Self Service HR Automation gives your organization much more than surprisingly quick Return On Investment (ROI)

Traditionally automation of HR and Payroll are seen by organizations as a necessarily evil, an investment that has to be done from a statutory compliance perspective, or to ensure that payroll occurs on time. This was true, primarily because HR & Payroll applications were used only by HR and Payroll personnel as a back office operation. This situation changes drastically when HR Automation is made self service. Employees directly accessing HR self service systems gives organizations oodles of benefits and with it surprisingly quick ROI. A back of the envelope calculation here shows ROI in two months!

Of all the benefits the most important one is time saved by employees. Detailed below are many functions that are present in good self service HR products like ours (KServeHRMS) which employees can access without having to meet the HR function, saving them considerable time

• Leave request, cancellation, modification
• View Payslips
• Update address and personal details
• View bulletins
• Make claims
• Request for infrastructure or other support
• Update performance appraisals
• Make a complaint
• Submit a HR request (any other HR form)
• Make declarations on Income Tax
• Check your tax liabilities to optimize tax

 It is not just the time for making the request, but also the time taken to meet supervisors, wait for appointments, and go back and forth to verify balances before the approval is obtained. Now, for each of the above, consider also of the time saved by the supervisor in approving, rejecting or clarifying these requests. In addition, include the time saved by HR, Admin and Payroll personnel is automatically getting reports for all these automated processes.

Let us make the following assumptions to calculate ROI for an Indian context.

               

• These ‘click of a mouse function’ saves  a conservative 5 minutes of time for every employee in a day which is about 1% of an employees time (it will be much more for employees on the move)
• Let us assume the cost of every employee to the company (salaries plus overheads) is on average Rs. 50,000/-
• The savings per employee therefore is around 500 Rs per month (1%) or Rs 6000 per year.
• For 500 employees the savings is 2.5 lakhs per month or 30 lakhs per year

If this company spends 500,000/- on employee self service software for its 500 employees, the ROI will be obtained in 2 months after the system is operational. In advanced countries where salaries are higher, ROI is even better, but this is offset by higher software costs. The time for ROI can still be the same in any country.

Consider also the intangible benefits to the company due to employee satisfaction and brand building.

• Transparency in obtaining standard services
• Not having to stand in a queue to meet supervisors for approvals
• Immediate access to information like payslips, leave balances, IT dues enabling better decision making

The next argument is in terms of risk of success. The risk of success can easily be mitigated by verifying the past track record of the provider,  and if required choosing a SaaS model where the investment can be paid installments. There should be no reason for any organization with more than 200 employees not to use self service HR systems, especially if your employees are highly paid.

It is good to see many organizations realizing this and investing in a system.

 

At Kallos Solutions and KServeHRMS (www.KServeHRMS.com) it is our honor, and pleasure to have made these benefits accrue to many organizations so far.

The next sensible transition in HRMS systems – SaaS & Cloud based Employee Portals plus Integrated HRMS

Having an integrated HR system with self service access to all employees is usually something only that big companies could afford to have. It was not just the question of having software in areas like Employee Life Cycle Management, Leave & Attendance, Payroll, Performance Appraisals, Training or Recruitment integrated into one integrated application – it also required data to be uptodate and online. Employees accessing the system would expect the system to be accurate, correct and usable for their operational needs.

The Cloud is changing that. Expensive software is now affordable and it can be bought on SaaS (Software as a Service) pay as you mode or you could buy the software for exclusive use. This enables smaller organizations to deploy Integrated Employee self service applications. This new generation of solutions are intrinsically designed for use on browsers and also for self learning and self implementation. Suitable implementation methodologies and upload data utilities will enable you to transition from older legacy applications to the latest very quickly. It is like moving from landlines directly to the latest smart phone or tablet without having to go through the intermediate stages. Employee and HR productivity go up significantly with the use of such systems.

At www.KServeHRMS.com we have made cloud based Employee Portals & Integrated HRMS a reality for many organizations. Being among the first to make available a web ready integrated HRMS product it allowed us to make the transition to the cloud and to employee portals fairly fast.

