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TECHNOLOGY - A CRITICAL EMERGING COMPETENCY FOR HR PROFESSIONALS

By Erica Parks
July 2001
Reviewed April 2002
Playing the stock market is similar to playing the slots in Vegas. Depending upon the stocks chosen, one-day they are up, the next day they are down. Our marketplace is similar in that it is constantly changing. New products and services are developed and rolled-out regularly. As such, organizations must be equipped to react quickly to their competitors' new developments by staffing and developing employees. To accomplish these tasks and remain competitive in our global economy, human resources (HR) organizations and professionals must be prepared to meet the challenges of our ever changing, evolving global marketplace by creating a competitive edge through technology.
Creating and Sustaining Value for HR Professionals
Let's face it, HR is an area that was once solely considered an overhead responsibility for many companies. Human Resource professionals have been regarded as mere paper-pushers and administrators of such tasks as hiring, terminations, and benefits enrollment. Today, the world of HR is evolving at Internet speed. It is becoming an integral part of several organizations as the labor force transitions from manufacturing to the age of service, where people are now a company's most valuable asset. As such, HR is positioned to be at the forefront of our evolving marketplace. Organizations are now placing more value on the HR department and professionals as business mandates that more emphasis be placed on managing the workforce and employee development. To meet this challenge, HR professionals must be situated to react quickly to an ever changing, evolving economy. Amongst other things, this will require the leveraging of technology to build HR "centers of excellence".
Web-based applications and portals are at the forefront of emerging technologies. For many organizations they have changed the way HR departments function, the method in which managers receive and report on information and employees have access to their personal information 24 hours a day, seven days a week.
e-Transformation
Several years ago technological advancements provided HR departments with the tools necessary to align resources with business objectives and goals. Many HR departments have since been integrated into the rest of their organizations through Enterprise Resource Planning (ERP) applications such as SAP, PeopleSoft and Oracle. Now, companies are evolving even further by leveraging these systems by using the web to assist with costly HR processes that were once carried out manually, such as recruiting. This provides HR professionals the ability to focus more of their time on ensuring that their organization is attracting the best and most qualified candidates.
Web-based applications have transformed the way HR functions. Employee Self-Service (ESS) provides employees the opportunity to access their data anywhere, anytime. They can perform such administrative tasks as enroll in benefit programs, update dependent information, input attendance/vacation time, enroll in training classes, view payroll data such as W-2 information and perform administrative tasks such as updating address changes and emergency contact information. Better yet, the web-based application can be configured to send the updated information to the appropriate persons and other systems. For example, let's say an employee updates their address in the system. The updated information can then be sent automatically either internally to other departments such as payroll or externally to providers of outsourced functions like benefits. Although the web based self-service applications have helped to free HR from administrative tasks, portals provide the opportunity for all employees to spend more of their time focused on performing more strategic work.
The Web-based HR Knowledge Portal is a single point to which employees can easily go to retrieve, share and manage information. Portals are browser-based similar to the Internet. Users have the ability to log onto the portal with a single ID and obtain direct access to a number of information systems, both new and legacy. Once logged on, the user can search for information by conducting a word search or clicking on one of the subject areas displayed. A browser then accesses the appropriate databases and applications and the user is presented with the results of their search.
Managers highly welcome the HR Portal as gathering employee data which is no longer restricted to contacting the HR Department. They have access to the employee information that allows them to perform such task as salary planning, workforce budgeting/planning, skill analysis, and managing performance appraisals at their fingertips. Additionally, employees can retrieve customized information regarding such information as HR policies and procedures, forms, benefit information, holiday calendars, employee assistance program details and an employee directory. Portals may also provide a link to outside services and agencies such as theatres, airline reservation agencies, day care centers, local retailers and employee group discount services.
Managing information within the organization has never been easier. The HR Portal can also be used to share best practices. Business units are able to share the processes and programs that work best. As a result, companies can help ensure all business units, domestic and global, are functioning at their highest level.
So how does the Web and HR Portals affect the technical competency of HR professionals? Who can better design, develop and manage these emerging technologies than HR professionals? They should be at the forefront in identifying and analyzing the best software applications and processes. HR professionals should be able to assist with the configuration of the application to ensure the organization's business needs are met. It makes sense for HR to own the development and management of these technologies and constantly look for further ways to take advantage of new technology.
Case in point, HR practitioners can look beyond portals and think about how HR can benefit from wireless technology. For instance, an employee could have the option to obtain or change HR related data from their personal desktop, kiosk or personal data assistant (PDA). Those recruiting for a company should be able to obtain recruitment statistics as to which positions have been filled and which are still vacant by receiving the data on their mobile phone. If an employee leaves work with out inputting their working time into the system, they should have the ability to smoothly input their time via a wireless device. These are only a few suggestions. The possibilities are endless and it is up to HR professionals to break through to new ideas. One new concept that HR departments have embraced is outsourcing and centralizing HR services.
