Author: Site Staff

Here are some questions you shouldconsider when interviewing HRMS vendors.

1. Pricing
2. Experience
3. Customer Service
4. Implementation
5. Features

Pricing:

• Are there any extra costs foradditional features, such as certain custom reports?

• What types of installation fees andmaintenance fees do you charge?

• Do you offer a higher one-timeinstallation fee in return for a smaller monthly maintenance fee (or viceversa)?

• Do you hold your price for 180 days?*

Experience:

• Can you provide at least threereferences of recent implementations and include a nearby local user? *

• Do you have experience with (fill inwith what’s important to you) – performance reviews, vacation accrual,stock options, etc?

• What size company do you mainly workwith?

• What is your revenue and how manyclients do you have?

• How long have you been established?

Customer Service:

• How is customer service handled?Phone? If so, is it toll-free? Is it 24 hours? E-mail? Both?

• What customer-service fees can Iexpect?

• How many customer servicerepresentatives are available on weekdays? How many are available onweekends? In what types of technical support are they trained?

Implementation:

• How long does it take to install? Isthere an extra charge for quicker installation?

• Who on my end do you need to helpwith the installation? What will the process be like?

• Do you require any third-partysoftware? *

• Do you interface with my (payrollsystem, etc.)? Are they any hidden fees with making this work? Any possiblecomplications?

Features:

• How often is data updated? Is iteach time an employee updates their data, or each time HR changes somethingon the back end?

• What do you offer to non-traditionalworkforces?

• Do you accommodate employee andmanager self-service?

• Will employees at different sites beable to use the system?

• What standard reports do you offer?

• Do you offer custom reports? Thingsthat go beyond the standard. (Here, describe to the vendor the reportsyou’re most interested in).

• Do you allow wireless connectivity?

• Do you include a portal foremployees to take care of non-work-related needs while in the office? Ifnot, can the system interface with a third-party portal?

• Can you describe/demonstrate yoursystem security? *

*Information with asterisks was providedby “How to Attain Your HRMS Vision,” by Rhonda Carlson with Michael W.McDonald, Copyright CCHInc., 1999. All rights reserved.

SOURCE: Compiled by Chan Tran andTodd Raphael of Workforce. For more information, use the Workforce HRMS Decision Guide to help research, choose, and compare systems.

Employee Survey Gauges Employee Satisfaction

The article in the February 1998 issue of Workforce on Optimas Award winning company Trident Precision Manufacturing discusses the five areas of total quality that the firm measures on a continual basis. Twice a year, the company administers this survey to its employees to gauge their overall satisfaction with the company and its practices.

MY COMPANY:
How do I rate my company on:

MANAGEMENT PRACTICES:
Before completing the Management Practices section, please circle your supervisor’s name.[Note: actual Trident supervisor’s names have been removed.]

TRAINING / TEAMWORK – My Supervisor:

MY WELL-BEING:
How do I rate the following:

CORPORATE LEVEL MANAGEMENT:
How do I rate Corporate Management on:

HUMAN RESOURCES:
How do I rate the Human Resources Department on:

SOURCE: Trident Precision Manufacturing, Inc. 734 Salt Road, Webster, New York 14580-9796. Phone (716) 265-1009. Copyright and all rights reserved.

What kinds of attitudes do your employees have? Have you found them surprisingly unhappy? Why, or why not? What have you done to meet their expectations?

Give us your insight, and your stories – from the everyday, to the bizarre.

Your thoughts may be printed in an upcoming issue of Workforce magazine. E-mail Todd Raphael at raphaelt@workforce.com

QDearWorkforce: 

    How are other companiesin the high-tech field and beyond handling the payment of immigration filingfees for current employees with expired H1-Bs or those interested in obtaining aGreen Card?

-Allison K. 

ADear Allison: 

    As a rule, manycompanies are paying for most if not all of the fees associated with theiremployees’ Green Card filings. 

    This is a good faith effortto show the company’s commitment to the employee. In return, the companywill get the employee to sign a document stating that the employee will beresponsible to pay back the costs if the employees terminates employment within(generally) two years of the receipt of the Green Card. 

SOURCE: Mike Sweeny, T. Williams Consulting, Collegeville, PA. 

E-mailyour Dear Workforce questions toOnline Editor Todd Raphael at raphaelt@workforce.com,along with your name, title, organization and location. Unless you stateotherwise, your identifying info may be used on Workforce.com and in Workforcemagazine. We can’t guarantee we’ll be able to answer every question.

The Flexible Work Arrangement (FWA) proposal is designed toincorporate many of the issues that must be consideredwhen designing a flexible work arrangement and must be completed by all PWCindividuals on an FWA. Please complete the following proposal. Your mentor orothers may assist you. 

1. Benefits and barriers for the firm. What are the benefits of this flexible work arrangement for the firm? Identify potential barriers that a flexible work arrangement could raise with clients, partners, staff. 
   
