HR technology: leveraging the shift to self-service—it's time to go strategic

HR Magazine, March, 2005 by Leslie A. Weatherly

Abstract

Attracting, retaining, motivating and developing knowledge talent remain critical challenges for HR practice leaders. The recent shift toward integrated human resource information systems technology and self-service functionality for employees and managers alike is a direct response to the competitive challenges of today's knowledge economy. For this reason, offering technology-based self-service is now the preferred method for improving customer service levels to managers and employees, as well as for enhancing the lines of communication between the company and its employees. In addition, there are clear tangible rewards from self-service that include lower cost of operations, increased productivity and, for those who are prepared to leverage this advantage, the opportunity to firmly position HR as an organizational leader and strategic business partner. Please note that due to space constraints it was not possible to discuss all salient aspects of this topic.

Introduction

Advances in Web-based technology in particular and computer technology in general will continue to be a driving force behind advances in the knowledge economy. A critical success factor influencing an organization's ability to lead, simply languish or ultimately falter in the marketplace will eventually come to rest on the positive synergy the organization is capable of generating between the human capital assets in its employ and the judicious investments in technology that it makes in its efforts to remain abreast of the competition.

The Right HR Service Delivery Model

"It is no coincidence that 89 percent of world-class HR groups have an explicit workforce strategy, versus only 41 percent of average groups." (1)

Defining the right HR service delivery model means aligning HR investments and resources to support core business processes and objectives. There are normally two key business drivers to this equation: administrative operations and the desire of the business for strategic HR consulting. Centers of excellence in relation to administrative operations generally involve simplifying, automating, eliminating or outsourcing low-value HR transaction processing. For those organizations that have not yet investigated and/or implemented self-service technology, it is important to highlight its role in streamlining HR administrative operations. Conversely, strategic HR consulting requires establishing a clearly defined mission for HR on which the HR service delivery model will be based. This should include obtaining input from senior management and internal clients and using this information to align HR with the core business strategies, goals and objectives of the organization. (2)

Using Information to Drive Innovation

"If we apply knowledge to tasks we already know how to do, we call it productivity. If we apply knowledge to tasks that are new and different, we call it innovation."

Peter Drucker

From the HR perspective, strategically using the information assets of the organization means that HR business processes, organizational support systems and HR information technology are aligned to continuously capture, maintain and utilize key strategic information assets (i.e., knowledge and judgments) to improve business performance. To this end, it is incumbent upon HR practice leaders to understand the distinction between data, information and business intelligence and to use this knowledge to the competitive advantage of the organization (see Figure 1). Transactional self-service processes are generally fed by basic HR administrative data systems. The second level--information--is represented in Figure 1 under the heading "business support and execution role." At this level, facts or data can generally be gathered and analyzed and a consistent pattern or trend can be identified to allow a conclusion to be drawn through deductive reasoning and/or by inference. However, at the third and highest level--business intelligence--a strategic partner is expected to possess the skill sets and competencies necessary to be able to perceive, discover, learn or come to understand (i.e., via data analysis, modeling, simulation capabilities, etc.) the best course of action for the organization, whatever the business scenario might be, and to make a recommendation to senior management accordingly. As a strategic partner, personal credibility, in addition to strategic capability, is crucial.

Self-Service Human Resource Systems

Self-service human resource systems for employees and managers have been the focal point of considerable attention within the HR technology community over the last several years for all the right reasons. First, the notion of using Web-based technologies to automate the growing list of administrative transactions for employees--payroll, benefits, training, corporate resources and the like--serves as a catalyst for transformation for those seeking to move the human resource function to a strategic vantage point within the organization. Another important reason for providing direct access to Web-based technologies is to improve service levels for employees and managers through the elimination of unnecessary steps in HR processes that add time and frustrating delays in HR-related transactions. Finally, self-service also means that HR specialists are now free to spend less time on day-to-day recordkeeping and focus on value-added functions that aid in meeting the goals and objectives of the organization (i.e., workforce analytics, talent management, staff development and retention, performance management, total rewards, etc.).