integrate 2 Business Process Redesign: Business Process Recommendations Benefits Administration May 31, 2013

Transcription

1 integrate 2 Business Redesign: Business Recommendations Benefits Administration May 31, 2013

2 Business Recommendations: Introduction

3 Business Recommendations SUB-PROCESS RECOMMENDATION CONTENTS Recommendations for a redesigned workflow and supporting materials for each of the sub-processes reviewed as part of the integrate 2 BPR project are detailed in the following section. Each sub-process section includes the following: Overview: A summary narrative of key process steps within the sub-process. Recommended Future State Flow: Detailed process flow of the Future State process steps. Key Changes: For those steps within the Future States that represent primary changes (for one or more NSHE institutions), an explanation, and justification as necessary, for the process change is highlighted Alternative Options: Options not recommended in the future state flow are highlighted along with a justification of why this option is NOT recommended or incorporated in the process. Policy Change Requirements: Instances when either institutional or NSHE policy need to be developed or revised in order to facilitate the recommended process are noted, including recommendations for policy content. Implementation Challenges: When elements of the recommended future state process were questioned during workshops or noted as significant areas where implementation would be difficult, further discussion and justification is provided along with examples of institutions also utilizing the recommended process. The examples provided are individual institutions utilizing these recommended practices. NSHE represents a diverse set of 8 institutions and the system office presenting limitations in identifying a comparable system or organization that has broadly implemented best practice or recommended processes. Technology Requirements: Elements of a required technology to enable the process are listed by process step. Reporting Requirements: Reports, metrics and data points required to monitor and control the process are listed. NSHE Feedback: Index of comments/feedback provided by NSHE institutions and the Huron response, as needed Huron Consulting Group. All Rights Reserved. Proprietary & Confidential. 3

4 Business Recommendations POINTS TO CONSIDER Each sub-process section incorporates some fundamental concepts that should be understood in order to fully consider the recommendations and supporting content. Recommendations versus Current State: These process recommendations represent Huron s recommendations for a future state business process and are not intended to comment on the current state processes across NSHE. Some process elements may already be the practice of some or all NSHE institutions. Business Swimlanes (horizontal bands): The business process focuses on the process steps and the work accomplished in these steps and not the process owners/work locations. Therefore, the developed flows include general swim-lanes that are not role/location specific, such as Accounts Payable Administration, Travel Administration, Research Administration, etc. Flows do include required roles like Vendor, faculty/employee/investigator, etc. but they do not highlight Administrative Assistant, Vice President of X, etc. The recommended process steps can be applied universally and the steps can be aligned in whatever roles/units are appropriate by institution Huron Consulting Group. All Rights Reserved. Proprietary & Confidential. 4

5 Business Recommendations POINTS TO CONSIDER Each sub-process section incorporates some fundamental concepts that should be understood in order to fully consider the recommendations and supporting content. Existing Supplemental Systems: Some NSHE institutions have implemented different systems or technologies that are supplemental to the Human Resources or Finance Administration Systems. These process flows assume the existing technologies are integrated into the Future State Business. Out of Scope Systems: Some process flows incorporate Non-Human Resource/Finance Systems that are out of scope for integrate 2 (i.e. a Pre-Award tracking system ). However, in order to be in line with best practice elements, these out-of-scope technologies were incorporated into the recommended processes Huron Consulting Group. All Rights Reserved. Proprietary & Confidential. 5

6 Business Recommendations: Benefits Administration

7 Benefits Administration BPR: PEBP Enrollment PROCESS OVERVIEW The PEBP Enrollment process is the process by which employees enroll in PEBP and the information is transmitted back to HR / Payroll to ensure premiums are correctly deducted from paychecks. Employee attends benefits orientation and submits basic information to PEBP PEBP notifies employee of online self-service and employee makes PEBP selection PEBP provides a Benefits flat file 2-3 times per month to HR for processing HR validates flat file and updates employees in HRMS with benefits selections Payroll is notified of benefit selections and premiums are adjusted within system to account for selections If an employee changes benefits during open enrollment or due to life changes updated information is included in flat file and updated in a similar manner 7

