SHRM Foundation’s Effective Practice Guidelines Series

Transforming HR Through Technology

The Use of E-HR and HRIS in Organizations

By Richard D. Johnson and Hal G. Gueutal

Sponsored by ADP Transforming HR Through Technology The Use of E-HR and HRIS in Organizations

This publication is designed to provide accurate and authoritative information regarding the subject matter covered. Neither the publisher nor the author is engaged in rendering legal or other professional service. If legal advice or other expert assistance is required, the services of a competent, licensed professional should be sought. Any federal and state laws discussed in this book are subject to frequent revision and inter- pretation by amendments or judicial revisions that may significantly affect employer or employee rights and obligations. Readers are encour- aged to seek legal counsel regarding specific policies and practices in their organizations. This book is published by the SHRM Foundation, an affiliate of the Society for Human Resource Management (SHRM©). The interpretations, conclusions and recommendations in this book are those of the author and do not necessarily represent those of the SHRM Foundation. ©2011 SHRM Foundation. All rights reserved. Printed in the United States of America.

This publication may not be reproduced, stored in a retrieval system or transmitted in whole or in part, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of the SHRM Foundation, 1800 Duke Street, Alexandria, VA 22314.

The SHRM Foundation is the 501(c)3 nonprofit affiliate of the Society for Human Resource Management (SHRM). The SHRM Foundation maximizes the impact of the HR profession on organizational decision-making and performance by promoting innovation, education, research and the use of research-based knowledge. The Foundation is governed by a volunteer board of directors, comprising distinguished HR aca- demic and practice leaders. Contributions to the SHRM Foundation are tax deductible.

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11-0083 Table of Contents

v Foreword vii Acknowledgments ix About the Authors 1 Transforming HR Through Technology: The Use of E-HR and HRIS in Organizations 2 Implementation of HRIS: What Are the Options? 4 Access to HR Data 8 Using HR Technology 25 The Future: Five-Year Trends in HR Technology 27 Conclusion 29 Sources and Suggested Readings

Foreword

Dear Colleague:

Human resource management is evolving into a more technology-based profession. In many organizations, employees now see the face of HR as a portal rather than a person. This transformation of HR service delivery is known as “e-HR,” and implementing e-HR requires a fundamental change in the way HR professionals view their roles.

This new report, Transforming HR Through Technology: The Use of E-HR and HRIS in Organizations, will help you to explore both the opportunities and the potential pitfalls of HR technology. According to recent studies, organizations that successfully adopt sophisticated HR technology tools outperform those that do not. This report will help you to better leverage e-HR to transform your HR practices and market your HR brand.

In 2004, the SHRM Foundation created this Effective Practice Guidelines series for busy HR professionals like you. We understand that it’s a challenge for practitioners with limited time to keep up with the latest research results. By integrating research findings on what works with expert opinion on how to conduct effective HR practice, we make theory and practice more accessible to you.

Recent reports in this series include Onboarding New Employees, The Search for Executive Talent, Employment Downsizing and Its Alternatives, and Human Resource Strategy. This report is the 13th in the series. Subject matter experts write the reports, which are then reviewed by both academics and practitioners to ensure that the material is research-based, comprehensive and practical. Each report also includes a “Suggested Readings” section as a convenient reference tool. All reports are available online for free download at www.shrm.org/foundation. The Effective Practice Guidelines series is just one way the SHRM Foundation supports lifelong learning for HR professionals. In addition to creating educational resources, the SHRM Foundation awards more than $150,000 annually in education and certification scholarships, and is a major funder of original, rigorous HR research that expands the HR knowledge base. I encourage you to learn more. Please visit www.shrm.org/foundation to find out how you can get involved with the SHRM Foundation.

Mary A. Gowan, Ph.D. Chair, SHRM Foundation Research Evidence Committee Dean and Professor of Management Martha and Spencer Love School of Business Elon University

iii

Acknowledgments The SHRM Foundation is grateful for the assistance of the following individuals in producing this report:

Content Editor Diane Pattin Lynn McFarland, Ph.D. Master Data Team Leader / Human Human Capital Solutions, Inc. Resources BD

Reviewers John Ryder, SPHR Vice President Human Resources Amy J. Hoover, SPHR Champion Technologies Human Resources Arysta LifeScience North America, Debra Sieloff, MSE LLC Development Enablement Program Manager Aaron D. Lambert, PHR SAP, Inc. Consultant Jennifer Wise, SPHR Damon Lovett, HRIP President Director, Professional Services Wise Consulting Associates, Inc. Aquire

Kristin Lundin, SPHR Project Manager Product Manager Salary.com Beth M. McFarland, CAE Manager, Special Projects Mary ann Mosa, MBA SHRM Foundation Human Capital Consultant Resources Global Professionals

Elaine Orler President Talent Function Group LLC

Major funding for the Effective Practice Guidelines series is provided by the HR Certification Institute and the Society for Human Resource Management.

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About the AuthorS

RICHARD D. JOHNSON

Richard D. Johnson Ph.D. is an assistant professor in the School of Business at the University at Albany. He teaches courses in human resource information systems and his research interests include e-HR, e-learning, psychological and sociological impacts of technology, psychology and computer use, motivation, and the digital divide. He also is co-author of the forthcoming book, Human Resource Information Systems: Basics, Applications, and Future Directions.

Hal G. Gueutal

Hal G. Gueutal Ph.D. is a co-author of The Brave New World of eHR: Human Resources in the Digital Age. An associate professor of management at the University at Albany, he serves as director of the MBA concentration in e-HR. He has consulted with a wide range of organizations on HR technology issues as well as business and HR strategy, and his research focuses on e-HR trends and success factors.

vii The term “e-HR” describes the transformation of HR service delivery using web-based technology. Now HR professionals must not only master traditional HR skills and knowledge, but also have the ability to apply that knowledge via technology. Transforming HR Through Technology

Transforming HR Through Technology

The Use of E-HR and HRIS in Organizations

Today the face of HR is often a portal, rather than a person. Almost all firms now provide universal access to HR services through technology and web- based applications, dramatically changing the practice of human resource management. These changes often result from the need to cut costs and expand or improve services. Recent research shows organizations that successfully adopt sophisticated HR technology tools outperform those that do not.1 But because most organizations already have automated basic HR administration, the simple automation of HR processes can no longer assure a competitive advantage. Instead, organizations must determine how to use technology to transform their HR practices and market their HR brand.

HR is evolving into a more technology-based profession because organizations need to: • Streamline HR processes and reduce administrative burdens. • Reduce HR administration and compliance costs. • Compete more effectively for global talent. • Improve service and access to data for employees and managers. • Provide real-time metrics to allow decision-makers to spot trends and manage the workforce more effectively. • Enable HR to transform so it can play a more strategic role in the business.

The term “e-HR” describes the transformation of HR service delivery using web-based technology. Implementing e-HR requires a fundamental change in the way HR professionals view their roles. Now HR professionals must not only master traditional HR skills and knowledge, but also have the ability to apply that knowledge via technology.

This report focuses on human resource information systems (HRIS), or the integration of hardware, software and business processes used to implement an e-HR approach.2 HR departments often provide broader and more effective services when they operate via a web portal. For employees and

1 Transforming HR Through Technology

applicants, this means relying on HRIS This report focuses on broad impacts An Integrated Solution for most HR services. One potential on core HR functions likely to If your firm chooses this strategy, you downside to this approach is that affect the majority of organizations. will work with a single vendor to develop personal relationships between the When adopting an e-HR approach one platform that incorporates multiple organization’s employees and HR staff or implementing an HRIS, keep in HR functions. Often these platforms are may disappear. mind this is not an exhaustive set of part of an enterprise-wide information issues to consider. Some functions are An HRIS can be as simple as a small system architecture that includes a not discussed here in detail because employee database, developed internally variety of business functions such as a of a lack of independent research. by a company with a few employees, general ledger, customer relationship Additional strategic issues, such as or as complex as fully integrated, management and logistics. vendor selection, managing vendor multimillion-dollar Enterprise Resource relationships, data integrity and cross- Planning (ERP) software that offers border data sharing are important, but A ‘Best of Breed’ Solution economies of scale to large firms. There simply beyond the scope of this report. If your firm decides to pursue a also are many variations in between. best of breed, or BoB, strategy, you will consider multiple vendors and This report explores current research Implementation of about HRIS, including: then pick the best applications for HRIS: What Are the each functional area of HR. In this • Implementation strategies available Options? approach, an organization may work to HR executives moving toward with one or more vendors to supply Once your firm has decided to e-HR. HRIS functionality. The firm might implement technology as part of an use a recruiting solution from one • The use of HR technology to overall HR strategy, there are many vendor, a time and attendance solution support recruiting, selection, options. Although it is possible to from a second, and a payroll solution training, performance management, develop technology in-house, using from yet a third provider. This can compensation and benefits external vendors is generally more administration. be an attractive approach for smaller cost effective and often will provide businesses without the resources to a more complete HR solution. The • The effectiveness of e-HR and its purchase a single comprehensive wide selection of vendors and variety acceptance by employees. solution, or for those that want to use of products can be daunting. The first technology selectively, as part of the • Issues influencing the strategic use order of business is to decide whether overall HR strategy. The advantages of e-HR technology. to use a single platform, or integrated and disadvantages of each approach are solution, to support multiple HR • Avoiding common pitfalls in a discussed in a figure on the next page. technology-based HR delivery functions or to use multiple smaller model. systems, sometimes known as “best of breed” solutions, each supporting a different HR function.

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Comparing Integrated and Best of Breed Solutions Advantages

Integrated Solutions

• Feature a common interface “look and feel” across applications, making learning and transitions for users easier. • Use integrated data and technological infrastructure, reducing the need to manage multiple technological architectures. • Provide greater ease of integrating data from multiple HR functions. • Reduce the complexity of vendor management, because there is only one vendor. • Can be less expensive per application to implement than BoB.

Best of Breed Solutions

• Can develop a “best fit” solution for each functional area.

• Provide quicker implementation, because the system is simpler and affects fewer employees.

• Do not lock into a single vendor for all needs.

• Allow vendors to be more responsive to user needs.

• Make it possible to purchase only the functionality needed.

Disadvantages

Integrated Solutions

• Offer minimal customization options. Because of the large scale and integrated nature of such solutions, they can be prohibitively expensive to customize, or maintain customizations, as new versions of the underlying package are released.

• Do not necessarily offer the best solutions in each functional area.

• Are challenging to upgrade, because a change to one function may have dramatic impacts on others.

• Slow down the introduction of new features and upgrades due to complexity.

Best of Breed Solutions

• Pose difficulties in integrating data across applications.

• Present increased learning curves for each application because of the lack of consistent interface.

• Require careful management of relationships with multiple vendors, which can be challenging.

• Demand interoperability among different applications, which may not be easy.

