Human Resource Information System - HRIS

Human Resource Information Systems				should keep the data secure if any employee’s
The purpose of this paper is to identify other				laptop is stolen or if the drive is removed from the
companies who have faced similar human resources				laptop. Other financial advisors are relying on
issues in regards to information technology. Through				encryption both in and out of the office. Other
benchmarking different companies we can learn how				programs that are being used to protect client’s
other companies have handled certain human				information are RAID Level 1 system to store data on
resources issues related to information technology,				the drives that are encrypted with WinMagic’s
information systems, new technology, and data				SecureDocs software. Encryption ensures that
security. An overall analysis has been completed using				anyone who steals the computer will be absolutely
research on IBM Europe, Ameriprise Financial, Terasen				unable to read the data, even by connecting it to
Pipelines, Shaw’s Supermarkets, CS Stars LLC,				another computer as a “slave drive. This has
IBM, WORKSource Inc., and Toshiba America Medical				given many financial advisors the greatest peace of
Systems, Inc. This paper also includes eight synopses				mind.
of companies facing similar issue to those in the				Terasen Pipelines
reading.				The Situation:
New Technology				Terasen Pipelines is a subsidiary of Terasen Inc.
With the changing world and constant new technology				located in Vancouver, Canada and is located in several
that is available, managers need to be aware of the				provinces and U.S. states. In 2001 the company
technology that will increase effectiveness in their				changed its headquarters to Calgary to be closer to
company. Human resource information systems (HRIS)				the oil. With the big move, the company went through
have increasingly transformed since it was first				a growth spurt. With the company in many different
introduced at General Electric in the 1950s. HRIS has				locations and the growing numbers of employees, the
gone from a basic process to convert manual				HR department saw a need to find a new system to
information keeping systems into computerized				keep more accurate records.
systems, to the HRIS systems that are used today.				The Response:
Human resource professionals began to see the				In the past Terasen had kept records on paper and
possibility of new applications for the computer. The				with spreadsheets and with the growth of the
idea was to integrate many of the different human				company, this system does not work as well as in the
resource functions. The result was the third generation				past. In order to compensate for future growth,
of the computerized HRIS, a feature-rich, broad-based,				Terasen began to look into HRIS companies to help
self-contained HRIS. The third generation took systems				with the HR operations. After researching different
far beyond being mere data repositories and created				companies, Hewitt’s application service provider
tools with which human resource professionals could				model with eCyborg was found to be the right fit.
do much more (Byars, 2004).				The Outcome:
Many companies have seen a need to transform the				Although there was difficulty adapting to a new way
way Human Resource operations are performed in				of recordkeeping, Terasen was able to find a system
order to keep up with new technology and increasing				that will help support the current and future growth of
numbers of employees. Terasen Pipelines moved its				the company. Fortunately, some of the HR staff had
headquarters from Vancouver to Calgary to be closer				experience working with an HRIS and were able to
to the oil and realized a major growth in employees. In				help their colleagues imagine new processes, as aided
the past recording keeping was done on paper and				by a system. One theme often voiced throughout this
with spreadsheets. Mangers at Terasen realized that				process was: "You guys don't know how hard we're
there was a need to change to a more computerized				working when we can make it so much easier with a
system and looked into different HRIS vendors. By				system that could do a lot of this for us. You don't
making the move to a HRIS system, Terasen is able				always have to run to the cabinet for the employee
to keep more accurate records as well as better				file just to get basic information. It can all be at your
prepare for future growth. Another company that saw				fingertips." (Vu, 2005). In order to help Terasen ease
the benefits of keeping up with new technology is				the HR burden of implementing a new HR system, the
WORKSource Inc. To meet the challenge of handling				management of Terasen was convinced to look for a
100 new employees, WORKSource Inc. acquired				vendor to help implement and maintain a HRIS system.
Web-based technology programs from GHG Corp. like				This system has helped Terasen better prepare for
electronic pay stub, electronic timesheet software,				current and future growth.
