Enabling Technology

It is unmistakable that the HR technology industry has been revolutionized. Cloud-based HR systems are now available from many of the largest vendors in the market. These systems integrate payroll, HRMS, talent management and analytics processing into a single cloud-based service. Many HR leaders are challenged with mobile tools and new social recruiting systems that are making many of the legacy HR systems obsolete.

National Gypsum Transitions from Hosted ERP to Ultimate Software’s Intersourcing to Reap Financial Benefits

WESTON, Fla., Sept. 7 /PRNewswire-FirstCall/ — Ultimate Software (Nasdaq: ULTI), a leading provider of Web-based payroll and workforce management solutions, announced today that National Gypsum Company, a developer and supplier of building and construction products with 2,800 employees, reports that it is on track to save approximately $850,000 over 5 years since going “live” in January 2005 on Ultimate Software’s UltiPro delivered through its hosted service model, Intersourcing

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Lies, Damn Lies, and Metrics

Part I in a series of columns on metrics. Time to get out your measuring cup.

by Naomi Lee Bloom

Before you outsource another HRM process or task, update current outsourcing agreements, or enter into more comprehensive ones, it’s important to take a good look at your service level agreements (SLAs) and who is being served by them. If your SLA metrics and target values are more about the manufacturing process (the HRM delivery system [HRMDS] and how quickly and at what cost and quality it is operating) than about the finished goods (the HRM and organizational business outcomes that youre trying to achieve), you could end up hiring people faster and at less cost. But they would be the wrong people.

By now we all know that you can’t improve what you don’t measure, but the dirty little secret of HRM and HRMDS metrics is that you will only get improvement in the metrics on which you focus. All too often, those are the HRMDS metrics rather than the HRM or organizational business outcomes.

HRMDS metrics are easily established target values that are measured periodically. How many calls did the call center receive, how quickly were they answered, how accurate were the answers, and how many were resolved with the first call? How many pay checks were issued per payroll cycle, with what degree of accuracy and timeliness, and what was the elapsed time between the close of the payroll cycle and distributions?

While these examples are important to the efficient running of the HRMDS–and therefore of interest to both outsourcing providers and their customers–we could do all of this to a very high standard of low cost, rapid turnaround, and high quality without helping our organizations increase revenues or profits, bring new and better products to market faster, or enter and dominate new markets more predictably. Although the HRMDSs behaviors and capabilities are critical to achieving more strategic HRM and organizational business outcomes, we wont get those outcomes unless we can establish the right metrics for them, do the heavy lifting necessary to achieve them, and be prepared to pay for this to happen.

With apologies to Mark Twain, starting with this issue, I’m beginning a series of columns that will take us from the simplest of HRM and HRMDS activity metrics, to those that reflect the results of HRM processes, to those that really matter in achieving desired business outcomes. Not all of these are appropriate for use in your outsourcing SLAs, but they are all essential to the running of the HRM business. Whether youve put your HRMDS together and operate it yourself or youre using comprehensive HRM BPO, you need to understand when and how to use the full range of HRM and HRMDS metrics to ensure that you dont achieve the lowest possible cost of payroll operations while increasing your organization’s outlays on healthcare or its turnover rate among those employees you most want to keep.

To organize what would otherwise be an overwhelming number of metrics possibilities, these columns will first introduce a model of the HRM domain that organizes all the bits and pieces of HRM processes into a small, very stable set of highest-level processes. Then we’ll build up our recommendations around metrics from the simplest and least valuable to the most complex and most valuable. We’ll provide examples of those metrics that are useful in running the HRMDS; those that belong in our outsourcing SLAs; and those that belong in our delivered analytics via dashboards (for employees and managers), cockpits (for HRM and HRMDS, including outsourcing executives), and mission control (for HRM process specialists and HRMDS operations professionals at every level).

It’s fairly easy to spot those metrics that are useful in operating the HRMDS and even those needed to measure the outcomes of specific HRM processes–independent of both industry and organization. However, there’s a great deal of analytical heavy lifting that must be done by the HR leadership in a specific organization to determine by which metrics they’ll know if they are achieving their needed business outcomes. Since this is obviously impossible to do if no one has linked organizational business outcomes to HRM business outcomes and HRMDS behaviors and results, you may want to reread my columns from January/February, March, and April 2005 to get further background on the importance of making these links.