If you are evaluating such systems here are some overriding decision points you need to consider while looking for vendors

Is the solution ready for the web and the cloud? All other types of applications are going to be legacy soon
Are all the HRMS modules present and integrated. Without an integrated HRMS you will end up with duplicate work for each area, and also give a wrong picture to employees.
Is the software is easy to use and startup?. Employees and supervisors should intrinsically be able to use the application without much training.

For more information about our Employee Self Service products visit www.KServeHRMS.com or www.KServeOnline.com

A good stress buster for HR & Payroll executives

Every HR department is usually stressed out at the end of a period. Leave statements to be finalized, attendance values to be tallied, payroll to be processed, benefits statements to be processed, statutory employee declarations, and numerous other aspects to be tied up.

So what are the usual stress busters? Choices are ..Automate it, outsource it or decentralize it.

* Automating it helps crunching numbers, but a lot of effort goes into avoiding the garbage in- garbage out syndrome.

* Outsource it - works well if you are willing to pay for it, and willing to work to give the data to the provider correctly.

* Decentralizing it by giving different HR executives responsibilities - works well if you have a lot of resources

Here is another way we recommend. Self service it. The employee enters the source data, the supervisor approves it and HR just reconciles the difficult issues if any. The self service HR application generates the rest of the statements automatically and delivers it to the employee. This by far is the most productive method with the least effort, highest output, greatest transparency and makes employees the happiest.

Easy choice? - well you still have to implement the right Self Service HR for your environment. At Kallos we are focusing on making KServe HCM the best among the available choices for employee self service. (www.KServe.net\hcm)

Employee Portals - Improving service levels and lowering HR executive to employee ratios

Every VP of HR asks this question. Do I really need so many executives to ensure that employees are satisfied. Can we provide good service without having to add more resources?

An Employee Portal may be the right answer. Until now such solutions were not so popular since a good percentage of employees needed to have access to a system for it to be successful. Now PC's on every desktop is almost a way of life. Even in manufacturing situations, an easily accessible kiosk is not expensive at all.

Just think about a typical HR transaction in a conventional HR environment for lets say a leave approval cycle.

An employee asks the executive for their leave eligibility and balance
Fills out the request form
Approaches the supervisor a couple of times before the supervisor approves it
The form is manually then submitted to the HR function
The HR executive enters the data in the HR application
Leave is processed at the end of the period

In a self service environment

The employee makes the leave application without a mistake - since the software validates the policy and the holidays
The alert on the supervisors login triggers him/her to approve it
At the end of the period the leave report is automatically available

The self service environment would involve probably one third the effort of the conventional application for the employee and the HR person. Add all the transactions for attendance, claims, benefit balances, IT and payroll queries etc. and one can immediately see the savings in effort for all the employee and the HR executives - and that directly translates to higher productivity for the company. In Employee portal environments, 500 employees being served well by one Executive is common. In non-automated environments the number could be between 50 and 200 depending on the complexity of the HR environment.

Employee portals provide ROI in months - if the right product and implementation is done right. Equally important is the fact that it brings transparency, equity, responsiveness and speed to the whole process.

And that is what we at Kallos intend that our KServe HCM software (http://www.kserve.net/hcm) suite does - To take human capital management beyond the use of the HR function and serve the employee well.

Why blog on KServe HCM?

As the founder of the company that brought out the K-Serve HCM Suite, there are two primary reasons for this blog.

Firstly, there is a need to bring out the details of the 'silent' revolution that is occurring in Human Resources centric Enterprise applications. The extension of the HR/Payroll product directly to its end users in the form of Employee Portals or Employee Self Service is making HR 'n' times more useful to organization compared to the earlier 'Ivory Tower' applications that was restricted for use only by the HR function. In addition, the inherent affordability of a new generation of HR solutions built on more robust and rapid development platforms is changing the landscape of such solutions.

I would also like to bring out our experiences in being a part of this revolution through our HCM suite 'K-Serve'. The joys of conceptualizing, developing, delivering and seeing constructive change in end user organizations brings satisfaction to all of us at Kallos - the company that brought out 'K-Serve' Enterprise products

I hope to highlight real world situations where HCM and Employee Portals can make a major difference, to dispel myths, to communicate HR solutions in a positive light, and yet be realistic in what it can do for your company.

Looking forward to your comments.

George Vettath
Founder, Kallos Solutions & the K-Serve range of Enterprise products
www.KServe.net/hcm