Human Resources Information System (HRIS)

The Human Resource Information System (HRIS) is a software or online solution for the data
entry, data tracking, and data information needs of the Human Resources, payroll, management,
and accounting functions within a business. Normally packaged as a data base, hundreds of
companies sell some form of HRIS and every HRIS has different capabilities. Pick your HRIS
carefully based on the capabilities you need in your company.

Typically, the better The Human Resource Information Systems (HRIS) provide overall:

• Management of all employee information.

• Reporting and analysis of employee information.
• Company-related documents such as employee handbooks, emergency evacuation
procedures, and safety guidelines.
• Benefits administration including enrollment, status changes, and personal information
updating.
• Complete integration with payroll and other company financial software and accounting
systems.
• Applicant tracking and resume management.

The HRIS that most effectively serves companies tracks:

• attendance and PTO use,

• pay raises and history,
• pay grades and positions held,
• performance development plans,
• training received,
• disciplinary action received,
• personal employee information, and occasionally,
• management and key employee succession plans,
• high potential employee identification, and
• applicant tracking, interviewing, and selection.

An effective HRIS provides information on just about anything the company needs to track and
analyze about employees, former employees, and applicants. Your company will need to select a
Human Resources Information System and customize it to meet your needs.

With an appropriate HRIS, Human Resources staff enables employees to do their own benefits
updates and address changes, thus freeing HR staff for more strategic functions. Additionally,
data necessary for employee management, knowledge development, career growth and
development, and equal treatment is facilitated. Finally, managers can access the information
they need to legally, ethically, and effectively support the success of their reporting employees.
How to Select Human Resources Information
Technology
Questions to Ask to Determine HR Information Technology Needs

Human Resources information technology is essential for companies to manage their benefits
plans and their employee information. Benefits management technology is no longer a “nice to
have,” but a necessity to help HR manage both a sea of information and the money spent on
benefits plans, as HR faces limited resources and constantly changing data. But how do HR and
other executives know they are selecting the best HR information technology to manage all of
the details, and that the solution they select will stand the test of time?

Following are the key questions to ask and answer in the process of selecting Human Resources
information technology.

• What is the degree of flexibility and scalability that the HR information technology
software provides? HR professionals should determine if the software can import data from
multiple Excel spreadsheets, databases, and paper documents and the level with which it can
interface with all kinds of systems and data.

The software should be able to take in and filter information from multiple sources. Ideally,
this process should also be automated. Many online enrollment solutions require that data be
manually manipulated before it can go to a carrier to update their systems. Automation of the
update format, transmission schedule and delivery method can help to eliminate billing and
eligibility issues.

• Will the software be able to accommodate HR’s company and benefits carriers’ rules? A
truly capable enrollment engine will evaluate each enrollment activity and apply any
necessary combination of rules, messages, prompts, and options specifically designed to meet
the exact eligibility requirements desired. The software should accommodate any eligibility
rules that the company and carriers have.

• Will the HR information technology be able to grow and scale with the organization? HR
should assess the technology’s ability to grow as the company brings on new employees,
offices, benefits changes, and rules. HR should ask about the thresholds for each of these
elements.

• Is the HR information technology software able to integrate with other systems? Payroll
and other functions often share much of the same information as benefits management. HR
can obtain greater efficiencies when data and other employee information entered into one
system can be shared with another system.
• Who is responsible for implementing, or building, the solution? What level of training is
involved? Some solutions require the client to be very involved with the initial
implementation, which can be overwhelming for already busy HR administrators.

HR should have a clear understanding of the level of training and technical expertise that will
be required and the amount of time expected. Questioning solution providers on this topic can
provide insight into subtle areas that might initially appear simple, yet involve significant
technological expertise. HR can then determine specific tasks that may be so cumbersome as
to realistically impede completion, potentially reducing HR information technology value and
ROI.

• If training is involved, is there a charge? Costs of training should also be assessed -

including time away and travel expenses for off-site travel. HR needs to become aware of all
hard and soft costs involved in the HR information technology adoption.

• Who will own the data? The answer to this question should be the Human Resources
organization. Companies should be able to transport their data to any Application Service
Provider (ASP). If the data resides on a carrier’s proprietary server, the company may
sometimes be charged additional fees should it switch carriers.

• What types of maintenance and upkeep are required? When software is installed on a
company’s on-site workstations or servers, regular updates to that technology are often
required and may be cumbersome to plan for and manage. Updates to HR information
technology are often made automatically with software available online through an Application
Service Provider (ASP) or Software as a Service (SaaS) model.