3 Transforming HR Through Technology

When deciding whether to pursue an Both hosted and SaaS approaches can integrated or best-of-breed solution, be effective for organizations without it also is important to decide how to the resources or the technical expertise deliver the technology. Three approaches to implement a large, integrated system. are popular: And many vendors are beginning to market SaaS applications to small and 1. On-premise, or purchase and mid-size businesses that want to provide install. With the on-premise employees with HR services similar to approach, the organization will those at larger competitors. purchase and install hardware and software on internal machines supported by internal IT staff. This Access to HR Data can be relatively time-consuming, but One of the most significant changes traditionally was the only approach in the practice of HRM has been the available. “democratization” of HR data—the 2. Hosted, or application service rapid expansion of access to such provider. In the hosted approach, data by groups inside and outside the applications are purchased and organization. As recently as a few years installed for the organization, but ago, only HR staff members worked they are located at the vendor’s site with personnel data. Today, employees, and supported by external IT staff. managers, health insurers, workers’ compensation carriers, senior executives, 3. Software as a service (SaaS). With job applicants and even regulatory SaaS, the firm does not purchase agencies have access. But with all these or install any software. Instead, different types of users come different the organization subscribes to needs. For example, executives use software that is developed and summary data from the system to deployed remotely and accessed aid in strategic decision-making, and via a web browser. Vendors offer applicants draw initial impressions of many organizations access to the the organization from the corporate same package (known as multi- recruiting website. Other examples tenancy) and will maintain the appear in the chart on the following page. software for each organization. SaaS is less attractive to organizations In addition to meeting the needs of that already have invested heavily diverse users, an HRIS also should in HR technology, because the be designed to accommodate several previous investments may be wasted. different methods of access. SaaS also is less attractive for firms HR portals provide a single, targeted that want customized software, and often customized access point for because vendors offering multiple each employee (and increasingly, each organizations the same software on job applicant). The HR portal allows an a common platform will not be able individual to access the resources and to customize the software to each data relevant to his or her own personal organization’s needs. situation and job. Each employee can design an interface to view the most

4 Transforming HR Through Technology

relevant data. Most HR portals are make informed choices and to become • Allowing managers to view also web-enabled, allowing employees self-reliant for many HR services. information and create reports on to access HR services anywhere and For employees, this means increased the employees working for them anytime, using devices ranging from convenience; for organizations, this without having to rely on HR. laptop computers to smart phones and means significant cost savings. Research • Allowing managers to complete tablets. The use of an HR portal also can suggests when organizations implement transactions previously handled help HR better brand itself to employees an ESS, HR headcount often is reduced by HR, such as authorizing pay by showcasing the products and services by as much as 25 percent. raises, promoting, approving leave the HR department offers. Today, Manager self-service (MSS) requests or changing an employee’s the inclusion of an HR portal should applications also are tools that can classification. be considered an important strategic be accessed via a portal. These tools opportunity in any system upgrade. • Allowing managers to manage HR allow supervisors to handle many HR functions such as performance Employee self-service (ESS) is an transactions online and receive HR management, succession planning approach in which employees access reports in real time. For example, a and onboarding. and maintain their personal HR data. manager might use MSS to prepare for Nearly 90 percent of recently surveyed and complete performance appraisal As with ESS, when managers organizations indicated they had or documentation for subordinates, to handle transactions, HR budgets were planning to implement self-service authorize leaves or to create a report will see savings. For example, applications.3 ESS websites, often summarizing information about his or GreenbergFarrow, a small construction enabled through the HR portal, allow her staff. Organizations can choose the firm with two HR employees, was many HR questions and transactions amount and complexity of HR tasks to able to save 10 to 15 hours per week to be handled directly by employees. A be delegated to managers via the MSS, of HR staff time when MSS went live, well-designed ESS allows employees to including:4 and double that number during open enrollment.5 Examples of HR Data Accessed by Various Stakeholders

Position Types of Data Accessed Applicants Job openings. Application blanks. Data on the company. Employees Benefits enrollment. Personal data. Dependent data. Retirement planning scenarios. Managers Training investment factor. Cost-per-hire. Turnover costs. Executives Data for HR forecasting and costing. Succession plans. External Groups Time and attendance data. Dependent health insurance status. Payroll information. COBRA status.

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Will Employees Have Access? MSS and Compensation Planning at Motorola There are several factors affecting the Motorola had a problem. As a global corporation with more than 10,000 extent to which an HRIS is used. First, employees in 65 countries, the firm had a myriad of compensation practices employees need to be convinced of the that varied not only among countries, but also among divisions within value the HRIS brings to their jobs. the same country. Motorola’s goal was to develop a compensation plan This often means providing accurate, to standardize pay practices and involve all levels of management in pay timely information, increasing decisions, including first-level supervisors. Although it moved to a shared- convenience and saving employees’ services approach for delivering HR in 1998, Motorola had yet to fully time. If the HRIS is seen as making integrate standardized pay practices across the globe. jobs easier, users will embrace the change. We all have been “trained” Using MSS, Motorola imported data from an external performance to go to the Internet for all sorts management system and integrated this into a data warehouse. Managers of information and services, and were empowered to make pay decisions regarding how to reward employees employees expect to be able to access with stock, short-term incentives and salary. Business rules ensured that their HR information and complete reward distributions within and between divisions were equitable. Managers HR tasks via the Internet. If employees were able to complete this task within four weeks. Two additional weeks can save themselves time—say, by were taken to review the data. The MSS handled more than 10,000 submitting attendance information individual sessions within a 24-hour period without crashing. Thus, using online or by comparing health plan MSS, Motorola was able to implement a standardized compensation plan options electronically—system use for 10,000 employees in 65 countries within a six-week timeframe. The becomes less of an issue. goal for the following year: reduce the timeframe to four weeks. The challenge for most organizations SHRM Case Study: Manager Self-Service using an e-HR strategy is not whether www.shrm.org/hrdisciplines/technology/Articles/Pages/CMS_006604.aspx employees will use HRIS, but rather how to encourage employees to fully use the system and be self-reliant for their data needs. How can value and cost savings be maximized through more effective use of the system? Organizational support, such as the quality of online help resources, is the key to success when implementing new software.6

Work culture also can affect the acceptance of these systems. A system designed for use in Europe or the United States may not work in other parts of the world. Beliefs about the organization’s obligations to employees, data security and privacy, and the role of HR can differ dramatically from country to country and region to region. An effective design in one location may be met with resistance in another.

6 Transforming HR Through Technology

When implementing an HRIS across to generate those reports will depend national boundaries, issues associated on the sophistication of a firm’s HRIS with data privacy and data movement technology. across these boundaries must be kept in Data warehouses and data mining mind. Different countries and regions tools now also are used to support have enacted laws and policies that strategic decision-making. Analyses can significantly affect the design and previously impossible because of a implementation of the HRIS. Global lack of data or because they were not corporations must strike a balance cost-effective can now be completed between global consistency and local and complex questions answered. flexibility when implementing new Data warehouses provide a centralized technology. repository of selected HR data that is Similarly, when an organization adopts managed separately from live data. Data an HRIS, that solution may have built- mining tools with advanced statistical in processes and procedures that are data analysis techniques can then be not compatible with existing practices employed to discover relationships and corporate culture. For example, among policies, procedures, practices an out-of-the-box application might and organizational outcomes that may require employees to seek managerial not be readily apparent. Common approval for time off, but the uses of data mining techniques include company’s policy and culture may have questions related to manpower no such requirement. Failing to modify planning, predicting turnover, the system could cause employees to validating tests and monitoring HR feel that the company no longer trusts practices for disparate impact. them, and these feelings could lead An HR dashboard provides high- to lower morale and turnover. A new level, real-time data related to the most HRIS will change the organization’s critical measures of HR success. This is HR practices and processes, so it is done in a visual fashion, similar to the critical to evaluate the fit between the dashboard on a car. Dashboards allow policies embedded in the new HRIS managers to examine information in and the organization’s current ways of greater levels of specificity, which can managing HR issues. help to quickly identify and focus on potential problem areas. By linking Access for Decision Makers the data on the dashboard to the key One of the main purposes of an HRIS organizational metrics, managers can is to create reports and to support more effectively see the ties between managerial decision-making. As HR outcomes and corporate goals. compliance reporting requirements Certainly, the use of technology to increase, and more data and analysis support HR analytics will continue are required, an HRIS becomes even to evolve, and organizations should more valuable. For example, proposed pay attention to the advances in these changes in health care included in the techniques and the ways in which they Patient Protection and Affordable Care can enhance HR effectiveness. Act will require more reporting to the federal government, and the ability

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Using HR • Establish, communicate and Technology expand brand identity. In an informal study by the authors of this report, approximately 100 E-Recruiting job-seeking college students were The web-based technology used by asked to evaluate two unfamiliar e-recruiting helps organizations attract firms based on their web presence. a stronger and more diverse applicant The students saw the firm with a pool. The choice to move to an less technologically advanced and e-recruiting model is driven by several dynamic recruiting website as a less business objectives, including the need attractive employer, and as failing to: to be a leader in its industry (even though it was). The students said • Improve recruiting efficiency that the website communicated and reduce costs. Online a lack of innovation and quality recruiting can cut cycle times within the firm. by 25 percent, and can reduce recruitment costs by more than • Increase the objectiveness of, $8,000 per hire—a 95-percent and standardize, recruiting reduction.7 practices. • Increase quality and quantity • Increase applicant convenience. of applicants. E-recruiting allows Potential applicants who take organizations to conveniently advantage of web-based support reach applicants across the country for the recruitment cycle find out or around the globe. about the company, its culture and opportunities online. By making this process more convenient, organizations reach out to those who may not be actively looking Data Mining Helps HR Answer Key Staffing Questions for other opportunities, but who Hiring and retaining the best talent is critical to any firm. Given the cost may discover a position and choose of recruiting and developing highly skilled technical talent, knowing to apply because of the ease of on whom to focus retention effort can present a significant competitive submitting an application. advantage. Organizations such as IBM, Oracle, Capital One and SAS are Organizations are rapidly adopting increasingly turning to data mining to help identify and retain top talent. e-recruiting tools. A recent survey For example, by mining data on the relationships among factors such as found that nearly 75 percent of university attended, previous work experience and previous employers, organizations are using technology to Microsoft was able to develop a plan to target certain universities and support recruitment, and this number companies for future hiring. is expected to grow to nearly 85 Firms also use data mining to reduce turnover. Using turnover data from percent within the next year.8 the past several years, along with statistical models, companies are able to Approaches to implementing predict which highly skilled employees have the greatest risk of leaving. e-recruiting vary, but include the use Those individuals can then be targeted for retention programs of a corporate recruiting website; and incentives. general online job boards, such as Monster, HotJobs and CareerBuilder;

