HRIS - Week 12: Rewarding Employees PDF

REWARDING EMPLOYEES HRMIS – Week 12 HRM Information System (TM-352) COURSE OUTLINE Post-mid 9. Talent Management and HR planning 10. Recruitment and selection in an Internet context 11. Training and Development 12. Rewarding employees 13. HR metrics and workforce analytics 14. HRIS...

REWARDING EMPLOYEES HRMIS – Week 12 HRM Information System (TM-352) COURSE OUTLINE Post-mid 9. Talent Management and HR planning 10. Recruitment and selection in an Internet context 11. Training and Development 12. Rewarding employees 13. HR metrics and workforce analytics 14. HRIS privacy and security 15. HR in the digital world 16. The future of HRIS, International HRM and Social Media  PERFORMANCE MANAGEMENT 3 PERFORMANCE MANAGEMENT Performance, rewards, and payroll systems focus on the basic exchange of inputs and outcomes between employees and employers. Employees provide performance, and, in exchange, employers provide rewards, which are distributed via payroll systems. Performance management (PM) systems are usually entirely internal to the organization, but data must be linked to several other systems, including rewards, staffing, training and development, and career development. The PM process consists of three parts: performance planning, performance observation, and providing positive feedback and/or corrective feedback. 4 PERFORMANCE PLANNING Performance planning, like most management processes, must be constructed in such a way that any manager can do it, regardless of management style or skills. The manager must first define what performance means in the case of a specific direct report This definition of performance would encompass any employee who fills the job position The job position is described in terms of duties and tasks outlined in the job When outcomes are difficult to observe or measure, behaviors that are expected to lead to desired outcomes are added. For each performance dimension, the manager must develop specific outcomes and behaviors that will be used to measure the direct report’s performance. 5 PERFORMANCE CONTRACT When performance dimensions, measures, and standards have been developed, the manager must communicate them to the direct report. The manager must make certain that the direct report understands measures and standards. The manager then gets the direct report to set goals for performance for the coming year. The set of performance measures, with standards and goals, becomes the performance contract for a defined performance period, typically a year. Nontraditional employees and contractors are as important as traditional employees to success in many organizations. Thus, retaining high-performing remote and contingent workers is vital. PM records should also include all contingent workers. 6 PERFORMANCE FEEDBACK Performance instrument is different depending on the type or level of the employee For non-management position have a relatively standard set of criteria that requires little or no change year after year For Management employees, use a format that combines both goals and objectives with a competency evaluation Positive feedback: when performance is above standard. Corrective feedback: when performance is below standard Al-enabled PM solutions can contribute to a better employee performance management experience by providing immediate performance feedback Chatbots have become a widely utilized tool to address employee inquiries 7 OUTPUTS AND INPUTS A summary of performance during the period is provided to the direct report. In most organizations, this is an annual event, but some organizations have quarterly or semiannual performance summaries. One of the more important outputs of the performance process is an individual development plan (IDP) that is used to document any steps necessary to improve employee performance. DATA INPUTS: Organizational-level data: Consist of links to organizational and unit goals and strategies and business plans. Job-level data: A significant part of the PM system. Key tasks, responsibilities, and outcomes should flow from job datasets to individual performance plans. Individual-level data: Most of the data in the PM system, because performance begins at the individual level 8 HRIS AND PERFORMANCE MANAGEMENT Allow both employees and managers to enter comments and observations at any time during the review period There should also be space for documentation of positive and corrective feedback. While creating an IDP, many systems can recommend and provide a library of development activities that can be used to correct specific problems. Performance management systems must interface with staffing & training applications. The most important standardized reports produced by the HRIS are the performance contract and the annual summary appraisal for each employee 9  COMPENSATION 1 0 COMPENSATION OVERVIEW Compensation is the primary outcome for most employees A great deal of dissatisfaction could result when it is viewed as unfair The basic compensation system includes base pay, merit pay, short-term and long-term incentives, perquisites, recognition awards, and attraction or retention awards. Base pay is built around two processes: job evaluation and market benchmarking Typical short-term incentive programs include bonuses, gain sharing, goal sharing, small-group incentives, and profit sharing. 11 DATA INPUTS Compensation data inputs include internal, external, and generated data Internal data include information about: Jobs (descriptions, specifications) People (performance, salary history) Organizational units (salary budget, job evaluation system). External data would include market survey data and information on rewards practices. Internal and external data would be combined and used to generate job evaluation results, salary structures, merit matrices, and a variety of reward guidelines. 12 REPORTS AND OUTPUTS Most common reports include budget reports to managers Most organizations provide each employee with an “Annual Compensation Report” showing the total amount of money spent by the organization on the employee, including money spent on wage or salary, incentive pay, and the cost of benefits paid for by the organization The primary data outflow from compensation modules is to payroll. Data are sent to federal, state, and local agencies, including taxing agencies, labor departments, and other units tracking wage data. Employees do not make many compensation decisions themselves, so self-service functions are largely restricted to providing information. 13  BENEFITS 1 4 BENEFITS OVERVIEW Five sets of benefits programs: The first set of benefits includes pension plans, individual savings plans and Social Security. Goal: To ensure that the employee will have continuing income after retirement. The second set of benefits programs includes workers’ compensation, unemployment insurance, long- and short-term disability insurance, and life insurance. Goal: To ensure that employees who cannot work (through no fault of their own) have some income until they can work again and to provide income protection to their families. 15 BENEFITS OVERVIEW Five sets of benefits programs: The third set of benefits programs includes medical and other health benefits, such as hospitalization and medical care insurance; surgical and major medical care insurance; long-term care; dental, vision, and hearing care insurance; and prescription drug coverage insurance. Goal: To make sure that employees and their families are not bankrupted by illness or accident and can obtain preventative and curative care. The fourth area of benefits is paid time off and includes vacation, holidays, personal days, special-purpose days (because of jury duty, bereavement, or military service, for example), and family leave. Goal: To allow employees to recharge their batteries, spend time with their families for celebrations, and participate in other significant life events. 16 BENEFITS OVERVIEW Five sets of benefits programs: The fifth and final category of benefits includes miscellaneous benefits such as dependent care, flexible working benefits (telecommuting, job sharing, and compressed workweek), employee assistance programs, professional memberships, tuition reimbursement, holiday parties and gifts, subsidized cafeterias and gyms, legal advice benefits, and employee discounts. These benefits round out the benefits package and are typical of organizations found in the “best companies to work for” lists 17  PAYROLL 1 8 PAYROLL OVERVIEW Payroll is the transactional process through which compensation is transferred to employees and taxes are withheld from employees’ checks. Even when companies do payroll in-house, the payroll module is usually part of the accounting system rather than the HRIS, so it is critical that the interface between the HRIS and the payroll software work flawlessly In the majority of organizations, payroll is a function administered by finance or accounting rather than the HR department. Payroll is the most heavily outsourced HRM function. DATA INPUTS Data entered into the payroll system from inside the organization include compensation data, benefits data, and other payroll addition data and deductions data. Time and attendance data are usually handled in a special module, and data from this module are also fed into payroll Data external to the organization include government tax rules that allow the organization to withhold appropriate amounts from each employee’s paycheck. 20  REFERENCES Human Resource Information Systems 5th Edition, Chapter 10 2 1