8 PEBP Benefits Enrollment / Changes Institution Employee PEBP Start 1 Attend Benefits Orientation / New Hire Orientation 2 Complete required new-hire PEBP Benefits forms 3 Set-up employee record and provide link to employee for online Benefits selection 4 Make Benefits selections 5 Receive employee Benefits flat file from PEBP End 6 Update employee payroll / HRMS information with Benefits information No Yes, Open Enrollment 7 Benefits Changes 8a PEBP Open Enrollment 8b PEBP Life Event Changes Yes, Life Event 9b Receive Life Change update information from PEBP 9a Receive Open Enrollment download from PEBP 10 Update employee payroll / HRMS information with Benefits information (if required End

9 Benefits Administration BPR: PEBP Enrollment KEY PROCESS CHANGES The following table outlines the major process changes (NSHE-wide) incorporated into the recommended process. Flow Title: PEBP Benefits Enrollment / Changes PEBP Benefits Enrollment / Changes Step(s): 1, 2, 4 5, 6, 9a, 9b Explanation and Change Justification: Employees attend an NSHE Benefits Orientation and submits information necessary for PEBP to set-up the employee in their benefits system. Employees proceed to make benefits selections using the PEBP online self-service module currently being used. Institutions receive a flat file two (2) three (3) times a month from PEBP that is uploaded directly into the HRMS and the employee information is automatically updated and payroll notified. This avoids instances where incorrect or no premiums have been applied to an employees initial paychecks and resulted in a large withholding when the flat file is finally received. 9

10 Benefits Administration BPR: PEBP Enrollment ALTERNATIVE PROCESS OPTIONS The following table outlines the alternative process options that are not recommended for implementation. Step(s): PEBP Enrollment Alternative Data integration between NSHE and PEBP Justification for Non-Recommendation: Data integration between NSHE s HRMS Benefits Module and PEBP s system is the ideal, but a flat file that stays current with new employees will help alleviate many of these problems. 10

11 Benefits Administration BPR: PEBP Enrollment TECHNOLOGY REQUIREMENTS The following table lists the system technology requirements necessary to support the recommended process. Flow Title: PEBP Benefits Enrollment / Changes PEBP Benefits Enrollment / Changes Step(s): Technology Requirement: 5, 9 Allow for benefits enrollment data to be shared between PEBP and NSHE 5, 9 Allow key piece of data from PEBP and NSHE HR system to be viewable or easily referenced from the other system, as necessary to facilitate the detailed process. 11

12 Benefits Administration BPR: PEBP Enrollment REPORTING REQUIREMENTS The following table lists the reporting requirements and data points that must be captured to support the recommended process. Flow Title: PEBP Benefits Enrollment / Changes Reporting Requirement: Employee Owed Funds (Arrears) for benefits premium contribution PEBP Benefits Enrollment / Changes Reconciliation Report Flat File Deductions ($ / #) Deductions Not Taken Data Points/Metrics: Employee Details (Name, position, number, unit, institution) Monthly employee contribution amount Number and % of employees enrolled Contributions not deducted 12

13 Benefits Administration BPR: Grant-in-Aid PROCESS OVERVIEW Grant-in-aid is the process by which employees (and their spouses / children) can have a portion of their tuition paid for when attending an NSHE institution for graduate or undergraduate courses. Employee submits Grant-in-Aid request for themselves or on behalf of their spouse / children HR receives Grant-in-Aid request(s) and verifies eligibility If eligible, request is sent (electronically) to campus approvers for review and approval Once approved the Grant-in-Aid is processed by either the home institution or the NSHE institution where courses are taken If the course was take at another NSHE institution an electronic invoice is sent to that institution to settle the Grant-in-Aid 13

14 Grant-in-Aid Grant-in-Aid ing Department Employee Approvers End Start 4b Notify employee of denial 1 Complete online Grant-in-Aid form End 7b Notify employee of ineligibility No No 3 Approve? 2 Submit to campus approvers for review and approval 5 Receive request and check for employee eligibility in HRMS 6 Eligible? Yes Yes 4a Notify HR of request and approval and submit for eligibility verification 7a Workflow to approvers for review and signature 8 Class at own institution? No 9a Workflow Grant-in-Aid notification to NSHE institution Yes 9b Grantin-Aid 11 Receive electronic Invoice from other NSHE schools, verify, and approve for payment 12 Notify employee of Grant-in-Aid payment End NSHE Institution 10 Provide electronic invoice to requesting NSHE school for employees taking classes

