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Position management thought leadership series


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Effective Job and Position management from an HR perspective is rightly regarded as a practice that represents a well managed HR environment. Yet, when it comes to converting those good practices into an HRIS, we don't see the same level of enthusiasm or understanding of how the HR tool can be better leveraged. This presentation provides some views on the benefits of using HRIS Position Management tools

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Position management thought leadership series

  1. 1. Human Capital ServicesThought leadership seriesDetermining the value and contribution impacts to HR management byusing ―Position Management‖ techniques and toolsJune 2012 © 2012 Presence of IT – Confidential & Proprietary
  2. 2. What is ―Position Management‖ rom a non-system perspective, Position Management reduces the risk of having the organisation exposed. In is the HR administrative function of defining a role organisation that are unstructured and continuallywithin an organisation structure, and determining the recreating new roles, the traditional form of Positionassociated attributes of that particular role. In the pure Management may stifle the operating approach and tendssense, the role description is not associated with an to be viewed as non value adding by line managers.employee or group of employees, but rather based on the In deciding to use the concept of Positionrequirements of the organisation or business unit. Management, one should be aware that it will be anTraditionally the role would be written up based on a influential instrument across the HR administrativestandard template or guideline, and would pass through a function, and will require a high level of acceptance andform of grading or assessment to determine its relative commitment to particular processes from HR staff as wellworth against other roles or positions. The outcome of the as line management, employees and employeeassessment would allow for other data such as salary representative bodies to remain effective and be of benefitbands, benefits, reporting relationships and working to the organisation.conditions to be associated with that particular role.An important aspect of defining these roles would be theapplication of consistent ‗rules‘ and definitions to supportthe typical HR reporting and analyticalrequirements, alignment with internal or external job surveydata and more importantly, the ability to ensure equalityacross the organisation where the management of the ‗hire-to-retire‘ processes is decentralised across functions and/orgeographies.In highly structured organisations, where people costs arebudgeted and strongly controlled, the standardised rolemanagement activity plays a significant part in controllingand managing the budgets. In highly unionisedenvironments, the ability to have consistency across roles 2 © 2012 Presence of IT – Confidential & Proprietary
  3. 3. Position Management in HR systems odern day HR systems provide the ability to are inherited by the employee who occupies the chair. store the information derived from a role The advantage of setting up a position is that you don‘tdefinition so that it can be used to better manage HR need an employee at the time of setting it up. It alsoprocesses such as: means that if an employee leaves or moves to a • Recruitment different position, you don‘t need to redefine those • Budgets attributes for the replacement employee. • Vacancy management Typically most HR Position Management tools do • Strategic workforce planning provide levels of flexibility to users, and in most cases • Performance reviews allow you to run the HR system without Position Management, use it partially, or use it fully. The • Organisational structures decision behind the degree of use will be driven by a • Workflow actions number of critical attributes: • Automation of events • The stability of the organisational structures • Mass adjustments • Security and workflow requirementsAt its full strength, Position Management is regarded • Employees holding multiple positionsas the ―Heart‖ of the HR system in many respects. Its • The need to act spontaneouslyinfluence across the HR and Talent modules in the • The extent of financial control requiredHRIS is typically significant, however, on the counter- • The level of unionisationside, the mismanagement of this system tool is likelyto have severe consequences for the effectiveness of • The consistency of people and compensation policyHR management and the respect and trust of the HR One should note that if Position Management is onlyfunction and systems. partially used, the main benefits around headcountThe HR system ―position‖ should be viewed as an and budget controls are lost, and the key benefitempty chair. The chair has attributes such as a job becomes the ability to store relevant information ontitle, job code, salary band, grade and benefits which position to support reporting. 3 © 2012 Presence of IT – Confidential & Proprietary
  4. 4. Positions, jobs and job families n managing positions within your HR system, it‘s required. The job association is attractive for organisations important to understand the relationship and difference who run reports and analytics around categories ofbetween two other system attributes; jobs and job families. positions (e.g. workforce planning), and this attributeThe graphic below provides a simple understanding of the reduces the risk of missing out key positions in that search.three elements. In highly regulated organisations, the ability to do mass changes to employees via changes at the job level is aIn simple terms, jobs and job families are optional attributes powerful administration tool. We would however advise thatthat can be associated with the position, assuming that your you fully understand the risks within your own systemHRIS has this capability. These attributes can be powerful around job attributes and ensure you have sufficient skillinstruments for reporting and analytics, but can also house and knowledge to manage actions such as anomalies atdata that is inherited by the position. For example, if you set the position or employee level. The job family is a simpleup a job called ―Engineer‖ and store attributes that are grouping of like-type jobs, that again mainly supportcommon to all engineering jobs, such as grade, training and reporting and analytics. Normally, a job can belong to moreprofessional association, then these attributes will be than one family, however this can lead to ‗double-counting‘inherited by any position that is created and linked to that if not managed carefully.job. In most modern systems, the attributes stored in thejob level are able to be overwritten at the position level if 4 © 2012 Presence of IT – Confidential & Proprietary
