic picture for IT, HR, and business leaders looking to cut costs? Are there any compelling reasons to add an onboarding module to a suite of advanced SaaS HR software that already has recruiting, training, benefits management, ESS, and succession planning functions?
Actually, there are several arguments that can be made for the value of an automated onboarding program no matter how good the rest of your HR software already is. First, the quality of the data in your HRIS database is only as good as the data entry that supports it. New hires often make errors in their paperwork or leave out critical information on electronic forms. If HR notices these mistakes, they may get fixed (requiring extra work). If not, data errors end up going into the system where they may be distributed to other applications.
For example, a W4 with conflicting elections will wind its way to Payroll where it can cause problems with tax deductions on an employee’s paycheck. With an I9, the issues might not become apparent until the ICE auditors show up – and then it’s too late. Automated Universal Onboarding software completely bridges the data collection gap between Recruiting and general HRIS. It eliminates redundant data entry and prevents new hires from making mistakes or leaving required fields blank on their electronic forms.
So, these are 2 of the most obvious ways onboarding software can be used to save money:
1. Eliminating errors and omissions in both initial forms completion and distribution of data to HRIS and other back end systems. This increases compliance with labor laws and with internal company rules.
2. Replacing an inefficient hybrid of paper and electronic systems with a fully automated virtual HR process for onboarding new hires. This cuts administrative costs immediately and supports corporate eco-friendly initiatives.
The SaaS and cloud based versions of Emerald’s onboarding solution also deliver benefits such as vendor-provided maintenance, high levels of data security, constant system availability, pricing based on actual usage, and immediate scalability during peak hiring seasons. Finally, increasing the efficiency of data collection during onboarding permits the implementation of tax credit forms that allow businesses to capture incentives from both state and federal governments.
Actually, there are several arguments that can be made for the value of an automated onboarding program no matter how good the rest of your HR software already is. First, the quality of the data in your HRIS database is only as good as the data entry that supports it. New hires often make errors in their paperwork or leave out critical information on electronic forms. If HR notices these mistakes, they may get fixed (requiring extra work). If not, data errors end up going into the system where they may be distributed to other applications.
For example, a W4 with conflicting elections will wind its way to Payroll where it can cause problems with tax deductions on an employee’s paycheck. With an I9, the issues might not become apparent until the ICE auditors show up – and then it’s too late. Automated Universal Onboarding software completely bridges the data collection gap between Recruiting and general HRIS. It eliminates redundant data entry and prevents new hires from making mistakes or leaving required fields blank on their electronic forms.
So, these are 2 of the most obvious ways onboarding software can be used to save money:
1. Eliminating errors and omissions in both initial forms completion and distribution of data to HRIS and other back end systems. This increases compliance with labor laws and with internal company rules.
2. Replacing an inefficient hybrid of paper and electronic systems with a fully automated virtual HR process for onboarding new hires. This cuts administrative costs immediately and supports corporate eco-friendly initiatives.
The SaaS and cloud based versions of Emerald’s onboarding solution also deliver benefits such as vendor-provided maintenance, high levels of data security, constant system availability, pricing based on actual usage, and immediate scalability during peak hiring seasons. Finally, increasing the efficiency of data collection during onboarding permits the implementation of tax credit forms that allow businesses to capture incentives from both state and federal governments.
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