Technological Consequences of Centralizing and Outsourcing HR Functions
An overwhelming number of companies have decided to centralize, outsource or co-source their HR departments and many more will probably follow within the next few years. This strategic move allows a company to focus on their core business and improve their internal strategic initiatives. As such, the centralized unit or vendor places all of their resources in performing their core competency like recruiting, processing benefits or administering payroll. One of the consequences of centralizing or outsourcing HR services is its affect an organization's ability to report on and maintain data. HR professionals must be able to utilize the software necessary to retrieve and massage information that is required to analyze employee data. For illustration, a company may find it important to analyze benefit costs and levels of participation across the company in order to determine if changes should be made to the benefits offered to its employees. The ability to make such decisions requires HR professionals to have the skills necessary to develop queries, execute them and organize the data so it can be clearly evaluated. On the other spectrum, HR professionals working for outsourced centers will be tasked with providing a service for employees. As employees have questions and seek guidance, they must be able to effectively use the system, access and interpret employee data so their questions can be readily answered.
In addition to reporting on data that has been outsourced or centralized, many HR professionals will find themselves needing to access company information on a global basis.
Effect of Globalization on HR Systems
A global economy is now reality. Eighty percent of HR executives say developing global talent will be a top priority in the next five years. The number of expatriates within businesses will continue to increase as our marketplace continues to expand beyond US soil. As a result, the ability to effortlessly transfer employees across business units and seamlessly transition them into their new assignment so they can be productive is a priority as is the ability for organizations to report on employee data globally. One way organizations are responding to this requirement is by implementing a global Human Resources Information System (HRIS). The integrated system makes maintaining and reporting on employee data more efficient and streamlined and the manner in which employee data is processed becomes consistent. Employee development programs and skill repository can be more easily reported on and evaluated. Compensation structures and job profiles can model one another. In addition, as opposed to entering a social security number into the system as an employee identifier, a global HR identification number may be entered so employees can keep the same personnel number throughout their employment with the company regardless of location. The end result of a global HRIS is business leaders will have the ability to effectively drive best practices across the business areas and analyze the results of such practices.
To add value and assist with the implementation of a HRIS, HR professionals should understand both the functional and technical implications of implementing the system. Processes will need to be defined and streamlined and the system configured to meet company requirements. It will be necessary to convert data from older systems into the HRIS and interfaces may be developed to talk with other systems. The data not being converted into the HRIS may be archived in a data repository such as a data warehouse. This will allow practitioners to retrieve and report on historical data. Professionals should understand how the applicable databases are structured to the degree in that they are able to accurately combine historical data with current information.
As illustrated, the skill set for HR professionals is rapidly evolving. In order to sustain value, they should be equipped with the skills required to provide companies a competitive edge through technology.
Solutions to Increase HR Competency in Technology
Technology is the catalyst for the traditional HR department's transformation. A need still exists for traditional positions such as administrators, generalists, consultants, managers and HRIS Specialists in addition to Web and Portal Specialists, Telecommunication Professionals, HR Information Managers, Data Archiving Experts, HR System Analysts to define domestic and global requirements, Process Reengineering Consultants to develop more efficient cost-saving methods to improve business processes and HR Service Experts to manage HR customer service centers and the integration of data between systems.
A number of options are available to current and future HR professionals to increase their proficiency in technology. These consist of:
• Classroom, Virtual and Web-Based Training - To help accommodate full-time professionals, most universities offer a number of mediums that students can take advantage of to learn more about emerging technologies and best of breed software applications. A number of companies also offer web-based training programs that employees can take at their convenience.
• Professional Memberships, Conferences and Seminars - Professional HR organizations such as the Society of Human Resources Management (SHRM) and the International Association of HR Information Management (IHRIM) have memberships available for HR professionals in technology. Many conferences and seminars that center on technology are offered to members and non-members in addition to access to databases full of information regarding the latest trends in technology.
• On-line HR Portals - The Internet is full of information. At times it can be overwhelming. As such, HR Portals such as HRIMMall.com and HR-Guide.com are available to HR professionals for one-stop shopping. Just about anything HR specialists need information on is available from technology-based applications and providers to information on recent legislation that has an affect on HR policy and processes.
• Books and Magazines - Visit Amazon.com, a local Barnes & Noble and the library to keep current on HR technology trends. Go to a HR Portal and check out some of the available magazine publications.
• Get Involved! - If your organization is undertaking projects that evolve around technology such as implementing a new technology, utilizing an application service provider or developing processes to integrate and report on data more efficiently, offer your services. Get involved. Learn a new skill, it will pay off.
Summary
It's an exciting time for HR professionals. Technology has provided the tools necessary to run more productive, efficient companies with HR professionals at the forefront to ensure the right people are hired and have access to the information, training, and services that companies need to remain competitive. HR departments and professionals will continue to create and sustain value for organizations by increasing their skill-set in technology.
Sources:
1. "Factoids," IHRIM.link, April/May 2001
2. "Is a Single Global HRIS Possible?," IHRIM.link, April/May 2001
July 2001
Reviewed April 2002
Thanks to Erica Parks for contributing this article. It is intended as information only and is not a substitute for legal or professional advice.
For more information on this subject, send an e-mail to the SHRM Information Center at , please click here to ask the Information Center for help.
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