chap 11
Chapter 11: Rewarding Employees and HRIS
1
Introduction (1 of 3)
Exchange of inputs and outputs.
Performance management systems.
Understand how performance management works.
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Exchange of inputs and outputs: The basic exchange of inputs and outputs between employers and employees are the focus of systems of performance, rewards, and payrolls.
Performance management (PM) systems:
Though usually internal to the organization, data stored in these systems are linked to several other systems.
Managers use these systems to motivate employees to perform well, and, therefore, must be self-explanatory.
Understand how PM works:
Examination of the meaning of work is a good starting point to develop this understanding.
This is because job performance is an individual function, including knowledge, skills, abilities, and motivations.
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Introduction (2 of 3)
The Meaning of Work
Equity theory.
Equity theory and work.
Reward systems.
Johnson, Kavanagh, Carlson, Human Resource Information Systems, Fifth Edition © SAGE Publications, 2021.
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Satisfies Learning Objective 11.5: Be able to discuss the meaning of work to employees in terms of their identities and self-esteem.
Satisfies Learning Objective 11.6: Discuss a motivation theory that helps to understand why work is so important to employees and how the HR programs in talent and performance management affect employee motivation.
Equity Theory: A work motivation theory that forms the basis of the employer-employee exchange.
Equity theory and work:
The theory can help decide what a fair balance is between what people put into their jobs and what people get out of their jobs.
Comparing our own balance of effort and reward with that of other employees who can be relevant reference points helps us to arrive at a measure of fairness, or equity.
Reward systems:
These are linked to multiple internal and external information systems.
Reward data are considered to be highly confidential in most organizations, making system security a critical component.
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Introduction (3 of 3)
The Meaning of Work
Payroll systems.
Human Resource Information Systems (HRIS) applications.
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Payroll systems:
It is critical to have flawless data integrity and execution in payroll systems.
Payroll systems are linked to both internal as well as external data.
They must be capable of incorporating changes in a sustained way.
Some summaries of payroll data might not match with data on the same variable in some other human resources (HR) system.
Human Resource Information Systems (HRIS) applications:
HRIS applications for the four systems must have a seamless interface.
The four functions are not independent of other HR applications.
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Performance Management (1 of 9)
Overview
History of research.
Three parts of performance management process.
Goal setting theory.
Part of talent management framework.
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Satisfies Learning Objective 11.1: Understand the performance management (PM) cycle and the role of the HRIS in PM design, decision making, and administration.
History of research:
Earlier, most research discussions in organizations emphasized the performance appraisal process.
From the 1980s, researchers shifted their focus to the improvement of performance.
This shift resulted in a reconsideration of the whole process of performance, thereby shifting the attention to PM.
Three parts of PM process:
Performance planning.
Performance observation.
Providing positive feedback and/or corrective feedback.
Periodic performance summaries are developed to support this process.
These summaries also data for a variety of HR decisions.
Goal setting theory:
Goals and intentions are responsible for human behavior.
Based on this tenet, it was found that higher or more difficult goals result in higher levels of performance.
Specific goals, more than vague ones, result in higher levels of effort.
Unless specific, hard goals are set and accepted, other incentives, such as money, feedback, and competitions, will have no effect on behavior.
Part of “talent management” framework:
Talent management encompasses all areas of HR.
PM is one such area connected to others, such as:
Recruiting.
Staffing.
Career management.
Assessment.
Development management/training.
Retention management.
Workforce planning.
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Performance Management (2 of 9)
Overview: Performance Planning
Definition of performance planning.
Definition of performance.
Measure outcomes and standards.
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Satisfies Learning Objective 11.1: Understand the performance management (PM) cycle and the role of the HRIS in PM design, decision making, and administration.
Performance planning:
This must be constructed in such a way that any manager can do it, regardless of management style or skills.
A manager can be both collaborative as well as directive in following the process.
Performance:
Performance, in the case of a specific direct report, would consider any employee who fill the job position.
Direct report: The employee whose job performance is being evaluated.
Another definition is that it is the performance expected of a new employee in the position if the direct report were terminated.
This second definition is developed by a succession of goals, starting from the organizational strategy and operating plan.
Measure outcomes and standards:
Once goals are set, the manager must express the desired outcomes of the goals to the direct report.
Following this, expected behaviors are added that would lead to the desired outcomes.
The manager must ensure that the measures and standards are understood by the direct report.