15 Benefits Administration BPR: Grant-in-Aid KEY PROCESS CHANGES The following table outlines the major process changes (NSHE-wide) incorporated into the recommended process. Flow Title: Grant-in-Aid Grant-in-Aid Step(s): 2, 3, 4a / 4b 5, 6, 7a / 7b Explanation and Change Justification: Due to potential for grant-in-aid classes to occur during normal business hours, Grant-in-aid is routed directly to the supervisor / campus approvers Grant-in-aid approval, eligibility review, and executive level review are consolidated and streamlined to reduce the number of touchpoints. Eligibility should be determined as soon as possible to avoid unnecessary process activity. 15

16 Benefits Administration BPR: Grant-in-Aid TECHNOLOGY REQUIREMENTS The following table lists the system technology requirements necessary to support the recommended process. Flow Title: Step(s): Technology Requirement: Grant-in-Aid All Incorporate an electronic workflow to enable the routing of reviews and approvals. Grant-in-Aid All Allow approval authority to be delegated (if desired) by individuals for various reasons (vacation / leave / etc.). Grant-in-Aid 1, 2 The Grant-in-Aid request form is an electronic, editable, online form that upon completion is workflowed through the review and approval process. Grant-in-Aid 9a, 9b, 10, 11 Electronic workflow sends the electronic grant-in-aid form directly to appropriate Business Office (internal or at other NSHE institutions). This will allow invoices to be sent back electronically and streamline the process. 16

17 Benefits Administration BPR: Grant-in-Aid REPORTING REQUIREMENTS The following table lists the reporting requirements and data points that must be captured to support the recommended process. Flow Title: Grant-in-Aid Reporting Requirement: Annual Report Tuition Benefits Utilized Data Points/Metrics: Cost of Grant-in-Aid benefits (cost to provide free access to course) Number of employees who utilize some type of tuition benefit being offered by the System Employee Details (unit, title, tenure with NSHE, etc.) 17

18 Benefits Administration BPR: Fee/Tuition Waiver PROCESS OVERVIEW The Fee / Tuition Waiver process refers to educational assistance for eligible classified employees who enroll in courses within the Nevada System. Employee submits fee / tuition waiver request to take a course at an NSHE institution HR Administration receives request and verifies employee eligibility If eligible, request is sent for approval Fee Waiver is processed at either home institution or NSHE institution where the class was taken Home institution or NSHE institution verifies employee has passed class and processes fee / tuition waiver / invoice If employee does not pass or complete class home institution or NSHE institution where class occurred enter reimbursement process with employee 18

19 Fee / Tuition Waiver Department Responsible Waiver / NSHE Institution Employee Approvers HR Start 1 Complete electronic / online Fee Waiver Request form End End 5b Notify employee of ineligibility No 7b Notify employee of denial 2 Route via electronic workflow department responsible for Waiver 3 Receive request and check for employee eligibility in HRMS 4 Eligible? No 6 Approve? 5a Notify approvers of employee eligibility and Fee / Tuition Waiver request Yes Yes 7a Notify department responsible for Waiver processing / employee of approval 8 Class at own institution? No 9b Workflow Fee / Tuition Waiver Request form to other NSHE institution 10 Provide electronic invoice to requesting NSHE school Yes 9a Fee Waiver and approve for payment 11 Receive electronic Invoice from other NSHE schools, verify, and approve for payment Yes 12 Pass / Complete Class? No End 13 Notify employee and obtain reimbursement from employee