time-off system, and human resource information				Shaw’s Supermarkets
system (“Tips,” 2006). By adapting these				The Situation:
new programs, WORKSource was able to reduce				Shaw’s Supermarkets is the second largest
waste and cost.				supermarket chain in New England. With a workforce
The Internet is an increasingly popular way to recruit				of 30,000 located at 180 stores throughout six states,
applicants, research technologies and perform other				Shaw's HR staff is responsible for managing
essential functions in business. Delivering human				employees' personal data. Their employee mix includes
resource services online (eHR) supports more efficient				approximately 70 percent part-time employees,
collection, storage, distribution, and exchange of data				consisting of students, senior citizens, second-job
(Friesen, 2003). An intranet is a type of network used				part-timers, and career part-timers. One third of the
by companies to share information to people within the				workforce is made up of union associates, and
organization. An intranet connects people to people				Shaw's staff oversees the company's involvement
and people to information and knowledge within the				with three unions and six separate contracts (Koven,
organization; it serves as an “information				2002). In order to help manage the workforce, the HR
hub” for the entire organization. Most				staff became interested in centralizing its HR
organizations set up intranets primarily for employees,				operations.
but they can extend to business partners and even				The Response:
customers with appropriate security clearance (Byars				In order to centralize HR operations Shaw’s
& Rue, 2004).				decided to implement an ESS (employee self-service)
Applications of HRIS				solution. The use of self-service applications creates a
The efficiency of HRIS, the systems are able to				positive situation for HR. ESS gives HR more time to
produce more effective and faster outcomes than				focus on strategic issues, such as workforce
can be done on paper. Some of the many applications				management, succession planning, and compensation
of HRIS are: Clerical applications, applicant search				management, while at the same time improving service
expenditures, risk management, training management,				to employees and managers, and ensuring that their
training experiences, financial planning, turnover analysis,				data is accurate. With this solution, employees have
succession planning, flexible-benefits administration,				online access to forms, training material, benefits
compliance with government regulations, attendance				information and other payroll related information.
reporting and analysis, human resource planning,				The Outcome:
accident reporting and prevention and strategic				Shaw’s has had positive feedback since
planning. With the many different applications of HRIS, it				implementing the ESS solution. "The reaction from our
is difficult to understand how the programs benefit				employees has been extremely positive," Penney, VP
companies without looking at companies that have				of Compensation and Benefits, says. "We even had a
already benefited from such programs.				significant increase in our medical coverage costs, and
One such company is IBM. IBM has a paperless online				it was almost a non-issue because the online
enrollment plan for all of its employees. Not only has				enrollment featured the plan choices, the employee
the online enrollment saved the company 1.2 million per				cost, and the company subsidy. An employee
year on printing and mailing costs, the employees enjoy				self-service application makes it very easy for them to
working with the online plan. "Since we began offering				understand their contributions and coverage options. I
online enrollment, we've learned that employees want				received several e-mails from employees saying this
web access," Donnelly [Senior Communications				was a great change and how easy ESS was, which
Specialist] says, so they can log on at home rather				the case is not often when employees are selecting
than through the company intranet. So the company				their benefit options." (Koven, 2002). By giving the
has been working to put in place a web-based				employees more access to their information they are
enrollment system that employees and retirees can				able to see the benefit choices available to them.
access from anywhere (Huering, 2003). By utilizing the				Employees are also able to update their information
flexible-benefits application HRIS has to offer, IBM was				online, which helps reduce the paperwork of the past.
able to cut costs and give employees the freedom to				Shaw’s has also seen improvement in
discover their benefits on their own time and pace.				productivity because employees are updating
Another company that has taken advantage of HRIS				information at home, not during work hours.
applications is Shaw’s Supermarkets. In order for				CS Stars, LLC
Shaw’s to better manage its workforce, the				The Situation:
company decided it was time to centralize the HR				New York Attorney General Andrew Cuomo has
operations. After looking at different options,				announced that New York State has reached its first
Shaw’s decided to implement an Employee Self				settlement with a company charged with failing to
Service (ESS) system. The use of self-service				notify consumers and others that their personal data
applications creates a positive situation for HR. ESS				had gone missing. Cuomo’s office, which
gives HR more time to focus on strategic issues, such				enforces the state’s 2005 Information Security
as workforce management, succession planning, and				Breach and Notification Law, charged CS STARS
compensation management, while at the same time				LLC, a Chicago-based claims management company,
improving service to employees and managers, and				with failing to give notice that it had lost track of a
ensuring that their data is accurate. With this solution,				computer containing data on 540,000 New
employees have online access to forms, training				Yorkers’ workers’ comp claims.