Finally, the manager must ensure that the direct report sets performance goals for the coming year.
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Performance Management (3 of 9)
Overview: Performance Planning
Performance contract.
Automation of HR.
Workplace and employment conditions.
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Satisfies Learning Objective 11.1: Understand the performance management (PM) cycle and the role of the HRIS in PM design, decision-making, and administration.
Performance contract: The set of performance measures, with standards and goals for a defined performance period, typically a year.
Automation of HR:
Automation, both HR and the organization, directly affect the workforce.
With the increased adoption of AI-enabled workforce automation solutions, some jobs may be eliminated, while some new ones may emerge.
Under these conditions, the focus of PM should be those skills that are less likely to be replaced.
Workplace and employment conditions:
Organizations have become more dependent on remote employees, individual contractors, and outsourced service providers.
In 2016 the gig economy composed 34% of the U.S. labor force and is expected to grow to 43% by 2020.
Retention of high-performing remote, as well as contingent workers, is vital to organizational success.
Therefore, PM should focus on offering appropriate rewards.
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Performance Management (4 of 9)
Overview
Formats.
Performance period.
Periodic performance summary.
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Satisfies Learning Objective 11.1: Understand the performance management (PM) cycle and the role of the HRIS in PM design, decision making, and administration.
Formats:
Management employees use a combination format of goals and competency evaluation.
The correct “format” for an employee can be automatically mapped by a well-designed performance application.
Performance evaluation format can reflect weighed goal and competency portions.
Performance Period:
The performance contract is the benchmark used by the manager to observe a direct report.
For an above-standard performance, positive feedback is based on the standard.
For a below-standard performance, corrective feedback is used.
According to Stone et al., employees react differently to feedback from an electronic system than from a supervisor.
Employee performance management experience can be improved with AI-enabled PM solutions.
Periodic Performance Summary:
Most organizations provide an annual summary of performance to the direct report.
This is a summary of how the direct report has performed on each measure, whether standards and goals have been met.
The next steps are communication of the consequences of each performance levels and planning for the next period.
An individual development plan (IDP) is used to document any steps necessary to improve employee performance.
There are no significant changes in the PM process for a team.
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Performance Management (5 of 9)
Typical Data Inputs
Organizational-level data.
Job-level data.
Individual-level data.
Role of performance management systems.
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Satisfies Learning Objective 11.1: Understand the performance management (PM) cycle and the role of the HRIS in PM design, decision making, and administration.
Organizational-level data:
Consist of organizational and unit goals and strategies, and business plans.
Performance plans must tie back to unit and organizational plans.
Job-level data:
Consist of key tasks, responsibilities, and outcomes.
The existence of performance is within the job only.
Individual-level data: Consist of the performance criteria for the individual, the measures to rate the individual’s performance, and the performance standards.
Role of PM systems:
These must interface with staffing and training applications.
Training applications, coordinated with the PM system will enable the evaluation of training and development of programs.
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Performance Management (6 of 9)
Typical Reports
Important standardized reports.
Other reports.
Archive data.
Johnson, Kavanagh, Carlson, Human Resource Information Systems, Fifth Edition © SAGE Publications, 2021.
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Satisfies Learning Objective 11.1: Understand the performance management (PM) cycle and the role of the HRIS in PM design, decision making, and administration.
Important standardized reports: Performance contract and the annual summary appraisal for each employee.
Other reports: Aggregate performance data by unit and reports comparing aggregated unit performance with unit output.
Archive data:
The HRIS must be capable of archiving data in order to track long-term performance trends.
It can also track the requirements for systemic developments based on competency assessments.
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Performance Management (7 of 9)
Data Outflows
Outflow into compensation.
HR planning and other applications.
Forecasts of future deficiencies.
Accommodate employee needs.
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Satisfies Learning Objective 11.1: Understand the performance management (PM) cycle and the role of the HRIS in PM design, decision making, and administration.
Outflow into compensation: Performance distributions help construct a merit matrix.
HR planning and other applications:
Performance data are also used in HR planning.
Other applications that use this data are training and development, and staffing,
Forecasts of future deficiencies: This can be obtained through performance processes that utilize competency assessment.
Accommodate employee needs: This is achieved by allowing employees access to automatically generated data.
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Performance Management (8 of 9)
Decision Support
The role of the entire system.
360° appraisals.
Track group performance.
