Achieving HR Best Practices through PeopleSoft Human Capital Management

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Achieving HR Best Practices through PeopleSoft
Human Capital Management

• Praveen Gupta
• January 17, 2007

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Agenda

• Session Brief
• Whats a Best Practice?
• HR Best Practices What and Why
• Achieving Payroll Best Practices Through
  PeopleSoft HCM
• Implementation
• Case Study
• Conclusion
• QA

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Session Brief

• Capturing 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 benefits

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Best Practice Defined

• Aligns with strategy
• Reduces costs
• Improves productivity
• Promotes timely execution
• Enables better decision making
• Leverages existing and exploits emerging
  technologies
• Ensures acceptable levels of control and risk
  management
• Optimizes skills/capabilities of the organization
• Promotes collaboration across the extended
  enterprise

Hacketts Best Practices are certified when there
is a correlation with world-class performance
metrics
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World-Class HR is defined as top quartile
performance in both efficiency and effectiveness
Hackett Value Grid
EFFECTIVENESS
EFFICIENCY

• Percent internal promotions
• Use of available technology
• HR linkage to business strategy
• Sourcing utilization
• Workforce management
• Quality of HR processes/transactions
• Linkages between employee development and
  business strategy
• HR partnering on organizational issues

• Cost per employee
• Staffing levels and mix
• Application customization
• HR self-service utilization
• Resource allocation
• Integration of HR systems
• Productivity
• Levels of management within HR

1st Quartile Breakpoint
1st Quartile Breakpoint
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With proven best practices and effective
technology enablement we benefit from greater
returns of efficiency and effectiveness
Number of HR Staff per 1000 EEs
Complexity Reduction Percent of companies
utilizing common HR application deployed globally


Source The Hackett Group. 2006 BON
Source The Hackett Group. 2006 BON
Source The Hackett Group. 2006 BON
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Improvement gains among World-Class and Peer
Group Companies
HR Cost per employee 2006
Number of days to fill a manager position, 2006

Source The Hackett Group. 2006 BON
Source The Hackett Group. 2006 BON
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HR Best Practices What and Why?

• One Integrated System to handle all HR
  transactions
• Provides 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 tools
• Lowers 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 Security
• Increases controls through proper ownership
  Reduces data corruption Ease of Sarbanes Oxley
  compliance information provided is based on
  need reduce data privacy concerns

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HR Best Practices Contd

• Process includes global requirements and
  standards
• Flexibility 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 customers
• Improved 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)

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HR Best Practices Contd

• Implement customer driver Service delivery center
  handling more complex issues
• increased 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 costs
• Standardize Job classifications, positions,
  profiles, Competencies and are online, linked and
  available as a single job record
• Enable 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 gaps
• Productivity gaps filled Leads to organic growth
  avoiding recruiting costs Managers and Employees
  on same page on plan for individual growth

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HR Best Practices Contd

• 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 morale
• Regularly 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 penetration
• Easier adoption of additional HR data In
  compliance with local markets

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PeopleSoft HRMS System and Best Practices

• PeopleSoft HCM System
• Considered Tier 1 system supporting most of the
  best practices
• Tightly Integrated with other HRMS functions
  while maintaining flexibility in configurations
• Quick adopters of next practice methods in
  terms of technology and functionality
• Delivers Out of the box functionality
• A synopsis of Best Practices applicable to
  PeopleSoft
• One Integrated system incorporating high degree
  of efficiency
• Extensively supports Self Service for Managers
  and Employees
• Supports Global standards and requirements
• Supports Reporting capabilities both regulatory
  needs and ad-hoc
• Incorporates 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.

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Achieving Payroll Best Practices Through
PeopleSoft HCMThe Implementation
Targeting
Construction
Evolution
Architecture
Migration
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Achieving Payroll Best Practices Through
PeopleSoft HCMThe Implementation
Architecture
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Project Initiation
Executive Interviews
Quick Wins Implementation
Quick Wins Development
Solution Design
Vision Validation
Best Practice Vision
Current State Review
Requirements and Fit/Gap Analysis
Technology Architecture Planning
Implementation Planning
Business Case Development
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Achieving Payroll Best Practices Through
PeopleSoft HCMThe Implementation
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• Case Study

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Company Background and Key Drivers

• 1 B Materials company
• Poised for growth opportunities and newer markets
• Maintains separate systems for HR, Payroll
• Process includes a mix of Central HR, Divisional
  HRs and factory supervisors acting as HR agents.
• Number of EmployeesApprox 7700
• Key Drivers
• Aggressive growth
• Increased employees will require more employees
  HR staff (currently 571 ratio)
• Increased attention on cost management-High HR
  cost per EE (2,197)
• Need for quick assimilation and scalability of
  resources
• Has disparate systems with delayed processes and
  now is in favor of a fully integrated HR (and
  its sub components) and Payroll system
• Need for accurate workforce planning

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Current State process Employee Data Management-
Data Entry and Record setup
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PeopleSoft Best Practice ImplementationEmployee
Data Management- Data Entry and Record setup
PeopleSoft HRMS
Business Email Address LDAP Password
Security
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PeopleSoft Post Implementation benefits the
company achieved thru Best Practice methods

• Relation with an employee started early on as a
  self service applicant
• Integrated PS system provides same information
  and on-boarding process is cut down
• The 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 information
• Reduced 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.

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Conclusions

• With 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.

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Questions