• What security measures are built into the HR information technology? If the software is
available online, through an ASP or SaaS model, the provider should offer daily backups,
backup servers, and added protective layers. Additional systems and procedures should be in
place to safeguard information from being lost or accessed by unauthorized personnel. HR, in
consultation with other managers, should have exclusive authority to decide who will be
allowed access to the HR information technology and to what degree.

• Will employees be able to enroll in benefits plans and make changes in real-time to their
personal data and plan choices? Employee access should be a given, considering the
widespread, general access to computers; 70% of the population has Internet access at
home. Employee self-service provides huge potential to save time and money. A good self-
service system will guide employees smoothly through entering information about themselves
and their dependents.

The system should clearly present the plans available and enable employees to make
selections at their convenience, simplifying these actions throughout the process with wizards.
 Employees should also be able to add dependents and change information as necessary, 24
hours a day, seven days a week.

Human Resource Information Systems

(HRIS)

Definition

A system which seeks to merge the activities associated with human resource
management (HRM) and information technology (IT) into one common database
through the use of enterprise resource planning (ERP) software. The goal of
HRIS is to merge the different parts of human resources, including payroll, labor
productivity, and benefit management into a less capital-intensive system than
the mainframes used to manage activities in the past. Also called Human
Resource Management Systems (HRMS

Advantages of a human resource information system

In today's corporate world human resources has come to play a very critical role in a
business. Whether it concerns the hiring and firing of employees or whether it concerns
employee motivation, the Human Resources department of any organization now enjoys a
very central role in not only formulating company policies, but also in streamlining the
business process.

To make a human resource department more effective and efficient new

technologies are now being introduced on a regular basis so make things much
simpler and more modernized. One of the latest human resource technologies is the
introduction of a Human Resources Information System (HRIS); this integrated
system is designed to help provide information used in HR decision making such
as administration, payroll, recruiting, training, and performance analysis.

Human Resource Information System (HRIS) merges human resource

management with information technology to not only simplify the decision making
process, but also aid in complex negotiations that fall under the human resource
umbrella. The basic advantage of a Human Resource Information System (HRIS)
is to not only computerize employee records and databases but to maintain an up to
date account of the decisions that have been made or that need to be made as part
of a human resource management plan.

The four principal areas of HR that are affected by the Human Resource
Information System (HRIS) include; payroll, time and labor management,
employee benefits and HR management. These four basic HR functionalities are
not only made less problematic, but they are ensured a smooth running, without
any hitch. A Human Resources Information System (HRIS) thus permits a user to
see online a chronological history of an employee from his /her position data, to
personal details, payroll records, and benefits information.

The advantage of a Human Resource Information System (HRIS) in payroll is that

it automates the entire payroll process by gathering and updating employee payroll
data on a regular basis. It also gathers information such as employee attendance,
calculating various deductions and taxes on salaries, generating automatic periodic
paychecks and handling employee tax reports. With updated information this
system makes the job of the human resource department very easy and simple as
everything is available on a 24x7 basis, and all the information is just a click away.

In time and labor management a Human Resource Information System (HRIS) is

advantageous because it lets human resource personnel apply new technologies to
effectively gather and appraise employee time and work information. It lets an
employee's information be easily tracked so that it can be assessed on a more
scientific level whether an employee is performing to their full potential or not, and
if there are any improvements that can be made to make an employee feel more
secure.

Employee benefits are very crucial because they help to motivate an employee to
work harder. By using a Human Resource Information System (HRIS) in employee
benefits, the human resource department is able to keep better track of which
benefits are being availed by which employee and how each employee is profiting
from the benefits provided.

A Human Resource Information System (HRIS) also has advantages in HR

management because it curtails time and cost consuming activities leading to a
more efficient HR department. This system reduces the long HR paper trail that is
often found in most HR divisions of companies and leads to more productive and
conducive department on the whole.

Human Resources Information Systems (HRIS)

For Better HR Operations
By

Prof. Dileep Kumar M.

Ex-Professor
Symbiosis (SCMHRD, SCDL), IIIT, SCMLD, SBS
Pune

Human Resources Management (HRM) is the attraction, selection, retention, development, and utilization
of labor resource in order to achieve both individual and organizational objectives. Human Resources
Information Systems (HRIS) is an integration of HRM and Information Systems (IS). HRIS or Human
resource Information system helps HR managers perform HR functions in a more effective and systematic
way using technology. It is the system used to acquire, store, manipulate, analyze, retrieve, and distribute
pertinent information regarding an organization's human resources. A human resource information system
(HRIS) is a system used to acquire, store, manipulate, analyze, retrieve, and distribute pertinent
information about an organization's human resources (Tannenbaum, 1990). The HRIS system is usually a
part of the organization's larger management information system (MIS) which would include accounting,
production, and marketing functions, to name just a few. Human resource and line managers require good
human resource information to facilitate decision-making. An extensive study by Towers Perrin study
revealed the following benefits of