20 Benefits Administration BPR: Fee/Tuition Waiver KEY PROCESS CHANGES The following table outlines the major process changes (NSHE-wide) incorporated into the recommended process. Flow Title: Step(s): Fee Tuition Waiver 1, 2 Fee Tuition Waiver 3,4, 5a, 5b Fee Tuition Waiver 12 Explanation and Change Justification: The fee / tuition waiver request form is an electronic, editable, online form that upon completion is workflowed through the review and approval process. The fee / tuition waiver approvals, eligibility review and executive approval are consolidated and streamlined to reduce the number of touchpoints. After the fee / tuition waiver is submitted, the form is workflowed to HR who checks for eligibility. If they are in fact ineligible the process stops before time is spent chasing down signatures for naught. If they are eligible the process now proceeds electronically through the various levels of review and approval. Once grades are posted, the processing department is responsible for validating that all employees completed / passed the class. If they did not complete or did not pass the class, the reimbursement process begins. 20

21 Benefits Administration BPR: Fee/Tuition Waiver TECHNOLOGY REQUIREMENTS The following table lists the system technology requirements necessary to support the recommended process. Flow Title: Step(s): Technology Requirement: Fee Tuition Waiver All Allow approval authority to be delegated (if desired) by individuals for various reasons (vacation / leave / etc.). Fee Tuition Waiver 9b, 10, 11 Electronic workflow sends the fee / tuition waiver form directly to appropriate Business Office (internal or at other NSHE institutions). This will allows invoices to be sent back electronically allowing the verification / approval of the invoices and subsequent processing to occur rapidly. 21

22 Benefits Administration BPR: Fee/Tuition Waiver REPORTING REQUIREMENTS The following table lists the reporting requirements and data points that must be captured to support the recommended process. Flow Title: Fee Tuition Waiver Reporting Requirement: Annual Report Tuition Benefits Utilized Data Points/Metrics: Cost of tuition/fee benefits (cost to provide free access to course) Number of employees who utilize some type of tuition benefit being offered by the System Employee Details (unit, title, tenure with NSHE, etc.) 22

23 Benefits Administration BPR: Leave Management PROCESS OVERVIEW Leave Management refers to the process by which various types of leave are tracked and monitored both for compliance and payroll purposes. Employee leave account is attached to the employee record on first day of employment Employee enters leave, specifying type of leave and dates Approval request is routed to the appropriate supervisors (and HR if applicable) Employee receives notification (electronically) once a decision has been made Leave data is transmitted to payroll as part of the nightly download 23

24 Leave Management LMS Leave Management System HRMS Human Resource Management System 6 Review request in LMS 7 Approve? No 8b Deny request within LMS 8c HR / Department initiate Disciplinary (if employee takes unauthorized leave) Yes Employee Institution Start 1 Set-up employee in HRMS and LMS 2 Employee requests leave in LMS 5b FMLA / CAT / Special Leave 4b System notifies Supervisor and HR Yes 3 FMLA / CAT / Special Leave? No 5a Supervisor / HR receives notification via and views request in LMS 4a System sends notification of request to Supervisor / HR via workflow 8a Approve request within LMS 9 Approval sent to employee 10 Automatically added to leave history of employee and is automatically deducted from leave balance 11 LMS provides nightly download to Payroll with updated leave balance and appropriate codes (paid, unpaid, FMLA, etc.) 12 Receive notification / enter disciplinary process (if applicable) and determine next steps End

25 Benefits Administration BPR: Leave Management KEY PROCESS CHANGES The following table outlines the major process changes (NSHE-wide) incorporated into the recommended process. Flow Title: Step(s): Leave - All 4a, 5a, 6 Leave - All 8a, 8b Leave - All 10, 11 Explanation and Change Justification: Leave system notifies supervisors by when a leave request has been submitted. In addition, the Leave system provides supervisor's with a "queuing" dashboard that allows them to review all pending / approved / closed leave requests and approve / deny active requests. The automation of the process from the employee submitting the request to the supervisor being notified and being able to view the request eliminates the potential for forms to be lost and one-off requests to be overlooked. Unlike many of the leave processes currently in place, the approval or denial of a leave request is automatically communicated to the requesting employee. This step now also provides the supervisor with the ability to code in the appropriate type of leave (unpaid, vacation, sick, etc.) directly into their approval / denial. Supervisor training and business rules will need to be in place to minimize incorrect entries and efficiently deal with them when they occur. Leave information is provided nightly to payroll. This step should eliminate the need for a departmental timekeeper to notify / submit a paper Payroll Correction Form for unpaid leaves. 25

