Monitor and evaluate performance of HR information system Overview An implemented human resource system requires regular reviews audits and evaluation. There are numerous motivations for an organisation to ensure the continued success, development and enhancement of its HRMIS, including: Provide learning programs in system benefits and use Possible costly errors in processing Staff satisfaction levels An ongoing system of evaluation, monitoring and support is required. To achieve this, an organisation must break monitoring and evaluation process into simple and complex types: Simple types of monitoring and evaluation are characterised by low-cost day-to-day activities such as: Obtaining data from the computer system on usage statistics Supporting the system and reporting monthly on support statistics and issues. Complex types of monitoring and evaluation are characterised as higher-cost time intensive activities that may require external consulting, such as: Benchmarking against other systems, and latest trends and developments Analysing performance gaps and developing strategies for improvement. Monitor and evaluate performance of HR information system: Worksheet 2002_329_038 July 2003 1 Key terms Analysis The process of objectively examining a set of information against a predetermined set of criteria. HRMIS Human Resource Management Information System; computer systems to collect and analyse information to assist in the making of timely HR management decisions, examples are databases, spreadsheets, information networks. Also known as HRIMS, HRIS and HRMS. Human Capital Management This term is used to describe processes, procedures and software systems used to manage people in the workplace. Research The process of investigating and exploring a topic or area of concern in order to reveal information for analysis. 2 Monitor and evaluate performance of HR information system: Worksheet 2002_329_038 July 2003 Monitor Service Level Agreement The Service Level Agreement (SLA) is a contractual arrangement between two parties. An external SLA will exist between a HRMIS vendor and a client organisation. There should also be an internal SLA between the HR section and client sections throughout the organisation that depend on the HRMIS. The intention of both an internal and external SLA is to provide a confident basis of expectation for vendor support and issue resolution and client responsibilities. It also provides a basis for determining legal resolution of disputes between vendor and client. The following is an example of what may be included in an SLA. Table 1: SLA elements (2 cols) Purpose The intention of an internal SLA is to provide a confident basis of expectation for internal support and issue resolution. Delineate services on which HR Systems users can depend. Describe responsibilities of HR System users. Identify roles and specify responsibilities of service providers who support users. Detail problem resolution paths for users and service providers. Describe service levels users should experience when problems or questions arise Services Comprehensive Implementation Support Services Accessible, Expert Functional Support From Appropriate Central Office(s) Accessible, Expert Programming & Network Support For On-Line Administrative Systems Timely Notification Of All System Changes, Upgrades And New Releases Help Desk Staffed To Triage and/or To Answer Customer Inquiries Comprehensive, Easy To Use And Up-To-Date User Documentation Timely Notification Of Policy Changes. Evaluation and reporting A service can only be performed or not-performed. To determine this it is important to put in place regular evaluation and reporting mechanisms for Monitor and evaluate performance of HR information system: Worksheet 2002_329_038 July 2003 3 SLAs. The most important thing to highlight is non-performance of an agreed service. As a minimum the reporting should cover: Issues, resolution and who was involved Number of times vendor required to resolve issue Number of times HR section required to resolve issue Outstanding action items and responsibility for resolution Non-performance of agreed Service and action required. Research Try and find one or more Service Level Agreements and see what type of service they cover. What common elements are there for different SLA's in the same field? 4 Monitor and evaluate performance of HR information system: Worksheet 2002_329_038 July 2003 Monitor help desk usage When system users have a problem they can call a Help Desk for assistance. A help desk is an internal first level of support to users of a computer system. Help desk staff try and determine the nature and severity of a problem. If they can’t, they take details and pass them on to second level support which means the people who fix difficult problems. The help desk system records all actions and details of a logged call including if a HRMIS problem cannot be resolved internally and the problem is referred to a vendor. Evaluation and reporting A help desk can provide daily, weekly, and monthly statistics. The following example details calls to a help desk relating to a HR system Table 2: Help desk log (2 cols) Calls for 1st level support Calls at 1st Level Number; 79 Resolved: 55 Calls for 2nd level Calls at 2nd Level Number; 24 Resolved: 22 Calls referred to vendor: 2 Resolved by vendor: 2 Nature of calls to vendor: Resolution description: 36 PC problems 1st Level Help Desk resolution 9 Forgotten Passwords 1st Level Help Desk resolution 10 Network failure 2nd Level Network team resolution 22 HR Processing issue 2nd Level HR team resolution 2 Vendor issue Vendor resolution Monitor and evaluate performance of HR information system: Worksheet 2002_329_038 July 2003 5 Monitor technical reports It is possible to obtain reports on software and hardware performance. The HR system can provide usage statistics on all components. This is especially useful for management if HR responsibilities are devolved to line-managers and staff. For example, reports can show the timeliness of staff entering timesheets and line-managers approving leave requests. Both tasks may seem trivial but late timesheet entry can affect payroll calculations and affect weekly and monthly budget figures. Late approval of leave requests can affect staff satisfaction levels. Evaluation and reporting It is important to determine the types of reports that a system can produce and whether you have the capacity to customise the reports. Research Go to vendor websites and find details about reporting. For example, try the Australian company Neller Software at http://www.neller.com.au/. Find their information on Crystal Reports. 6 Monitor and evaluate performance of HR information system: Worksheet 2002_329_038 July 2003 Enable user feedback HR systems are dependent on people and process. An important ingredient for the continued success of a system is the mechanism b which users can ask questions and provide their views and opinions. The best way to enable this is by face-to-face interview and focus group sessions however this is not always practical and is expensive. Feedback can also be obtained from learning programs and product support websites. The important thing about obtaining feedback is to give answers to questions and support and encouragement to ideas and views. Research Look into these types of feedback mechanism and complete the information required in the table. Table 3: Feedback mechanisms (3 cols) Feedback mechanism Advantages Disadvantages Interview Direct question and answer Costly. Requires excellent interview skills Focus groups Website form Website survey Paper survey Monitor and evaluate performance of HR information system: Worksheet 2002_329_038 July 2003 7 Monitor system performance New technologies and product features and enhancements mean HRMIS products are continually adapting and changing. The HRMIS in place at a company may be new or old in that in information technology terms old may be only one year. One way of determining the performance status of a HRMIS is to provide benchmark. A benchmark is a criteria against which performance can be measured. Analyse Performance gaps There are a number of ways to analyse and measure performance gaps. One way is to monitor and report in ways that provide data. Another is to analyse performance against other systems, and latest trends and developments. Research Conduct a performance gap analysis by comparing information about HRMIS provided on vendor websites. Complete the table below. A sample is given to get you going. Table 4: Performance Gap analysis (3 cols) 8 Feature Vendor A Vendor B Customisable Reports Provided through web interface. Fixed number and type of reports. Monitor and evaluate performance of HR information system: Worksheet 2002_329_038 July 2003 Develop strategies for improvement Once you have a complete a performace gap analysis you can combine the results with data gained from the other types of analysis you have performed. Your sources of information give you the ability to develop strategies to improve the HRMIS. Strategies must be aligned with company objectives and business strategies. Research To get started in developing strategies you might develop a matrix of business objectives. Complete the table below. A sample is given to get you started. Table 5: Business objectives matrix (3 cols) Business objective HRMIS Performance gap HRMIS strategy option Enable employee selfservice Not installed in current system Available as a separate module at additional cost. Obtain information from vendor and conduct cost benefit analysis. Improve staff learning opportunities Current HRMIS does not have self-learning features Improve HRMIS support web site to include just-in-time learning content. Monitor and evaluate performance of HR information system: Worksheet 2002_329_038 July 2003 9