Employee applications lead the way, but manager applications are making headway
Improving service to employees and managers has long been at top priority for HR departments, but over the past three years, cost reduction has also become a major focus.
As technology continues to drive business improvements, HR executives are looking to use employee self service technology as a means to improve processes and provide increased access to HR information. This enables employees to make better decisions and be more productive, while freeing up time in the HR department for other value-added activities.
According to a recent survey, eliminating process steps and reducing approvals and paperwork are viewed as important tactics to reduce costs and time associated with HR service delivery. The Cedar 2002 Human Resources Self Service/Portal Survey, polled about 300 organizations in North America, Europe, Australia and Asia. Respondents listed the following ways in which self service enables HR to act more strategically and boost the bottom line, such as:
•allowing HR to focus on business and policy issues;
•eliminating costs, specifically by enabling the whole organization to move towards self service, not just for HR;
•providing analytical and measurement services, including assessing the effectiveness of technology in order to prioritize additional initiatives;
•succession planning;
•playing a larger role in attraction and retention; and
•developing staff through new service delivery (for example, e-learning) and through developing a more rigorous competency identification process to improve overall workforce planning.
Applications expand
The number of HR applications and practices which can be delivered through self service continues to grow. The Cedar data shows growth across all functional areas which are categorized into two distinct groups: productivity and strategic applications.
Productivity applications can improve service, reduce costs and enable employees and managers to spend less time on administrative tasks. This allows employees and managers more time to be productive with their primary tasks — a clear driver of organization success. Productivity applications can be further split into two groups, employee productivity applications and manager productivity applications.
Employee productivity applications most widely used include health and benefits management, personal data management, time management, pay-related management and retirement management.
These applications are either in use or planned in 50 per cent of North American companies, and have consistently demonstrated a high success rate. Dell computers reported a savings of $2.5 million US in the first year of implementation.
While employee applications are currently the most widely used of productivity applications, there is a major increase in the number of organizations that are implementing manager applications. In 2002, 30 per cent of the organizations surveyed had these applications in place and an additional 34 per cent planned to implement them by the end of 2003. Specifically, the usage of management reports, employee change actions and approval applications has more than doubled since 2001 as shown by Cedar data. Organizations that implement these tools enable managers to meet organizational objectives more effectively. By providing managers with operational measures, they can make informed decisions regarding salary and other budget-related analysis.
The other key category is strategic applications. These applications enable HR, employees and managers to focus on strategic human capital management activities involving attracting, developing and retaining key talent.
While recruitment services, such as online job postings, have been available for many years, 2002 showed a shift in focus to staff development and skills management applications in order to make the most of existing resources and ensure that skills are developed in alignment with corporate objectives.
The data show a 55 per cent increase in the use of manager productivity and strategic applications in 2002. This indicates corporate interest in the development of talent and management skills.
Additionally, the Internet has profoundly affected employees’ activities outside of the workplace. Employees now use a browser to gain information and perform transactions for many activities of daily life. Increasingly, this exposure to the Internet outside of the workplace is increasing expectations for using the same tools for workplace transactions — especially HR-related transactions and knowledge.
Strategy and ROI analysis key
The evidence from the study suggests that once they are in place, self service applications have a dramatic effect on improving organization productivity and business process. But, as many corporations have found, finding the right implementation method can make a world of difference in how quickly organizations realize the returns on technology investments.
Based on responses to the 2002 survey, the most efficient and cost-effective way to implement HR self service is through the so-called best-of-breed vendors. Consistent with business trends to lower total cost of ownership for enterprise applications, there is a continued movement away from customized systems.
Another key factor in implementation success is technology and change management planning.
Many of the early adopters of employee self service said companies should first identify their full vision, without the limitations of technology, talent and current resources. Only then should they start to move toward that vision.
Once this vision has been created, companies must examine the costs and an audited validation the present — requirements in more than 70 per cent of North American companies. In addition, companies must take a further step and take a close look at current technology infrastructures. Underestimating the importance of a robust infrastructure can prove fatal in achieving success and ROI. Companies that do not allocate sufficient funds initially will end up going over budget to ensure accessibility and usability by employees. Calculator tools are increasingly used to perform ROI analysis rapidly and with greater sophistication.
Hewlett Packard noted that technology was the easy part — the change management and process redesign aspect were the most difficult.
Once regarded as “nice to have,” organizations are increasingly recognizing that self service solutions for HR applications are a business imperative. The results generated in cost savings and enhanced workplace productivity are essential to driving overall competitive advantage. These solutions represent a critical element to both business improvement and HR transformation.
David Link is vice-president of eWorkplace at Cedar. He can be reached at (410) 576-1515 or [email protected]. The white paper summarizing data collected in the Cedar 2002 HR Self Service/Portal Survey is available for free at http://usa.cedar.com.