Application of HRIS

HRIS can be applied in the following areas of HRM

• HR planning
• Succession planning
• Work force planning
• Work force dynamics analysis
• Staffing
• Applicant recruitment and tracking
• Employee data base development
• Performance management
• Learning and development
• Compensation and benefits
• Pay roll
• Job evaluation
• Salary survey
 • Salary planning
• International compensation
• Benefits management
• Develop innovative Org. Structure
• Develop IT

HRIS Benefits:

HRIS has showed many benefits to the HR operations. A few of them can be detailed as;

o Faster information process,

o Greater information accuracy,
o Improved planning and program development, and
o Enhanced employee communications (Overman, 1992).

Barriers to the success of an HRIS:

o Lack of management commitment

o Satisfaction with the status quo
o No or poorly done needs analysis
o Failure to include key people
o Failure to keep project team intact
o Politics / hidden agendas
o Failure to involve / consult significant groups
o Lack of communication
o Bad timing (time of year and duration

HRIS software:

 Abra Suite: for human resources and payroll management

 ABS (Atlas Business Solutions): General Information, Wages information,
emergency information, Reminders, Evaluators, Notes customer information,
Documents and photos, Separation information.
 CORT: HRMS: applicant tracking, Attendance tracking and calendars, Wage
information, Skills tracking, Reports-to information, Status tracking, Job history
tracking, Cost center tracking, Reviews and tracking, Mass update and change tools
etc.
 HRSOFT: Identify and track senior managers, Assess management skills and talents,
Generate a wide range of reports, resumes, employee profiles, replacement tables
and succession analysis reports, Identify individuals for promotion, skills shortages,
unexpected vacancy, Discover talent deep, Competency Management, career
development, align succession plans etc.
 Human Resource MicroSystems: sophisticated data collection and reporting,
flexible spending accounts, compensation, employment history, time off, EEO,
qualifications, Applicant/Requisition Tracking, Position Control/Succession Planning,
Training Administration, Organization Charts, HRIS-Pro Net (employee/managerial
self-service), HR Automation (eNotification and eScheduler), and Performance Pro
(performance management)
 ORACLE- HRMS: Oracle iRecruitment, Oracle Self-Service Human Resources,
Payroll, HR Intelligence, Oracle Learning Management, Oracle Time and Labor
 PEOPLESOFT: Enterprise eRecruit, Enterprise Resume Processing, Enterprise
 Services Procurement, Workforce Planning, Warehouse
 SAP HR: Human Capital Management (HCM) for Business, All-in-One: Rapid HR,
 SPECTRUM HR: iVantage® and HRVantage®. iVantage is a Web-based HRIS
product designed for organizations with up to 10,000 employees.
 VANTAGE: HRA: 'Point-and-Click' report writing, internal Messaging System for
leaving reminders to yourself, to someone else or to everyone using HRA - very
useful for Benefit Applications, Disciplinary Actions, Special Events, Employee
Summary Screen for Basic, Leave (Absenteeism) and Salary/Position History, skills &
training module, Leave Tracking Module

Critical Analysis

Although almost all HR managers understand the importance of HRIS, the general perception is that the
organization can do without its implantation. Hence only large companies have started using HRIS to
complement its HR activities.

But HRIS would be very critical for organizations in the near future. This is because of a number of
reasons.

• Large amount of data and information to be processed.

• Project based work environment.
• Employee empowerment.
• Increase of knowledge workers & associated information.
• Learning organization

The primary reason for delay in HRIS implementation in organizations is because of the fear psychosis
created by "technology" and "IT" in the minds of senior management. They may not be very tech savvy
and fear being left out.

But trends are changing for the better as more and more organizations realize the importance of IT and
technology. Major HRIS providers are concentrating on the small and middle range organizations as well as
large organizations for their products. They are also coming up with very specific software modules, which
would cater to any of their HR needs. SAP and Peoplesoft provide HR modules within their business
intelligence software. Hence HRIS would soon be an integral part of HR activities in all organization.
www.DentzzDental.com

Human Resource Information Systems

The purpose of this paper is to identify other companies who have faced similar human resources
issues in regards to information technology. Through benchmarking different companies we can
learn how other companies have handled certain human resources issues related to information
technology, information systems, new technology, and data security. An overall analysis has
been completed using research on IBM Europe, Ameriprise Financial, Terasen Pipelines, Shaw’s
Supermarkets, CS Stars LLC, IBM, WORKSource Inc., and Toshiba America Medical Systems,
Inc. This paper also includes eight synopses of companies facing similar issue to those in the
reading.

