Human Capital Management

Transcription

1 Michelle L. Attreed, Director of Finance Robert Mancini, Chief Information Officer Linda R. Satlin, Human Resources Director March 13, 2018 Human Capital Management

2 What is Human Capital Management (HCM)? Daily Operations Scheduling Time Cards Payroll Security/Access Lifecycle Management Recruitment & Hiring Performance Evaluation Health & Safety Benefits Administration Management & Analysis Training & Development Reporting & Analytics Compensation Management Roles & Responsibilities 2

3 HRIS Today: People, Paper & Dollars 4,400 + Employees with benefits 1,000 + Employees without benefits 5,700 + Volunteers 1,600 + Retirees with benefits 1,200 + Volunteers with benefits 75,900 + Employment applications processed per year 6,700 + W-2s issued per year $424.M Payroll + Benefits 60.3% General Fund Budget 3

4 RSM s Benefits Administration Assessment Reflects Risks Risks Identified Human error when manually entering or visually reconciling information (i.e. manual rollover and reconciliation for based payroll budget process) Paper documents with HIPAA compliant information left unsecure along approval route (i.e. ADA documentation must be approved by several individuals who print documents from , sign, scan and forward to the next individual who s signature is required) There is a lack of visibility into complete employee records which are maintained across several disparate systems Time sensitive information is not recorded properly and no reminder notifications are automatically sent There is a lack of visibility into disciplinary action which is maintained across several disparate systems Management decisions could be made using reports with inaccurate data being aggregated manually from multiple disparate systems Training compliance is very difficult to maintain due to disparate systems and system limitations Loss of institution knowledge if/when key personnel leave Leave pay out errors due to manual calculations Inaccurate benefits Overview calculations Our due Executive to manual Detailed Assessment nature Approach Summary Current HCM Path Integrated HCM Path Funding for a Proven HCM Solution Payroll being issued without making adjustments to projected time that was initially entered Moving Forward Appendix Additional Information Risk Rating High High High High High High High High High High High 4

5 RSM Identified an Abundance of Manual, Labor Intensive Processes 5

6 Past Internal Audits Reflect More Risks 2013 Timekeeping Audit High Risk Manual Timekeeping Process Moderate Risk Manual Compensatory Leave Calculations 2013 Payroll Base Budget 2014 Hiring Process Audit High Risk Manual processes related to payroll interface from HRIS to financial management system Observation HRIS not integrated with financial management system Added more manual processes 2015 Overtime Audit 2015 Building & Grounds Work Order Process 2016 Out-Boarding 2017 Timekeeping Observation No automated tracking system for overtime High Risk Manual bi-weekly time entry process High Risk No standardized, centralized outboarding process High Risk Payroll system does not have the functionality to properly segregate duties $1 million allocated for HCM system requirements gathering 6

7 HRIS Replacement Seed Funding BOCS budgeted & appropriated $1M in June 2016 towards the development of HRIS replacement requirements County issued RFP for consultant in Nov. 2016; contract awarded to ISG in Mar ISG and County have identified approximately 2,000 functional and technical minimum requirements Spent to date: $300K County issued a Request for Information (RFI) utilizing the functional and technical requirements compiled by ISG Preliminary rough estimates range from $6 to $20M County cannot issue HCM system RFP without project funding 7

8 FY2019 Proposed Budget Recommendation FY2019 Budget & appropriate $6M from Capital Reserve to fund HRIS replacement project FY authorize up to another $6M in shortterm debt financing Issue RFP to determine true cost Staff and ISG to review and evaluate all responsive bids Staff to recommend to the BOCS the vendor solution that best meets the functional and technical requirements identified in the RFP Staff will present to the BOCS a project timeline and cost projection 8

9 Software as a Service (SaaS) Approach* Minimizes the upfront project cost to implementation and staff augmentation only Estimated at $6M to $9M All software and hardware costs would be rolled into an annual subscription (annual operating cost) Estimated at $1.5 to $2M per year $1.5M programmed each year beginning in FY2021 of Proposed Five-Year Plan and CIP *This approach is contingent upon significant technology infrastructure improvements to become Cloud-ready 9