8 Transforming HR Through Technology

industry-specific job boards, such websites, subsequently raising the bar Recruitment websites should include as dice.com, marketingjobs.com; for all sites. Organizations that create information regarding corporate and regional job boards, such as interactive and aesthetically pleasing, culture, organizational support CapitalAreaHelpWanted.com to user-friendly websites will be much for professional development, job enhance recruiting efforts. A recent more likely to convert passive lookers descriptions and work expectations. study by SHRM found that although into active applicants. And applicants Each of these factors has been employee referrals are still the source will be more likely to recommend linked to the organization’s level of of the highest quality applicants, the firm to others. The impact of attractiveness to job candidates, which, four out of the top five sources of website design is magnified for recent in turn, was related to their intentions applicants are web-based.9 In addition, college graduates and others who have to apply for a job. A recent survey by 37 percent of surveyed organizations less work experience. The bottom Towers Watson found that the five identified web-based recruiting line is that your firm should not most important factors applicants initiatives as generating the highest underestimate how much the design consider when making a decision to return on recruiting investments. of the recruitment website can affect join a firm are base pay, the challenge brand image and attractiveness for of the work, the convenience of the Beyond seeking active candidates, potential employees. work location, opportunities for career more than 50 percent of surveyed advancement, and vacations and organizations noted that they are But it is not only about the aesthetics paid time off.11 The website should leveraging the web to find passive job of your site. The quality of the highlight these key employment candidates. The use of technological information provided to applicants factors so applicants can quickly access tools to target top candidates who also is critically important. the information. are not necessarily “looking” to change employers is an emerging use of e-recruiting technology. Web-Based Recruiting: Who Is Considered an ‘Applicant’? Clearly, e-recruiting has become a Given the ease of applying for positions and the need for organizations central aspect of successful recruiting to keep good records of their recruiting efforts, a concrete definition strategies. of the term “job applicant” is valuable. The Office of Federal Contract Compliance Programs (OFCCP) ruled that government contractors must E-Recruiting and Website Design: consider a person an applicant if the following four criteria are met: Design Plus Content Many researchers have focused on 1. The individual expresses interest in an advertised position through the how companies can more effectively Internet or related technologies. manage the e-recruiting process 2. The contractor considers the individual for employment in a specific and have found organization and position. navigability of the recruitment website to be critically important. 3. The individual expressing interest specifies that he or she meets the Applicants look for efficiency and ease basic qualifications for the position. in navigation, and their experiences 4. At no point in the selection process before receiving an offer does the influence perceptions about the firm’s individual remove his or her name from consideration or indicate that 10 image and attractiveness. the position is no longer of interest.

Applicant expectations have been Data only need be captured and reported on individuals who meet all four shaped by at least a decade’s worth criteria. These guidelines can assist organizations in reducing the burden of of experience using the web. They record keeping on a potentially large number of resumes from unqualified expect highly sophisticated and individuals or those who send in resumes unrelated to any specific position. interactive social and consumer

9 Transforming HR Through Technology

In addition, applicants are less likely to was unprepared for the volume and be attracted to organizations that take was unable to process this large What Do You Do with 43,000 more of a selection-oriented versus number of applicants in a timely way. Applications? How about a recruitment-oriented approach to Preparations for high volume should 1 million? designing the website.12 include updating job analyses, revising workflows, eliminating unnecessary or In 2008 Kia motors began In other words, although the redundant reviews, and considering the the staffing process for a new recruiting website can be used for use of screening software to identify manufacturing plant in Georgia. selection, its primary purpose should more attractive applicants. Remember Initially 500 new jobs were be to expand and enhance the pool that although e-recruiting expands planned for 2008, building to of qualified applicants, rather than to the reach of recruiting initiatives, the 1700 positions by 2009. When make selection decisions. overall quality and fit of applicants may the first job posting went live on One of the major challenges in be lower than is found in traditional the web, Kia received more than managing an online recruiting effort recruiting methods, due to the ease 43,000 applications in 30 days. is the large volume of applications. of submission. It may well be that Of these applications, 95 percent In addition to receiving more quality a slightly more complex application came from areas near the plant. applications, e-recruiting often leads process will yield more committed and This outcome demonstrates the to more unqualified applicants. A more highly qualified applicants. power of e-recruiting to attract well-designed website can reduce the a pool of applicants for non- Loss of personal relationships number of applicants who are a poor managerial positions, even in with applicants. Recruiting can be fit for the company culture or job. For non-metropolitan areas. perceived as more impersonal when it example, an organization that focuses is conducted via the web. Technology On a broader scale, the Indian on individual merit and contribution can be a barrier to communication government recently sought as corporate values can showcase and relationship building. Online applications for 15,000 public these, effectively persuading potential systems are sometimes viewed by service positions. It received in applicants more comfortable in a team- applicants as rigid and impersonal, excess of 1 million applications based work environment to self-select and such reactions can reduce overall through its online recruiting site. out of the process. satisfaction with the recruiting process. One of the most important factors in Potential Pitfalls in E-Recruiting the recruiting process is developing Clearly, e-recruiting has dramatically a relationship with the candidate applicants a positive feeling about the improved efficiency, reduced costs and ensuring that communication firm. Instead, it is important to take and transformed the management sends appropriate signals about the steps such as personal calls, “snail of recruiting in organizations. What culture of the organization. Social mail” communications, invitations to about some of the pitfalls? networking initiatives, online webcasts webinars and online recruiting events, and other targeted communications and other techniques to build a bond Increase in application quantity, can help minimize this loss of “high with well-qualified applicants. but not application quality. As touch” in the recruiting process. noted above, organizations that Starting with the design of the implement e-recruiting initiatives find recruiting website and throughout the the volume of applicants increases recruiting process, companies should substantially, so they must be prepared. incorporate specific steps to establish For example, Sutter Health found a personal relationship with potential that when the company implemented candidates. It would be a mistake to online recruiting, it received rely solely on the website to give top 300,000 resumes.13 The company

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to reduce the time it took to get new Best Practices: E-Recruiting hires up to corporate performance ✔ The recruitment website should be interactive, aesthetically pleasing standards by one-third.15 and user-friendly. Individuals are used to highly sophisticated, socially oriented consumer websites and will judge a potential employer’s • Increasing flexibility in selection test administration. Previously, website in light of these experiences. job candidates would need to visit ✔ The recruitment website should allow applicants to customize how they an in-house or third-party testing view information. This can lead to reductions in poor-fit applicants and center to complete the selection improve the ability of applicants to assess their fit with the organization. test in a proctored environment. Applicants can now take web-based ✔ The recruitment website should include a rich mix of information about versions of tests in either proctored the company’s culture, HR brand and work environment. or unproctored environments. For ✔ E-recruiting should not be a firm’s only method of recruiting because this example, many retail organizations, may lead to adverse impact and a decline in diversity. such as Lowes, Home Depot and Target, use kiosks near the customer service area to administer selection Diversity issues and risk of adverse systems. Be sure to actively monitor tests to applicants. impact. The implementation of talent acquisition processes, to assess e-recruiting brings with it the need the potential of disparate impact and to • Improving the utility of selection to assess the diversity of the applicant encourage applications from a diverse tests. Although organizations pool and the risk for adverse impact. group of applicants. already have the ability to study There is a risk that those from lower the validity of a selection test for new hires, an HRIS also can help socio-economic backgrounds and E-Selection minorities will be underrepresented the organization use longitudinal in applicant pools generated via web- E-selection uses technology to help performance data to assess the based applications, as compared organizations more efficiently manage effectiveness of the selection with traditional recruiting methods. the process of identifying the best test for predicting long-term A major reason for this potential job candidates—those who have the performance and tenure with the underrepresentation is that these groups right knowledge, skills and abilities organization. 14 for each job and who may best fit the may lack access to the Internet. In • Enhancing an organization’s organization. Faced with pressures to addition, because the marginal cost for ability to provide adaptive continually improve on the accuracy submitting online applications is so low, testing of applicants. Adaptive of selection methods and to meet multiple applications from a small group testing can reduce applicant legal requirements, organizations of unqualified individuals—from either boredom by eliminating questions view technology as a way to manage a majority or minority group—have the that are either too easy or too the selection process more actively potential to mask or create the mistaken challenging. Research suggests that and to provide more evidence of the appearance of adverse impact. adaptive testing can reduce testing effectiveness of the chosen selection time by 25 percent to 75 percent, E-recruiting applications also can blur method. The business drivers behind without reducing the reliability or the definition of the relevant labor the adoption of e-selection technology validity of the test.16 market for specific positions and make include: government reporting more complex. Organizations should closely compare • Reducing the time and resources the pre-e-recruiting compliance required to manage the selection For example, by utilizing numbers with those calculated process. e-selection, AirTran Airways was able after the implementation of online

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Job Candidate Responses to with technology as they implement E-Selection e-selection, and provide alternatives Organizations must ensure for those for whom technology could equivalency between paper-pencil create a barrier. tests and computer/web-based tests. What about different types of The good news is that a decade’s media: face-to-face interviews, worth of research on this topic has videoconference interviews and found computer-based, web-based phone-based interviews? Research on and paper-pencil based testing to have the differences among these formats comparable reliability and validity shows that those interviewed via for many selection tests.17, 18 In other videoconferencing tend to have an words, your firm can anticipate that advantage over those who interview the same candidate taking the same face-to-face, and those interviewed by test using different methods should phone tend to be at a disadvantage in score similarly on each. the interview process.21, 22 Interviewers However, a firm should not assume tend to minimize candidates’ that simply putting a selection test mistakes made in technology-enabled online will provide the same results interviews, ascribing them to the as a paper-pencil version. Limited challenge of interviewing via this new computer experience could cause method. Conversely, interviewers lower scores on online tests. It is tend not to minimize problems important to verify whether a lower occurring via phone interviews, even score actually reflects lower ability though these interviews present the rather than poor computer skills or same, if not more, challenges for poorly designed software. In addition, interviewees trying to communicate technological glitches and delays can their qualifications for the job. To affect how quickly employees are complicate matters, since candidates able to access and complete online typically have no choice over the tests. The layout and design of online type of technology employed in an tests may need to be different—and interview, and since certain types a variety of other factors should be of candidates do better with one considered when moving selection interviewing method than another, the tests online.19 organization’s choice of technology may place some candidates at a Job candidates generally respond disadvantage. favorably to computer and web- based selection testing.20 Most of Finally, what about computer based today’s applicants are web-savvy and in-basket and situational judgment expect technology to mediate many tests (SJT)? In general, job candidates business transactions, including job view such tests positively. For example, search and selection. Computer- in one study job candidates viewed the based selection methods will computerized test as easier and more continue to grow in attractiveness to predictive of their performance.23 candidates and organizations. As with The use of video to deliver the SJT e-recruiting, firms should still consider is seen as having higher face validity candidate comfort and experience

