Human after all
Human resources (HR) is, by definition, one of the most sensitive areas in any organisation. Good employee relations are crucial to the performance, growth and success of a business. People are now properly recognised as key assets, which is why the term human capital management is commonly used.
As with all other assets, effective systems to ensure proper management are essential in a dynamic and complex environment. The other side is that, when things go wrong in employee relations, there can be unfortunate consequences, from industrial action and litigation to fines for breaches of employment law.
HR systems have been around for a couple of decades in larger organisations but, until recently, they were largely computerised records rather than functional, workflow-based systems. A more recent trend has been to align payroll administration with HR systems now that distributed computing means that the traditional link with accounts is not a determining factor.
It is recognised that salaries and bonuses, job responsibilities and entitlements, hours worked, holidays, tax and other personal affairs of employees belong to the HR function. In practice, the boundaries probably do not matter too much any more since modern software can readily share data between HR, payroll and financial systems.
At the SME level, HR functionality is often tied to payroll and limited to essentials such as employee personal details, time and attendance, holidays and so on. Top-level HR suites and services, on the other hand, cover every aspect of the wide range of personnel functions, from manpower forecasting through staff performance monitoring to automatic health and safety compliance checks.
In a well-run organisation today, for example, long before a new recruit arrives on the first day of a new job, the systems will have been triggered to allocate the appropriate resources. That might include desk, PC or laptop with standard configuration and any other kit required; staff ID and building entry pass; IT system permissions for the access appropriate to the role; and a new e-mail account.
HR systems are as automated and dynamic as any other enterprise applications, according to Roddie Aherne, business director for Ireland with Northgate Arinso. It is Ireland’s largest HR and payroll service provider, with a track record in outsourced payroll and HR services going back to the days of Cara, the former Aer Lingus computing subsidiary.
Its hosted Resource Link offers all of the functionality online as a service without the investment or systems overhead.
“We are now seeing what we can call a hybrid HR solution that offers flexibility with power to all types and scale of organisation,” said Aherne. “Almost all elements can be online or delivered as an outsourced service or, if required, the organisation can keep specific data and functionality in house.”
It reflects the way organisations need to work today, Aherne said, in a real-time, always-on world where user expectations demand immediate information and services. Employee self-service in HR is now standard.
“If you want to book your holidays or just take some leave, check your payslips or record your change of address, it can all be done directly. As well as labour saving in HR, employees are much more comfortable,” he said.
Taking costs out of the HR function is a major consideration for all organisations, Aherne said, and e-HR generally could offer reductions of about 50 to 80 per cent.
“As much as possible of the transactional type of administration is automated, and information and other requests are self-service. That also applies to managers and team leaders. Specific HR expertise is then reserved for special cases and strategic tasks.”
Business process outsourcing is now common, said Aherne, and in HR the choice is available to pass functional responsibility to specialist providers to as great a degree as the organisation chooses.
“In this hybrid model, you can have a range of options through composite delivery channels that will fit current HR needs without investment in infrastructure, software or staff. Equally important is that it is flexible, effectively an on-demand solution, with world-class functionality.
