Employee Self Service: Trends in using e-HR

Ardavan A. Shahroodi

Northeastern University

HRM 6040-Performance Human Resource Systems & Development

Professor Elaine M. Walker

Saturday, July 13, 2013

Introduction

Self-service has been evolving over the past several decades in commensurate with expanding and enabling

technology allowing for many of HR core functions and other employment and career related tasks to be performed

by employees themselves. Currently, employee self-service activities performed mostly over the Internet and via

mobile Apps allow for viewing and entering/modifying of information in relation to HR core functions such as the

maintenance of personal/employment records, benefits/compensation/payroll administration, performance reviews,

orientation/onboarding, career planning, training, etc. in many large organizations. In other cases, employee self-

service through the usage of social networks have facilitated and enhanced corporate engagement/retention,

recruiting and communication efforts. In general, self-service technology has provided accuracy, transparency,

independence and empowerment for the employees while offering HR operations the freedom to concentrate on

more strategic matters endeavoring to create value for the organization. Notwithstanding, the advantages and

benefits of self-service technology for the employee and the employer, certain social network related concerns

having to do with information security/confidentiality, organizational legal liability and productivity mandate that

clear goals and procedures are instituted prior to the adoption of such systems.

Background/History

Technology began her ascendancy in performing major human resources functions mostly during the

1960s. The early Human Resources Information Systems (HRIS) were designed to “automate traditional HR

functions” (EPICOR/Selecting an HRIS, 2011, p. 1) such as payroll, were supported by large mainframe

computers/processors and possessed “limited functionality” (p. 1). In the 1980s, HRIS was upgraded to include

additional functions such as “electronic record keeping” (p. 1) facilitated with the introduction of personal

computers (PCs) and more sophisticated applications of HR software. In the beginning of 1990s, an early version of

self-service technology namely the interactive phone /touch tone system enabled employees to “check on their

medical benefits or enroll in the company stock-purchase plan” (Rafter, 2012, para. 2). Here, mainframes continued

to play an important role in HRIS and functions such as “employee training and education” (para. 3) were delivered

via laserdiscs that were “queued up on desktop computers or TV screens” (para. 3). Client server systems became

the next wave that expanded HRIS applications, however in the late 1990s “people realized that the future was the

Internet…web-based systems took over the market” (EPICOR/Selecting an HRIS, p.1).

The classical HRIS tended to be “costly and slow” (Rafter, 2012, para. 14) and as Vincent Tuccillo, a

global HR information management and solution delivery manager states, “you had to be an HR professional to

update an HR record” (para. 15). Nevertheless, in the 1990s, client server computer systems reliance on PCs rather

than “dumb terminals” (para. 16) connected to mainframes allowed HR operations to “scan paper resumes with

optical readers into rudimentary applicant tracking systems, and store performance reviews in Excel spreadsheets

instead of manila folders and metal filing cabinets” (para. 17). Eventually, the overwhelming predominance of the

Internet and its associated email vehicle moved many companies to establish “employment websites…job boards to

advertise open positions…use software for recruiting, assessment, performance reviews and other phases of talent

management” (para. 27). Furthermore, organizations began to offer the responsibility to “interact with HR systems

into the hands of their workers, a transformative concept that came to be known as employee self-service…instead

of knocking on HR’s door” (para. 32). Employee self-service allows employees and managers to perform a variety

of HR oriented functions and “access information when they want or need it without seeking help from HR”

(EPICOR/Selecting an HRIS, 2011, p. 4). Examples of employee self-service are applications where “employees

use Web or mobile apps to turn in expenses, recognize co-workers for a job well done, check benefits…share their

companies’ job openings with their friends on Facebook or Twitter” (Rafter, 2012, para. 33) or for that matter

receive company sponsored training that may enhance their career.

The Present Characteristics of HRIS and Employee Self-Service Technology

In a white paper published by the Epicor Software Corporation (Selecting an HRIS, 2011), a reputable HR

systems vendor, a “good” (p. 3) HRIS is described as storing and providing “employee personal

information…job/pay information…employee qualifications…salary administration…benefits administration…

absence tracking…standard reporting” (p. 3). The white paper declares that “great HR systems go beyond core HR

data…and…make HR an integral part of your company’s strategy” (p. 3). Some of the features of these great HR

systems are enumerated as “applicant tracking…training administration…succession planning,

employee/manager/applicant self-service…front-end customization tools…report writing tools…talent

management…open enrollment” (p. 3-4).

The advantages of HRIS systems and HR automation in general are numerous. These systems, at the very

minimum “eliminate routine, repetitive paperwork, streamline organizational processes through electronic routing

and approval, and enhance HR reporting by tracking and compiling HR metrics on a variety of tasks on a real-time

basis” (Weatherly, March 2005, para. 9). In this light, an employee self-service feature will result in “reduced calls

to the HR department, less paperwork and less duplicate data entry” (para. 9) that will “save time, improve

communication and reduce the possibility of error” (para. 9). However, on a more expanded level, systems such as

manager self-service applications may utilize “digital dashboard technologies that…track key performance

indicators…that…can measure everything from workers’ compensation claims and diversity statistics to employee

skill sets, training and workforce morale” (Onley, 2006, para. 3). Dashboard technology allows HR, managers and

executives to evaluate how employees are “performing and whether key metrics are being met” (para.21).

Dashboards are also evolving from being “collectors and displayers of things you can count to actual business

intelligence” (Zielinski, 2011, para. 10) such as “measuring preventable turnover of high performers in key roles and

how that affects the business” (para. 10). Companies may define the parameters of manager self-service to include

granting “merit increases, promotions or transfers; approve leave requests…conduct performance management,

succession planning and onboarding” (Cossack, Best-of-breed solutions [Title of paragraph], 2013, para. 5).