material, benefits information and other payroll related				The Response:
information (Koven, 2002). By giving employees				The owner of the lost data, which had been in the
access to their personal information and the ability to				custody of CS STARS, was the New York Special
update or change their information as needed, HR was				Funds Conservation Committee, an organization that
given more time to focus on other issues.				assists in providing workers’ comp benefits
Understanding the different applications HRIS has to				under the state’s workers' comp law. On May 9,
offer will give companies the chance to increase				2006, a CS STARS employee noticed that a
employee efficiency and reduce costs.				computer was missing that held personal information,
Measuring the Effectiveness of HRIS				including the names, addresses, and Social Security
The evaluation should determine whether or not the				numbers of recipients of workers’ compensation
HRIS has performed up to its expectations and if the				benefits. But CS Stars waited until June 29, 2006, to
HRIS is being used to its full advantage (Byars &				notify Special Funds and the FBI of the security
Rue, 2004). One of the most significant challenges				breach. Because the FBI declared that notice to
faced by public personnel executives today is				consumers might impede its investigation, CS STARS
measuring the performance of their human resources				waited until July 8, 2006, to send notices to the 540,000
information system (HRIS) In order to justify the				New Yorkers affected by the breach. On July 25,
value-added contribution of the HRIS to accomplishing				2006, the FBI determined an employee, of a cleaning
the organization's mission (Hagood & Friedman,				contractor, had stolen the computer, and the missing
2002). Implementing an HRIS program may seem a				computer was located and recovered. In addition, the
necessary stem for a company, but unless it will be an				FBI found that the data on the missing computer had
effective tool for HR operations, it will not help increase				not been improperly accessed.
efficiency and may hinder it instead.				The Outcome:
One company that implemented a HRIS system is				New York's Information Security Breach and
Toshiba America Medical Systems, Inc. (TAMS).				Notification Law, effective in December 2005, requires
TAMS put all employee benefits information online and				businesses that maintain computerized data which
created an open enrollment option when TAMS				includes private information to notify the owner of the
changed healthcare providers. Almost immediately				information of any breach of the security of the
upon rolling out the UltiPro portal [new HRIS technology]				system immediately following discovery, if the private
to employees, TAMS began seeing improvements,				information was, or is reasonably believed to have
with an estimated 70% increase in open enrollment				been, acquired by a person without valid authorization.
efficiency (Wojcik, 2004). By determining the efficiency				The law affects not only businesses in their dealings
of the new program, TAMS was able to realize the				with their customers, but employers in their role as
benefits of the new HRIS system.				custodians of employees’ personal data.
Security of HRIS				(Cadrain)
The privacy of employee information has become a				Without admitting to any violation of law, CS STARS
major issue in recent years. With identity theft				agreed to comply with the law and ensure that proper
becoming a common problem, employees are				notifications will be made in the event of any future
becoming more sensitive about who sees their				breach. The company also agreed to implement more
personal information, and the security it is kept in. By				extensive practices relating to the security of private
making sure employee information that is kept in the				information. CS STARS will pay the Attorney
HRIS is relevant to the company and making sure				General’s office $60,000 for costs related to this
there is limited access (password protection) to such				investigation. (Cadrain)
information, companies can make its employees more				IBM
secure with the safety of their information. Whether				The Situation:
electronic or paper, employee files deserve to be				IBM's paperless online enrollment system, introduced in
treated with great care. Establishing security and				1999, has proved to be a winner for both the
end-user privileges calls for a balance of incorporating,				company's 135,000 active U.S. employees and the
HR policy, system knowledge and day-to-day				company, according to Cathleen Donnelly, senior
operations (O’Connell, 1994).				communications specialist at company headquarters in
One company that faced a major security issue was				Armonk, N.Y. The company saves $1.2 million per year
CS Stars, LLC. CS Stars lost track of one of its				on printing and mailing costs alone, Donnelly says, and
computers that contained personal information that				the employees’ can take advantage of a
included names, addresses and social security				variety of technologies to learn about issues, research
numbers of workers compensation benefits. The				program information and access decision support tools
bigger problem was that CS Stars failed to notify the				from their desktop computers. (Heuring, 2002)
affected consumers and employees about the missing				The Response:
computer. Though the computer was retrieved and no				One of those tools, a personal medical cost estimator,
information seemed to have been harmed, many				enables employees to calculate potential out-of-pocket
employees lost their sense of security with the				health care expenses under each of the plan options
company. New York's Information Security Breach and				available to them, Donnelly says. Employees log in
Notification Law, effective in December 2005, requires				personally and are greeted by name and with
businesses that maintain computerized data which				important information regarding their benefits
includes private information to notify the owner of the				enrollment, such as the deadlines and when changes
information of any breach of the security of the				take effect. They automatically get access to health
system immediately following discovery, if the private				plans that are available to them, and the calculator lets
information was, or is reasonably believed to have				them compare estimated benefit amounts for each
been, acquired by a person without valid authorization				plan.