  5. 5. Making the initial decision here are essentially three options around using Position position management. In some areas of the Management in your system. Each of these are organisation, driving the system by employee is discussed in some more detail below. preferred, while in other areas of the organisation, the business process requires driving the system by position.No Position Management For example, you might find that driving the system byIf your organisation is fluid, a broader grouping of position serves well for only some departments oremployees is utilised, you have a highly contingent management levels in the company, and that driving theworkforce, and new jobs are often created—then driving the system by employee works well for others.system by employee would be the optimum choice. This If you decide to use a partial approach, then you shouldmethod is useful for organisations expanding rapidly, or for also be aware of the limitations around reporting, budgetingorganisations that often have new projects requiring the and headcount management. You will need to introducecreation of new jobs or job types regularly. Forcing Position secondary and perhaps manual steps to produce accurateManagement into this environment will frustrate line system outputs, as well as higher system maintenancemanagement and create process bottlenecks. requirements as people move between roles.Implement full Position ManagementIf your organisation is fairly static, jobs and job descriptionsare mostly fixed, and people move in and out of them—thendriving your HR system by position would be the optimumchoice. For example, government agencies, hospitals andhierarchically structured organisations who typically budgetby position and FTE‘s, often well in advance of fillingthem, find this method very useful.Implementing partial Position ManagementIn order to utilise the structure and rules inherent in PositionManagement, but still have the need for an unstructuredapproach, many HR systems can be set to optimise partial 5 © 2012 Presence of IT – Confidential & Proprietary
  6. 6. One-to-one or many-to-one position management nce you have made your decision to use Position positions to manage workflow and messaging, reporting management, the next critical upfront decision to structures and organograms, as well as access to make is whether to link every employee to a employee and manager tools such as ESS and MSS.unique position or to link many employees to one position. Strong consideration should be given to other system whichWhile most HR system vendors will promote the use of a are interfaced to your HR system. The requirements andone-to-one relationships, it‘s more common to find both limitations of those systems are often dealt with easier frommethods in use. It‘s important to note that the less a technology perspective with a one-to-one approach.standardised your HR policies and procedures are, and thegreater degree of flexibility that your line managers have A many-to-one approach is useful for employees who areover employee job, benefits and compensation contingent and don‘t have the same needs as permanentdecision, the more likely you will benefit from a one-to-one employees. In many contingent workforce situation, thePosition Management approach. payment to those individuals is via the accounts payable system and the need to build full job and position definitionsYou will recall the concept of inheritance discussed earlier is not required. If the HR system is the provider of data toin this document, where employees inherit data from a other critical systems, and the nature of your business is toposition when they are hired into that particular role. Every bring on contingent resources without reasonabletime a change is made to position data (or job data, if this is notice, then the many-to-one option can be utilised toalso used), then all the employees linked to that position reduce or eliminate process bottlenecks and negativewill automatically inherit those changes into their personal impacts on people getting access to a business site and /data records. In theory this may be fine, but the realities are or required tools and systems.that people in similar or the same roles often have personaldifferences that could be historic in nature or purposefullyagreed to by a manager. These differences could rangefrom simple job title differences, reporting lineanomalies, hours of work, cost splitting, work locations, tomore complex issues around salary banding.Another reason that supports the one-to-one approach isthe way your particular HR system makes use of system 6 © 2012 Presence of IT – Confidential & Proprietary
  7. 7. Business value he value derived from using Position Management for this advise, is that it‘s only at a score closer to 3 that we should be seen in the context of good HR practices. see line managers making conscious connections between There are two matters we highlight in this section; HR professional practices and people performance.namely HR maturity, and alignment of HR strategies to theoverall business strategy. Alignment to business strategiesHR MaturityYour organisations ability to execute effective HRmanagement and solutions is directly related to the level ofHR maturity in the organisation. This maturity level shouldnot be confused with competence of individuals in the HRdepartment, but rather talks to how senior and executivemanagement position and support the HR function. If thematurity level is low, the requirements and behaviours of The key question that should be answered by HRthe business to ensure Position Management will be departments wanting to implement Position Management issuccessful will be difficult to implement and maintain. what business strategies and goals will be supported and / or achieved by introducing Position Management ? Whilst it can be viewed as simply an administrative tool for HR system users, the need to create ―line of sight‖ between the tool and business objectives will be critical in obtaining the support of business leaders. Consideration should also be given to how the introduction of Position Management will require adjustments to other HR and talent processes, systems, forms, documentation and approaches. We recommend a landscape and impact assessment is conducted to highlight risks, issues andWe advise organisations to be on a minimum level of 2 on opportunities that Position Management will have onthe maturity scale (see graphic), with intentions and existing people, process and technology layers.programmes in place to shift to a level 3. The key reason 7 © 2012 Presence of IT – Confidential & Proprietary