Social Networking and Employee Self-Service

Social networks have become a natural environment for the expansion of employee self-service HR

systems. The incredible adoption of social network platforms such as Facebook and Twitter especially by the

Generation X and Y/Millennial population segments and LinkedIn by the professional classes has moved many

companies to establish internal organizational networks. These self-service networks may include “employee blogs,

wikis to help streamline project collaboration, employee profiles highlighting areas of expertise, training courses or

discussion groups for both business and personal issues” (Ladika, Social Work, September 8, 2010, para. 5).

Internally, many social networks may also be area specific with sites created for various departments and work

groups facilitating “employee communication, talent management and career development” (para. 6). As shown

above, self-service internal social networks cover areas outside core HR functions; however they are also created

with the purpose of addressing employee retention and engagement matters.

There are a number of reasons why companies establish self-service networks in order to improve

employee retention/engagement objectives. First, organizations are aware that “social networks are critical selling

points in attracting members of the Millennial Generation who have grown up texting and tweeting” (para. 8).

Secondly, in lieu of the above dynamic, an organizations that imposes policies barring “Facebook and other social

media from their computer systems especially need an internal social network to attract young people” (para. 9).

Thirdly, many companies have come to accept the mind-set that self-service social networking “enhances

communication throughout the organization” (para. 10) leading staff members not to “tune out corporate messages if

they are delivered interactively as a live chat or a blog posting” (para. 10). Furthermore, self-service network

communication also allows awareness of organizational conflict and “potential problems with products and

services” (para. 10).

However, on the other hand, there are potential disadvantages embedded in the very nature of self-service

social networks such as the “security risk that could expose proprietary information or details of employees’

personal lives” (para. 12). As Darren Cahr, an intellectual property attorney explains “…an inadvertent leak of trade

secrets is more likely through internal social networks” (Ladika, September 7, 2010, para. 5). In addition, an

uninhibited medium of exchange may possibly expose companies to legal liability for “content that an employee

might consider to be harassment or defamation” (para. 3). Furthermore, a number of companies are concerned that

self-service social networks will affect organizational productivity and “prove to be a distraction for employees”

(Ladika, Social work, September 8, 2010, para. 16). The aforementioned possible challenges inherent in an

employee self-service social network mandate that organizations establish clear policies regarding usage and

conduct in these mediums. Most importantly, prior to installing a system organizations must think comprehensively

their “purpose and strategy for introducing” (Ladika, A Game Plan for Networking, September 8, 2010, para. 2)

their employee social self-service and especially analyze “what they want to attain through their networks” (para. 2).

IBM is an example of an organization that has established an all-encompassing, integrative and strategic

employee self-service that includes HR core functionality such as orientation/onboarding and benefits administration

in addition to many other social networking tools assisting employees in locating company-wide resources. The

primary goal/purpose of IBM’s employee self-service onboarding feature called Succeeding@IBM is to enable new

employees “to become productive quickly” (Starner, 2010, para. 17). The specific features of Succeeding@IBM

that are primarily available through the Internet are distinct areas that educate new employees regarding the culture

of the company, facilitate collaborations among new employees and “with experienced IBMers to build support

networks and find career and technical guidance and expertise” (para. 29), provide career counseling linked to

“learning” (para. 30) and “skills” (para. 30) development and an online resource tool that “connects new hires with

mentors, career coaches, websites…” (para. 31). In addition, Succeeding@IBM provides new employees with a

massive array of web based tools such as “instant messaging and internal applications that function much like

Twitter and Facebook…live virtual classes, online communities” (para. 33,34). IBM’s own employee self-service

social network site called w3 enables employees to “create personal profiles similar to those on LinkedIn, bookmark

websites and news stories of interest, comment on company blogs, contribute to wikis, share files and gain

knowledge from white papers, videos and podcasts” (Ladika, Social Work, September 8, 2010, para. 28).

Mobile HR Apps and Employee Self Service

As mobile Apps are being used in a wide scale by ever increasing percentage of the population in particular

the young and the professional classes, their applicability is also being accepted in the HR field. Recruiting was one

of the first HR related fields that utilized SMS (short message service) oriented mobile based campaigns to reach out

to potential candidates that would “allow job seekers to sign up to receive text messages whenever jobs open up that

fit what they’re looking for” (Rafter, 2011, para. 9). A number of companies such as CareerBuilder.com have

created and are utilizing in-house self-service mobile recruiting Apps that illustrate to employees “which of their

Facebook friends would be matches for openings at their company and lets them share the information” (para. 20).

In addition to recruiting, companies are introducing self-service Apps that are geared towards benefits

administration or cover payroll functions that enable “employee views of their pay stub” (Rafter, 2012, para. 9)

together with “on-demand learning, time keeping and scheduling, and talent management” (para. 9) and Apps that

“do simple monthly surveys to see how happy employees are” (para. 10). Still other self-service mobile Apps allow

employees to “use their phones to clock in and out…request time off, review retirement savings accounts (para. 17)

or “book travel and create expense reports” (para. 19) while manager tailored Apps enable the performance of

“expense reports and travel requests, and…audits” (para. 19).

Conclusion

Self-service technology has facilitated independence, accuracy, empowerment and transparency in HR

related core functions and other employment/career related matters for organizational members. Simultaneously,

self-service technology has offered to HR operations the opportunity and freedom of concentrating and addressing

strategic concerns. In addition, self-service social network environments may potentially enhance organizational

efforts in improving employee engagement/retention, recruiting and communication endeavors and campaigns.

Regardless of these aforementioned positive qualities, organizations must establish clear procedures concerning

standards and conduct in self-service social network environment in order to prevent security breaches of

confidential/personal/sensitive information, protect against legal liability and prevent the compromising of employee

productivity.

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