(Cadrain, 2007).				"Employees can select the health care services they
Another company that experienced a breach in				expect to use in a particular year, estimate expected
security is Ameriprise Financial. In late 2005, a				frequency of use, and calculate potential costs under
computer that contained personal information on clients				each plan option," Donnelly says. "The feedback that
and employees was stolen. Because many of the				we've received from employees tells us that this tool
employees at Ameriprise take their computers				has really helped them to make a comparison
between work and home, the company determined				between plans based on how they consume medical
there was a need to put more security into those				services." The calculator shows both IBM's costs and
computers. Ameriprise made sure all employees had				the employee's. (Heuring, 2002)
the new security suite installed on their computers. By				The Outcome:
responding quickly to the need for more security,				"Since we began offering online enrollment, we've
Ameriprise made sure all information is being kept				learned that employees want web access," Donnelly
secure. Making sure employees information is kept as				says, so they can log on at home rather than through
secure as possible there will be more trust in the				the company intranet. So the company has been
company and the HR employees working with that				working to put in place a web-based enrollment
information.				system that employees and retirees can access from
Conclusion				anywhere.
IBM, Terasen Pipeline, CS Stars LCC, and Toshiba				Employees can get summary information on the plans,
America Medical Systems, Inc. are good examples of				drill down into very specific details and follow links to
companies facing issues similar to human resources				the health care providers for research. Donnelly says
information technology and human resources				the system has received high marks for convenience
information systems. All of these companies know the				because employees can "get in and out quickly."
importance of new technology, human resources				WORKSource Inc.
information systems, and data security. The remainder				The Situation:
of this paper provides synopses of more companies				To meet the challenge of handling 100 new employees,
facing human resources issues, how the company				WORKSource Inc. acquired Web-based technology
responded to the issues, and the outcomes of the				programs from GHG Corp. like electronic paystub,
company’s responses.				electronic timesheet software, time-off system, and
Companies Benchmarked				human resource information system
IBM Europe				(“Tips,” 2006). These tools enabled CEO
The Situation:				Judith Hahn to handling payroll procedures efficiently
IBM is a global organization offering research,				and effectively.
software, hardware, IT consulting, business and				The Response:
management consulting, ring and financing. It employs				WORKSource has eight workforce centers, with
around 340,000 people, speaking 165 languages across				approximately 108 employees, located throughout a
75 countries, and serving clients in 174 countries. In				six-county region. Previously, payroll, benefits, and
January 2007, IBM established a separate “new				human resources for those employees were
media” function within its corporate				processed and managed by a Professional Employer
communication department. IBM main goal is to				Organization. The company also has 52 administrative
educate, support, and promote programs that utilize				staff in its headquarters office. When the contract with
social media. IBM Europe decided to expand internal				the PEO terminated on June 30, 2006, those 108
communication by blogging guidelines. The recognition				employees were immediately moved to the payroll of
was that blogging was already happening among				WORKSource, which meant Hahn’s workload
IBMers, just in an unregulated way. In a similar way,				more than doubled effective July 2006
institutionalizing a function to deal specifically with new				(“Tips,” 2006).
media is not a corporate move, or establishing from				Hahn, in an interview with PMR, said she relied on
scratch. It’s a response to the issues already				LEAN to help get a handle on what needed to change
emerging in the company. Now that those technologies				for her to manage the increased workload. Two years
are here, people are using them, they’re growing				earlier, Hahn’s CEO had introduced her to LEAN,
and there here to stay-we’re just going to put				a Japanese management concept of eliminating
some structure around them so that we can try to				wasteful steps and motion when completing
optimize their use.” The users decide what				processes. “I began to read as much as possible
technologies they want to use and how they want to				about LEAN and joined an HR LEAN focus
use them. That main idea is that IBM understands that				group” (“Tips,” 2006).
they must remember to respect the fact that social				The Outcome:
media are social. IBM had the need to connect its				Mastering the concepts of LEAN led Hahn to develop
340,000 global employees more effectively.				and apply her own acronym of
The Response:				“REASON” to her department’s
IBM’s intent around social media has now been				payroll and HR processes. Review the process: map
officially formalized. From January 22 2007, the				payroll tasks from start to finish. Eliminate waste:
company established a separate “new				determine how to complete a payroll task most
media” function within its corporate				efficiently without unnecessary steps. Analyze
communication department. “Its remit: To act as				alternatives: research and evaluate the applicability of
expert consultants inside and outside IBM on issues				new technology. Sell innovations to management:
relating to blogs, wikis, RSS and other social media				document the return on investment of each innovation.