New Technology

With the changing world and constant new technology that is available, managers need to be
aware of the technology that will increase effectiveness in their company. Human resource
information systems (HRIS) have increasingly transformed since it was first introduced at
General Electric in the 1950s. HRIS has gone from a basic process to convert manual
information keeping systems into computerized systems, to the HRIS systems that are used
today. Human resource professionals began to see the possibility of new applications for the
computer. The idea was to integrate many of the different human resource functions. The result
was the third generation of the computerized HRIS, a feature-rich, broad-based, self-contained
HRIS. The third generation took systems far beyond being mere data repositories and created
tools with which human resource professionals could do much more (Byars, 2004).

Many companies have seen a need to transform the way Human Resource operations are
performed in order to keep up with new technology and increasing numbers of employees.
Terasen Pipelines moved its headquarters from Vancouver to Calgary to be closer to the oil and
realized a major growth in employees. In the past recording keeping was done on paper and with
spreadsheets. Mangers at Terasen realized that there was a need to change to a more
computerized system and looked into different HRIS vendors. By making the move to a HRIS
system, Terasen is able to keep more accurate records as well as better prepare for future growth.
Another company that saw the benefits of keeping up with new technology is WORKSource Inc.
To meet the challenge of handling 100 new employees, WORKSource Inc. acquired Web-based
technology programs from GHG Corp. like electronic pay stub, electronic timesheet software,
time-off system, and human resource information system (“Tips,” 2006). By adapting these new
programs, WORKSource was able to reduce waste and cost.

The Internet is an increasingly popular way to recruit applicants, research technologies and
perform other essential functions in business. Delivering human resource services online (eHR)
supports more efficient collection, storage, distribution, and exchange of data (Friesen, 2003).
An intranet is a type of network used by companies to share information to people within the
organization. An intranet connects people to people and people to information and knowledge
within the organization; it serves as an “information hub” for the entire organization. Most
organizations set up intranets primarily for employees, but they can extend to business partners
and even customers with appropriate security clearance (Byars & Rue, 2004).

Applications of HRIS

The efficiency of HRIS, the systems are able to produce more effective and faster outcomes than
can be done on paper. Some of the many applications of HRIS are: Clerical applications,
applicant search expenditures, risk management, training management, training experiences,
financial planning, turnover analysis, succession planning, flexible-benefits administration,
compliance with government regulations, attendance reporting and analysis, human resource
planning, accident reporting and prevention and strategic planning. With the many different
applications of HRIS, it is difficult to understand how the programs benefit companies without
looking at companies that have already benefited from such programs.

One such company is IBM. IBM has a paperless online enrollment plan for all of its employees.
Not only has the online enrollment saved the company 1.2 million per year on printing and
mailing costs, the employees enjoy working with the online plan. "Since we began offering
online enrollment, we've learned that employees want web access," Donnelly [Senior
Communications Specialist] says, so they can log on at home rather than through the company
intranet. So the company has been working to put in place a web-based enrollment system that
employees and retirees can access from anywhere (Huering, 2003). By utilizing the flexible-
benefits application HRIS has to offer, IBM was able to cut costs and give employees the
freedom to discover their benefits on their own time and pace.

Another company that has taken advantage of HRIS applications is Shaw’s Supermarkets. In
order for Shaw’s to better manage its workforce, the company decided it was time to centralize
the HR operations. After looking at different options, Shaw’s decided to implement an Employee
Self Service (ESS) system. The use of self-service applications creates a positive situation for
HR. ESS gives HR more time to focus on strategic issues, such as workforce management,
succession planning, and compensation management, while at the same time improving service
to employees and managers, and ensuring that their data is accurate. With this solution,
employees have online access to forms, training material, benefits information and other payroll
related information (Koven, 2002). By giving employees access to their personal information and
the ability to update or change their information as needed, HR was given more time to focus on
other issues. Understanding the different applications HRIS has to offer will give companies the
chance to increase employee efficiency and reduce costs.

Measuring the Effectiveness of HRIS

The evaluation should determine whether or not the HRIS has performed up to its expectations
and if the HRIS is being used to its full advantage (Byars & Rue, 2004). One of the most
significant challenges faced by public personnel executives today is measuring the performance
of their human resources information system (HRIS) In order to justify the value-added
contribution of the HRIS to accomplishing the organization's mission (Hagood & Friedman,
2002). Implementing an HRIS program may seem a necessary stem for a company, but unless it
will be an effective tool for HR operations, it will not help increase efficiency and may hinder it
instead.

