SmartBiz – Article #2
Self-Service HR: Empowering Employees to Manage Their “Personnel” Issues
Steve Rosenthal

More and more small- and medium-sized businesses (SMBs) are integrating the Internet and Web-based solutions to automate human resources (HR) processes. By integrating technologies into the equation, SMBs are empowering employees and managers to govern their own HR information, with the added benefits of improving service levels and productivity, and reducing costs.

Regardless of the size of your workforce, the daily management of payroll, benefits administration, training, and other continuously changing HR needs can be overwhelming. Optimizing a secure HR platform via the Web, a majority of these functions can be administered by employees themselves, freeing time for your management team or HR department to focus on more strategic issues (such as keeping customers happy and growing the core business).

Self-service HR is a “win-win” for both the SMB and employee. From an employee’s perspective, Web-based HR systems offer the ability to access and update all types of personal- and personnel-related information from the convenience of a browser. For the SMB, hosted HR systems eliminate the need to purchase and maintain software and IT infrastructure while providing a platform to standardize processes, control costs, ensure compliance, and manage employees consistently – especially during growth surges. With hosted solutions, SMBs can move toward paperless environments as more information is stored electronically.

In With the New
Traditional approaches to HR administration included paper-intensive processes that were slow to churn out decisions – be it training requests, healthcare eligibility questions, or other common issues. In contrast, Web-based technologies provide real-time access to vital information, equipping employees and HR managers with tools and eliminating unnecessary HR workflow. Simple requests that once required HR or management approval can now be automated, streamlining routine and redundant paperwork and improving efficiency.

Self-service functionality takes HR one step further. By empowering employees with self-service tools such as an in-depth online FAQ section, your HR department can expect fewer calls. Giving employees the capability to manage certain aspects of their personnel file not only improves data accuracy and reduces potentially costly errors but also builds trust and gives you a more satisfied, productive worker.

Standard Processes
Having a centralized HR system with built-in self-service tools provides SMBs with a strategic platform to run their business. This provides one central repository where all company policies and employee information is stored, ensuring standardization of processes. As a result, employees are managed by the same set of policies and procedures.

Comprehensive Reporting
A centralized platform not only consolidates processes and eliminates paperwork, but also enables HR managers and employees – depending on their role – to run all types of comprehensive reports. This capability can help determine trends and provides tools to make better decisions.

Beyond Payroll Automation
Most SMBs utilize a payroll service to simplify this vital business function. Web-based HR systems can do much
more by offering a platform to centralize benefits administration, recruiting and skills verification, background checks, and other procedures.

For example, when an employee experiences life events such as a child birth, they need to ensure the appropriate paperwork is submitted. This typically requires processing forms and phones calls, eliminating the possibility of
adverse selection – being declined by the insurance company because you did not submit within proper timeframes.

Web-based HR systems can easily link payroll operations with benefits administration to prevent these scenarios.
These systems can also help process employees when they leave the company or are terminated to ensure premiums are adjusted, and all company policies are uniformly followed. This is especially helpful to adhere to COBRA and other employee continuation laws and guidelines.

At Your Service
Self-service works when there are benefits for both the employee and the SMB. Citing a recent J.D. Power survey,
38% of airline passengers now use self-service kiosks to process their boarding passes, and as a result, waiting
time is cut in half.

Translating these results to HR, employees can request vacation time by logging into a secure portal. The vacation request can trigger an automated process, verifying employee eligibility for the time off, and can even compare against the allowable policies or check if any blackout periods or other conditions apply. This automated process requires a fraction of the time as traditional HR approaches that typically need approvals and signatures to complete the same task.

Training and education are two key areas where employee self-service can be applied and optimized. Practically each industry has rules and regulations and SMBs need to ensure that they are in full compliance. This may include equipment operators with specialized licenses that must be renewed, professionals who require certifications annually,
or office personnel that need computer training. Web-based HR systems offer the flexibility to deliver such training curriculums online, giving employees the capability to build their skill-set and improve productivity.

Employees have the ability to retrieve payroll information such as W-2 forms and year-to-date earnings instantly – this proves ideal during tax season or when an employee needs to verify income for home or automobile financing. Giving employees 24/7 access to certain HR data via a Web-based system allows them to deal with personal-issues during off-hours, making them more productive during business hours.

Summary
Web-based HR systems offering built-in self-service functionality have evolved into critical business tools, giving employees access to information and integrating them into the process. SMBs that embrace these systems are better positioned to grow their operations, manage personnel effectively, and scale accordingly.

In addition to the benefits reaped by employees, HR departments will welcome new levels of automation, as less time is spent on day-to-day record keeping and more focus is dedicated to strategic, value-added functions that align personnel with business goals.

Are you ready to empower your employees to serve themselves?

About the Author:
Steve A. Rosenthal is co-founder and chief executive officer of CheckPoint HR, an innovator and leading Administrative Service Organization (ASO) that offers small- to mid-size organizations a single source for human resources, payroll and benefits solutions.