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Satisfies Learning Objective 11.1: Understand the performance management (PM) cycle and the role of the HRIS in PM design, decision making, and administration.
The role of the entire system:
The entire system has all the different HR requirements in a single place, allowing managers to track each direct report.
The system can also provide self-service for employees by letting them access the same data and using it to determine areas of improvement.
Thus, PM software can be categorized as either preformatted systems that facilitate development of customized appraisals, or systems that diagnose performance problems.
360° appraisals:
A system supporting multisource feedback appraisals.
Performance data of successful and unsuccessful employees can help identify the best individual profiles during the process of recruitment.
Track group performance:
There has been an increased interest in measuring and managing team performance.
Stegner and Kofahl (2004) present a strong case for improvement of group performance through heavy inputs from HRIS.
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Performance Management (9 of 9)
Decision Support
Track administrative aspects.
Calibration tool.
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Satisfies Learning Objective 11.1: Understand the performance management (PM) cycle and the role of the HRIS in PM design, decision making, and administration.
Track administrative aspects:
This is facilitated through automated PM systems.
It is also possible to check for possible biases in performance ratings.
Performance appraisals are viewed as “tests” under the Uniform Guidelines on Employee Selection Procedures.
Calibration tool:
Web-based PM systems are capable of calibrating employee performance ratings.
This calibration is tied into the compensation process.
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Compensation (1 of 7)
Overview
Central motivational issue.
Basic compensation system.
Job evaluation.
Market benchmarking.
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Satisfies Learning Objective 11.2: Understand typical compensation practices and the role of the HRIS in compensation design, decision making, and administration.
Central motivational issue:
Compensation should be seen as equitable to employees, as defined by the Equity Theory.
Unfair compensation could result in great dissatisfaction among employees.
Technology can help organizations deal with the complexities of creating and administering compensation systems.
According to Wright, automation in the compensation system can save firms an estimated $850,000 per year in administrative costs.
Basic compensation system:
This includes base pay, merit pay, short-term and long-term incentives, perquisites, recognition awards, and attraction or retention awards.
Each has its own associated processes.
Job evaluation:
The first of two processes of base pay, job evaluation is the development of a set of factors, reflecting characteristics that add value to work in the specific organization.
Each factor is weighed according to its importance, on the basis of which scales are developed.
Market benchmarking:
The second process of base pay, market benchmarking is used to price the structure (or individual jobs) on the basis of market data collected for as many jobs as possible.
However, economic difficulties may prevent some organizations from keeping up with the market, as a result of which they are dramatically behind salaries paid in other industries.
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Compensation (2 of 7)
Overview
Merit pay system.
Short-term incentive pay.
Long-term incentives.
Prerequisites.
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Satisfies Learning Objective 11.2: Understand typical compensation practices and the role of the HRIS in compensation design, decision making, and administration.
Merit pay system:
In such a system, the size of the increase in compensation is a function of performance level and of where an employee is in the range.
A merit matrix provides the guidelines to ensure that an organization does not spend more than the specified percentage of payroll.
Short-term incentive pay:
This is rarely added to base pay and must be re-earned every year.
Examples: Bonuses, gain sharing, goal sharing, small-group incentives, and profit sharing.
Long-term incentives:
These are primarily based on organization stock, options to buy organization stock, or phantom (make-believe) stock.
Such incentives aim at the alignment of employee interests with those of stakeholders.
They also motivate aligned performance over periods of more than one year.
Prerequisites:
Rewards that are a function of organizational status.
1. These usually come with tax consequences for the recipients, which is why they must be included within the pay system.
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Compensation (3 of 7)
Overview
Recognition awards.
Attraction or retention awards.
Federal and state requirements.
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Satisfies Learning Objective 11.2: Understand typical compensation practices and the role of the HRIS in compensation design, decision making, and administration.
Recognition awards:
Retrospective low-cost or no-cost awards.
These usually have little financial value but can be psychologically uplifting for an employee who does something noticeable.
Attraction or retention awards:
One-time awards that are used to attract prospective employees to the organization or persuade them to remain with the organization.
Example: Cash, stock options, benefits, or adjustments to benefits rules.
Federal and state requirements:
It is important for compensation programs to comply with federal and state statutory and regulatory requirements.
There is a difference between exempt workers and nonexempt workers under the Fair Labor Standards Act (FLSA).
Evidence must be furnished annually to the Office of Federal Contract Compliance Programs (OFCCP) that no unfair bias with respect to race and gender for similarly situated employee groups (SSEGs) has occurred.