One company that implemented a HRIS system is Toshiba America Medical Systems, Inc.
(TAMS). TAMS put all employee benefits information online and created an open enrollment
option when TAMS changed healthcare providers. Almost immediately upon rolling out the
UltiPro portal [new HRIS technology] to employees, TAMS began seeing improvements, with
an estimated 70% increase in open enrollment efficiency (Wojcik, 2004). By determining the
efficiency of the new program, TAMS was able to realize the benefits of the new HRIS system.

Security of HRIS

The privacy of employee information has become a major issue in recent years. With identity
theft becoming a common problem, employees are becoming more sensitive about who sees their
personal information, and the security it is kept in. By making sure employee information that is
kept in the HRIS is relevant to the company and making sure there is limited access (password
protection) to such information, companies can make its employees more secure with the safety
of their information. Whether electronic or paper, employee files deserve to be treated with great
care. Establishing security and end-user privileges calls for a balance of incorporating, HR
policy, system knowledge and day-to-day operations (O’Connell, 1994).

One company that faced a major security issue was CS Stars, LLC. CS Stars lost track of one of
its computers that contained personal information that included names, addresses and social
security numbers of workers compensation benefits. The bigger problem was that CS Stars failed
to notify the affected consumers and employees about the missing computer. Though the
computer was retrieved and no information seemed to have been harmed, many employees lost
their sense of security with the company. New York's Information Security Breach and
Notification Law, effective in December 2005, requires businesses that maintain computerized
data which includes private information to notify the owner of the information of any breach of
the security of the system immediately following discovery, if the private information was, or is
reasonably believed to have been, acquired by a person without valid authorization (Cadrain,
2007).

Another company that experienced a breach in security is Ameriprise Financial. In late 2005, a
computer that contained personal information on clients and employees was stolen. Because
many of the employees at Ameriprise take their computers between work and home, the
company determined there was a need to put more security into those computers. Ameriprise
made sure all employees had the new security suite installed on their computers. By responding
quickly to the need for more security, Ameriprise made sure all information is being kept secure.
Making sure employees information is kept as secure as possible there will be more trust in the
company and the HR employees working with that information.

Conclusion
IBM, Terasen Pipeline, CS Stars LCC, and Toshiba America Medical Systems, Inc. are good
examples of companies facing issues similar to human resources information technology and
human resources information systems. All of these companies know the importance of new
technology, human resources information systems, and data security. The remainder of this paper
provides synopses of more companies facing human resources issues, how the company
responded to the issues, and the outcomes of the company’s responses.

Companies Benchmarked

IBM Europe

The Situation:

IBM is a global organization offering research, software, hardware, IT consulting, business and
management consulting, ring and financing. It employs around 340,000 people, speaking 165
languages across 75 countries, and serving clients in 174 countries. In January 2007, IBM
established a separate “new media” function within its corporate communication department.
IBM main goal is to educate, support, and promote programs that utilize social media. IBM
Europe decided to expand internal communication by blogging guidelines. The recognition was
that blogging was already happening among IBMers, just in an unregulated way. In a similar
way, institutionalizing a function to deal specifically with new media is not a corporate move, or
establishing from scratch. It’s a response to the issues already emerging in the company. Now
that those technologies are here, people are using them, they’re growing and there here to stay-
we’re just going to put some structure around them so that we can try to optimize their use.” The
users decide what technologies they want to use and how they want to use them. That main idea
is that IBM understands that they must remember to respect the fact that social media are social.
IBM had the need to connect its 340,000 global employees more effectively.

The Response:

IBM’s intent around social media has now been officially formalized. From January 22 2007, the
company established a separate “new media” function within its corporate communication
department. “Its remit: To act as expert consultants inside and outside IBM on issues relating to
blogs, wikis, RSS and other social media applications. The main idea is to educate, support and
promote programs that utilize these tools. IBM has a history of being a t the forefront of
technology based corporate communication. From the multimedia brainstorming “WorldJam”
that made news headlines back in 2001 in which 50,000 employees worldwide joined a real time,
online idea-sharing session about the company’s direction. IMB has always prepared itself to use
breakthrough technologies to establish a two-way dialogue with its employees. The need for
social media was necessary and could no longer wait.