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and results in improved performance Privacy and security of responses. Best Practices: E-Selection compared to paper and pencil Another pitfall with online testing ✔ Before implementing methods.24 Video-based e-selection is that candidates may be concerned e-selection, ensure any tools can increase the realism of about the security and privacy of their performance differences on SJTs, candidate engagement and the responses. When respondents are the online test are not related accuracy of the test. concerned about how their data are to the delivery method or lack stored, protected and used, they may of comfort or experience with be more guarded in their responses, Potential Pitfalls in E-Selection technology, but are reflective which can reduce the accuracy of Although e-selection has the potential of underlying knowledge, those responses. Organizations can to improve selection accuracy and address these concerns by making it skills or abilities. efficiency dramatically, there are some clear that the information only will be ✔  potential pitfalls to consider before Ensure any online selection used internally and, where possible, moving to an e-selection strategy. test is not only reliable and by allowing applicants to opt out of valid in general, but also for Security of content. With the use responding to noncritical questions. your specific organization. of anytime/anyplace testing, there Legality of screening and selection While web-based testing is a risk that materials can be copied, tests. As with traditional selection can save time and money, screenshots taken and content leaked. tests, it is essential to ensure that any these tools must meet the When selection procedures and items web-based screening technique or are known and can be studied in same standards as paper and selection test is legal. Many online advance, the selection test will become pencil tests. vendors offer various selection tests, less effective at differentiating among ✔ Use unproctored web-based but these tests may not withstand legal job candidates, and the utility of the scrutiny if they cannot be related to selection to deliver the initial test will be reduced. This is of special the jobs in a particular organization. selection tests only when concern when unproctored online For example, if a keyword scanning security and cheating are not tests are used. Organizations need to process for resumes causes a protected an issue. balance the convenience of web-based group to be underrepresented, the selection with the need to control the ✔ Link the data from selection organization can be held liable for security of information on the test. to other functions, such as this outcome, even if the process was the performance management Cheating. Even the most effective developed and managed by a third- system, to better assess selection test can lose its effectiveness party vendor.25 So be sure to work if the person taking the test isn’t the with vendors to ensure any screening and improve your selection actual job candidate, has the answers process used is appropriate for the techniques. to the test in advance or has an unfair specific job and organization. advantage as a result of materials brought to the testing situation, such as a smart phone, calculator or web access. Although this may be of less concern for tests without objectively correct answers, the issue is especially relevant for ability and knowledge tests. Therefore, firms should manage the selection process carefully and make available online only those tests in which cheating will not be an issue, or in which it can be effectively controlled.

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E-Learning a major burden for organizations. Current and Future Options Employees may be required by law in E-Learning When training materials, course to complete OSHA training, sexual The technology of e-learning provides interactions and course delivery are harassment courses or patient care today’s organizations with a variety of enabled by and mediated through procedures. An HRIS can help options. In one option, a Learning technology, your firm is engaging employees track which courses Management System (LMS) can be in e-learning or e-teaching. Recent have been successfully completed used to manage the administration, estimates suggest that organizations and what upcoming training tracking and reporting of training spend nearly $40 billion on e-learning opportunities may fit their needs. in the organization. By allowing the initiatives, more than double the Managers can track the training organization and employees to develop amount spent in 2004.26, 27 Although as well, reducing redundancy and talent and skill profiles, sign up for technology is not yet as widely adopted training costs. courses, and register course attendance, in training as in other areas of HR, an LMS can cut costs, streamline nearly 60 percent of recently surveyed Small businesses can benefit from the training and empower employees to organizations indicated they have use of outside e-learning providers. manage their own skill development implemented e-learning or are planning Many vendors offer online training more effectively. A second option is the to do so within the next year.28 The modules on topics such as technical potential use of a Learning Content business drivers behind e-learning certifications, health and safety, System (LCS), which manages the include: and leadership skills. By using such delivery and content of courses for resources, a small business can offer • Reducing training costs. employees. Together, these systems employees training and development Organizations implementing help the organization control content, opportunities comparable to those e-learning can realize dramatic organizational learning processes, and of larger competitors. This can assist savings, ranging from 40 to 50 delivery of online material. Ritz Camera in recruiting and retention of high- percent within a couple of years.29 used its LMS to develop training potential employees. For example, IBM reported that materials for retail associates pertaining it was able to save more than to new products and services. $400 million annually through e-learning.30 Best Practices: E-Learning

• Increasing employee flexibility ✔ Design courses to promote contact and interaction with other employees. and control over learning. This can promote the development of learning communities and knowledge Employees value the flexibility networks, improving overall organizational learning. e-learning provides, because it can reduce travel and time away from ✔ Consider blended learning. Blended learning can help employees overcome the office and family. In addition, some inherent feelings of isolation by bringing learners together for portions employees are able to take control of learning. of their own learning and engage in ✔ Course design and sound learning principles should underlie the design of training at a time and place of their any online course. E-learning does not mean simply putting existing materials choice, helping them manage their online. work/life balance. ✔ Provide training to help employees learn to manage an online environment • Better tracking and management and to manage themselves in a learning environment that is less structured of employee training. Specific than a traditional classroom. training often is required by regulators, and documenting successful course completion can be

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Through the LMS, the firm was able Various Approaches to E-Learning to track completed modules and how well the content was learned.31 Technique Characteristics Computer-Based Training (CBT) Individualized training delivered via a computer. Two major shifts are occurring in Often uses CDs or DVDs of text and/or video. e-learning strategies. The first is the growing popularity of social web- The most popular method of e-learning. based tools such as blogs, wikis, Web-Based Training (WBT) Similar to CBT, but training delivered via the web. Facebook and other “Web 2.0” Webcasts/Webinars Live web-based delivery of instruction to trainees technologies. At the same time, a in remote locations. new generation of employees who Podcasts Web-based delivery of pre-recorded audio and have grown up with technology video files. infused into daily interactions is Mobile Learning Delivery of training through handheld mobile devices such as smart phones or MP3 players. entering the workforce. The shift to the use of Web 2.0 technologies Good for targeted, short training for employees who are away from the workplace. allows organizations to leverage informal learning through the Distributed or Distance Learning Training remotely delivered, often via the web. creation of knowledge networks. If Instructor and trainee(s) are in different locations; training materials and delivery are mediated via these are designed and implemented technology. effectively, an employee with an Course communication is supported through important question or skill to learn tools such as chat, e-mail and online discussions. will no longer need to wait for a scheduled training session. Instead, Hybrid or Blended Learning Training approach in which learning occurs both he or she can search the corporate in a classroom and over the web. knowledge wiki or other online Wikis Websites that allow many users to create, edit knowledge repository to seek and update content and share knowledge. information. Tools such as these Excellent for informal knowledge-sharing can help organizations supplement throughout the organization. traditional “push” models of training The Hidden Cost of Flexibility in E-Learning with “pull” models of training, where employees seek and obtain Although learner control can provide flexibility for employees, it also can knowledge as they need it. A variety come with a cost. Specifically, if organizations do not have a way of assessing of technologies and approaches e-learning, employees may “attend” the training, but not learn much. Managers are available to help organizations and employees identify a common complaint about organizational expectations address this changing learning regarding e-learning. Many firms have developed broad online offerings and environment.32 require employees to complete a series of courses in a given period of time. However, few employers allocate regular work hours to accomplish these tasks. For example, in hospitals, employees must keep many certifications current, Tailoring E-Learning to and a significant amount of training must be delivered on a regular basis. After the Learners and Making moving the majority of training online, the director of training for one multi- Connections state hospital noted that employee use of e-learning spiked each evening at It is important to avoid the simple around 10:15 p.m. Further investigation revealed this was most employees’ only assumption that good technology quiet time for completing the courses. will produce effective learning. When e-learning initiatives are From a learning standpoint, the effectiveness of information delivered at the end successful, it is not just the use of of a long day is questionable. With this in mind, organizations should consider advanced technology that leads allocating specific work time for training. Whether employees remain on-site or are sent off-site, they need time to focus on the learning process.

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to better learning outcomes, but employees who are used to receiving the application of sound training information in rapid, short bursts via design and learning principles.33 the web or on their phones. If employees find the technology Organizations should consider doesn’t fit their preferred way of developing blended learning options learning, they will engage less, find in which a portion of the training is less value in it and be less satisfied completed online and a portion in with it.34 Organizations must apply a classroom. For example, trainees sound, scientifically supported can learn the basic concepts—such training principles to e-learning, just as leadership skills or person-to- as with traditional, classroom-based person sales techniques—over the training. web. They then can be brought One of the most common problems back together to discuss the results with e-learning is the large attrition of their online work and to practice rate, with estimates as high as 70 these techniques. Such a blended percent.35 Typical reasons employees approach is extremely effective.37 fail to finish e-training include One of the major advantages of feelings of isolation and lack of e-learning is that it can put learning connection with the material. This is in the hands of employees. By often the case if organizations simply allowing increased learner control, replicate the content, slides and trainees are able to modify the written material from a classroom pacing, sequencing and timing of setting without redesigning it for learning. Delivering information at the web. A common mistake in the pace and in amounts best suited converting to an online training to the individual is very important to environment is to design courses the amount of learning and retention with little contact among learners. that occurs. For example, Capital In a classroom setting, interpersonal One provided employees with iPods contact is both frequent and as part of its e-learning initiative. common. Indeed, one of the Employees appreciated the flexibility benefits of a classroom setting is the of listening to training at their opportunity to talk with peers, to convenience and the increased access network and to assist one another in to programs they would not have the learning process. been able to attend in person. This Recent research shows that the increased their motivation to learn.38 more trainees communicate and feel connected with others while Potential Pitfalls in E-Learning learning, the more they learn and As with other types of technology, the more likely they are to choose the use of e-learning is not without e-learning again in the future.36 To its disadvantages. support connections, firms can use learning games, multimedia projects Not everyone is ready for requiring trainee interaction and e-learning. If employees are not smaller chunks of learning that confident and experienced in their can be quickly shared. This can use of technology, their performance be especially effective for younger in an e-learning environment will

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suffer. E-learning emphasizes that Not all training should be the employee is responsible for online. Although e-learning can his or her own learning. Not all be effective for explicit and fact- employees will have the discipline based knowledge, there is some necessary to complete online concern about its effectiveness in coursework. Before implementing training employees in soft skills, e-learning, organizations need to such as teamwork, leadership prepare employees not only in terms and interpersonal skills, which of technology, but also in terms of require trainees to interpret facial the differences to expect between expressions, body language and traditional classroom learning and other visual cues. The lack of e-learning. Organizations may wish visual cues available in an online to consider running dual training environment would reduce training tracks until employees can be fully effectiveness. In those situations, transitioned to an online learning some form of blended learning, in environment. which basic information is learned online but practice is conducted in E-learning can be isolating. person, would improve effectiveness. Organizations should recognize that e-learning is inherently isolating. E-learning does not mean simply Subject matter experts suggest that putting existing materials online. one of the biggest concerns is the Well-designed online courseware lack of interaction among peers. is critical for success in e-learning. Nearly all employees prefer to learn Organizations should resist simply with others and perform better taking the material in existing when part of a group. For example, courses and putting it on the web. Accenture reported that the lack of Training materials designed for a opportunity to communicate with classroom setting do not necessarily peers made e-learning less attractive work in an online setting. For to its employees.39 example, a course dealing with health and safety may anticipate that E-learning can reduce career- certain equipment is available for enhancing networking. When practice and direct the learner to training is conducted in a take certain actions. In the online classroom, employees are able version, it is unlikely the learner will to engage with each other in have access to that equipment. An the classroom and outside of it. online version of that course might These informal conversations and require high-resolution photographs, interactions can help employees video demonstrations of equipment broaden their personal networks showing safe and unsafe actions, and and reinforce corporate culture. 3-D visual models of the equipment Such opportunities can be lost the learner can manipulate. In when a classroom course goes the design of all e-learning, firms online. Organizations should should ensure they incorporate the implement new information-sharing cognitive and motivational processes technologies, such as wikis, chat underlying sound training. rooms and topic-specific social media sites to help buffer this loss.

