Employee+Self+Service

[|Virtual Tour]


 * [|Abra and ESS]**



It can be said that the contemporary state of the marketplace is increasingly competitive and globalizing in nature. Therefore, any specific action that an organization can take to improve market standing, thereby creating a source of competitive advantage is absolutely critical to ensure continued profitability. Employee self service (ESS) is a great method to create such an advantage. “According to Watson & Wyatt, more than 50% of companies now use employee and manager self-service. Of those, 90% consider it successful…” To provide employees with a comprehensive ESS system, other HR functions must be automated. So it is recommended to utilize a software system of interrelated products by Sage Abra; which include: Sage Abra HR, Sage Abra ESS, Sage Abra Train, Sage Abra Benefits Enrollment & Management, and Abra Payroll. Both the tangible and intangible benefits are proven within case studies as well as with other general information provided.
 * I. Executive Summary**

“ESS is an Internet based solution providing employees with a browser interface to relevant HR data and transactions, enabling real time access to their data without leaving their desktop. Employees are able to: update their personal details, apply for leave, view their pay details and associated benefits, view internal job vacancies and book training and travel” (Foster, Hawking & Stein 1020).
 * II. Employee Self Service (ESS) - What is it?**

“Helping employees help themselves…” captures the essence of what ESS is all about (Meuse 19). Whether it is allowing employees to self-manage their own human resources data, access benefits information, or provide a forum for training/career development, ESS has and will continue to drastically alter the basic role of the relationship between an organization and its employees. More specifically ESS has also led to the development of MSS or managerial self service. MSS enables a manager to complete managerial-type duties via an organization’s HRIS as well. While there are numerous benefits of implementing ESS there are a few problems associated with ESS; although with proactive and considerate planning during HRIS selection and implementation any obstacles can be overcome. These specific points will be identified and discussed in the following sections. //A) Administrative Type// //i) Efficient management of HR data// (1) Eliminate redundant information (2) Improve data accuracy (3) Decrease transaction time of altering employee data (4) General convenience The simplicity and ease in which ESS facilitates managing employee data is the greatest function of any given HRIS system. For example, if an employee changes his or her address, no longer will they have to make an appointment with an HR staff member to formally submit paperwork so that the HR department can then later input changes into a system. With a few computer clicks any employee can ensure the most up-to-date data is in place. Not only will this decrease the transaction time, that an employee seeking to make personal data changes, but will virtually eliminate the roll of HR staff in the process. This will translate into a cost reduction. Take for example, Absa bank of South Africa. Implementing ESS to allow employees to “update personal details, access electronic pay-slips, submit expense claims, access organizational reports, and book training” has significantly paid off. Financially speaking Absa claims they reduced human resources costs by 18% (Coetzer 24). //B) Transformational Type// //i) Managerial Self Service (MSS)// MSS a similar concept to ESS has been applied by Airwave Solutions, a firm who manages mobile communication technologies. They consider MSS to be an “application of ESS…” and find it very productive “…in aligning employee goals with business objectives” (Twentyman). More specifically, allowing managers to assist other employees with tracking performance and formalizing goals is a key function of MSS. Solidifying expectations can be a great way to enable employee empowerment thereby reaping related benefits. It also might be said that MSS flattens an organization by directly connecting managers with employees. //ii) Empowerment// Another benefit of an ESS HRIS system can be exemplified by the use of Sage Software’s Abra, in the office of Washington County Psychotherapy Associates in Machias, Maine. In addition to many of the same benefits witnessed by Absa, (transaction time decrease, financial savings [payroll related], 401k information, insurance claim status) the management explains that ESS boosted worker satisfaction. “If there is a new birth, change in marital status, or FMLA event, we use the ESS system to deliver all the information and forms required to transition through that event” (O’Callaghan). So the ease in which the Washington County Psychotherapy Associates can assist an employee with a personal event and dissemination of good news demonstrates how employer can show overt consideration towards its employees. In return this good sentiment can promote employee pride and increased loyalty to the employer. These aspects of empowerment are known to improve productivity and can serve to compound the financial benefits already gained from using an ESS.
 * III. ESS Benefits**

//A) Implementation// *Note* The following section is included as an overview of potential problems and possible solutions. While many of these potential issues can be identified before implementation this is not to say that other issues will not develop. A meticulously planned implementation approach should be taken to help facilitate the smoothest-as-possible implementation of an ESS system. There are challenges to consider in deciding if an ESS system would be beneficial for an organization. First, an organization’s level of technical skill must be determined at all levels of users. This task in itself is difficult; however selecting a system that accommodates all levels of user’s skill is necessary. Also, especially in a manufacturing setting, employee access to computers must be mapped out and factor into financial considerations. General Motors, Daimler Chrylser, and the UAW demonstrate great proactive planning when implementing forms of ESS. To ensure widespread employee access, internet access was not only provided via workstations in the workplace, but access was possible through an employees’ personal computer or television, with assistance from AOLTV (Gilster 54). Lastly, the transformation of traditional HR processes may also create resistance from some employees. One of the biggest problems associated with ESS is implementation. Whether it is actually acquiring the new software and related hardware or overcoming employee resistance is irrelevant, the implementing firm can take proactive measures to ensure the successful implementation and use of any given ESS. David Meuse a writer for “Benefits Quarterly” suggests 4 strategies for employees helping themselves. Following these can help (Meuse 20).
 * IV. ESS Problems**