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Compensation (4 of 7)
Typical Data Inputs
Internal and external data.
Different data requirements.
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Satisfies Learning Objective 11.2: Understand typical compensation practices and the role of the HRIS in compensation design, decision making, and administration.
Internal and external data:
Internal data include information about job, people, and organizational units.
External data include market survey data and information on rewards practices.
When combined, both are used to generate job evaluation results, salary structures, merit matrices, and a variety of reward guidelines.
Different data requirements:
Incentive programs require data on what type of behavior or outcome is being encouraged.
Compensation for special employee groups requires data specific to that group.
For executive compensation, data indicative of organizational success is required.
Sales compensation systems require data on quotas, sales, bonus or commission rates, and competitive market data.
Data on nonexempt employees include rates and hours worked per week.
Different parts of the compensation system requires different data within organizations.
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Compensation (5 of 7)
Typical Reports
Budget reports.
Incentive reports.
Role of HRIS.
Annual report to the OFCCP.
Johnson, Kavanagh, Carlson, Human Resource Information Systems, Fifth Edition © SAGE Publications, 2021.
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Satisfies Learning Objective 11.2: Understand typical compensation practices and the role of the HRIS in compensation design, decision making, and administration.
Budget reports: These reports compare the actual compensation costs to projected costs.
Incentive reports: These reports convey to the employee how they are doing with respect to earning a specific incentive award.
Role of HRIS:
A compensation analyst can draw data from the HRIS and enter them into wage surveys.
In some cases, this data is automatically gathered and entered into surveys from the HRIS.
Annual report to the OFCCP: This report requires the analysis of possible “systemic compensation bias” among “similarly situated employee groups,” along with the organization’s EEO-1 Report.
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Compensation (6 of 7)
Data Outflows
Primary outflow to payroll.
Budget preparation.
Benefits analysis.
Other outflows.
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Satisfies Learning Objective 11.2: Understand typical compensation practices and the role of the HRIS in compensation design, decision making, and administration.
Primary outflow to payroll: Additional analyses are also carried out by compensation analysts.
Budget preparation: Compensation data can help project costs.
Benefits analysis: Compensation data is used to analyze probable future costs of wage-based benefits.
Other outflows:
Compensation data are also sent to federal, state, and local agencies.
Firms conducting surveys on rewards also receive compensation data from organizations.
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Compensation (7 of 7)
Decision Support
Aim of decision support systems.
Web-based compensation modules.
AI-enabled PM systems.
Financial regulations of executive pay.
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Satisfies Learning Objective 11.2: Understand typical compensation practices and the role of the HRIS in compensation design, decision making, and administration.
Aim of decision support systems:
Decision support systems in compensation aim at deciding how much is a fair compensation for an individual employee.
This decision is a complex one and is preceded by a series of other decisions.
Managers can handle such areas as salary budget planning, merit, promotional and other increases, and most incentive programs.
Web-based compensation modules:
These can be used by managers to easily perform salary planning functions.
Self-service functions largely perform the function of providing information only.
Van De Voort and McDonnell point to the problems of working “live” and numbers can change during a process.
Cocks and Gould focus on the critical role of compensation software in dealing with sales compensation.
Weeks argues for the effectiveness of virtual sales teams in widely separated areas in ensuring customer satisfaction.
AI-enabled PM systems:
When integrated with payroll, such systems can guide organizations in deciding the best incentives for employee performance modification.
The impact of incentives vary according to locations, teams, and individual employees.
With PM data, organizations could customize incentive plans, while being able to predict the cost of each.
Financial regulations of executive pay:
HRIS can greatly support the compliance requirements of the Sarbanes-Oxley Act (SOX).
The Troubled Asset Relief Program (TARP) of 2009 provides additional regulations, covering executive pay.
Executive pay is further restricted by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.
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Benefits (1 of 5)
Overview
Five sets of benefits.
Differences with compensation programs.
Legal requirements.
Safety and security.
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Satisfies Learning Objective 11.3: Understand typical benefits practices and the role of the HRIS in benefits design, decision making, and administration.
Five sets of benefits:
Most U.S. organizations have five broad sets of benefits programs.
The first set, which includes pension plans, individual savings plans, such as simplified employee pensions (SEPs), and individual retirement accounts (IRAs) and Social Security, aims to ensure that employees continue to receive income even after retirement.