The Outcome:

In the last few years IBM has been recognized as being the vanguard of social-media use: IBM
was on of the first Fortune 500 companies to get behind collaborative wikis, published internal
blogging guidelines as far back as 2003, and is now moving fast beyond RSS and podcasts into
videocasting and “virtual world” technologies like Second Life. The intranet search facility
extends to all areas of the site, including new media aspects. When an employee logs onto their
portal an executes a key word search, the results they get back not only come from the main
intranet pages, but include results from IBM forums, wikis, blogs and podcast/videocasts tags.
IMB has an understanding that employees are no longer staying in a company their entire lives.
It’s just not like that any more. In Belgium for example over 50 percent of 2,300 employees have
been there fewer than five years. The company has come to the conclusion that with an
increasingly young and mobile workforce, the likelihood is that an employee population full of a
younger generation, for whom these tools are part and parcel of life, is not that far away. In years
to come IBM will have to deal with employee base for which blogging is just the natural way to
interact over a web platform. IBM has created centralized platforms for most tools that fall under
its remit, which includes wikis. For Philippe Borremans, new media lead Europe for IBM, has
the potential business applications of a wiki cover two broad benefits: Collaborating and
knowledge sharing. IBM has scored some notable successes on both fronts in the near 5000 wiki
pages now up and running in the organization. The company has been a huge pick-up in interest
in podcasting over the last 18 months writing can seem such a technical skill, whereas people
feel they can talk more freely than they can write. One of the most consistently popular IBM
podcasts, with over 20,000 downloads a week.

Ameriprise Financial

The Situation:

The Department of Justice survey estimates that 3.6 million U.S. households were victims of
identity theft in 2004. Trafficking in personal date goes beyond U.S. borders: the New York
Times reports that stolen financial information is often distributed among participants of online
trading boards, and the buyers are frequently located in Russia, Ukraine, and the Middle East.
One reason clients are concerned about data security is the widespread publicity generated by
breaches at financial services firm. In late December 2205, an Ameriprise Financial employee’s
laptop that contained unencrypted data on approximately 230,000 customers and advisors was
stolen from a car. Other financial services firm, including Citigroup and Bank of America, also
acknowledge large-scale customer data losses in 2005. President of NCS, Rita Dew, a
compliance consulting firm in Delray Beach, Florida, says that the Securities and Exchange
Commission requires investment advisors to have policies and procedures that address the
administrative, technical, and physical safeguards related to client records and information.

The Response:

Ameriprise Financial had to fight back and had to implement “layers of protection.” It is
important for employees who their primary business computer, and employees regularly
transport the computer between home, office, and meeting sites. The vulnerability of this
arrangement and the need for a safety software program is much needed.

The Outcome:
Employees who are transporting lab tops should install the Steganos Security Suite on their
computer. This software allows employees to create an encrypted virtual drive on the laptop that
serves as data storage safe. Employees stores all client related data and tax preparation software
database on the encrypted drive, which employees has set up with one gigabyte of storage space.
The best thing is that when an employee turns off the computer the information is stored “safe”,
the software automatically encrypts the virtual drive’s data. The software also generates
encrypted backup files, which employees store on CDs in a fireproof safe. This should keep the
data secure if any employee’s laptop is stolen or if the drive is removed from the laptop. Other
financial advisors are relying on encryption both in and out of the office. Other programs that are
being used to protect client’s information are RAID Level 1 system to store data on the drives
that are encrypted with WinMagic’s SecureDocs software. Encryption ensures that anyone who
steals the computer will be absolutely unable to read the data, even by connecting it to another
computer as a “slave drive. This has given many financial advisors the greatest peace of mind.

Terasen Pipelines

The Situation:

Terasen Pipelines is a subsidiary of Terasen Inc. located in Vancouver, Canada and is located in
several provinces and U.S. states. In 2001 the company changed its headquarters to Calgary to be
closer to the oil. With the big move, the company went through a growth spurt. With the
company in many different locations and the growing numbers of employees, the HR department
saw a need to find a new system to keep more accurate records.

The Response:

In the past Terasen had kept records on paper and with spreadsheets and with the growth of the
company, this system does not work as well as in the past. In order to compensate for future
growth, Terasen began to look into HRIS companies to help with the HR operations. After
researching different companies, Hewitt’s application service provider model with eCyborg was
found to be the right fit.

The Outcome:

Although there was difficulty adapting to a new way of recordkeeping, Terasen was able to find
a system that will help support the current and future growth of the company. Fortunately, some
of the HR staff had experience working with an HRIS and were able to help their colleagues
imagine new processes, as aided by a system. One theme often voiced throughout this process
was: "You guys don't know how hard we're working when we can make it so much easier with a
system that could do a lot of this for us. You don't always have to run to the cabinet for the
employee file just to get basic information. It can all be at your fingertips." (Vu, 2005). In order
to help Terasen ease the HR burden of implementing a new HR system, the management of
Terasen was convinced to look for a vendor to help implement and maintain a HRIS system.
This system has helped Terasen better prepare for current and future growth.