26 Benefits Administration BPR: Leave Management TECHNOLOGY REQUIREMENTS The following table lists the system technology requirements necessary to support the recommended process. Flow Title: Step(s): Leave - All 1 Technology Requirement: Leave System must integrate with the HRMS and other on-campus systems so that the information can flow between systems (particularly Leave and Payroll). Leave - All 1 Allow employee type and by extension "leave rules" to be coded in for each employee. Leave All 4b, 5b Address multiple types of leave including FMLA, LWOP, CAT, etc. including the ability to customize approval workflows so that when these types of leaves are requested, the appropriate people are involved in the process. Leave All 4b, 5b Recognize and automatically provide employees with relevant information when they enter FMLA, LWOP, or CAT leave. Leave All 4b, 5b Automatically provide employees with the necessary information needed upon request FMLA, LWOP, or submitting 3 straight day of sick leave. Leave All 4b, 5b Allow for configuration to immediately notify HR upon request FMLA, LWOP, or submitting 3 straight day of sick leave. to ensure required data are collected to protect the university from risk, particularly as it relates to FMLA. 26

27 Benefits Administration BPR: Leave Management REPORTING REQUIREMENTS The following table lists the reporting requirements and data points that must be captured to support the recommended process. Flow Title: Leave Management Paid Time Off Report (Quarterly) Reporting Requirement: Data Points/Metrics: Utilization, by type of leave Absence rate (absence days / work days) Unscheduled absence rate (unsched absence days / work days) Compensation value of unscheduled absences (unscheduled days * daily rate / FTE) 27

28 Business Recommendations: NSHE Feedback

29 NSHE Feedback: Benefits Administration ROUND 1: MARCH APRIL 2013 The following table outlines the NSHE feedback and commentary, as well as Huron response when applicable. Sub- / Topical Area PEBP Enrollment PEBP Enrollment PEBP Enrollment PEBP Enrollment PEBP Enrollment Institution Comments/Feedback Huron Response UNLV UNLV UNLV UNLV UNLV #2 - Some of the discussions during the Workshops centered around Our recommendation refers to a direct transfer of information a recommendation from Huron to allow NSHE employees direct on-line access to PEBP. Ideally, the employee would complete benefits to PEBP enrollments systems electronically. I don't believe that this enrollment via the Self-Service technology, and the enrollment recommendation is in the proposal. There is an item about a data exchange, data would be directly transferred to PEBP. This would allow but this is after the employee enrolls. In my opinion, the ideal state would be both HR and PEBP access to the information simultaneously. to be able to send the initial new hire information on benefits eligible The overall goal is to eliminate lag time, as well as payments employees electronically to PEBP rather than by paper form. in arrears for premiums. Data integration between NSHE and PEBP.stays current with ALL EMPLOYEE STATUS CHANGES. Allow for benefits enrollment data to be shared.sure, we know this. Please provide recommendations as to HOW this technology requirement could be implemented. Allow for benefit enrollment data to be shared. This should clarify a two-way electronic (viewable) street We not only need to know the monthly employee contribution amounts, but we also need to have a system that could generate a report on which deductions were on the flat file and were not taken. This is a major part of the PEBP Reconciliation which seems to be missing piece of this process - unless of course if the reconciliation is supposed to be different process map Our recommendation refers to a direct transfer of information to PEBP. Ideally, the employee would complete benefits enrollment via PeopleSoft/WorkDay Self-Service, and the enrollment data would be directly transferred to PEBP. This would allow both HR and PEBP access to the information simultaneously. The overall goal is to eliminate lag time, as well as payments in arrears for premiums. The specific details for how this information is linked/shared is an important item to consider during the detailed configuration and implementation process, as it is an Implementation Decision. This has been clarified via a new Technology Requirement. Reconciliation is important and addressed on slide 7 via a new Reporting Requirement. 29