The second set, which includes workers’ compensation, unemployment insurance, long-and short-term disability insurance, and life insurance, provides income to employees (and their families) who cannot work till they can work again.
The third set, including medical and other health benefits, prevents employees and their families from going bankrupt due to illness and accident and help them receive preventative and curative care.
The fourth set, paid time off, includes vacation, holidays, personal days, special purpose days, and family leave and allows employees to rejuvenate themselves.
Miscellaneous benefits constitute the fifth set and are typically found in the “best companies to work for” lists of organizations.
Differences with compensation programs:
In most organizations, unlike compensation programs, it is the employees who pay for the most part of the benefits.
Organizational benefits programs are usually flexible (flex plans).
These differences add to the complexity of administering benefits programs.
The growing trend of outsourcing benefits programs affects HRIS configuration which not only has to interface with other internal systems, but also with the IT systems of other organizations.
Legal requirements:
These tend to be more stringent than those for compensation programs.
The Employee Retirement Income Security Act (ERISA) influences most benefits programs.
Safety and security:
Data requirements for benefits programs may include many private characteristics of employees.
Since data is shared with outside organizations, the likelihood of data breaches are high.
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Benefits (2 of 5)
Typical Data Inputs
The first set.
The second set.
The third set.
The fourth set.
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Satisfies Learning Objective 11.3: Understand typical benefits practices and the role of the HRIS in benefits design, decision making, and administration.
The first set:
This is focused on the relationship of the organization with current and prospective benefits vendors.
Data inputs include the people to be covered, outline of relevant demographics, and specifics of the desired coverage of the program and cost limitations.
The second set:
This focuses on the internal management of benefits programs.
Data inputs include usage, employee choices, and costs.
The third set:
This is concerned with employee inputs that may affect coverage and employee costs.
Under these functions, employees are also allowed to file claims with the organization.
Inputs include personal data of employees, their coverage choices, and other data relevant to their use of the benefit.
The fourth set: This focuses on the federal, state, and local laws and regulations governing benefits practice.
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Benefits (3 of 5)
Typical Reports
Annual benefits report to employees.
Summary reports.
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Satisfies Learning Objective 11.3: Understand typical benefits practices and the role of the HRIS in benefits design, decision making, and administration.
Annual benefits report to employees:
This is the most common of the dozens of reports required by federal and state government units.
It is required for tax-qualified plans under ERISA.
The organization has to report certain benefit facts to its employees, annually.
It is a form of annual compensation report that provides a “rewards scorecard” for the employee.
Ceccon estimates that online annual reports can save approximately $678,000 in a company’s actual costs over five years.
Summary reports:
These reports can be viewed by employees at any time, owing to Web-based access.
In the case of an international organization, the data on benefits can be standardized into a single currency.
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Benefits (4 of 5)
Data Outflows
Internal transfers.
External transfers.
Real-time data transfer.
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Satisfies Learning Objective 11.3: Understand typical benefits practices and the role of the HRIS in benefits design, decision making, and administration.
Internal transfers: Data on benefits programs are internally transferred to payroll and accounting.
External transfers: These include data transfers to benefits providers, outsourced benefits administrators, federal, state, and local agencies, as well as benefits survey firms.
Real-time data transfer:
This can result in large cost savings.
Example: AT&T saved $15 million when it switched to providing updated enrollment information to all its various health plans.
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Benefits (5 of 5)
Decision Support
Domain of reports.
Tax-qualified and flexible benefits.
Web-based services.
Benefits costs.
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Satisfies Learning Objective 11.3: Understand typical benefits practices and the role of the HRIS in benefits design, decision making, and administration.
Domain of reports:
There is overlapping of decision support tool in the domain of reports.
This is because reports must comply with federal, state, or local requirements and undergo frequent changes.
Tax-qualified and flexible benefits:
Federal bias regulations affect tax-qualified benefit plans.
Therefore, tracking enrollments against those eligible for participation may result in attempts to enroll more low-paid employees in the plan.
In case of flexible benefit plans, employee choices can be tracked and used as a guide to plan development.
Web-based services:
These can help employees decide the level of coverage they want to sign up for.
The organization can also save money by transferring the enrollment process to the employees.
Self-service systems, however, are not too beneficial in the area of benefit program management because managers have a limited role in benefits decisions concerning their direct reports.
Outsourcing creates additional problems for HRIS.
Outside access can give rise to issues of security.