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Manufacturer Trims Costs, Reduces HR Headcount, and Enhances Reporting With Ultimate Software’s Intersourcing

WESTON, Fla., Aug 10 /PRNewswire-FirstCall/ — Ultimate Software (Nasdaq: ULTI), a leading provider of Web-based payroll and workforce management solutions, announced today that its customer Interstate Resources, a leading manufacturer of paper products such as corrugated boxes and paper, is achieving companywide business benefits as a result of implementing Ultimate Software’s hosted service model, Intersourcing.

Prior to Intersourcing, Interstate Resources had been using a payroll service bureau, but sought more functionality and flexibility than the outsourcer could provide

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Hewitt Associates to Provide HR BPO Services to Wachovia Corporation; Companies Expand Long-Standing Benefits Outsourcing Relati

LINCOLNSHIRE, Ill.–(BUSINESS WIRE)–Aug. 4, 2005–Hewitt Associates (NYSE:HEW), a global human resources services firm, announced today it will provide HR business process outsourcing (BPO) services to Wachovia Corporation (NYSE:WB), one of the nation’s largest financial services providers. The deal is an expansion of the companies’ long-standing HR partnership, as Hewitt has provided benefits outsourcing and HR consulting services to Wachovia since the late 1990s.

Under the new seven-year agreement, Hewitt will provide HR BPO services, including contact center, payroll, learning and benefits outsourcing to more than 90,000 Wachovia employees

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AlphaStaff to provide human resource services for more than 5,000 employees

Boca Raton, FL August 3, 2005 — AlphaStaff Group, Inc., a market leader in Human Resource Outsourcing (HRO), and Tamarac Administrative Services, LLC, a leader in the senior housing industry, today announced their HR Outsourcing and Co-Employment partnership. AlphaStaff will provide high-end safety, human resource (HR) and tax services, along with worker’s compensation coverage, for over 5,000 Tamarac employees in 27 locations throughout Florida and Georgia

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Regions Sells Strategic Outsourcing Inc. to Clarion Capital Partners

BIRMINGHAM, Ala.–(BUSINESS WIRE)–Aug. 3, 2005–Regions Financial Corporation (NYSE: RF) has sold a majority stake in Strategic Outsourcing Inc., a leading professional employer organization, to Clarion Capital Partners, LLC, a New York-based private equity firm, and to Strategic Outsourcing’s management team for approximately $70 million.

Clarion, a middle market private equity firm focused on growth-oriented businesses, funded the acquisition through a combination of equity and senior debt

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Danka Outsources HR and Payroll to Gevity; New Cost Effective Program Will Boost Productivity and Help Achieve Vision 21 Goals

ST. PETERSBURG, Fla.–(BUSINESS WIRE)–Aug. 1, 2005–Danka Business Systems PLC (Nasdaq: DANKY) today announced an agreement with Gevity HR, Inc. (Nasdaq: GVHR) under which Danka will outsource to Gevity all Human Resources and health, welfare and benefits programsOperations for the company’s approximately 3100 current US employees. Gevity also will manage Danka’s US health, welfare and benefits programs, and provide additional cost effective HR programs and capabilities

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Hewitt Associates to Provide HR BPO Services to Mervyns

Firm Expands Retail Client Base in HR BPO

LINCOLNSHIRE, Ill.–(BUSINESS WIRE)–July 18, 2005–Hewitt Associates, a global human resources services firm, announced today it will provide comprehensive HR business process outsourcing (BPO) services to Mervyns, a California-based retailer with more than 250 department stores in 13 states. Mervyns represents Hewitt’s second HR BPO retail client, joining Circuit City. 

Under a seven-year agreement, Hewitt will provide HR, payroll, defined contribution (401k), and health and welfare administration services to more than 29,000 of Mervyns’ U

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Pizzerias Partners with Savista to Intensify Focus on Growth and Profitability in Highly Competitive Restaurant Industry

WICHITA, Kan.–(BUSINESS WIRE)–July 15, 2005– 

Savista, a leading IT, finance/accounting (FAO) and human resources (HRO) outsourcing firm serving fast growing mid-market companies, including the world’s largest restaurant chains, announced today that it has been selected by Pizzerias, LLC, a South Florida-based franchise organization with 21 Papa John stores and 465 employees, as the restaurant company’s business process outsourcing (BPO) services provider

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