Presentation on theme: "Achieving HR Best Practices through PeopleSoft Human Capital Management Praveen Gupta January 17, 2007."— Presentation transcript:
1 Achieving HR Best Practices through PeopleSoft Human Capital Management Praveen GuptaJanuary 17, 2007
2 Agenda Session Brief What’s a “Best Practice”? HR Best Practices –What and WhyAchieving Payroll Best Practices Through PeopleSoft HCMImplementationCase StudyConclusionQA
3 Session BriefCapturing industry best practices onto the PeopleSoft HCM implementation is what yields greater returns of efficiency and effectiveness.Let us discover how we can translate proven HCM best practices to superior PeopleSoft implementations and better benefitsOften in their hurry to get the application running, companies do not adequately leverage the technology and end up compromising with initial goals and sub standard processes. In this session we discover how we can translate proven HCM best practices to superior implementations and better benefits
4 Best Practice DefinedAligns with strategyReduces costsImproves productivityPromotes timely executionEnables better decision makingLeverages existing and exploits emerging technologiesEnsures acceptable levels of control and risk managementOptimizes skills/capabilities of the organizationPromotes collaboration across the extended enterpriseHackett’s Best Practices are certified when there is a correlation with world-class performance metrics
5 1st Quartile Breakpoint 1st Quartile Breakpoint World-Class HR is defined as top quartile performance in both efficiency and effectivenessHackett Value Grid™EFFICIENCYEFFECTIVENESSCost per employeeStaffing levels and mixApplication customizationHR self-service utilizationResource allocationIntegration of HR systemsProductivityLevels of management within HRPercent internal promotionsUse of available technologyHR linkage to business strategySourcing utilizationWorkforce managementQuality of HR processes/transactionsLinkages between employee development and business strategyHR partnering on organizational issues1st Quartile Breakpoint1st Quartile Breakpoint
6 With proven best practices and effective technology enablement we benefit from greater returns of efficiency and effectivenessComplexity ReductionPercent of companies utilizing common HR application deployed globallyNumber of HR Staff per 1000 EEsSource: The Hackett Group BONSource: The Hackett Group BONSource: The Hackett Group BON
7 Improvement gains among World-Class and Peer Group Companies HR Cost per employee 2006Number of days to fill a manager position, 2006Source: The Hackett Group BONSource: The Hackett Group BON
8 HR Best Practices –What and Why? One Integrated System to handle all HR transactionsProvides operational efficiencies and ease of maintenance; removes duplication of effort; becomes primary source for decision-making; one-time data capture can automatically address other impacted functions.Provision for Self-Service toolsLowers HR Staffing ratio; Shifts responsibility to end users to manage their own data; Such paperless transactions lower transaction processing costs and avoid data entry errors; Opens accessibility to HR processes round the clock.Multiple layers of SecurityIncreases controls through proper ownership; Reduces data corruption; Ease of Sarbanes Oxley compliance; information provided is based on need; reduce data privacy concerns
9 HR Best Practices – Cont’d Process includes global requirements and standardsFlexibility with global support time zones; remove communication barriers with multi lingual users; Local regulatory reporting keeps in compliance.Improved and accurate Reporting for both internal and external customersImproved Decision Making; avoid costs related to inaccurate reporting with regulatory bodies; establish credibility with Sr. management; Lower reporting cycle with ad-hoc reporting capability;Utilize of automation wherever available (Workflow)Provides process consistency; streamline dependencies and subsequent user actions (esp. in the areas of requisition workflow, on boarding, performance appraisal etc);
10 HR Best Practices –Cont’d Implement customer driver Service delivery center handling more complex issuesincreased effectiveness in resolutions within first call ; increased customer satisfaction; Repeatable successes; identify knowledge gaps among user group; enables core HR team to focus on strategic issues; lowers costsStandardize Job classifications, positions, profiles, Competencies and are online, linked and available as a single job recordEnable reusability; Consistency in purpose and use; shorten recruiting cycle for a particular job; Redundancies removed to bring in efficiency;Employees have easily accessible means to assess themselves electronically against detailed competencies model, create individualized development plan, and link to learning resources to bridge assessed gapsProductivity gaps filled; Leads to organic growth avoiding recruiting costs; Managers and Employees on same page on plan for individual growth;
