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July 10, 2000

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Automation Transforms Human Resources

Vendors are offering Online access to HR functions, making employee self-service a reality

By Norbert Turek

illo by Randy Hess
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    While most of a company's efforts are usually directed toward customers, the human-resources department is challenged with managing and developing strategies for the internal customer-employees and job candidates. To that end, HR sometimes ranks low on the list of priorities for E-business efforts, since a company's primary focus is improving communications and creating efficiencies for customers and business partners.

    But the Internet, an intense job market, and business trends such as mergers and decentralized operations are changing views about HR. And HR software applications are undergoing an evolution that's enabling a long-discussed strategy among HR managers to provide employees with better access to information.

    Until recently, many automated HR processes comprised cut-and-paste spreadsheet efforts or tools from enterprise resource planning vendors that were accessible only to HR employees. But during the past year or so, a number of startup companies have begun to offer HR applications that can be accessed with a standard desktop Web browser, helping HR departments make employee self-service a reality. "I get about five new HR-related vendors a week to look at," says Jenni Lehman, an analyst at Gartner Group.

    Meanwhile, traditional ERP vendors are starting to heed customers' requests for Web-ready versions of their products to replace ones that typically feature a proprietary graphical user interface. By this fall, all of the major ERP vendors are expected to offer browser-based apps or-as is the case with SAP's mySAP.com-a completely online product. All of these will include at least some self-service HR functionality.

    ERP vendors are also becoming more open to the idea of third-party employee self-service software that integrates with their systems. While some have offered a relatively open-system approach for several years, others are just beginning to standardize the application programming interfaces needed for tight integration of third-party products.

    photo by Gary Parker According to some customers, it's about time. "Everything should be Web-based. The sooner, the better," says Debby Love-Suddeth, manager of HR automation at LSI Logic Corp. The Milpitas, Calif., manufacturer of semiconductors is in its third year of a five-year implementation of SAP R/3, version 4.0, for ERP. Love-Suddeth's job is to roll out the employee self-service component of the package.

    LSI Logic looked at a few other vendors for the employee self-service piece, but chose SAP because its product is integrated with the rest of R/3. However, while mySAP.com is fully online, R/3 uses a proprietary graphical user interface. Still, employees using the self-service tools will be able to access Internet content from medical providers and benefits-plan partners, for example, which are presented through the interface.

    When LSI Logic launches the self-service module on Aug. 14, the system will be available to 6,500 employees in 16 countries. In addition to individual self-service, a desktop module will give managers an informational view of each employee, including position and compensation history. The HR department will also have access to aggregated data that can be analyzed with SAP's analysis tools for trends, such as which benefit programs are well-subscribed or whether a large number of employees are having certain life events, such as a new child, that may necessitate changes in group plans.

    Many companies, especially those that are technology-intensive, face a daily challenge of filling large numbers of competitive jobs. For those concerns, a new breed of online workforce-management products helps automate the process of culling, reviewing, and tracking the candidates through hiring. To stay ahead in the hunt for talent, E-Trade Group Inc., a Menlo Park, Calif., online stock trading company, is installing Icarian Workforce from Icarian Inc. Senior staffing manager Arnnon Geshuri is in charge of keeping workforce management software up and running and integrated with the HR department.

    continued...page 2, 3, 4

    illo by Randy Hess
    Photo of Debby Love-Suddeth by Gary Parker

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