Smooth Java HRIS Recommendations

May 1, 2008

Matthew Cotugno

Bridgett LarkinSheri SchlicherJustin Vollmer

Agenda• Introduction

▫ Smooth Java Goals▫ ASP Model

• Functional Area Analysis Definition Smooth Java Requirements Examined Vendors

• Detailed Analysis of Selected Vendor

• Implementation Timeline

2

Smooth Java’s Overall Goals

3

Automate HR Functions

Information Accessibility

Improve HR Services

The ASP Model• Lower cost model

▫ Single application

Costs diluted across user network

Blanket upgrades

▫ Up-front cost awareness

• Small-scale Integration ▫ Standardized

Need for expertise eliminated on client side

Easier to integrate w/ Great Plains software

4

• Strategic focus for HR

▫ Removes need to increase IT personnel

• Current & Future Viability

▫ Improved reliability and security

▫ Shorter software cycles

▫ Handles growths

Bridgett Larkin

5

Recruitment & Selection• Recruitment

▫Searching for qualified candidates and generating their interest in applying for a position

• Selection▫The process by which candidates are selected

for a particular position. The screening, interview, and on boarding process

6

Smooth Java’s Goals

• Creation of a qualified applicant pool

• Establishment of a solid recruitment plan for managers

• Ensure proper compliance with laws and regulations

• Procedure for screening and hiring the most qualified applicants from the pool

• Proper procedure for both servers and cashiers

• Ensure compliance and proper evaluation of all candidates

7

Recruitment Plan for Managers• Business Requirements

▫ Integrated process with recruitment and selection

▫Efficient and Streamline recruitment processes Establish a Lean System

▫Ability to cope with High Turnover

▫Obtain expert knowledge on millennial generation

▫Maintain compliance with all HR regulations/rules procedures Discrimination, Employment Laws

8

Essential System Requirements

9

Desired System Requirements

10

Vendor Analysis• Stepstone Solutions

▫Provides talent management solutions▫Over 1200 customers worldwide▫No capability to support other functional areas,

difficult for integration

• Authoria▫Founded in 1997 as an employee benefits plan

provider▫Ease of use and complete talent management

functionality

11

Vendor Analysis• Bond StarSearcher

▫Developed by Bond International Software.▫Specifically for recruitment and selection in

mid-size companies▫Satisfies all essential and most desirable

system requirements▫Limited scope

12

Sheri Schlicher

13

Training & Performance Management• Training:

▫ A process dealing primarily with transferring or obtaining knowledge, attitudes and skills needed to carry out a specific activity or task.

• Performance Management:▫ The process of maintaining or

improving employee job performance through the use of performance assessment tools, coaching and counseling as well as providing continuous feedback.

14

Smooth Java’s Goals

15

• Ensure quality and consistency in product delivery

• Knowledgeable workforce that can provide superior customer service

• Development of consistent training program

• Creation of metrics to determine success of training initiative

• Develop a program that encourages promotion from within, with an emphasis on rewarding team performance

• Creation of a process that utilizes MSS, placing minimal administrative burden on the HR department

• Development of a process that supports Smooth Java’s strategic business goals

Training Challenges• High Turnover

• Scattered Workforce

• Identification of key performance measures

• Development of metrics to measure the success of training programs

16

Performance Management Challenges• Quantifying the

attributes that lead to top performance

• Measuring team performance

• Creation of a fair, consistent process for all employees

17

Key Success Factors• Development and documentation of

programs.

• Ability to train employees across geographic locations

• Consistency in training

• Development of systems and processes that can grow with Smooth Java

18

Essential Requirements

19

Desired Requirements

20

Vendor Analysis – Training• Allena Beta

▫ Organize, manage, maintain and track your staff's training requirements. Automatically schedule recurring training for employees.

• Halogen ▫ Make your full training catalog easily accessible to managers

and employees. Measure effectiveness by tracking employee performance improvements over time.

• People Trak ▫ At the trainee level, course history, skills acquired, and costs

accumulated are tracked. Maintain an extensive catalog of courses and track instructors, facilities, equipment, and costs.

21

Vendor Analysis – Performance Management• Appraisal Smart

▫ Web-based, enterprise-wide. Includes 360 Degree Feedback, online Job Descriptions and additional Ad-hoc Appraisal capability.

• CRG emPerform ▫ Web-based, employee performance solution developed to

meet the ongoing employee appraisal needs of the evolving organization.

• HRN Management Group ▫ Include pre-loaded goals and weighted performance

factors, e-mail alerts, language check, multi-appraiser option, approval routing, comment coaching.

22

Matthew Cotugno

23

Compensation and Benefits

• Compensation▫The process of directly or indirectly rewarding

employees on a current or deferred basis for their performance of assigned tasks

• Benefits▫Indirect and non-cash compensation paid to an

employee Either mandated by law or varies by firm

Smooth Java’s Goals

25

• Collect survey information and develop compensation policy for the following job titles:

▫ Managers▫ Store Managers▫ Assistant Store Managers

• Develop a system for evaluation of jobs

• Establish internal equity among jobs

• Expand current benefit offerings to become more competitive with other employers

• Determine appropriate benefits and proper administration

Essential Requirements

Desired Requirements

Key Success Factors

• Technology based solution that integrates with other functions

• Solution that eliminates transactional tasks▫ GOAL: Provide high-level service to employees

