HR and Benefits Technology

Presenter: Steve Cassidy VP of Business Development HR Technology Advisors, LLC

© Copyright 2007 HR Technology Advisors, LLC. All rights reserved. 2

Who is HR Technology Advisors?

• Founded in 2001 as an HR & Benefits Technology Consulting firm

• Partner with select brokerage firms across the country to bring value added service to their clients

• HRIS, Benefits Technology professionals with long-term experience as both vendor, consultant and buyer

• Participated in selection/implementation of more than 30 different vendors for multi-industry customers (10 – 30,000 employees) across the country

HRT Believes…

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HR and Benefits Automation can greatly improve the accuracy of employee data and overall efficiency of the Human Resource Operation enabling HR to contribute more strategically and same money resulting in a positive impact to the company’s bottom line.

HRT Believes…

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The odds of any HR department implementing HR or Benefits Automation successfully are directly related to the method used in its selection and how it is implemented.

Let’s Define Some Terms

• EMPLOYEE/MANAGER SELF SERVICEA program that allows employees and/or managers to handle many job-related tasks normally conducted by HR departments including benefits enrollment, and updating personal information. Employees and managers can access the information through the company's intranet, kiosks, or other Web-based applications.

• HRIS (HUMAN RESOURCE INFORMATION SYSTEMS)Software-based systems that manage all or part of the human resource function for an organization.  

HRMS (HUMAN RESOURCE MANAGEMENT SYSTEM)The entire process of managing  an organizations resources.

• ERPS (ENTERPRISE RESOURCE PLANNING SYSTEM)Large computer applications that integrate multiple operations of a company or business unit.   

• SOFTWARE-AS-A-SERVICE (SaaS)

Software hosted by a third party, usually accessed via a web browser, wherein you pay a monthly fee that covers licensing, system maintenance, and upgrades.

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HR Roles & Responsibilities

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• Maintain Employee Records

• Recruitment Management

• Training and Development

• Benefits Administration

• Performance Management

• Succession Management

• Compensation Planning

• Grievance and Conflict Resolution

• Payroll

Everyone Has a System

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Your Challenges• Overloaded with too much work and limited resources• Spending too much time on administrative tasks• Too much paper• Redundant data entry into multiple places (payroll, HR, Benefits, time)• Risk of errors• Employees asking for same information• Managers can’t get what they need• Building reports takes too long• Staying compliant

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HR is being asked to do more.

Investing In The Right HR Administration Technology and

Services Will Save Time & Money

Common HR System

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Payroll

Employee Administration• New Hire Processing• Termination Processing• Track Job Information• Track Personnel Information

• Track Work Experience• Track Skills• Track Grievances• Reporting

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What Is An HR Administration System?

Employee Administration• New Hire Processing• Termination Processing• Track Job Information• Track Personnel Information

• Track Work Experience• Track Skills• Track Grievances• Reporting

RecruitmentBenefits

ManagementCompensation

PlanningTraining &

DevelopmentTime &

AttendancePerformance Management

Succession Planning

Software that addresses HR’s needs.

Process Savings

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Process Manual Cost

Cost with Automation

% Savings

Salary Change $33.50 $18.26 45%

Approve Promotion $36.48 $14.01 62%

Create Job Requisition $27.67 $11.11 60%

Performance Appraisal $59.73 $47.60 20%

Enroll in Benefits $30.06 $4.59 85%

Enroll in Training $9.58 $2.31 76%

Change of Address $1.58 $0.36 78%

Apply for job $11.55 $6.09 47%

Source: CedarCrestone 2009Value Report

© Copyright 2007 HR Technology Advisors, LLC. All rights reserved. 12

HR Administration System Value

% of Employers successfully satisfying objectives

Improve Data Access/Accuracy 86%86%

Superior Service 80%80%

Enable HR to Serve More Strategically 78%78%

Administrative Cost Savings 76%76%

Make Better Decisions 65%65%

Enable Recruiting of Key Talent 55%55%

Source: 2009 CedarCrestone HR Self-Survey Results – includes HR Managers and Directors for Small to Large Companies

Marketplace Trends

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Key HR Technology Trends

1. Strong preference toward Software As A Service (eliminating reliance on IT)

2. HRIS solutions are becoming more affordable and easier to use

3. Increased adoption of Employee Self-Service and “Portal-ization”

4. Technology solutions are becoming more tightly integrated with growing emphasis on

Single-Sign-On

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Strong Trend toward SaaS

Software-as-a-Service

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• Lower IT Costs– SaaS avoids the overhead associated with implementing conventional software