Shaw’s Supermarkets
The Situation:

Shaw’s Supermarkets is the second largest supermarket chain in New England. With a workforce
of 30,000 located at 180 stores throughout six states, Shaw's HR staff is responsible for
managing employees' personal data. Their employee mix includes approximately 70 percent part-
time employees, consisting of students, senior citizens, second-job part-timers, and career part-
timers. One third of the workforce is made up of union associates, and Shaw's staff oversees the
company's involvement with three unions and six separate contracts (Koven, 2002). In order to
help manage the workforce, the HR staff became interested in centralizing its HR operations.

The Response:

In order to centralize HR operations Shaw’s decided to implement an ESS (employee self-

service) solution. The use of self-service applications creates a positive situation for HR. ESS
gives HR more time to focus on strategic issues, such as workforce management, succession
planning, and compensation management, while at the same time improving service to
employees and managers, and ensuring that their data is accurate. With this solution, employees
have online access to forms, training material, benefits information and other payroll related
information.

The Outcome:

Shaw’s has had positive feedback since implementing the ESS solution. "The reaction from our
employees has been extremely positive," Penney, VP of Compensation and Benefits, says. "We
even had a significant increase in our medical coverage costs, and it was almost a non-issue
because the online enrollment featured the plan choices, the employee cost, and the company
subsidy. An employee self-service application makes it very easy for them to understand their
contributions and coverage options. I received several e-mails from employees saying this was a
great change and how easy ESS was, which the case is not often when employees are selecting
their benefit options." (Koven, 2002). By giving the employees more access to their information
they are able to see the benefit choices available to them. Employees are also able to update their
information online, which helps reduce the paperwork of the past. Shaw’s has also seen
improvement in productivity because employees are updating information at home, not during
work hours.

CS Stars, LLC

The Situation:
New York Attorney General Andrew Cuomo has announced that New York State has reached its
first settlement with a company charged with failing to notify consumers and others that their
personal data had gone missing. Cuomo’s office, which enforces the state’s 2005 Information
Security Breach and Notification Law, charged CS STARS LLC, a Chicago-based claims
management company, with failing to give notice that it had lost track of a computer containing
data on 540,000 New Yorkers’ workers’ comp claims.

The Response:
The owner of the lost data, which had been in the custody of CS STARS, was the New York
Special Funds Conservation Committee, an organization that assists in providing workers’ comp
benefits under the state’s workers' comp law. On May 9, 2006, a CS STARS employee noticed
that a computer was missing that held personal information, including the names, addresses, and
Social Security numbers of recipients of workers’ compensation benefits. But CS Stars waited
until June 29, 2006, to notify Special Funds and the FBI of the security breach. Because the FBI
declared that notice to consumers might impede its investigation, CS STARS waited until July 8,
2006, to send notices to the 540,000 New Yorkers affected by the breach. On July 25, 2006, the
FBI determined an employee, of a cleaning contractor, had stolen the computer, and the missing
computer was located and recovered. In addition, the FBI found that the data on the missing
computer had not been improperly accessed.

The Outcome:

New York's Information Security Breach and Notification Law, effective in December 2005,
requires businesses that maintain computerized data which includes private information to notify
the owner of the information of any breach of the security of the system immediately following
discovery, if the private information was, or is reasonably believed to have been, acquired by a
person without valid authorization. The law affects not only businesses in their dealings with
their customers, but employers in their role as custodians of employees’ personal data. (Cadrain)

Without admitting to any violation of law, CS STARS agreed to comply with the law and ensure
that proper notifications will be made in the event of any future breach. The company also
agreed to implement more extensive practices relating to the security of private information. CS
STARS will pay the Attorney General’s office $60,000 for costs related to this investigation.
(Cadrain)

IBM

The Situation:

IBM's paperless online enrollment system, introduced in 1999, has proved to be a winner for
both the company's 135,000 active U.S. employees and the company, according to Cathleen
Donnelly, senior communications specialist at company headquarters in Armonk, N.Y. The
company saves $1.2 million per year on printing and mailing costs alone, Donnelly says, and the
employees’ can take advantage of a variety of technologies to learn about issues, research
program information and access decision support tools from their desktop computers. (Heuring,
2002)

The Response:

One of those tools, a personal medical cost estimator, enables employees to calculate potential
out-of-pocket health care expenses under each of the plan options available to them, Donnelly
says. Employees log in personally and are greeted by name and with important information
regarding their benefits enrollment, such as the deadlines and when changes take effect. They
automatically get access to health plans that are available to them, and the calculator lets them
compare estimated benefit amounts for each plan.

