Internet Impact on New HR Solutions
- by Al Doran
Over the past year or so we have heard a great deal about the promise that new technology, would bring human resource information closer to those who have frequently seemed to need access to it but seldom came even close. Who would those people be, you ask? Well they would certainly include those line managers who need the information, including plant managers, supervisors, division heads, etc. It may come as a surprise to some, that this group would often include those human resource specialists one would assume already had access, but do not, yet.
Yes, quote often HR specialists such as Training and Development, Labor Relations, Health and Safety, Compensation, Benefits, Pension, Job Evaluation, Recruiting and Staffing, etc. have had to rely on an HRMS specialist to obtain information from the HR system. As well, entry of information into the system by HR staff has been mostly limited to only a few key individuals in HR trained on the intricacies of the system. These entry points were generally limited to Payroll, Employee Records, and possibly Compensation and Benefits. This led to inefficiencies in the collection of information and certainly bottlenecks for input and output.
Looking back just a few short years, most of us in the industry remember the great promise of easy access made by the industry as ClientServer software applications came into their own. Many have been disappointed by the somewhat late delivery on the promise.
ClientServer came along just at the right time for many. Line management wanted information on the best candidates available for a job; supervisors wanted to know who was available for shiftwork; management wanted to know who the best employees were; who needed what training; who was available in the succession plan; what where unit costs including labor; what were attrition trends, etc.
A popular goal has been to reengineer data collection so that information is only collected once and as close to the source as possible. Human Resources responded to the demands from their clients and started thinking about how to move their services closer to the end user. Decentralization became the watch word for Human Resources.
All of this seemed very timely for the new technology, as it promised to move computing closer to the end user. ClientServer not only promised to be cheaper and faster, but to replace mainframe applications, and to move the processing to where it was needed. Did any of this "dream" come true? When it comes to HR and Payroll, many think the results have been less than spectacular.
Many of those new ClientServer systems that have been installed are not yet being used to their full potential by the end users. Quite often this is partially due to the complexities of the HR application. Prime example is expecting a line manager to make a payroll adjustment to an employee's pay, when its an activity that they only complete once or twice a month or less. There is a great risk that if this is attempted by someone not fully trained that the whole pay will crash or even cause downstream problems with other activities scheduled to occur. This is because the first ClientServer systems were designed for the expert, frequent user to use. Now that is changing, and that's great news!
The applications available now have changed as we have learned from our earlier mistakes and we are making the systems much easier to use. We are learning from our BPR work that we must streamline the process and tie it to the business. Technology has changed rapidly and continues to improve at an accelerated rate.
Two of the changes most responsible for the improvements are Workflow and the Internet. Workflow has delivered new tools that streamline the process and make it much easier for the non-expert, occasional user to both enter and retrieve data from the corporate HR system. As most are aware by now, the internet allows a common tool such as a browser (e.g., Netscape, Microsoft Explorer, etc.) to use just about any computing platform to access data. For the first time the company with a myriad of platforms, including Unix, IBM PC or clone, Mac, or mainframe to access the same data. All of the data that used to be locked up in the HRMS is now available to those who need it. All of this of course with the understanding that it is only granted to those who need it and the appropriate security precautions are in place.
With all their advantages, the Internet and intranets aren't the only technology tools being used in HR applications: improved scanners, optical character recognition (OCR), interactive voice response (IVR), new programming languages such as Java, and distribution techniques such as kiosks all play a part. Just as banks have been very successful in getting their customers to do most of their own banking using Automated Teller Machines (ATM), so has the HR department moved automation to the client.
So, what are some of the applications that are now available to the end users in the plant and to HR? Let's look at a few.
Self-service. Self-service for employees and managers allows information to be pushed out and down to the levels needed, with one-time data entry and less maintenance, and with improved quality and accuracy. Users, not theIS department or even the HR department, have control of the information. Now, the workforce can manage itself, with rules-based systems administered by the software.
This includes: -Employee change of address, change of emergency contact, change of phone number. -Benefits administration, changing dependent information, choice of benefits. -Time reporting, time at work, schedule holidays, report sick leave. -Employee development, training scheduling, goals and objectives, performance management, work assignments.
All of these activities used to take considerable time away from the workplace as well as staff to support them. Now, with on-line help readily available, most activities are more user friendly and the data collected are more accurate and timely.
Recruiting and Staffing: The entire recruiting function is undergoing a virtual revolution. Self-service systems are being installed on both the supply side for applicants and the demand side for hiring managers, using the Internet not only to help provide the match, but also to help handle the hurdles along the way, such as applicant testing and background screening.