11 HR Best Practices –Cont’d Compensation plans reviewed thoroughly as part of pre-acquisition due diligence and after divestitures to identity opportunities for economies of scale and effectiveness (e.g., consolidation, standardization)Lessen operating costs; Reduce redundancies across companies; Universal comp plans leading to higher employee moraleRegularly updated organizational plans address the objectives and recommended actions in the event of major functional change, technology change or business events such as acquisitions, divestitures or new market penetrationEasier adoption of additional HR data; In compliance with local markets ;
12 PeopleSoft HRMS System and Best Practices PeopleSoft HCM SystemConsidered ‘Tier 1’ system supporting most of the best practicesTightly Integrated with other HRMS functions while maintaining flexibility in configurationsQuick adopters of ‘next’ practice methods in terms of technology and functionalityDelivers ‘Out of the box’ functionalityA synopsis of Best Practices applicable to PeopleSoftOne Integrated system incorporating high degree of efficiencyExtensively supports Self Service for Managers and EmployeesSupports Global standards and requirementsSupports Reporting capabilities both regulatory needs and ad-hocIncorporates high degree of automation standards like workflow, Publish/Subscribe etc.Supports current HR operational models and Service delivery models like Shared Service, Centre of Excellence etc.
13 Achieving Payroll Best Practices Through PeopleSoft HCM The Implementation TargetingArchitectureConstructionMigrationEvolution
14 Achieving Payroll Best Practices Through PeopleSoft HCM The Implementation Architecture12345678910ProjectInitiationExecutiveInterviewsQuick Wins DevelopmentQuick Wins ImplementationCurrent State ReviewBest Practice VisionVision ValidationSolution DesignRequirements and Fit/Gap AnalysisTechnology Architecture PlanningImplementation PlanningBusiness Case DevelopmentOngoing Project Management/Program OfficeOngoing Change Management & Communications
17 Company Background and Key Drivers $1 B Materials companyPoised for growth opportunities and newer marketsMaintains separate systems for HR, PayrollProcess includes a mix of Central HR, Divisional HRs and factory supervisors acting as HR agents.Number of Employees–Approx 7700Key DriversAggressive growthIncreased employees will require more employees & HR staff (currently 57:1 ratio)Increased attention on cost management-High HR cost per EE ($2,197)Need for quick assimilation and scalability of resourcesHas disparate systems with delayed processes and now is in favor of a fully integrated HR (and it’s sub components) and Payroll systemNeed for accurate workforce planning
18 Current State process Employee Data Management- Data Entry and Record setup
19 Business Email Address & LDAP Password PeopleSoft Best Practice Implementation Employee Data Management- Data Entry and Record setupBusiness Address & LDAP PasswordPeopleSoftHRMSSecurity
20 PeopleSoft Post Implementation benefits the company achieved thru Best Practice methods Relation with an employee started early on as a self service applicantIntegrated PS system provides same information and on-boarding process is cut downThe data management burden is not concentrated with HR alone and is distributed.Data Standardization (Job code, Position etc) alone have lessened HR to focus more on value-add processes.Payroll can already process the first check instead of manual entries the first time.Central HR, Divisional HR and factory HR are more aligned with informationReduced calls to Central HR from factory HRs as they have role based access to look upon employees.Shared service calls are often solved by Tier 1 compared to earlier process of transferring Employee calls often.
21 ConclusionsWith proven best practices and technology enablement we can achieve greater levels of efficiencies and effectiveness.To fully leverage a mature product like PeopleSoft, we need to identify best practice goals to be achieved early on and then configure .Only a holistic Best Practice approach will yield in superior implementation and a lowered TCO.