• Use benchmark data from similar organizations

• Implement a comprehensive system

Vendor Analysis

• Wide array of choices▫Many 3rd party vendors offer competitive systems

• Lack of integration▫Most 3rd party vendors do not offer both systems▫RESULT: Compromise in favor of integration

• Data driven▫Systems offer a way to drill-down and simplify the

challenges that arise with compensation and benefit planning & administration

Vendor Analysis - Compensation

• HCR▫CompXL system translates traditional Excel

data▫Merit increases, incentives, spot bonuses, etc.▫Minimal resources needed

• Berkshire Associates▫BalancePAY system runs salary equity analyses▫Develops flexible, market based pay structure▫Develop pay grades and how to structure

system

Vendor Analysis – Benefits

• BRMS▫Vbas system manages employee benefit data

online▫Online communication, automated enrollment,

employee self service▫Verifies employee statuses

• Avant Serve▫Benefits Concepts is web based tool that

manages benefits▫Ensure compliance with HIPPA, COBRA, Retiree

billing

Justin Vollmer

32

Carpe Diem – The Need for Integration

33

Vendor Analysis - Integrated

• SuccessFactors▫ Business intelligence capabilities. Focus on performance

management and training. Lacks full benefits administration, but is compatible with most other modules. Customer support is a major strength.

• CheckPoint HR▫ More a BPO than a traditional ASP, focuses on its partnerships for

process and content. Not a full service system. Select from four tier option table. Strengths are payroll and benefits administration.

• Ultimate Software▫ Effective customization toolkit and specializes in third-party

integration. Focused on developing both server management and DBA support.

34

Recommended Vendor: Employease, INC.• Acquired by ADP in 2006, founded in 1996

• Significant financial momentum▫ 35 Consecutive Quarters of Revenue Growth▫ 50% revenue growth year over year▫ Profitable since 2003

• Over 1,500 customers

• Partnerships with ADP, Google, and numerous legal compliance sites

• Competitive

• Winner of 2006 Codie Award for Best HR solution

35

The ADP Employease HR Solution• A thin client application without software

requirements for workstations

• A full-featured, web-based Human Resources and Benefits Administration system

• Includes Employee and Manager Self-Service with workflow

• Provides powerful and intuitive reporting tools

•Integrates with ADP’s payroll applications

36

Key Features

37

Benefits & Compensation

Performance Management

& Training

Recruitment & Selection

Other

Life events Scheduling Wizard

Resume & Applicant Tracking

Internal Communications

Invoice/Bill reconciliation

Self-Service Training

Internal/External Job

Postings

Personal Data Updates and Notifications

Carrier Connections

Performance Review

Guidance

Candidate Search

Current & Historic Ad Hoc

Reporting

Compensation Analysis

On-boarding “Single-Click”Hiring

Security

Potential Benefits for Smooth Java• Has helped reduce HR necessity

for new store rollouts by 50%

▫ Streamlines launch cycle

• Hire new personnel rather than HR staff

• Has helped support rapid growth

▫ One client: 100 to 1200 employees in 5 years

• Reduce benefits administration by 50-60%

38

• Reduce turnover costs

▫ Average turnover cost is three months wages

• Reduction in time for new hire process

▫ From 7-8 days to 20 minutes

• Elimination of over 80,000 pieces of paper

• Benefit enrollment efficiency

▫ 70% enrollment within a week

• Consolidation of benefit plans

39

Potential Benefits for Smooth Java

Meeting Smooth Java’s Goals

Creation of internal and external job postings

Pre-qualifications measures

Creation of rules to comply with internal and legal policy

Automated requirement filtering for applications

Candidate “mining”

Application status review

Creation of rules to comply with internal and legal policy

40

Meeting Smooth Java’s Goals

On-line training

Access forms and links

Event log and notification to managers

Ad-hoc reporting

Scheduling Wizard – Review planning

Performance Review Wizard – Guides process for reviews

Edit Wizard – Flexible tracking for accountability and compliance

41

Meeting Smooth Java’s Goals

Centralized database

Plan Design Wizard

Enrollment Profiler

Benefit and confirmation statements

Creation of rules to govern compliance

Full benefit resource tool

Intuitive question/response feature

Compensation analysis

Employee and Manager Self-Service

On-demand data management

42

Smooth Java Self-Service

43

Technical Requirements• Entirely web-based

▫ Internet Explorer 7

• ADP Employease Extend Core Services

▫ Open architecture web service to assist clients in data management

Application Programming Interfaces Single-Sign On (SSO) Trust Host Authentication (THA)

XML-based data exchange Simple Object Access Protocol

44

Cost Requirements• One time implementation cost

▫ Between $7,000-10,000 (based on 500-person organization

• Average cost▫$ 6 - 10 per person/monthly

• Estimated cost for Smooth Java▫ $10,000 + $30,000 ($120 per person per year) =

45

$40,000 Start Up Cost$30,000 Annual Cost

Potential Challenges for Smooth Java• Controllership

▫ Design and customization▫ Lose proprietary opportunities

• Security▫ Data▫ Impact from media▫ Productivity and exposure

• Service and function reliability▫ At the mercy of market and provider

Aggressive pricing▫ Size matters

• Over-importance of cost

46

Implementation Plan

47

• Average implementation time: 60 – 90 days

Phase 1 Phase 2 Phase 3

Meet with Vendor

Training User Group

Training Management

Goals and Timeline

Test User Group

Customization

Notify Employees

Security Training Employees

Data Requirements

File Feed Set Up

ASP Roll Out

System Set Up File Testing Custom Training

Communication

48