• Purchase and maintenance of servers• Installation and maintenance of software

• Focus Budget on Features and Capabilities Rather than Infrastructure

• Gain Immediate Access to Latest Innovations and Upgrades

• Ability to Join a Community of Interest

Common Concerns

• Data Security

• System Availability

• Data Control

Common Concerns

• Data Security

• System Availability

• Data Control

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Solutions Becoming More Affordable

HR System Vendors

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Target Market Approximate Pricing

Infinity HR • 25-1000 employees• $3.20 -$4.00 PEPM• $3,000 set-up

ADP HR/B • 25-1000 employees• $4.50-$5.25 PEPM• $5,000 set-up

HROffice • 50-1,000 employees• $5.50 PEPM• $10,000 set-up

NuView • 500-5,000 employees• $5.00-$8.00 PEPM• $30,000-$50,000 set-up

Spectrum HR • 500-5,000 employees• $5.75 + PEPM• $30,000-$50,000 set-up

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Increased Adoption of Employee Self-Service

Internet Usage

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What is “Portal-ization”

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What’s The Value?

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According to CedarCrestone, organizations can typically count on a 20% to 25% reduction in HR administration time when they move to self-service.

According to CedarCrestone, organizations can typically count on a 20% to 25% reduction in HR administration time when they move to self-service.

According to a 2009 study by Forrester Research, enabling ESS for benefits enrollment resulted in an estimated $5.63 PEPM savings in overhead an premium.

According to a 2009 study by Forrester Research, enabling ESS for benefits enrollment resulted in an estimated $5.63 PEPM savings in overhead an premium.

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Tighter Integration

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Best-of-Breed

- Types of Best-of-Breed, Niche Solutions -

RecruitmentPerformance

Mgmt.

Payroll

Benefits Training

Best-of-Breed Solutions typicallyhave deeper, more mature functionality.

Payroll Processing

PerformanceMgmt.

ApplicantTracking

BenefitsMgmt.

TrainingMgmt.

Separate Payroll with Integrated HRIS

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Employee HR

Database

Payroll Database

Payroll ProcessingCheck CuttingDirect Deposit

Accruals

HR Processing

DemographicBenefits

RecruitmentEtc.

Time & Attendance

Time In/OutJob Tracking

Employee View

Manager View

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Single Platform

Employee Database

PayrollProcessing

Direct DepositAccruals

HR ProcessingDemographics

BenefitsRecruitmentPerformance

Talent

Time & Attendance

Time In/OutJob Tracking

Employee View

Manager View

What’s Ahead?

• Relentless growth of social networking sites (Facebook, LinkedIn, Twitter)

• Core HR vendors extending capabilities to compete with best-of-breed (niche) vendors

• Vendors forming partnerships

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Best Practices

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Differences Exist Between HR Vendors

• Vendor Roots (Payroll, HRIS, Best-of-Breed)• Experience & Viability• Target market• Pricing• Feature/Functionality• Depth of Solution• Modules/Partners

• Delivery Model• Deployment Approach• Ongoing Support• Scalability• Ability to satisfy future needs

Sample Feature DifferencesRequirement = Track Training• Administer training enrollment• Track training classification• Track training costs• Maintain current library• Update employee qualifications• Evaluate training requirements• Generate notices• Schedule courses

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Considerations Before You Buy

• How will your company grow in the next five years?

• How quickly will you launch?

• What is your budget?

• Do you have IT resources to support an on-site system?

• With what current systems must any new system integrate?

• Are you comfortable giving up control of private data – do you have stringent data security rules?

• What features are your priorities?

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Success Strategies for Implementing HR Technology

• Build a business case to gain internal commitment

• Don’t treat as a single project with a start and end date

• Identify milestones to achieve success points – build momentum

• Make sure it’s not viewed as just an HR Project

• Get resource commitment and make sure they are accountable for results (can’t be

someone’s second job)

• Technology alone isn’t the answer – will need to rework processes

• Understand that users will experience change

• Continue to sell internally

• Think strategically – use the data

“The difference is in the delivery”

Implementation Plan

Reap The Benefits Now.

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Invest in the right HR technology solution for your organization.

Drive Costs out of your business - automating key processes

Increase employee retention - providing a higher level of service

Improve organizational decision making - increasing your access to information

Improve core HR processes

Reduce routine administrative paperwork

Increase productivity throughout organization

Eliminate cumbersome, time-consuming paper processes

Free up HR staff

Build consistent messaging

Get better at compliance – avoid lawsuits

HR can reduce the time spent on administrative work by 40 – 50%**Giga Information Group

Thank You!