  8. 8. Typical outputs from using Position Management he expected outputs from using Position Management Critical success factors will vary depending on the extent of its use in your In our experience the following actions are critical to theorganisation (full versus partial). The following list is typical successful use of Position Management:for organisations that implement the tool fully: • There are clearly defined business reasons for• Improved data integrity and reduction of data entry errors implementing Position Management, and it is understood• Facilitates FTE budgeting and planning and accepted by the executive and line management• Accurate tracking of vacancies and the reduction of risks within the recruitment process • The HR function is operating at a minimum of a level 2 on• Ability to store job and position data electronically for easy the HR maturity scale, and there is general reuse and access by HR and line managers acknowledgment that HR administration is of a high• Improves data accuracy for job assignments delivery standard• Reduction of data entry during the hire process • The recruitment, learning, talent and compensation centres• Strong support and association with talent and learning of excellence or departments are supportive and involved attributes used in performance management, career and of the initiative succession planning• Effective management of compensation structures • Prior to implementing Position Management, a full• Effective management of job codes linked to job and salary assessment of the technical and functional landscape is survey data undertaken to ascertain risks, issues and integration• Supports accuracy of reporting and organogram requirements development • Set up the initiative as a project and include resources with• Ability to do reporting and analytics by groupings such as experience in Position Management and specific HR ‗job‘ and ‗job family‘ system experience• Richer reporting capability around information linked to jobs and positions • Run a pilot for an appropriate division to build internal• Reduced risk in inaccurate headcount reporting learning and experience• Mass changing of data for improved administration • Be prepared to manage negative perceptions and efficiency behaviours at the line manager level. Effective change• Improved integration capability with IT security and management and learning should be considered credentialing 8 © 2012 Presence of IT – Confidential & Proprietary
  9. 9. About us?About Presence of IT Rob Scott is the National leader for the Human Capital Services division of PresencePresence of IT is Australia‘s leading consultancy in the of IT. Human Capital Services focus onworld‘s foremost HR/Payroll, Talent and Workforce strategy, process, change management andManagement solutions. learning for clients wanting to leverage HRWe provide thought leadership, process and people related technologies.improvement, software implementation and support Over the last 24 years, Rob has developed expertservices in human capital management to Australia‘s knowledge and experience in the areas of Humanlargest private and public sector organisations. Resources management, HR strategyOur strength is the excellence of our people and our focus optimisation, transformation and the leveraging ofis on our clients. This focus has seen us evolve into a technology in the broader people organisation to better support our clients in their He has played leading consulting roles in people systemrespective markets across the world. implementations, large scale projectWhy Excellence in People? management, business & system requirements, strategic development, strategic workforce planning, talent andThe term Excellence in People reflects what we value as a learning strategies as well as change leadership Our focus has always been on employing the He has successfully integrated hisvery best people and developing close partnerships with business, psychology, technical, and HR background into aour clients, to provide the best possible solutions. broad value adding service to clients. Rob is a challengingPut simply, we have excellent people who help our clients consulting professional and is recognised as a thoughtachieve excellence in the management of their people. leader within Presence of IT. Prior to joining Presence of IT Human Capital Services, Rob was an associate director at a global consultancy where he headed up the HR Transformation division. You can follow Rob on Twitter @robscottinsyd or his blog at http://robertscott.wordpress.comAbout the author 9 © 2012 Presence of IT – Confidential & Proprietary
  10. 10. Thought leadership seriesViews expressed in this document are those of Presence of IT based on our broad experiences with localand global clients who use HR, talent and workforce management solutions. Some content may havebeen derived or used from public domain information.Whilst we are providing our best-practice views in this document, they should not be construed asprofessional advise for your organisation or your particular situation. We would recommend that you usethis information to increase your understanding and awareness of Position Management, but seekprofessional assistance to further evaluate your environment and determine your needs. +61 1300 665 503 +65 6818 6269 +1 404 307 4941 +1 905 441 634310 © 2012 Presence of IT – Confidential & Proprietary