   
2. Flexibility and availability. Clarify your availability to travel or meet unexpected work needs on days or at times when you are not in the office or formally scheduled to work. 
   
   
3. Communication. How will you maintain communication with the office? With clients? How will you let others know when you want to change your schedule? 
   
   
4. Efficiency and coverage. How will you ensure that your new schedule won’t be disruptive to work flow? Describe your backup plan when you are unavailable and someone – client, partner, staff – needs something fast.
   
   
5. Flexible Work Arrangement (check one):
   • Reduced Hours
   • Job Sharing
   • Seasonal Employment
   • Compressed Workweek
   • Flextime
   • Telecommuting
   
   
   
6. Reasons/benefits for yourself. Identify reason for request. What are the perceived benefits for you? Are you meeting your career and personal goals? 
   
   
7. Describe current and proposed work schedules (include hours per week and per day if different from standard office hours). 
   
   
8. Summarize your current workload and client responsibilities/relationships and proposed changes – transitioning clients to other staff, relinquishing main contact relationship, etc.). 
   
   
9. Based on the above, provide the proposed number of hours you anticipate you will spend in each area of your job. 

    Using the completed proposal as aguide, discuss the proposed arrangement with your supervisor, coach, and localHR representative. The agreed upon arrangement should be reviewed, evaluated,and discussed quarterly to ensure it is successful for the individual, theoffice, the clients, and staff.

Workforce, February 2001, Vol80, No 2, p. 41  Subscribe Now!

Summary
   The Departments of Labor, Health andHuman Services, and Treasury jointly published two separate regulations on thenondiscrimination provisions of the Health Insurance Portability andAccountability Act (HIPAA) on January 8, 2001. Under HIPAA’s nondiscriminationrules, HMOs and group health plans (both insured and self-insured) may notdiscriminate against individuals by basing eligibility, enrollment, premiums, orcontributions on any “health status-related factors.”

    The interim final rules prohibit grouphealth plans or group insurance issuers from denying an individual eligibility,or charging an individual a higher premium than it charges other similarlysituated individuals, based on a health factor. Health factors include healthstatus, medical condition, claims experience, receipt of health care, medicalhistory, genetic information, disability, and evidence of insurability.

    The proposed rules relate to theapplication of the nondiscrimination requirements to bona fide wellnessprograms. Bona fide wellness programs are permitted exceptions to the HIPAAnondiscrimination requirements. Plans may provide discounts, rebates, andmodifications to copayments or deductibles among similarly situated individualsas incentives for complying with health promotion and disease preventionprograms, which meet certain requirements as a bona fide wellness program.

Status
   The new regulations were generally toapply as of the first day of the first plan year beginning on or after July 1,2001 (January 1, 2002 for calendar year plans), with some provisions beginningMarch 9, 2001. However, the effective date has been delayed by 60 days based ona White House memorandum issued by the Bush Administration. (The ClintonAdministration issued these regulations just before the transition to the BushAdministration).

    The effective date refers to the datethe regulation will have the force of law, although employers may not berequired to actually comply with some of the requirements until a later date.

    The nondiscrimination regulations willbe effective on May 8, 2001 or August 30, 2001, depending on the provision. Itremains to be seen what, if anything, the Bush Administration will do with theseregulations.

Impact
   The nondiscrimination regulationsclarify that group health plans may treat different groups of similarly situatedindividuals differently, but only if the definition or creation of the groups isnot directed at individual participants based on health factors. This means thatit is permissible to limit or exclude benefits for one group of similarlysituated individuals compared with another. However, other employment laws suchas the Americans with Disabilities Act may apply and should be considered.

    The majority of wellness programs willnot have to change in order to comply with the proposed requirements for bonafide wellness programs because most wellness programs do not requireparticipants to attain lower risk levels or health status improvements, butinstead focus on participation and risk reduction. Employers should still reviewtheir wellness programs to ensure that they either comply with the proposedregulation or are excepted from the regulations.

To Learn More

• View the nondiscrimination regulations
• View the wellness program regulations
• Read a DOL pressrelease
• Link to a DOL Questionand Answer sheet

SOURCE: Hewitt Associates LLC

Summary
   The Department of Labor (DOL) publishedfinal regulations on the standards for claims and appeals procedures for ERISAgroup health and disability plans. The final rules set shorter time frames fordecisions on initial health care claims, particularly for urgent medical care.

    The final regulations also set shortertime frames for review decisions of denied claims, give claimants more time tofile appeals, and require plans to provide more information to participants. Thestandards for claims appeals are stricter, such as allowing no more than twolevels of appeal before a claimant can file a federal lawsuit under ERISA forthe denied benefit.

Status
   The final rules became effective onJanuary 20 and will apply to claims filed on or after January 1, 2002. Theeffective date refers to the date the regulation will have the force of law,although employers are not be required to actually comply with the requirementsuntil the later date.

