Why Use OSM?
What is OSM?
OSM Features |
 |
| Why
Use OSM? |
|
OSM
reduces the time spent on Salary Planning from months
to days. Throughout the salary planning process HR
has the ability to maintain control by adjusting
the system administration settings applying to the
organization's current business rules. The
burden of data extraction and recombination is eliminated
with the use of OSM. Items such as data analysis
often requiring timelines measured in weeks could
be retrieved in seconds. Managers would have an easy
to use tool, enabling them to access key employee
information throughout the year without the involvement
of HR personnel. |
|
| Salary
Planning |
|
HR
often has the responsibility of overseeing a process
where employees are awarded compensation adjustments.
The adjustments may come in the form of salary
increases, one-time cash bonuses, promotions, stock
and stock option plans. Though HR needs to empower
managers to perform the salary planning process
for employees, they must ensure the organization’s
business rules are enforced and confidential information
is safeguarded.
Typical Salary
Planning Process |
Step
1 |
HR accesses
the corporate HR database, compiles the employee
data for the affected managers of the initiating
level and generates a series of spreadsheets |
Step
2 |
HR distributes
the series of spreadsheets to the managers
along with a listing of the organizational
business rules, constraints and budgeting information |
Step
3 |
Managers apply
increase information to the spreadsheets and
send the data to HR |
Step
4 |
HR manually
validates the data for the managers and corrects
any increases that are not in compliance with
the organizational business rules |
Step
5 |
HR consolidates
the data from the initiating level for the
affected managers of the next level and generates
a series of spreadsheets |
Step
6 |
Steps 2, 3,
4, 5 are repeated for each level of the organization |
Step
7 |
When
the final level of the organization is reached
all data is unified to create a "master" report |
Step
8 |
HR conducts
a manual verification and validation process
to ensure all spreadsheets and plans coincide
within individual increase constraints as well
as organizational guidelines, and are within
the allotted budget |
Step
9 |
HR conducts
a manual verification and validation process
to ensure all employees considered for an increase
in pay or promotion have been taken into account |
Step
10 |
HR conducts
a manual verification and validation process
to ensure increases in pay are evenly distributed
among pay grades and/or job codes |
Step
11 |
HR conducts
a manual verification and validation process
to ensure increases in pay are evenly distributed
among race and sex (i.e., EEO Analysis Reporting) |
Step
12 |
Salary plan
is presented to upper level management and
approved |
Step
13 |
Data is entered
into the HR database/payroll system |
|
|
The
Typical Salary Planning Process
Analyzing
and translating. Verifying. Database access.
Combining Data. Manual calculations. It’s
little wonder multiple groups of people
regard the salary planning process as a
veritable “nightmare”. Quite
often the process takes place over the
course of several months and requires numerous
hours of both management and HR personnel
involvement. As the process escalates steadily
up the management chain, the resource and
time expenditures become exponentially
greater with each added level. As one would
imagine, more time is required from those
people the least amount of time to devote.
Thus, confidentiality of sensitive employee
information is exposed to risk with each
communiqué which transpires--be
it email, physical medium or printouts.
The following are the functions which comprise
a typical salary planning process.
|
Pitfalls
Of The Typical Salary Planning Process |
| • |
Manual
extraction / parsing data from the HR database |
| • |
Manual communication
of data to each manager |
| • |
HR's inability
to control the process (save for manual intervention) |
| • |
Duplication
of effort (i.e., any changes to the organization
following the distribution of data requires
a new extraction of data) |
| • |
Organizational
changes cause additional work and the possible
reevaluation of multiple groups of employees |
| • |
Manual verification
and validation of data |
| • |
Manual verification
and validation of applied business rules |
| • |
Laborious compliance
testing |
| • |
Laborious data
analysis |
| • |
No security
for sensitive data |
| • |
Difficulty
when integrating with payroll |
|
|
| The
OSM Approach |
| • |
Single
point of Communication/Single point of Control |
| • |
Allows for
global and group organizational changes |
| • |
Automated compliance
assurance |
| • |
Automated extraction
of data |
| • |
Automated integration
of data |
| • |
Combination
of files |
| • |
Changes are
apparent to all involved in the process… immediately |
| • |
Ease of Auditing |
| • |
Secure movement
of confidential information |
|
|
| Conclusion |
|
OSM
streamlines salary planning by reducing the time,
resources, and costs associated with the completion
of this process. By assisting organizations with
a reduction in time and financial commitment, it
allows all staff members involved in the process
to be more productive in the allocation of time for
other activities that impact a company's bottom line.
Simply stated, OSM provides opportunities for businesses
to alter the circumstances directly influencing the
resources which affect the loss or gain of time and
money. In providing these two elements, companies are
given an opportunity to maximize staff resources and
allow their employees to continue doing what they do
best…managing and promoting organizational effectiveness. |
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