applications. The main idea is to educate, support and				Open the lines of communication: communicate
promote programs that utilize these tools. IBM has a				openly—and often—with all stakeholders,
history of being a t the forefront of technology based				including employees and top management. Never allow
corporate communication. From the multimedia				negativity: make change simple and fun. Give
brainstorming “WorldJam” that made news				employees plenty of encouragement and time to learn
headlines back in 2001 in which 50,000 employees				(“Tips,” 2006). Judith Hahn was able to
worldwide joined a real time, online idea-sharing session				implement the right human resource functions using
about the company’s direction. IMB has always				information systems.
prepared itself to use breakthrough technologies to				Toshiba America Medical Systems Inc.
establish a two-way dialogue with its employees. The				The Situation:
need for social media was necessary and could no				Lynda Morvik, director of benefits and human
longer wait.				resources information systems at Tustin,
The Outcome:				California-based Toshiba America Medical Systems
In the last few years IBM has been recognized as				Inc. (TAMS), thought it would make sense to add a
being the vanguard of social-media use: IBM was on of				benefits communication component to it. By having all
the first Fortune 500 companies to get behind				the benefit information online, the TAMS employee
collaborative wikis, published internal blogging guidelines				handbook would also be a living document, enabling
as far back as 2003, and is now moving fast beyond				Morvik to make changes when necessary. Such was
RSS and podcasts into videocasting and “virtual				the case halfway through the project, when TAMS
world” technologies like Second Life. The intranet				changed health care plans from Aetna Inc. to United
search facility extends to all areas of the site, including				Health Group Inc (Wojcik, 2004).
new media aspects. When an employee logs onto				The Response:
their portal an executes a key word search, the results				TAMS, an independent group company of Toshiba
they get back not only come from the main intranet				Corporation and a global leading provider of diagnostic
pages, but include results from IBM forums, wikis, blogs				medical imaging systems and comprehensive medical
and podcast/videocasts tags. IMB has an				solutions, such as CT, X-ray, ultrasound, nuclear
understanding that employees are no longer staying in				medicine, MRI, and information systems, had been using
a company their entire lives. It’s just not like that				a payroll service bureau and an in-house solution for
any more. In Belgium for example over 50 percent of				HR that didn't include easy-to-use consolidated
2,300 employees have been there fewer than five				reporting or an employee portal. After evaluating
years. The company has come to the conclusion that				UltiPro alongside several enterprise resource vendors,
with an increasingly young and mobile workforce, the				TAMS selected Ultimate Software's offering and went
likelihood is that an employee population full of a				live in September 2002 after an on-time and on-budget
younger generation, for whom these tools are part and				implementation. Almost immediately upon rolling out the
parcel of life, is not that far away. In years to come				UltiPro portal to employees, TAMS began seeing
IBM will have to deal with employee base for which				improvements, with an estimated 70% increase in
blogging is just the natural way to interact over a web				open enrollment efficiency (Wojcik, 2004).
platform. IBM has created centralized platforms for				The Outcome:
most tools that fall under its remit, which includes wikis.				In an effort to expand the usage of the Web beyond
For Philippe Borremans, new media lead Europe for				the benefits enrollment process, TAMS has posted a
IBM, has the potential business applications of a wiki				library of documents and forms on its HR portal,
cover two broad benefits: Collaborating and				including the benefits handbook, which garnered a
knowledge sharing. IBM has scored some notable				2004 Apex Award for publication excellence. That
successes on both fronts in the near 5000 wiki pages				same year, Business Insurance magazine also gave
now up and running in the organization. The company				TAMS the Electronic Benefit Communication (EBC)
has been a huge pick-up in interest in podcasting over				award for outstanding achievement in communicating
the last 18 months writing can seem such a technical				employee benefits programs over the Web. To
skill, whereas people feel they can talk more freely				continue elevating its use of Ultimate Software's
than they can write. One of the most consistently				HRMS/payroll solution, TAMS modified the UltiPro
popular IBM podcasts, with over 20,000 downloads a				portal to meet the imaging company's unique needs
week.				(Wojcik, 2004). It was completely integrated with
Ameriprise Financial				several proprietary applications created to address
The Situation:				compensation and performance management issues
The Department of Justice survey estimates that 3.6				so that TAMS employees have a central location for
million U.S. households were victims of identity theft in				comprehensive workforce and payroll information from
2004. Trafficking in personal date goes beyond U.S.				a Web browser that they can access with a single
borders: the New York Times reports that stolen				sign-on (Wojcik, 2004).
financial information is often distributed among				References
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