10 Sample HCM Project Plan Develop RFP May 2018 June 2018 Release RFP July 2018 Sept 2018 Evaluation/Demonstration/Negotiation Period Oct 2018 June 2019 Implementation Period July 2019 Jan

11 Next Steps Budget Recap: April 10 th Budget Mark-up: April 17 th Budget Adoption: April 24 th Reference Material: RSM, LLP Benefit Administration Assessment report link: s/pwc%20benefits%20administration%20assessment%20% 20ACCEPTED%20% pdf 11

12 Michelle Attreed, CPA, CGMA, MPA Director of Finance Robert Mancini Chief Information Officer Linda Satlin, SPHR Human Resources Director

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14 Background County s Human Resource Information System (HRIS) Original specifications and configuration were developed in 1990 V.1.4 was implemented in 1993 Designed for a workforce of 2,400 employees 20+ year relationship with vendor Updated to V.3.1 in August 1999 Updated to V.4.1 in January 2011 Modules in use today include: Payroll Accruals/Balances Benefits Administration Employee Demographics 14

15 Background (cont d) V.5.0 implementation mandated by StarGarden for completion by January 2018 No additional functionality; allows County to continue use in current capacity Total cost of $289,406 Agreed-upon implementation deadlines missed by StarGarden V.5.0 still not tested or implemented 15

16 Multiple Systems; Manual Processes Graphic prepared by RSM, LLP The County uses 34 different systems of which approximately 11 to 14 of these systems are disparate and creates additional complexity and time to complete job tasks Some processes do not have a systems to support their daily functions; Makeshift spreadsheets or databases are created to fill the gap 16

17 Magnitude and Scope Has Grown, Staffing Has Not Kept Pace Prepared by RSM, LLP 17

18 HCM is Much More Than People, Paper & Dollars Progressive discipline Personnel policies Retiree management Volunteer management Records management Out-boarding Reporting & analytics Employee demographics Employee Relations Workforce Analytics Talent Acquisition Recruitment & selection Employee Profile Management Onboarding Employee self-service Manager self-service Reporting relationship management Employee asset/credential management Performance Management Goal setting Employee evaluation Performance improvement planning Enrollment Eligibility Benefit Administration Human Capital Platform Talent/Learning Management Credential/licensure tracking Knowledge, skills, abilities Competency development Training history Workers Compensation Wellness Health and Safety Payroll Payment processing Tax withholding & reporting G/L interface Balances/accruals What if scenarios Leave management Work schedules Daily time tracking Cost allocation Scheduling / Time & Attendance Job specifications Position Classification Compensation & Position Management Pay plan management Position control Position history A Human Capital Management application tracks the lifespan of employees from recruitment and onboarding through out-boarding and beyond 18

19 Current Status Scheduling Payroll Time Cards Security Daily Operations Paper-based data collection and storage Manual data entry by agency Labor intensive work-arounds to support compliance: FLSA, FMLA, ADA, Workers Compensation, State mandates, County policy Agencies maintain independent records of physical and electronic security access for employees 19

20 Current Status (cont d) Recruitment & Hiring Health & Safety Performance Evaluation Benefits Administration Lifecycle Management HRIS not fully integrated with recruitment software Employee onboarding is largely a manual, paper-driven process Performance evaluations documented differently by agency and stored in separate HR database Health & Safety program cannot be implemented effectively to reduce organizational costs Each employee/retiree benefit managed independently Multiple Excel spreadsheets and Access databases in use Multiple outside vendors independently manage processes Limited employee self-service options Manual updates and data processing between agencies, HR and payroll required 20

21 Current Status (cont d) Training & Development Compensation Management Reporting & Analytics Roles & Responsibilities Management & Analysis Ad hoc approach to training and development based on agency resources and needs (not organizational) Roles/Responsibilities not documented or reported from centralized database; reporting relationships must be manually compiled as needed Manual updates and data processing between agencies, HR and payroll required 21

22 StarGarden Risks as Identified by RSM, LLP 22

23 Vendor Comparison as Reported by RSM, LLP 23