1) Focus on the outcomes -Define what is expected to be achieved (goals) -State specific measures designed to help reach defined goals -Ensure goals are in alignment w/ organizational vision 2) Create real value for employees -Stress empowerment -Offer increased company information -Place to provide company feedback 3) Market effectively -Send regular communication about new system -Develop training materials which are easily available -Demonstrate potential and power of new ESS system 4) Plan for change and growth -Create maintenance plans -Enable employee input -Create ESS support teams -Provide room for ESS to grow

//B) Financial Considerations// There is a considerable cost associated with acquiring an ESS software package and any upgrades to an existing network necessary for implementation. Further specifics of financial considerations will be discussed in later sections. Though, it is important to note that a careful internal analysis is necessary to see if an organization can actually reap the benefits of an ESS system

//A) Why use Abra?// Sage’s Abra HRMS software is an information system that can provide significant human resource based support. Sage is the industry leading software provider for mid-sized companies; furthermore they specialize in the needs of manufacturing companies. An advantage of Abra is that this software is suitable for an organization that may or may not be embracing an automated HR system for the first time. The available features have a wide variety of applications and uses. For example, the data can be analyzed with basic Microsoft Office or complete reports can be run with Crystal Reports. Taking into consideration the workforce’s skill set, even the technologically less-savvy user will ease the transition into Sage’s ESS software. //i)Low Cost// Sage Abra is reasonably priced. Because this systems does not involve the complexity of other competing systems, the price is less. Therefore the return on investment should be gained sooner than with other more costly software. //ii)Variety of Software// Sage Abra offers a wide variety of services and software applications. As the organization becomes increasingly comfortable with chosen software, it is easy to apply and layer more complex and powerful software beyond the basic functions of Sage AbraHR. There is software to assist in the following areas: recruitment, compliance training/development and automated organization charts. These programs can be sold individually or in package, so any software program purchased can be customized to meet a variety of needs.
 * V. Introduction to Abra Software**

In order to provide a comprehensive set of self-service software options, the basic HR functions must be automated. Sage Abra HR manages the workforce information and benefits, also ensuring government compliance. Sage Abra Payroll is a comprehensive solution that offers a range of capabilities to meet payroll needs. With flexible features, the programs are customizable and easy to use. Using Sage Abra HR and Payroll as the foundation, Employee Self-Service ESS can be built on managing benefits and training into a system that will satisfy all self-service needs. After a base automated HR status has been achieved Sage’s software applications can thus be applied in numerous and wide set of combinations as seen in just a few of the possibilities below. Sage Abra ESS:
 * VI. What are the core applications?**

__Employees:__ •View W-2s •Access payroll history •Print paystubs •Request time-off •View benefits enrollment •Update personal information •View training classes & enroll •Read company communications •Enable 24/7 Access HR access

__Managers:__ •Receive notifications •View employee information •View employee attendance •Access employee training history •Approve time-off requests •View job and compensation information •View/create life event updates •Enrollment/education tracking •View employee training certifications

//A) TSE Industries// TSE industries is a manufacturing company. Tracking training and job-related injuries are two very important concepts, common to the industrial field, both of which can be managed through Sage’s software. As was the case for TSE Industries who previously utilized a paper based filing system. TSE industries stated, “Abra Train has simplified our certification process…Prior to implementing Abra, we’d manually search through thousands of paper files to prove compliance. Now when an auditor asks for proof, we can electronically pull up the required information in a matter of seconds” (Sage.com). And in regards to job-related injuries, “It’s so easy to keep up with worker’s compensation cases and OSHA compliance with Abra HR. With just one click, I can not only find out where an injury occurred, but also get updates on the employee’s condition, appointment schedules, and case manager contact information. This feature eliminates an avalanche of paperwork and saves time” (Sage.com). //B) AAA- Southern New England// The second case specifically focuses on the ESS aspect of the Sage Abra products. This organization experienced rapid operations expansion in recent years and sought an ESS system to alleviate some of the overwhelming and overbearing paperwork. Enthusiastic with their results, “Sage Abra HRMS provides us with more accurate information, and centralizes employee demographics, payroll, benefits, and training data into one solution. At the same time, the system has reduced our workload in the HR department. Abra ESS assists the human resources department in delivering a more personalized service experience, helping employees to achieve their individual goals, and meeting strategic commitments” (Sage.com)
 * VII. Proven Record- case studies**

//Abra Benefits Enrollment:// According to Forrester Research, 30% of the HR department’s time is spent on benefits administration. By implementing Abra Benefits Enrollment this number is drastically reduced, shortening the enrollment cycle by 50% alone. Time is also saved by reduced call volume to HR, reduced data errors, savings in electronic filing versus paper packets, and by the elimination of manual data entry. //Abra ESS:// In general, the ROI for the ESS segment is recognized in 2 years or less. CedarCrestone’s study showed that self-service reduces the time required to perform many HR functions by nearly 65%. On average, this time saving translates in a 20% reduction in transaction cost.
 * VIII. Financial Assessment**