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E-Performance Management • Reducing biases in appraisals. E-performance management A manager’s evaluations often uses technology to automate the are unduly influenced by his or collection of performance data, her most recent observations monitor employee work and of the employee. This can be support the development and mitigated by having performance delivery of performance appraisals. data for the full evaluation period Organizations have many motivations readily available for managers. for implementing e-performance • Linking performance management, including: information to other HR data, • Improving access to such as individual developmental performance data. One of the plans, compensation and challenges in most performance bonuses, job assignments, and appraisal systems is the lag training opportunities. between work activities and performance feedback. With Self-Assessment, Monitoring the availability of real-time and Work Ethic in E-Performance data, managers can provide Management more timely feedback and Unfortunately, there is relatively little employees can see a closer link published research on e-performance between their behavior and their management. As noted above, performance appraisals (PA). e-performance management can provide workers with detailed • Providing data that can descriptions of competencies to be make PAs more objective and included in the evaluation system. valuable. Automatic system Managers and employees can view capture of performance data data on their performance on a can reduce the propensity of regular basis, instead of only at the managers to focus on behaviors time of a performance appraisal. or attitudes unrelated to the job. Although employees view this In addition, when performance electronically captured performance data can be collected by feedback as more objective than the HRIS and performance feedback from a supervisor, they are averages calculated, then, using likely to perceive the supervisor’s pre-determined metrics and feedback as fairer. Individuals measures, a basic template of are less likely to distort negative performance feedback can be information, and apt to be more generated for the employee. accurate in providing feedback when Managerial time can be spent the information is electronically on the “value added” portions communicated.40 However, when of performance management, employees are asked to assess their such as mentoring and coaching own performance over a computer, employees, rather than on there may be a risk that they inflate collecting information and their performance levels more than if completing forms. they were to assess their performance

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in person. Organizations need will react more favorably and Best Practices: E-Performance to understand these complex perceive the monitoring as fairer Management relationships and attempt to balance when its purpose is communicated the various benefits and costs of and it is used developmentally. ✔ Design the system so that using different approaches as they And, of course, employees who data can be captured and impact performance, accuracy view the process as fair are more reviewed at multiple levels of and employee reactions. Even the likely to demonstrate higher job detail, and so that employees best technology can’t fix a bad performance, work satisfaction and can see relationships among performance management process. commitment to the organization. measured behaviors, performance The major focus of research on Finally, organizations should expectations and rewards. e-performance management, consider trying to identify ✔ Work with employees to though, has been on computer- candidates with a strong work ethic. determine the types of data the based performance monitoring. Research has consistently found system will capture. Capture data Organizations use video and certain personality characteristics, that help them be more effective computer-based monitoring such as conscientiousness, to be in their jobs and update the data of employee behavior, such as related to employee productivity collected to support continued keystrokes made, e-mails sent, and performance.42 Employees with performance improvement. websites visited, time to complete a strong work ethic also are more a customer service call and service likely to work effectively without ✔ Remember that human beings time. It seems employees will substantial monitoring, so firms are good at determining what is work faster when electronically can avoid expensive monitoring rewarded and what is not. When monitored—not only on monitored systems, yet still have a productive rewards are based on computer- 43 tasks, but also on nonmonitored workforce. captured metrics, behaviors that tasks— but organizations should not are not easily captured by the assume monitoring is appropriate for Potential Pitfalls in e-performance management all situations. For example, although E-Performance Management system are apt to decrease. performance monitoring does There certainly are some increase speed, this increase in speed ✔ If data not captured by the drawbacks to using e-performance may not work for complex tasks.41 management, and they should be e-performance management Some hospitals have experimented given consideration. are important for performance with “smart” badges on nurses appraisals, be careful that data to closely monitor their speed of Production increases, but quality collected by the system do decreases. Employees naturally service and the time spent with each not inadvertently become the patient or procedure. Although tend to focus on behaviors that are sole source of the performance these systems may sound appealing rewarded. Although the intention appraisal. to administrators looking to increase of performance monitoring is to productivity by rewarding speed, improve performance, a potential ✔ The focus of a performance few patients are very pleased with side effect is that other important, monitoring system should be on having the fastest nurses. but unmeasured, work can suffer. providing feedback to employees to For example, when employees are enhance performance, not simply It also is important to communicate monitored on the speed of task gathering information on them. the purpose of the monitoring and completion, they likely will spend — Griffith, T.L. (1993). Teaching Big Brother the fact that it will be used as a less time on non-performance-based developmental tool rather than as to be a team player: Computer monitoring and criteria, such as customer service or quality. Academy of Management Executive, a control mechanism. Employees quality. 7, 73-80 and recommendations above.

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“Objectiveness” can outweigh E-Compensation importance. One of the tenets One of the earliest areas of HR to of e-performance management is be automated was compensation, that objectiveness of performance and today, virtually all organizations appraisals should increase with use technology to automate payroll increased data capture. Unfortunately, processes. Today’s e-compensation while using such data, managers may systems provide much more value miss, or fail to consider, non-objective than the simple automation of payroll measures, such as customer service. processes. E-compensation uses web- Once again, employees’ performance enabled technology to help managers can become a reflection of the data design, implement and administer the system collects. And employees compensation policies. An HRIS are less likely to focus on more allows organizations to streamline and “subjective” behaviors if those are not automate the compensation planning being considered by managers. process, to model proposed changes in Myopic focus. Often, a computer- compensation plans, to track employee based system encourages less effort by compensation history, to allocate employees in decision-making, rather incentive pay and bonuses, and to than taking advantage of computers provide higher quality information for more effective decisions.44 to decision makers. A recent survey Managers may rely on summary data, shows that 61 percent of organizations rather than fully participating in the use e-compensation systems or plan appraisal process. In today’s time- to implement them in the next year.45 pressured workplace, making sure Multiple business drivers support the computer-generated reports don’t growth of e-compensation technology: replace managerial judgment and • Pressure to contain labor personal interaction is important. costs. E-compensation systems Job complexity versus performance can help increase access to both expectations. Computer-based internal and external salary performance management can help and compensation information. organizations benchmark performance Data can then be incorporated expectations; can more accurately into sophisticated compensation schedule employees for work- models and metrics, which can help related activities such as service or managers better plan and model repair calls; and can sometimes raise the costs associated with various awareness about performance levels. incentive programs. Through better But always remember that the time access to information and better and expertise required for tasks varies compensation models, organizations greatly, and if the complexity of a task are able to gain tighter control over is not accounted for in the system, compensation costs. employees working on more complex • Increasing employee knowledge tasks risk poor evaluations that do not of external market salary data. accurately assess their skills and value. Perceptions of unfairness or inequity in pay will negatively

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impact productivity and morale. and externally. Some things to keep in Because employees now have mind related to fairness: easy access to web-based salary • Internal equity. The goal of information, they are better internal equity is to ensure informed as to how their salaries that pay for each job reflects fit within the local marketplace. the complexity and value of This knowledge may serve as a that job in the organization. stimulus for the organization to Thus, e-compensation systems keep its compensation structure should link to job evaluations. up-to-date and internally Organizations want employee equitable. pay to reflect the value of the • More rapid identification of work to the firm, both from a inadequate pay structures. managerial and a legal point of Organizations can quickly take view. E-compensation applications action to modify compensation can help compensation packages, in order to attract high managers score or value work potential applicants and retain top to enable them to set pay rates performers. that are equitable within the organization’s compensation Organizations are increasingly using structure. A comprehensive technology to link their compensation e-compensation application systems with other components of can help managers collect and their HRIS, such as performance document the rationale for pay management systems, training systems differences. and succession planning. By tying information in the compensation • External equity. What about plan to a range of HR practices and the local labor market? For organizational data, the company large cities, where the marginal can demonstrate the contribution cost of switching employees is of its compensation strategy to somewhat small, this becomes organizational success. important. Organizations unable to develop effective compensation As noted above, one of the most plans will be at a disadvantage in important aspects of any pay or the marketplace. An HRIS can compensation system is the employees’ help by summarizing data from perception of the fairness of the external salary sources and using system. Employees want to be fairly that data to inform the salary compensated for the value of the work planning process. This can help they complete, as well as in relation ensure that top employees are to others in the organization (internal being adequately compensated equity). They also want to be fairly and thereby less apt to be lured compensated in relation to others in away by competitors. the marketplace (external equity). An HRIS can help organizations develop • Individual equity. Employees a compensation strategy that supports want to know they are being perceptions of fairness, both internally compensated fairly relative

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to others in the same job in the with e-compensation systems organization. E-compensation achieved an average of 10.1-percent systems give managers the tools sales growth, versus 8.8-percent to model different compensation growth for companies that did not structures and to assess the costs and have such systems.49 the fit with employee performance • Organizations should use the data of various pay structures. For HRIS to share compensation example, will a proposed bonus or information with their employees. raise place an individual out of the Companies sharing details about pay range for his or her position? compensation with their employees Managers can use all this information are higher performing than those to help them award raises and that do not.50 Companies often bonuses consistent with the desired suffer from the illusion that pay pay structure of the firm. Managers information is secret, but in most can integrate performance data, cases, very little about pay decisions internal salary data and external data and levels remains truly confidential. to make compensation decisions Transparency in compensation plans more effectively and thus ensure and policies can lead to increased salary increases will be based on employee trust and confidence that performance. the employer truly values and rewards performance. E-compensation Streamlining, Performance applications can help organizations and Sharing Information in share this information with E-Compensation employees in an efficient and cost- The collected body of research on effective manner. e-compensation reveals a few valuable conclusions: • The e-performance management system should be integrated • E-compensation streamlines the with the e-compensation system. salary planning process, reducing Data regarding performance can both time and costs. Dell was able seamlessly flow to the compensation to reduce time spent on the salary system for use by managers as they planning process by nearly 65 percent make compensation decisions. (eight weeks to three weeks).46 Organizations linking these functions Another company reported that its together effectively in an HRIS are salary survey process was reduced able to achieve more than three from six months to six weeks.47 In times better sales growth than addition, a major financial services organizations simply focusing on the company was able achieve more automation of HR transactions.51 than $10 million in savings by implementing e-compensation.48 Potential Pitfalls in E-Compensation • Organizations with E-compensation is only as good as e-compensation systems the data stored in the system. One of outperform those without them. the major challenges for organizations A recent survey found that companies designing an e-compensation system is

