Please help with the question in bold using the information presented, Thanks. N
ID: 352681 • Letter: P
Question
Please help with the question in bold using the information presented, Thanks. No cost data is given, one is to be made up.
Your organization is contemplating the purchase of a new human resource information system and has tasked you with formulating a proposal. Organizational details for you to consider for this assignment are as follows:
There are a total of 500 employees at the site; 450 non-exempt employees who clock in and out each day, and 50 exempt employees who do not use a time clock and are paid a standard weekly salary.
The organization has an electronic time capture and payroll system already in place that:
- is manually updated when employees are hired or terminate employment
-is a stand-alone application, not interacting with any other database system
- is maintained by two full-time payroll administrators, reporting to one payroll manager
Human resource records are primarily paper-based.;
- Employee personnel files are maintained in file folders
- Personnel files are manually updated with demographic, performance, and disciplinary information
- Demographic data is available currently in an Excel database, which is manually updated
- Personnel files are maintained by four full-time human resource clerks, who are non-exempt and report to the full-time HR manager.
The new HRIS system is expected to drive a self-service approach to records management, while also ensuring confidential and proprietary data is secure.
Questions;
headcount increase to recruit new skill sets, as compared to cost reductions, e.g., employee headcount reductions due to automated data collection, job eliminations, cost savings due to elimination of legacy systems
o Return on investment (ROI) calculated over a four-year period
Explanation / Answer
Background
Paint point:
Impact:
Proposed solution
Requirement to complete the project
Technical specification:
The HRIS implementation will help in less man power requirement for above mentioned activities and hence utilizing the same man power for some other value adding roles
Analysis
Organization employee details
Non-Exempt employees
Exempt employees
Total
450
50
500
Electronic clocking
Manual clocking
Manpower for payroll management
Role
Head count
Responsible for
Pay roll administrators
2
Electronic time capture & pay roll
Pay roll manager
1
Clerks
4
Personnel files
HR Manager
1
Totally 8 manpower to manage 500 employees.
Ratio: 8:500 = 1:62.5
i.e. for every ~63 employees 1 manpower required to handle & control.
In case of increase in recruitment, for eg. more than 63 new employees additional 1 more man power is required in HR.
Execution plan
Time line
WK01
WK02
WK03
WK04
WK05
WK06
Activities
Discussion & finalization of requirement with supplier – mutual agreement on cost, time line & quality
Compiling all required data
Pilot batch trial with 50 employees
Complete data update for all employess
Roll out & implementation
Monitoring the working of system and closed the contract
Required personnel
HR manager, payroll manager, project manager & supplier
Pay roll administrator – 1
Clerk - 1
Project manager & supplier
Project manager & supplier
Entire team
Supplier & project manager
Once supplier support will always be there during trial period to avoid unknown disturbance in the process.
Benefits
Role
Head count
Average salary / month, in USD
Total, in USD
Responsible for
Pay roll administrators
2
3500
7000
Electronic time capture & pay roll
Pay roll manager
1
7500
7500
Clerks
4
2000
8000
Personnel files
HR Manager
1
7800
7800
Total
30300
Per month salary for payroll, clocking & personnel file maintenance – 30300 USD
Considering xxxx USD cost involved in purchasing HRIS.
Return on investment, ROI = (Investement – cost involved in HR activities)/Investement * 100
ROI = [(XXXX /12) – (~30300)] * 100
Non-Exempt employees
Exempt employees
Total
450
50
500
Electronic clocking
Manual clocking