30 NSHE Feedback: Benefits Administration ROUND 1: MARCH APRIL 2013 The following table outlines the NSHE feedback and commentary, as well as Huron response when applicable. Sub- / Topical Area PEBP Enrollment Grant-in-Aid Grant-in-Aid Leave Management Leave Management Grant-in-Aid General Institution Comments/Feedback Huron Response UNLV UNLV UNLV UNLV UNLV UNLV DRI Table? One report? This list doesn't even scratch the surface of business reporting requirements from benefits administration's operations: number of eligible at any given time? Number of employee who deny coverage? Number of employees who change coverages over time? How many employees are covered at any given time? How many employee "life" changing transactions, orientations, manual manipulations of coverage costs... 2 and 3 - determination of eligibility? How many times does this need to be done? Isn't this repetitive? These are good data points to consider. We have expanded our required reports throughout the materials via Reporting Requirements. Box 2 describes that the employee is submitting his/her request for eligibility verification, it is not suggesting that he/she is verifying his/her own eligibility and this is clarified in the flow language. Grant-in-Aid (3,4,5) approval, eligibility review and executive level."means Steps have been consolidated for clarification. What, exactly) 1 - this should not be a "starting" sub-process - the set-up "status" This is a sub-process box (double bands at the sides) that change to hired should create the Leave module when a leave eligible position describes the entire set-up process as occurring outside the is filled, closed, onboarded, and data transferring processes. Leave Management process, but keying up important steps within the process, as described. steps 4a,5a, 6, 8a, 8b, 10 and 11 - this detail is not much different that While this may be similar to the current state for UNLV, this exists now. What is recommended "difference"? does represent process changes for other institutions under NSHE. Seems to incorporate everything we need on the front end. Like all the maps, Additional Reporting Requirements have been added to does not address reporting requirements for reconciliation purposes facilitate this process. Shared enrollment data with PEBP and NSHE would be great. Electronic It will be a challenge for NSHE to work with PEBP on a few of grant-in-aid and tracking of leave will improve process workflow. Question these changes during the Implementation phase. whether PEBP will comply with ESS or require paper? 30

31 Sub- / Topical Area Grant-in-Aid UNLV Tuition Waivers NSHE Feedback: Benefits Administration ROUND 2: MAY 2013 The following table outlines the NSHE feedback and commentary, as well as Huron response when applicable. Institution Comments/Feedback Huron Response CSN Our position in UNLV HR is that the initial approval of Grant-in-Aid for The map and materials have been updated to reflect the need employees should remain with the supervisor of that employee. In many for supervisors to review the request prior to HR when it situations, the employee is requesting to take a class during standard 8 to 5 comes to Grant-in-Aid. Our original intent was to avoid having office hours. In these cases, it is more important that the supervisor agree to a supervisor spend time reviewing and approving forms for an alternative schedule that will ensure work is managed around the time that someone who is ultimately inelgible. However, per this the employee would be in class. If the supervisor does not believe that a comment, it appears that the supervisor approval is the flexible arrangement is appropriate, the leave should not be approved then necessary first step, not the eligibility issue. and there. The suggested path by Huron is one that would place the schedule verification review behind the HR eligibility review -- at a minimum, these reviews should occur concurrently instead of sequentially. That said, movement of the HR eligibility review behind the supervisor review is more appropriate given that very few transactions (in the single digits per year) ever reach us with are denied based upon eligibility. Some processes are not logical one example is that tuition waivers are not During our work we encountered a variety of different process provided to employees but this recommendation is incorporated into the report. terminology and execution steps related to tuition waivers; for We are knowledgeable of the benefits for grant-in-aid. It is more the example, fee waiver, tuition reimbursement, grant-in-aid, terminology that concerned me. There is not a waiver of fees but support education benefit, etc. We refer to each of these benefits provided. In addition, tuition is not assessed in Nevada to resident students. more broadly as Fee / Tuition Waiver (the ability for Classified Staff to take up to 6 classes and have the fee waived if they pass the course) and Grant-in-Aid (non-classified staff and their families who are eligible to have part of their tuition to any NSHE campus covered without a grade verification component). 31