"Employees can select the health care services they expect to use in a particular year, estimate
expected frequency of use, and calculate potential costs under each plan option," Donnelly says.
"The feedback that we've received from employees tells us that this tool has really helped them
to make a comparison between plans based on how they consume medical services." The
calculator shows both IBM's costs and the employee's. (Heuring, 2002)

The Outcome:

"Since we began offering online enrollment, we've learned that employees want web access,"
Donnelly says, so they can log on at home rather than through the company intranet. So the
company has been working to put in place a web-based enrollment system that employees and
retirees can access from anywhere.

Employees can get summary information on the plans, drill down into very specific details and
follow links to the health care providers for research. Donnelly says the system has received high
marks for convenience because employees can "get in and out quickly."

WORKSource Inc.

The Situation:

To meet the challenge of handling 100 new employees, WORKSource Inc. acquired Web-based
technology programs from GHG Corp. like electronic paystub, electronic timesheet software,
time-off system, and human resource information system (“Tips,” 2006). These tools enabled
CEO Judith Hahn to handling payroll procedures efficiently and effectively.

The Response:

WORKSource has eight workforce centers, with approximately 108 employees, located
throughout a six-county region. Previously, payroll, benefits, and human resources for those
employees were processed and managed by a Professional Employer Organization. The company
also has 52 administrative staff in its headquarters office. When the contract with the PEO
terminated on June 30, 2006, those 108 employees were immediately moved to the payroll of
WORKSource, which meant Hahn’s workload more than doubled effective July 2006 (“Tips,”
2006).

Hahn, in an interview with PMR, said she relied on LEAN to help get a handle on what needed
to change for her to manage the increased workload. Two years earlier, Hahn’s CEO had
introduced her to LEAN, a Japanese management concept of eliminating wasteful steps and
motion when completing processes. “I began to read as much as possible about LEAN and joined
an HR LEAN focus group” (“Tips,” 2006).

The Outcome:
Mastering the concepts of LEAN led Hahn to develop and apply her own acronym of
“REASON” to her department’s payroll and HR processes. Review the process: map payroll
tasks from start to finish. Eliminate waste: determine how to complete a payroll task most
efficiently without unnecessary steps. Analyze alternatives: research and evaluate the
applicability of new technology. Sell innovations to management: document the return on
investment of each innovation. Open the lines of communication: communicate openly—and
often—with all stakeholders, including employees and top management. Never allow negativity:
make change simple and fun. Give employees plenty of encouragement and time to learn
(“Tips,” 2006). Judith Hahn was able to implement the right human resource functions using
information systems.

Toshiba America Medical Systems Inc.

The Situation:

Lynda Morvik, director of benefits and human resources information systems at Tustin,
California-based Toshiba America Medical Systems Inc. (TAMS), thought it would make sense
to add a benefits communication component to it. By having all the benefit information online,
the TAMS employee handbook would also be a living document, enabling Morvik to make
changes when necessary. Such was the case halfway through the project, when TAMS changed
health care plans from Aetna Inc. to United Health Group Inc (Wojcik, 2004).

The Response:

TAMS, an independent group company of Toshiba Corporation and a global leading provider of
diagnostic medical imaging systems and comprehensive medical solutions, such as CT, X-ray,
ultrasound, nuclear medicine, MRI, and information systems, had been using a payroll service
bureau and an in-house solution for HR that didn't include easy-to-use consolidated reporting or
an employee portal. After evaluating UltiPro alongside several enterprise resource vendors,
TAMS selected Ultimate Software's offering and went live in September 2002 after an on-time
and on-budget implementation. Almost immediately upon rolling out the UltiPro portal to
employees, TAMS began seeing improvements, with an estimated 70% increase in open
enrollment efficiency (Wojcik, 2004).

The Outcome:

In an effort to expand the usage of the Web beyond the benefits enrollment process, TAMS has
posted a library of documents and forms on its HR portal, including the benefits handbook,
which garnered a 2004 Apex Award for publication excellence. That same year, Business
Insurance magazine also gave TAMS the Electronic Benefit Communication (EBC) award for
outstanding achievement in communicating employee benefits programs over the Web. To
continue elevating its use of Ultimate Software's HRMS/payroll solution, TAMS modified the
UltiPro portal to meet the imaging company's unique needs (Wojcik, 2004). It was completely
integrated with several proprietary applications created to address compensation and
performance management issues so that TAMS employees have a central location for
comprehensive workforce and payroll information from a Web browser that they can access with
a single sign-on (Wojcik, 2004).