As technology continues to drive business improvements, HR executives are looking to use employee self service technology as a means to improve processes and provide increased access to HR information. This enables employees to make better decisions and be more productive, while freeing up time in the HR department for other value-added activities.
According to a recent survey, eliminating process steps and reducing approvals and paperwork are viewed as important tactics to reduce costs and time associated with HR service delivery. The Cedar 2002 Human Resources Self Service/Portal Survey, polled about 300 organizations in North America, Europe, Australia and Asia. Respondents listed the following ways in which self service enables HR to act more strategically and boost the bottom line, such as:
•allowing HR to focus on business and policy issues;
•eliminating costs, specifically by enabling the whole organization to move towards self service, not just for HR;
•providing analytical and measurement services, including assessing the effectiveness of technology in order to prioritize additional initiatives;
•succession planning;
•playing a larger role in attraction and retention; and
•developing staff through new service delivery (for example, e-learning) and through developing a more rigorous competency identification process to improve overall workforce planning.
Applications expand
The number of HR applications and practices which can be delivered through self service continues to grow. The Cedar data shows growth across all functional areas which are categorized into two distinct groups: productivity and strategic applications.
Productivity applications can improve service, reduce costs and enable employees and managers to spend less time on administrative tasks. This allows employees and managers more time to be productive with their primary tasks — a clear driver of organization success. Productivity applications can be further split into two groups, employee productivity applications and manager productivity applications.
Employee productivity applications most widely used include health and benefits management, personal data management, time management, pay-related management and retirement management.
These applications are either in use or planned in 50 per cent of North American companies, and have consistently demonstrated a high success rate. Dell computers reported a savings of $2.5 million US in the first year of implementation.
While employee applications are currently the most widely used of productivity applications, there is a major increase in the number of organizations that are implementing manager applications. In 2002, 30 per cent of the organizations surveyed had these applications in place and an additional 34 per cent planned to implement them by the end of 2003. Specifically, the usage of management reports, employee change actions and approval applications has more than doubled since 2001 as shown by Cedar data. Organizations that implement these tools enable managers to meet organizational objectives more effectively. By providing managers with operational measures, they can make informed decisions regarding salary and other budget-related analysis.
The other key category is strategic applications. These applications enable HR, employees and managers to focus on strategic human capital management activities involving attracting, developing and retaining key talent.
While recruitment services, such as online job postings, have been available for many years, 2002 showed a shift in focus to staff development and skills management applications in order to make the most of existing resources and ensure that skills are developed in alignment with corporate objectives.
The data show a 55 per cent increase in the use of manager productivity and strategic applications in 2002. This indicates corporate interest in the development of talent and management skills.
Additionally, the Internet has profoundly affected employees’ activities outside of the workplace. Employees now use a browser to gain information and perform transactions for many activities of daily life. Increasingly, this exposure to the Internet outside of the workplace is increasing expectations for using the same tools for workplace transactions — especially HR-related transactions and knowledge.
Strategy and ROI analysis key
The evidence from the study suggests that once they are in place, self service applications have a dramatic effect on improving organization productivity and business process. But, as many corporations have found, finding the right implementation method can make a world of difference in how quickly organizations realize the returns on technology investments.
Based on responses to the 2002 survey, the most efficient and cost-effective way to implement HR self service is through the so-called best-of-breed vendors. Consistent with business trends to lower total cost of ownership for enterprise applications, there is a continued movement away from customized systems.
Another key factor in implementation success is technology and change management planning.
Many of the early adopters of employee self service said companies should first identify their full vision, without the limitations of technology, talent and current resources. Only then should they start to move toward that vision.
Once this vision has been created, companies must examine the costs and an audited validation the present — requirements in more than 70 per cent of North American companies. In addition, companies must take a further step and take a close look at current technology infrastructures. Underestimating the importance of a robust infrastructure can prove fatal in achieving success and ROI. Companies that do not allocate sufficient funds initially will end up going over budget to ensure accessibility and usability by employees. Calculator tools are increasingly used to perform ROI analysis rapidly and with greater sophistication.
Hewlett Packard noted that technology was the easy part — the change management and process redesign aspect were the most difficult.
Once regarded as “nice to have,” organizations are increasingly recognizing that self service solutions for HR applications are a business imperative. The results generated in cost savings and enhanced workplace productivity are essential to driving overall competitive advantage. These solutions represent a critical element to both business improvement and HR transformation.
David Link is vice-president of eWorkplace at Cedar. He can be reached at (410) 576-1515 or [email protected]. The white paper summarizing data collected in the Cedar 2002 HR Self Service/Portal Survey is available for free at http://usa.cedar.com.