Benefits costs:
These are the most rapidly increasing component of labor costs.
However, cost determination is a complex process.
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Payroll (1 of 5)
Overview
Transactional process.
Function of finance or accounting.
AI-enabled solutions.
Heavily outsourced.
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Satisfies Learning Objective 11.4: Understand payroll systems and the role of the HRIS in payroll administration.
Transactional process:
Payroll is responsible for the transfer of compensation to employees and the withholding of federal, state, and local income and payroll taxes from the employees’ checks.
Benefits costs borne by employees are also withheld.
Direct deposits to employees’ bank accounts have become more common than the receipt of actual checks.
The HRIS must be able to flawlessly interface between its compensation and benefits modules, and the provider’s payroll input.
Function of finance or accounting:
It is the finance or accounting department, instead of the HR, that administers payroll function in most organizations.
Payroll records must be accurate as labor costs are the largest variable cost for most organizations.
It is also important for the payroll system to deliver accurate and timely paychecks or bank transfers.
AI-enabled solutions:
These help to ensure that routine payments meet with minimum errors and legal compliance.
Such solutions are capable of generating advanced descriptive and diagnostic analytics based on big data.
AI-enabled solutions can also predict and prescribe solutions.
Heavily outsourced:
Of all human resource management programs, payroll is the most heavily outsourced.
A payroll processor can achieve great economies of scale in keeping up with the intricate requirements of payroll.
However, data must be delivered to the outsourcer and the outsourcer must deliver back the data to accounting and finance functions.
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Payroll (2 of 5)
Typical Data Inputs
Internal data.
External data.
Change data.
Other forms of data.
Johnson, Kavanagh, Carlson, Human Resource Information Systems, Fifth Edition © SAGE Publications, 2021.
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Satisfies Learning Objective 11.4: Understand payroll systems and the role of the HRIS in payroll administration.
Internal data:
Internal data include compensation data, benefits data, and other payroll addition and deduction data.
Time and attendance data also form part of the internal data inputs.
External data:
External data inputs include federal, state, and local income and payroll tax rules.
Individual payments to non-active employees also form part of external data inputs.
Change data:
This is the most frequent data input.
These data inputs include the adding of a new employee to the payroll, changed status of an employee, changes to the benefits elections by an employee, and governmental changes to tax or withholding rates.
Organizational changes, such as increases in pay, must also be entered into the payroll system.
Other forms of data:
The system can also generate data to be stored and used over time.
Example:
In 2016, FICA (Federal Insurance Contributions Act, i.e., Social Security) taxes were withheld on the first $118,500 of income.
The maximum tax withheld for any employee was $7347.
Payroll must keep an updated, running total of FICA paid.
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Payroll (3 of 5)
Typical Reports
Standard reports.
Share with federal, state, or local agencies.
Reports to employees.
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Satisfies Learning Objective 11.4: Understand payroll systems and the role of the HRIS in payroll administration.
Standard reports: Contain the actual amounts paid to employees and those deducted for various purposes.
Share with federal, state, or local agencies: Reports also need to be shared with federal, state, and local agencies, including taxing authorities, and to benefits providers.
Reports to employees: These are provided along with paychecks or notices of deposits.
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Payroll (4 of 5)
Data Outflows
Different departments and agencies.
Input for many processes.
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Satisfies Learning Objective 11.4: Understand payroll systems and the role of the HRIS in payroll administration.
Different departments and agencies:
Payroll data are shared with the following:
Accounting department.
Federal, state, and local agencies.
Outsourcing firms for benefits programs.
Individual providers of benefit programs.
Input for many processes:
Payroll data provide inputs to the various functions it is shared with.
This is why it is important for the systems to interface smoothly.
Interfacing may be complicated because of the communication of external systems.
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Payroll (5 of 5)
Decision Support
Not used by HR.
Used for audits.
Used by employees.
Self-service system.
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Satisfies Learning Objective 11.4: Understand payroll systems and the role of the HRIS in payroll administration.
Not used by HR: The HR department and line managers do not use payroll data for making decisions.
Used for audits: Payroll data are extensively used for the purpose of audits.
Used by employees: Employees may use payroll data occasionally to know how much they have earned in a year, how much taxes they have paid, or the amount of taxes contributed for various benefits.
Self-service system:
Such a system can make information available to employees.
It can also facilitate increases to withholding or other limited changes to their pay by employees.
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