Impact
   The regulations will requireemployer-sponsored health and disability plans to significantly modify theirclaims and appeals procedures under the plan. These regulations will generallynot cause most other types of ERISA plans, such as retirement plans and otherwelfare benefit plans, to substantially change their procedures.

    The regulation will require moreinformation to be provided to participants and beneficiaries, such as includinga description of all claims procedures in the plan’s summary plan description.Certain elements of the new rules will create significant administrativeproblems and systems burdens for plans.

To Learn More

• DOL pressrelease
• DOL factsheet
• Informationfor consumers (published by DOL)

SOURCE: Hewitt Associates LLC

Place a check next to each item on the following checklist that you feel isimportant to your satisfaction at work. Circle the five items in each categorythat are most important to you.

Work Environment:

The Work Itself:

Results, Rewards, and Motivation:

Lifestyle and Personal Values:

List the 20 items circled from most toleast important:

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.

Copyright© 2000 American Management Association International, http://www.amacombooks.org 

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Usersmay, only on a one-time basis, include portions equal to one (1) page orless of information from the above Book in memos, reports, presentations, butonly if such materials are distributed or made available for non-commercial usein non-electronic form, to a limited number of individuals. All suchmaterials must include all copyright and other proprietary notices for theinformation used from the Web site, original source attribution, and the phrase“Used with the permission of American Management Association.” Users areprohibited from posting any content from the above book to any electronicbulletin boards, newsgroups or mail lists.

The Saratoga Institute, now a part of Spherion’s Human Capital Consulting Group, has been measuring the value of human capital for 20 years. Among the 250 different metrics used by the institute are revenue factors, profitability, and investment in a company’s workforce. Using a number of formulae, researchers at the institute are able to quantify the value of human capital as well as its overall effectiveness, claims Robert Morgan, president of the Human Capital Consulting Group.

“One of the things we encourage companies to do is to take the top 10 metrics – not necessarily all 250 – and measure themselves. Not every metric is important to a company. Itdepends how labor-intensive they are, if turnover is a problem, if they are in a knowledge industry, things like that.”

Those 10 metrics were developed by Jack Fitz-enz, founder and chairman of the institute. Since there is no set standard of measurement that fits every company, Fitz-enz says, it’s important to decide which of these apply to your company’s situation. What is important to one firm, he says, might have little value to another.

1. Your Most Important Issues. These are the targets of all lower-level measures. Whether it be one or a few measures, make certain that you are focused on them and that your metrics lead in a direct line to them.
2. Human Capital Value Added. How do the people in your organization optimize themselves for the good of the company and for themselves? This is the prime measure of a person’s contribution to profitability and shows that you can answer the question: “What are people worth?”
3. Human Capital ROI. This is the ratio of dollars spent on pay and benefits to an adjusted profit figure.
4. Separation Cost. It’s important to know how many people are leaving and from which areas, but it’s more important to know what that costs the organization. The average cost of separation for an employee is at least six months’ equivalent of revenue per employee.
5. Voluntary Separation Rate. Loss of personnel represents potential lost opportunity, lost revenue, and more highly stressed employees who have to fill in the gaps. If you can cut the separation rate, you don’t incur the cost of hiring for these positions or lose quality in your customer service.
6. Total Labor Cost Revenue Percent. This is total benefit and compensation cost as a percent of organizational revenue: the complete cost of human capital. In other words, this shows how much of what you are taking in through revenue goes to support the company’s total labor cost (including temporary, seasonal, and contract or contingent workers. Thus, it accounts for all your W-2 and 1099 employees.This metric is designed to help you track changes in your workforce. You can do this best by comparing this metric to your revenue factor, your compensation costs, your benefit costs, and your contingent off-payroll Costs. If your Total Labor Cost Revenue Percent is increasing, you need to see if this is because your compensation costs or your benefit costs are increasing or if your revenue is decreasing. This will help you determine what actions to take based on your business objectives. Cutting costs may only help in the short-term if revenue is decreasing.

   Also, by looking at this number in comparison to your contingent off-payroll costs, you can analyze whether or not your contingent workforce is contributing to an increase or decrease in your total labor costs.

7. Total Compensation Revenue Percent. This is the percent of the organization’s revenues that are allocated to the direct costs of the employees. This differs slightly from Total Labor Cost Percent; it does not include the costs for any off-payroll employees who receive a 1099. It only accounts for any on-payroll employees. Again, it is best to compare this measure to your Revenue Factor, your compensation costs, and your benefit costs to analyze what is happening with workers before creating strategies to address any concerns.
8. Training Investment Factor. Forces are in conflict within the workplace. There is a continuing invasion and distribution of technology aimed at improving individual productivity and a growing demand for better service. Yet many workers cannot read, write, do simple calculations or talk intelligently with customers. The organization must invest in bringing up basic skills.
9. Time to Start. With the ongoing shortage of talent, recruitment will be a major challenge. Monitoring the time from approval of a requisition until someone is on the job is a strategic indicator of revenue production.
10. Revenue Factor. This is the basic measure understood by managers.