For, Sage Abra HR and Sage Abra Train, the benefits are primarily in savings in administrative costs and compliance. Compliance with government regulations, especially in the manufacturing industry is critical. Fees accrued from violations of regulations and lawsuits resulting of can pose significant costs. Cost Comparison Analysis**
 * Investment Analysis:
 * **Calculations based on:** ||||  ||
 * **Number Of Employees** || **500** ||
 * **Annual Payrolls** || **24** ||
 * **Tax Filing Option** || **Yes** ||


 * || **__Service Bureau__** || [[image:file:///C:%5CDOCUME%7E1%5CEli%5CLOCALS%7E1%5CTemp%5Cmsohtmlclip1%5C01%5Cclip_image002.gif width="10" height="1"]] || **__Sage Abra HRMS__** ||
 * **Annual Costs** ||  ||   ||   ||
 * Payroll Processing || $30,000.00 ||  || Not Applicable ||
 * Software Support || Not Applicable ||  || $1,350.00 ||
 * Tax Filing Services || __Included__ ||  || __$1,570.00__ ||
 * **Total Annual Costs** || **$30,000.00** ||  || **$2,920.00** ||
 * **One-Time Costs** ||  ||   ||   ||
 * Software License || Not Applicable ||  || $7,165.00 ||
 * Tax Filing Set-up || Included ||  || $200.00 ||
 * Implementation || __$6,000.00__ ||  || __$10,218.00__ ||
 * **Total One-Time Investment** || **$6,000.00** ||  || **$17,583.00** ||


 * Investment ROI Analysis**
 * || **__Service Bureau__** || [[image:file:///C:%5CDOCUME%7E1%5CEli%5CLOCALS%7E1%5CTemp%5Cmsohtmlclip1%5C01%5Cclip_image002.gif width="10" height="1"]] || **__Sage Abra HRMS__** ||
 * **3-Year Total Costs** ||  ||   ||   ||
 * Year 1 || $36,000.00 ||  || $20,503.00 ||
 * Year 2 || $30,000.00 ||  || $2,920.00 ||
 * Year 3 || __$30,000.00__ ||  || __$2,920.00__ ||
 * **3-Year Total Costs** || **$96,000.00** ||  || **$26,343.00** ||
 * **Total 3-Year Savings** ||  ||


 * $69,657.00 ** ||
 * Payback Period (in Months) ||  || ** 5 ** ||
 * **Average Monthly Price** || **$2,666.67** ||  || ** $731.75 ** ||

It is highly recommended that an ESS HRMS be implemented. While the some of the specific points and benefits of Sage’s software have been described, it is necessary for the consulting firm to perform a comprehensive needs assessment to determine the specific requirements of the organization. This is a crucial step in the planning phase so that the final software package chosen, and will be in direct alignment with the company vision and goals.
 * IX. Conclusion**

Bibliography and Works Cited

Anonymous. “Encouraging take-up-Do it yourself HR”. Periodical ‘Human Resources’: 1 March 2009; Section Employee Self-Service pg. 32.

Anonymous. “Payroll Self-Service Payback”. Periodical ‘Human Resources’: 1 May 2009; Section Technology, pg. 46. Accessed via EBSCO.

Coetzer, Jennigay. “Banks cuts costs with employees updating their own records”. Periodical ‘Business Day’: Economy Business & Finance section; 18 September 2008, pg. 24. Accessed via EBSCO.

Gilster, Paul. “Making Online Self-Service Work”. Workforce.com: January 2001, pgs. 54-61. Accessed via EBSCO.

Hawking, Paul; Stein, Andrew; & Foster, Susan. “e-HR and Employee Self Service: A Case Study of a Victorian Public Sector Organization”. Journal of ‘Issues in Informing Science & Information Technology: pgs 1017-1026. Accessed via EBSCO.

Meuse, David. “Making Employee Self-Service Work for Employees and Your Company”. ‘Benefits Quarterly’: 1999. Pgs. 18-23.

O’Callaghan, Dawn. “HR management system cuts costs, boots worker satisfaction”. Periodical ‘Employee Benefit News’: 15 April 2006.

Sage.com. -http://www.sageabraess.com/files/Abra_WP.pdf -http://www.sagenorthamerica.com/imageserver/portal_managed_assets/Sagenorth america/documents/PDFs/White_Papers_PDF/Sage_Whitepaper_HRTechTools.pdf -http://www.sagenorthamerica.com/imageserver/portal_managed_assets/Sagenort hamerica/documents/PDFs/White_Papers_PDF/Sage_Whitepaper_HR_PaperlessBenefits Mgmt.pdf

Twentyman, Jessica. “Help Yourself”. Periodical ‘Personnel Today’: 6 February 2008. Accessed via EBSCO.

Wiscomb, Janet. “Using Technology to Cut Costs”. Workforce.com: September 2001, pgs. 46- 51.

ROI calculator: http://www.dresserassociates.com/ROI-calculator.asp