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accessing the most current information When implementing a compensation Best Practices: E-Compensation about employee salaries and current system, make sure the vendor’s product and Benefits data on the external market. Externally, supports your firm’s compensation ✔ Integrate the e-compensation many salary surveys can be dated by as strategy and is flexible enough to much as one to two years. Internally, reflect the organization’s values and system with your e-performance it is often time-consuming to track approach to incentive compensation. management system. and capture salary information for ✔ Ensure the data in your all individuals in the company. This E-Benefits e-compensation system are reinforces the importance of ensuring current. Without current internal that the e-compensation solution is Benefits are a growing and expensive and external salary data, it is able to access, collect and summarize component of every employee’s total unlikely the system will support the latest wage and benefits data compensation. A recent government the design of fair and effective for both internal and external labor survey suggests benefits costs now markets. average 43.6 percent of wages and compensation plans. salaries.52 Given the continued growth ✔ Ensure vendors provide accurate Substituting technology for in the expense associated with health and timely information to judgment. Compensation is as much care and pension plans, the costs of employees regarding benefits art as science. HR technology can employee benefits likely will continue provide a useful tool for supporting to grow as well. In addition, with the such as health care coverage and compensation decisions, but the coming implementation of the new retirement planning. information provided should be Patient Protection and Affordable Care ✔ Organize the benefits portion of considered advisory to managers. Act, reporting requirements also will the website around key life events Systems can reduce the computational grow. An e-benefits approach uses the to simplify employee navigation. burden for managers and provide web to communicate information on comparative data to aid decision- benefits to employees and allows them making, but managers still need to to elect and manage their benefits make the final judgment and often online. A recent survey suggests nearly need to include factors not necessarily all organizations are using technology captured by the compensation system. to support benefits administration.53 A manager might be aware that an Motivations for using e-benefits employee is at risk of leaving for a include: competitor and may use discretion to award a pay raise beyond that • Reducing the costs for delivering recommended by the system. Blind benefits. compliance with compensation • Improving employee access to software is an abdication of the role benefits information. of the manager and ineffective for the firm in the long run. • Streamlining benefits administration.

Letting the system or vendor • Empowering employees to manage determine your compensation their own benefits. strategy. Any compensation system Although there are multiple ways is based on assumptions about what that an organization can pursue an is valued by the organization. These e-benefits approach, underlying each factors and the weight placed on them of these is the use of employee self- are vital HR strategy decisions. The service (ESS). Most organizations mix and type of incentives must fit now make benefits information the organization’s business model.

23 Transforming HR Through Technology

available via the HR portal, providing empowered and encouraged to take details ranging from health benefits more responsibility for their financial to pension contributions and and physical well-being. planning calculators, EAP program The importance of timely information offerings, educational benefits, leave increases dramatically when benefits information, vacation scheduling, and go online. Indeed, if an employee many others. makes a decision based on inaccurate information from the employer’s Outsourcing, Timeliness and website, the employer may be held Employee Management of legally liable. If timely and accurate E-Benefits information is not available via the Implementing e-benefits does not website, employees will be less likely mean simply replicating paper-based to use it and will continue to call HR forms online. Employees will only for assistance. access the website when they need information, so the website should It is now a best practice to push the provide employees the information management of benefits to employees. they need as quickly and clearly as By using employee self-service (ESS), possible. If employees are unable organizations encourage employees to find the information in a timely to sign up for benefits online and manner, they are likely to call the manage their profiles and benefits HR department. When this occurs, online. Each vendor’s website should the goal of reducing the time and accurately reflect your firm’s policies, expense associated with benefits and organizations also should ensure administration will not be achieved. their systems interface seamlessly with The most effective e-benefits websites vendor systems to ensure information are organized by life events such accuracy and user-friendliness. as marriage, birth and death, or by HR professionals make intensive use changes in work status, such as layoff of e-benefits systems for a variety of and promotion. activities, such as controlling workers’ Many organizations now link or compensation costs or monitoring outsource many of their benefits unemployment claims for ineligible information support. For example, former employees. Managers financial services organizations responsible for compliance with provide their clients’ employees legal mandates (such as COBRA or with financial literacy information, the Family and Medical Leave Act) allow them to forecast the financial use systems to monitor employee implications of their decisions, and status, payment and eligibility for encourage them to learn more health care benefits. Many mandated about how to manage their 401(k). benefits programs carry significant Many health care insurers provide financial penalties for noncompliance. online services to customers, E-benefits applications often can allowing employees to learn about have a positive ROI in a relatively healthy eating, exercise and health short time, not only by reducing management practices. Employees are transaction costs, but also by avoiding fines and penalties.

24 Transforming HR Through Technology

Potential Pitfalls in E-Benefits The Future: Five- Protection and Affordable Care Websites cannot replace skilled staff Year Trends in HR Act will significantly increase members. There is a temptation for the amount of corporate HR policy makers to view the website Technology reporting required by the federal as a way to reduce or eliminate HR Although the HRIS concept already government. It is hard to imagine personnel from all aspects of benefits has transformed the field of HR, organizations without a strong administration. The HRIS can technological changes on the horizon HRIS effectively navigating this automate basic transactions, educate have the potential for even greater new environment. employees and create efficiencies in impact. Such trends include: • Rent-versus-buy decisions. benefits administration. At the same Although early adopters of HR time, the HRIS is not as effective in • Growth of social networking. technology often purchased dealing with the inevitable exceptions One of the next challenges for hardware and software licenses to policy for which HR experts will HR executives is learning to from vendors, the growth of the need to be available. Consider the integrate information from social Internet and web-based systems spouse who is inquiring about the networking sites. Potential benefits has enabled organizations to benefits due him or her after a death, must be balanced with issues of consider other approaches, such or about the company’s options for privacy and data accuracy. Vital as cloud computing and software- accommodating someone with a questions at this point include as-a-service. The use of hosted disability. Systems are not good at how to use social networking approaches, in which organizations being empathetic, and a website can data to support recruiting, rent services and software from never completely replace a skilled HR internal communications, vendors, is growing. As cloud professional. employee knowledge sharing, collaboration and training. This computing delivers more HR An organization cannot depend area will evolve as legislation and applications over the web, rent- exclusively on the website to applications develop. For example, versus-buy decisions will become communicate complex benefits German politicians already have more common. Such approaches information. The benefits website proposed outlawing the use of can provide benefits, especially for can be a rich source of information for social networking information in smaller organizations that cannot employees, but it should not be the only employment decision-making. afford to purchase a large system. source. Benefits are more complicated Services such as cloud computing • Continued growth of compliance today than ever before, and pending and software-as-a-service will grow and reporting requirements. changes in health care and pension in market share and will provide Organizations continue to be benefits will only make the potential for added flexibility to organizations’ affected by state and federal confusion worse. Employees may not be HRIS strategies. able to make sense of choices and rules compliance requirements, which from the website and may need to speak require HR to collect and report • Use of business intelligence (BI) with benefits experts to assist them in additional information. Firms and dashboards. How can firms understanding the choices they will face. increasingly will need to adapt measure HR’s contributions to their HRIS in order to remain profits? Although organizations compliant. Pending changes already have invested in basic in tax codes, financial reports, reporting capabilities and are equal employment opportunity establishing data warehouses, compliance and health care all it has been a challenge to get suggest that compliance and these data into a form usable for reporting demands will increase. managers. To address this problem, For example, the new Patient organizations will begin to use more sophisticated BI applications

25 Transforming HR Through Technology

to make effective use of the large • Changes in HR staff skills. New amount of data available through types of HR professionals will the HRIS. HR dashboards, be needed in the next few years. which present high-level, real- Some will continue to transition time, graphically formatted data from transaction-based generalists to managers, will become an to internal consultants who can integral part of the management help align HR practices with of human resources. In addition, business goals. HR generalists also organizations will adopt more will need increased skills in change sophisticated web-based workforce management and business process analytic tools and will push data management. Another continually further out to managers. All this evolving role is that of the HR will help managers use their firms’ content expert. Legal requirements personnel policies and practices to and other regulations make many make better decisions. benefits programs and HR policies much more complex to manage. • Increasing HR data transparency As a result, organizations will need and increasing privacy concerns. more staff who are experts in these As noted above, an HRIS can new, complex regulations. Finally, make more HR data—including HRIS skills will become more policies and procedures—more important for all HR professionals. accessible and transparent to Organizations will need HR employees. Web-based capabilities staff members who can work will increase this transparency, effectively with external vendors as employees enjoy even greater and consultants to implement and access to their own data, as well as upgrade software and evaluate to HR data traditionally available implications of new software only to HR staff. At the same initiatives on the HR practices of time, concerns about privacy will the firm. increase. Few organizations manage as much personal information as do employers. Every few days, we May My Avatar Speak with Your Avatar? see reports of data compromises Second Life is a virtual world where avatars (digital representations of and identity theft. As employers individuals) interact, learn and engage in many of the activities possible make data easier to access, the risk in the “real” world. For example, avatars can have conversations, start of jeopardizing employees’ privacy businesses and engage in hobbies. Corporations ranging from Accenture increases. Managing this risk has to IBM, HP and even the IRS have developed “islands,” or locations, in become more complex as HR Second Life, for job seekers to visit and learn about career opportunities. applications often link to systems outside the organization, such as Much of what is contained on a traditional recruiting website can be designed benefits vendors, online job search into an organization’s Second Life recruiting environment. One major sites and distance learning providers. innovation with Second Life is that once on the island, the applicant’s avatar can interact with a recruiter’s avatar and receive answers to standard questions from a pre-determined list of responses. If the recruiter is online, the two can engage in an avatar-to-avatar conversation. Cutting-edge technologies such as Second Life are increasingly being used by organizations for recruiting, onboarding and sharing expertise among employees.

26 Transforming HR Through Technology

Conclusion Human resource information systems have dramatically altered how HR services are delivered and managed by organizations. Used effectively, HRIS can make HR staff more efficient, better informed and better able to communicate how they add value to the business. As the research shows, organizations that combine effective HR management processes with effective HR technology are likely to be more productive and more profitable than those that do not. Of course, the challenge for HR executives is to manage this technology to maximize the benefits while minimizing the pitfalls along the way.