Companies can search thousands of resumes, internationally, either through proprietary databases or those of vendors such as The Career Connect, CareerMosaic, CareerWeb, The Monster Board, or SkillsScape. Most resumes still come to companies on paper but whatever the media, paper, e-mail, the Web or fax, they can be scanned and re-formatted according to corporate specifications, and then made available to the hiring manager or HR manager anywhere in a company, anywhere in the world.
Improvements in optical character recognition have played an important part in this new capability, as have improvements in expert systems that provide categorizations and recognition of terms and rules. Systems can make inferences about skills and potential based on the words and phrases used in a resume. New technology not only helps with the review of a large number of resumes, but it also gets them to the right people quickly, using a variety of media and vendors. The next generation of recruiting software is incorporating skill-based questions enabling the hiring company to pre-screen applicants.
Compensation.
With the arrival of secure e-mail transactions and electronic signatures, the face of salary administration has changed. Line managers can now be self-sufficient with their compensation planning. Managers can look at salary histories online.Salary changes now can be approved readily through the hierarchy, without day- to-day paper shuffling. Furthermore, these changes can be automatically routed to payroll systems on a real-time basis, and any applicable changes to an employee's benefits also can be factored in immediately.
Employees can also have the responsibility for their own financial security.New applications allow employees to do individual analyses of their financial positions and plan their retirement.
Benefits Administration
New applications that make use of the Web and other evolving technologies put benefits administration on the cutting edge. Interactive Voice Response (IVR) continues to be a powerful tool. Computer telephone integration allows benefits service representatives to better utilize the computer system. Much of the information previously discussed was between the employee and a person usually on the phone. Now, so much of what an employee requires has been automated, there is no need for a service representative on all calls. For difficult calls, the service representative often has the employees file on-screen in front of them and access to the information necessary to quickly provide answers and advice.
Performance Management.
Technology speeds up the performance-review process. Through theWeb and software systems, companies have the skills profiles and the knowledge of the required core competencies to intelligently deploy the skills employees have.
Training.
Training is an application in which the World Wide Web seems a dream come true. As employees are expected to take charge of their careers, there's a need for training, and now companies are able to provide the resources.
The Internet allows courses to be posted, scheduled and, in some cases, offeredworldwide. Using the new technology, its becoming easier to measure the return on investment of training.
Its becoming possible to offer training on demand, in which quick tutorials can be offered online when an employee feels the need to learn something new or have a refresher. Training has become much more of a self-service operation that's widely and easily available."
Basic Administration
Many of the previously mundane tasks such as filling out forms have been automated. Employees who find themselves out of dental reimbursement forms can print one off of the company Web site instead of calling or visiting the Benefits department. Or even better still, they may be able to fill out the necessary forms on-line and e-mail them directly to the benefits carrier and have their payment directly deposited to their own bank account.
In Conclusion
The HR function, being one of the most data-intensive in any organization, is one of the leading beneficiaries and exploiters of these new achievements in technology. Now, HR professionals are more computer literate. They know how to use the technology to their advantage and to the overall benefit to the company. Utilizing the power of new computers and software applications, notably the web, coupled with the reengineering process, many organizations have started capturing self-service data for all personnel actions, such as new hires, salary changes and transfers, enrollment for training, as well as recruiting and staffing.
All of this means more time for employees to do their job and it has meant valuable information for line management.
SOME USEFUL HRMS REFERENCE SITES
IHRIM HOME PAGE - International Association for HR Information Management http://www.ihrim.org
Phenix Management Int'l - HRMS Information http://www.pmihrm.com/Overview.html
HRIM MALL Your On-Line Guide to HRM Systems and Services http://www.hrimmall.com
WORKFORCE ONLINE - Formerly Personnel Journal http://www.workforceonline.com/
HR ON-LINE http://www.hronline.com/
SHRM ON-LINE Society for Human Resource Management http://www.shrm.org/
-Al Doran is President of Phenix Management Int'l, a Toronto, Ont. management consulting firm specializing in HRMS issues. He is co-author of a new book published by Nelson Canada, "Human Resource Management Systems". He may be reached at: aldoran@pmiHRM.com and his home page is http://www.pmihrm.com/
COPYRIGHT - Al Doran - September, 1997
Phenix Management Int'l 58 Penwick Cr., Richmond Hill, ON L4C 5B4 phone: 416-505-6204 fax: 905-88308081 aldoran@pmihrm.com http://www.pmihrm.com |