ONLINE
SALARY MANAGEMENT (OSM) is an independent
HRIS add-on (accessory) that automates the salary
planning process. OSM streamlines the HR salary
planning function by providing a highly secure
web-based application that enables managers to
apply various compensation increases for employees
while enforcing adherence to organizational business
rules. OSM can be integrated with any Human Resource
Management System (HRMS) including, but not limited
to, those offered by the leading HRMS companies,
e.g., PeopleSoft®, SAP®, Lawson®, Ceridian®, ADP, Oracle®, Tesseract®,
etc.
For most companies consisting of 500 or more employees, the salary planning process usually requires months for completion. Depending on company structure, most organizations have managers instituting salary increases and promotional decisions for the employees reporting to them. Managers are provided hard copy lists of the corporate-wide business rules dictated from upper management and Excel spreadsheets, simple lists of employees without built in intelligence. Managers calculate salary and promotional changes for their group and forward their recommendations upward to their manager. These managers review the recommendations, verify compliance with the business rules, assess their own direct group and send the cumulative report up the chain to the next level of management. This process is repeated until the entire organizational chain has been completed.
It is important to note that throughout the salary
planning process, all prior evaluations must be
checked for accuracy, timeliness, organizational
compliance/business rules, etc. Any errors or omissions
impact individual employees, groups, and entire
subordinate chains (especially in the area of percentage
adjustments). The typical spreadsheet method usually
proves to be cumbersome and inefficient requiring
manual calculations and manual evaluation of business
rules for each employee. OSM eliminates spreadsheet
nightmares, turning salary planning into a simple,
online transaction-based process. Upper management
creates and enforces organizational business rules
by selecting options with the simple action of
pointing and clicking of a computer mouse. Once
these parameters are set, each level of management
simply determines the various raises and promotions
for their employees by clicking onto each increase
category field, inputting the desired increase
which is automatically limited to the pre-set business
rule parameters. Instantaneously, the impact of
each action is shown in a number of different ways,
allowing for fewer passes to achieve that manager’s
goals. In addition to the hours saved, each manager
is assured of the accuracy of the work because
of the business rule safeguards that are inherent
with OSM.
Companies of over 500 employees typically have
a salary/compensation Human Resource Management
System (HRMS) or “HR backbone” such as PeopleSoft®, SAP®, Lawson®, Ceridian®, ADP, Oracle®, Tesseract®,
etc. While OSM is not a competitor of these systems,
it is a tool that utilizes data from the HRMS and
is compatible with any of these systems. If the
client company changes from one HR backbone system
to another, the OSM investment is not in jeopardy.
The tool is designed to switch from one HR backbone
system to another without extensive and expensive
reconfiguration.
Assuming that manager work-hours saved equates
to dollars saved for the organization, companies
will reap real savings of 60% - 90% over the industry
standard spreadsheet method. Additionally the elimination
of math errors, increased security and the enforcement
of the organizational compensation constraints
significantly enhance the corporate bottom line.
Our calculations show that companies can achieve
100% ROI in as little as 60 days.
|