Best Practices: Optimizing Your Results When Implementing HRIS in E-HR ✔ Redesign and streamline HR processes when implementing e-HR tools. Remember, e-HR is a powerful way to implement an HR strategy, but in and of itself, e-HR is not an HR strategy. ✔ Automate basic HR administrative tasks and use the HRIS to support managerial decision-making. ✔ Communicate with employees so they understand how and why e-HR data are being collected and used. ✔ Use data from the HRIS to ask more complex and strategic HR questions. Metrics matter, and the HRIS can offer powerful analytic tools to help managers make tough choices. ✔ Empower employees to control their own data via the HR website and delegate basic HR transactions to employees. Design the HR website to have timely information, make it easy to navigate and make it aesthetically pleasing. Make the HR web presence consistent with employees’ expectations. If employees can’t find what they need on the website, they will call HR. ✔ Balance technology with person-to-person contact. Don’t let technology manage the relationship with your employees. Losing a personal link with applicants and employees is a real risk with a strong e-HR strategy. ✔ Use non-technological solutions when appropriate. Though e-HR should be a central component of an organization’s HR strategy, it should not be the exclusive solution. Technology is not a replacement for sound HR strategy and strong employees. ✔ Remember that e-HR is not just for large organizations. Small and medium-sized businesses also can benefit from technological support of HR. As vendors continue to develop more solutions for such companies, opportunities will only grow.

27 Organizations that combine effective HR management processes with effective HR technology are likely to be more productive and more profitable than those that do not. Transforming HR Through Technology

Sources and Suggested Readings

Books Gueutal, H., & Stone, D. L. (Eds.) (2005). The brave new world of eHR: Human resources management in the digital age. San Francisco, CA: Jossey-Bass.

This book was published as part of the Professional Practice Series by the Society for Industrial and Organizational Psychology. It is designed to assist practitioners in understanding how technology is changing the HR function. Topics include discussions of HR transformation, e-learning, e-selection, e-performance management, e-compensation, delivery trends, system acceptance and “long-term” technology trends as they impact the HR field.

Kavanagh, M., Thite, M., & Johnson, R.D. (Eds.) (forthcoming in 2011). Human resource information systems: Basics, applications, and future directions (2nd ed.). Thousand Oaks, CA: Sage Publications.

This book is the latest version of the most widely used textbook on e-HR and is geared toward those with limited experience in HRIS. It covers topics such as determining software needs, managing the design and implementation process, use and acceptance of systems, and the impact of technology on the different functional areas of HR. This book is a good starting point in familiarizing HR staff members with the ways technology can enhance practice.

Stone, D.L. (Ed.) (2003). Advances in human performance and cognitive engineering research, volume 3. New York, NY: Elsevier.

Volume 3 of this series focuses on the impacts of technology on organizations, especially the impact on human resources. Research essays cover topics such as the virtual workplace, the implementation of HRIS, e-compensation, the HR implications for virtual organizations and e-learning.

29 Transforming HR Through Technology

Articles information viewed on a recruiting This paper focuses on the website. The results of this study relationship between applicant Bauer, T. N., Truxillo, D. M., Paronto, provide evidence that the ability for screening techniques and the use of M. E., Weekley, J. A., & Campion, applicants to customize information performance monitoring. Specifically, M. A. (2004). Applicant reactions to will lead to more accurate assessment the authors find that employers who different selection technology: Face- of applicant fit with the organization screen applicants for factors such as to-face, interactive voice response, and and will reduce the number of poor fit conscientiousness, which can predict computer-assisted telephone screening applicants. work ethic, are able to use less interviews. International Journal of expensive forms of monitoring systems. Selection and Assessment, 12, 135-148. Gueutal, H. G., Marler, J. H, & Falbe, The use of technology to support C. M. (2007). Skill sets for the e-HR Johnson, R. D., Hornik, S. R., & Salas, screening techniques can reduce the world. IHRIM Journal, XI (2), 9-15. E. (2008). An empirical examination costs of implementing screening. This This paper discusses how technology of factors contributing to the creation study focuses on fairness perceptions changes in the field of HR are affecting of successful e-learning environments. and organizational attractiveness across the skills needed by HR employees. It International Journal of Human- three screening technologies: face-to- focuses on how technology is reducing Computer Studies, 66, 356-369. face, telephone and interactive voice the need for the traditional HR Communication is an important response (IVR). The results suggest generalist while increasing the need for component of the creation of there are no differences in applicant specialists, including HRIS specialists successful e-learning courses. This attraction and most perceptions of and super content masters who can study found that individuals who fairness, although those receiving IVR help employees navigate complex HR communicated more performed better had lower perceptions of procedural issues. and were more satisfied with the justice. course. In addition, research shows it Hornik, S., Johnson, R.D., & Wu, is important for learners to feel they Cappelli, P. (2001). Making the most Y. (2007). When technology does are in a shared learning environment. of online recruiting. Harvard Business not support learning: Conflicts The more learners felt they were in a Review, 79, 139-146. between epistemological beliefs shared learning environment the more Using the Internet to support and technology support in virtual satisfied they were with the course and recruiting is central to how learning environments. Journal the greater their utility judgments (i.e., organizations attract potential job of Organizational and End User the more they saw the value in the candidates. In this article, Cappelli Computing, 19 (2), 23-46. course). outlines four keys to effectively The use of more advanced technology managing the e-recruiting process. can be viewed as a way for organizations Lievans, F., & Anseel, F. (2007). These include using the web to attract to improve training outcomes. Creating alternate in-basket forms candidates, using technology to sort This article finds it may not be the through cloning: Some preliminary applicants, issues of discrimination, and technology itself that matters, but how results. International Journal of how to quickly identify and move to the course design and technology fit Selection and Assessment, 15, 428-433. hire the top candidates. with how the trainees like to learn. The use of computerized in-basket When the learners found a mismatch, tasks can reduce administration costs, Dineen, B. R., & Noe, R. A. they communicated less, were less improve realism and allow for more (2009). Effects of customization on engaged and performed slightly worse timely feedback. In this study, a application decisions and applicant than when there was a fit. cloning procedure is used to design pool characteristics in a web-based a computerized version of a paper- recruitment context. Journal of Applied Huang, F., & Cappelli, P. (2010). pencil in-basket test. The results of this Psychology, 94, 224-234. Applicant screening and performance- study indicated that the computerized In this study of 348 job seekers, the related outcomes. American Economic in-basket test scores were similar to researchers examined the ability of Review, 100, 214-218. the paper-pencil task, suggesting that applicants to customize the order of

30 Transforming HR Through Technology

well designed in-basket tests can be This is a meta-analysis of 96 studies on Stone, E. F., & Stone, D. L. (1990). converted to computer-based tests. the relative effectiveness of web-based Privacy in organizations: Theoretical instruction (WBI) versus classroom issues, research findings, and Marler, J. H., Liang, X., & Dulebohn, instruction. Results show that web- protection strategies. In G. Ferris & K. J. H. (2006). Training and effective based instruction can be as effective Rowland (Eds.), Research in personnel employee information technology use. as classroom instruction. The results and human resources management, Vol. Journal of Management, 32, 721-743. also indicate it is not the technology 8, (pp. 549-411). Greenwich, CT: JAI The research described in this study that makes the difference in learning; Press. focused on the importance of training it is the use of sound course design With the increasing collection of and organizational support when principles. employee data made possible through transitioning to a new technology. HRIS, issues of employee privacy will Ninety-four administrative employees Weichmann, D., & Ryan, A. M. only grow in importance. This article were surveyed, and both the amount (2003). Reactions to computerized outlines the basic issues of privacy in and quality of training received testing in selection contexts. organizations and how organizations predicted use intentions. In addition, International Journal of Selection and can deal with them. It is an excellent employees were more likely to use the Assessment, 11, 215-229. primer on privacy issues. software when they felt they had access This paper focuses on employee to additional resources. attitudes and reactions and performance on computerized tests. Book Chapters Potosky, D., & Bobko, P. (2004). The results show reactions to the test Selection testing via the Internet: Dulebohn, J. H., & Marler, J. H. did not differ between paper-pencil Practical considerations and (2005). E-compensation: The potential and computerized tests. Computer exploratory empirical findings. to transform practice? In H.G. Gueutal anxiety and experience did affect Personnel Psychology, 57, 1003-1034. & D.L. Stone (Eds.), The brave performance scores, suggesting This study reviews the research in new world of eHR: Human resources organizations should consider the role the area of Internet-based selection management in the digital age. San anxiety and experience may play when testing. Specifically, it focuses on issues Francisco, CA: Jossey Bass. implementing computerized or online of measurement equivalence of online This chapter is one of the most testing. versus paper-pencil administration. thorough discussions on the impacts Practical advice for measurement Williamson, I. O., Lepak, D. P., & of technology on compensation equivalence, applicant responses and King, J. (2003). The effect of company practices. It covers the strengths and technology design issues also is offered. recruitment website orientation risks of using technology to support on individuals’ perceptions of compensation practices and discusses Sitzmann, T., Kraiger, K., Stewart, D., organizational attractiveness. Journal of how organizations might implement & Wisher, R. (2006). The comparative Vocational Behavior, 63, 242-263. e-compensation. effectiveness of web-based and In a study of 252 potential job classroom instruction: A meta-analysis. Marler, J. H., & Dulebohn, J. H. applicants, perceptions of websites Personnel Psychology, 59, 623-664. (2005). A model of employee self- with a recruiting versus screening service technology acceptance. orientation were investigated. The Research in Personnel and Human results of this research found the Resource Management, 24, 139-182. websites that were recruiting-oriented One of the key questions facing were viewed as more useful and were organizations as they implement more attractive to potential applicants. employee self-service is how to get These results suggest the importance employees to use the system. This of focusing on recruiting rather than research essay reviews the work on screening employees. technology acceptance and adoption,

31 Transforming HR Through Technology

integrating ideas from over 15 years of Web and Other Annual Surveys and research and presenting a model of the Resources White Papers factors that will increase the likelihood that employees will use the ESS. IHRIM (www.ihrim.org). Consulting firms can be a good source of information and survey results IRHIM is an organization dedicated to Stone, D. L., Lukaszewski, K. M., & for information regarding the use the advancement of the field of human Isenhour. (2005). E-recruiting: Online of e-HR. For more than 10 years, resource information systems. It offers strategies for attracting talent. In H. CedarCrestone (www.CedarCrestone. a variety of services to members, Gueutal & D.L. (Eds), The brave com) has published an annual HR such as white papers, research on new world of eHR: Human resources systems survey. The CedarCrestone HRIS implementations, an online management in the digital age. San HR Systems Survey is valuable in that social network and a certification Francisco, CA: Jossey Bass & Society it contains longitudinal data on HR program. In addition, members of for Industrial and Organizational technology that allows trends to be IHRIM receive the Workforce Solutions Psychology. examined. Likewise, Towers Watson Review, which focuses on research This chapter reviews the research (www.Towerswatson.com) publishes a findings about the use of technology to on the utilization of e-recruiting in wide variety of HR research, including support HR. organizations. It presents advice for specialized studies dealing with HR the design of the corporate recruiting SHRM (www.shrm.org). technology issues. The Towers Watson website, how to manage the recruiting 2010 HR Service Delivery Survey process, and the potential issues that The SHRM website has a rich Report provides excellent insight into organizations face when implementing collection of information about the use the views of HR executives on key e-recruiting. of HR technology in organizations. HR issues and the use of technology From white papers to case studies to to address these challenges. Mercer Stone, D. L., Stone-Romero, E. F., & industry research, the SHRM website Lukaszewski, K. (2003).The functional (www.Mercer.com) also publishes a can answer many questions regarding variety of technology-related reports and dysfunctional consequences the use of technology to support of human resource information dealing with HR issues. The foregoing different functions. In addition, is not meant to be an exhaustive list of technology for organizations and SHRM’s member publication, HR their employees. In D. L. Stone (Ed.), sources, but instead represents a good Magazine, provides a monthly column place to start your HR technology Advances in human performance and on HR technology. cognitive engineering research, volume research. 3. New York, NY: Elsevier. HR Executive (www.HREOnline.com) This chapter introduces a model HR Executive is a well-respected References of the functional and dysfunctional publication that focuses on current 1 consequences organizations may face CedarCrestone 2009-2010 HR issues in HRM. The publication has an th when implementing HR technology. It Systems Survey, 12 Annual Edition ongoing focus on articles dealing with is one of the most thorough chapters 2 technology in HRM and also sponsors Although an HRIS may contain on the topic and covers the potential an annual technology conference and a paper-based components, the focus positive and negative impacts on the number of webinars dealing with HR of this manuscript will be on systems different functional areas of HR as technology issues. Recent articles have that are computerized. well as the impacts on the organization focused on social networking/media, 3 as a whole and the employees in the Ibid. mobile computing and implementing organization. software as a service. 4 Robb, D. (2010). Making the move to manager self-service. HR Magazine 55(11), 67-68.

5 Ibid.

32 Transforming HR Through Technology

6 Marler, J. H., Liang, X., & & Isenhour. (2005). E-recruiting: 20 An example of this is Weichmann, Dulebohn, J .H. (2006). Training Online strategies for attracting D., & Ryan, A.M. (2003). Reactions and effective employee information talent. In H. Gueutal & D. L. (Eds), to computerized testing in selection technology use. Journal of The brave new world of eHR: Human contexts. International Journal of Management, 32, 721-743. resources management in the digital Selection and Assessment, 11, 215- age. San Francisco, CA: Jossey 229. 7 Cober, R. T., Brown, D. J., Bass & Society for Industrial and Blumental, A. J., Doverspike, D., & 21 Bauer, T. N., Truxillo, D. M., Organizational Psychology. Levy, P. (2000). The quest for the Paronto, M. E., Weekley, J. A., & qualified job surfer: It’s time the 15 Society for Human Resource Campion, M. A. (2004). Applicant public sector catches the wave. Public Management. (2005). Online reactions to different selection Personnel Management, 29(4), 479- assessments speed candidate selection technology: Face-to-face, interactive 494. process. Retrieved on October voice response, and computer- 10, 2010, from www.shrm.org/ assisted telephone screening 8 CedarCrestone 2009-2010 HR hrdisciplines/staffingmanagement/ interviews. International Journal of Systems Survey, 12th Annual Edition. Articles/Pages/CMS_013441.aspx. Selection and Assessment, 12, 135- 9 Society for Human Resource 148. 16 Alkhadher, O., Anderson, N., & Management. (2007). Advances in Clarke, D. (1994). Computer- 22 Chapman, D. S., & Rowe, e-recruiting: Leveraging the dot-jobs based testing: A review of recent P. M. (2001). The impact of domain. Alexandria, VA: SHRM. developments and practice. videoconference technology, 10 Breaugh, J. A. (2009). Recruiting European Work and Organizational interview structure, and interviewer and attracting talent: a guide to Psychologist, 4(2), 169-187. gender on interview evaluations in understanding and managing the employment interview: A field 17 Bartram, D., & Brown, A. the recruitment process. SHRM experiment. Journal of Occupational (2004). Online testing: Mode of Foundation, Alexandria, VA. and Organizational Psychology, 74, administration and the stability 279-298. 11 Towers Watson. (2010). Creating of OPQ 32i scores. International a sustainable rewards and talent Journal of Selection and Assessment, 23 Wiechmann, D., & Ryan, A. M. management model: Results of the 12, 278-284. (2003). Reactions to computerized 2010 global talent management testing in selection contexts. 18 Lievans, F., & Anseel, F. (2007). and rewards study. Retrieved on International Journal of Selection Creating alternate in-basket forms September 13, 2010, from www. and Assessment, 11, 215-229. through cloning: Some preliminary towerswatson.com/talent- results. International Journal of 24 Chan, D., & Schmitt, N. (1997) management-rewards/key-findings. Selection and Assessment, 15, 428- Video-based versus paper-and-pencil 12 Williamson, I. O., Lepak, D. P., 433. method of assessment in situational & King, J. (2003). The effect judgment tests: Subgroup differences 19 For more information on these of company recruitment website in test performance and face validity issues, the reader is encouraged orientation on individuals’ perceptions. Journal of Applied to read Potosky, D., & Bobko, P. perceptions of organizational Psychology, 82, 143-159. (2004). Selection testing via the attractiveness. Journal of Vocational Internet: Practical considerations 25 Capelli, P. (2001). Making the Behavior, 63, 242-263. and exploratory empirical findings. most of online recruiting. Harvard 13 Seminerio, M. (2001). E-recruiting Personnel Psychology, 57, 1003-1034. Business Review, 79, 139-146. takes next step. eWeek, 18(16), 51- 26 American Society for Training 54. and Development. (2004). 2004 14 Stone, D. L., Lukaszewski, K. M., ASTD state of the industry report. Alexandria, VA: ASTD.

33 Transforming HR Through Technology

27 American Society for Training 36 Johnson, R. D., & Yanson, R. 44 Todd, P., & Benbasat, I., (1991). and Development. (2007). 2007 C. (2010). E-learning research: An experimental investigation of the ASTD state of the industry report. Integrating findings from human impact of computer based decision Alexandria, VA: ASTD. resources, management information aids on decision making strategies. systems, and education. In K. Information Systems Research, 2, 28 CedarCrestone 2009-2010 HR Lukaszewski & D. L. Stone (Chairs), 87–115. Systems Survey, 12th Annual “Emerging Issues in Research Edition. 45 CedarCrestone 2009-2010 HR on Electronic Human Resource Systems Survey, 12th Annual Edition. 29 Tucker, M.A. (2005). E-learning Management Systems.” Symposium evolves. HR Magazine, 50. at the 70th Annual Meeting of the 46 Gherson, D., & Jackson, A. P. Academy of Management, Montreal. (2001). Web-based compensation 30 Mullich, J. (2004). A second act for planning. In A. J. Walker (Ed.), Web- e-learning. Workforce Management, 37 Ibid. based human resources (pp. 83−95). 83, 51-55. 38 Boehle, S. (2007, September 6). New York, NY: McGraw-Hill. 31 Murphy, S. (2008, December iPod corporation. Training, 17-19. 47 Barnes, M. T., & Seals, K. L. (2004, 23). Ritz Camera focuses on 39 Welsh, E. T., Wanberg, C. R., 3rd Quarter). New outsourcing web-based teaching tools. Brown, K. G., & Simmering, M. opportunities in compensation Retrieved October 7, 2010, from J. (2003). E-learning: Emerging management. Benefits Quarterly, http://admin.retailingtoday. uses, empirical results and future 42-47. com/enewsletter/display2. directions. International Journal of aspx?SID=4ac07b11-5ace-4680- 48 Dulebohn, J. H., & Marler, J. Training and Development, 7, 245- 940c-1e68ac34da0a&N=2039. H. (2005). E-compensation: The 258. potential to transform practice? In 32 Noe, R. (2009). Learning system 40 Sussman, S. W. & Sproull, L. H. G. Gueutal & D. L. Stone (Eds.), design: A guide to creating effective (1999). Straight talk: Delivering The brave new world of eHR: Human learning initiatives. SHRM bad news through electronic resources management in the digital Foundation, Alexandria, VA. communication. Information Systems age. San Francisco, CA: Jossey Bass. 33 Sitzmann, T., Kraiger, K., Stewart, Research, 10, 150-166. 49 CedarCrestone 2009-2010 HR D., & Wisher, R. (2006). The 41 Kolb, K. J., & Aiello, J. R. (1997). Systems Survey, 12th Annual Edition. comparative effectiveness of web- Computer-based performance based and classroom instruction: A 50 Gherson, D., & Jackson, A. P. monitoring and productivity in a meta-analysis. Personnel Psychology, (2001). Web-based compensation multiple task environment. Journal 59, 623-664. planning. In A. J. Walker (Ed.), Web- of Business and Psychology, 12, 189- based human resources (pp. 83−95). 34 Hornik, S., Johnson, R. D., & Wu, 204. New York, NY: McGraw-Hill. Y. (2007). When technology does 42 Schmidt, F. L., & Hunter, J. E. not support learning: Conflicts 51 CedarCrestone 2009-2010 HR (1998). The validity and utility between epistemological beliefs Systems Survey, 12th Annual Edition. of selection methods in personnel and technology support in virtual psychology: Practical and theoretical 52 Bureau of Labor Statistics. (2010, learning environments. Journal implications of 85 years of research June). Employer Costs for Employee of Organizational and End User findings. Psychological Bulletin, Compensation. Computing, 19 (2), 23-46. 124(2): 262–274. 53 CedarCrestone 2009-2010 HR 35 Meister, J. (2002). Pillars of 43 Huang, F., & Cappelli, P. Systems Survey, 12th Annual Edition. e-learning success. New York, NY: (2010). Applicant screening and Corporate University Exchange. performance-related outcomes. American Economic Review, 100, 214-218.

34 Make Better Talent Decisions

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Count on ADP to help you thrive in the new economy. Your challenges get bigger. Your resources seem to get smaller. But with ADP, the solutions just keep getting better.

ADP’s solutions help you do more with less, improve your bottom line, stay compliant and, most important, find, grow and keep great people.

From web-based solutions to personal attention, we put your needs front and center, giving you the support to help move your business forward.

You don’t need more resources or a bigger budget to keep up with the new economy. You just need the expertise and experience that only ADP can offer.

1-800-CALL ADP / www.adp.com

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The ADP Logo is a registered trademark of ADP, Inc. The SHRM Foundation is the 501(c)3 nonprofit affiliate of the Society for Human Resource Management (SHRM). The SHRM Foundation advances global HR knowledge and practice by providing thought leadership and educational support; and sponsoring, funding and driving the adoption of cutting edge, actionable, evidence-based research. The Foundation is governed by a volunteer board of directors, comprising distinguished HR academic and practice leaders. Contributions to the SHRM Foundation are tax deductible. Visit the SHRM Foundation online at www.shrm.org/foundation.