ActivHR Consulting Ltd

Is self-service understood?

Monday, 08 March 2010 08:05


Can HR keep up with the pace of self-service technology?

All the evidence points to self-service saving time and money yet take-up remains low and the technology is becoming ever more advanced, so why are HR dragging their feet.

Difficult as it is to imagine, when Apple launched the iPod - its first foray into the consumer MP3 market nine years ago - bloggers and analysts alike gave it a distinctly lukewarm reception. One analyst said it lacked the 'richness of Sony's (its rival) product offering', while another called it 'iPoop'. But despite not demonstrating anything technologically new (MP3s had been out for years), it defied the critics, and mass adoption (it is close to selling its 250 millionth unit) followed.

The seemingly fickle nature of why some technology takes off but others do not (despite being superior) will again be in Apple executives' minds as reaction to its next 'third category'

Reception for the iPad was similarly on the cool side when launched in January. But it is precisely this lack of uptake in the face of all the arguments to the contrary that continue to blight the area of employee self-service. For despite the lure of freeing HR time from administration, 50% of organisations have still not introduced any self-service at all, according to Computers in Personnel.

But this is only half of it. HRDs could soon have another problem on their hands. Against lower than expected take-up (but possibly to encourage more adoption), self-service providers are pressing ahead and finding new ways of expanding self-service usage (see Aviva case study, below). There is a real threat HRDs are failing to keep up with what employee self-service can do.

As much as 2 years ago, some technology suppliers predicted companies would actually lose competitive advantage by not having some form of self-service. Right up to date, James Ronksley, director at NorthgateArinso, admits not a lot has changed since: "We know a lot of organisations are buying self-service technology. But are they using it and really getting the benefit? Probably not."

Jonathan White, new business sales manager at Sage, says: "Inevitably some organisations hit a glass ceiling with this technology depending on their size and sector. But a finance company where people have a workstation and computer are bound to make more use of the service than a manufacturer where staff are working manually."

New areas into which self-service is moving include training plans and staff surveys, expenses management and even mobile workforce management.

As ever, the same issues of internal management buy-in still seem to dominate. The reason the technology is moving on, say providers, is because it needs to. According to recent research, 84% of HR staff questioned said they struggled to answer staff requests promptly because dealing with their telephone calls got in the way of meeting their objectives. It does require some form of HR/line manager buy-in. For the system to work effectively HR staff have to upload information about contracts, absence, company policy and other people-related issues onto the HR platform.

In all organisations, HR is under increasing pressure to be efficient and to cut costs. Generally, HR is not doing a good job of keeping up to date with developments; it is tempting for HR to have a frequently asked questions PDF on staff intranets, and they believe this is a self-service system. It is not, staff still have to read through many pages of text before they get the information they need. In the end some will give up and just phone HR.

Eight years ago a survey from IBM found almost a quarter of HR departments' time was taken up with admin - including answering staff queries. Anecdotal evidence seems to suggest not a lot has changed, but HR practitioners arguably have themselves to blame if they fail to keep up with what self-service can really do for them.

Why use self-service?

Employee self-service provider Cascade asked firms how they had benefited from having self-service:

  • Improved efficiencies 69%
  • Ease of accessibility 69%
  • Staff empowerment/autonomy 42%
  • Adaptability 29%
  • Reduced absenteeism 9%
  • Improves staff retention 1%
  • Other 23%%

How many hours across the HR department on average have you saved per week since implementing employee self-service?

  • 15-20 hours 6%
  • 10-15 hours 14%
  • 20-30 hours 1%
  • 30 hours-plus 5%
  • Other 21%
  • 0-5 hours 25%
  • 5-10 hours 29%

Companies reaping the benefits:

  • Dell Computer Corporation saved $2.5 million in the first year of implementation of a fully web-native, self-service system. Today, employees are able to access virtually every HR process via the web and the system has been rolled out to 23 countries throughout the Americas and Asia-Pacific regions
  • In 2009 fleet provider Masterlease reported it saved 80% of HR administration time through the launch of a self-service system.
  • International law firm, Eversheds, sought to increase the employee and managers ability to change and improve the data they held whilst at the same time look to reduce the administrative burden by offering a range of services direct.  Working in partnership with HR & payroll outsourcing services provider Ceridian, Eversheds decided to implement a range of self service products including online pay slips, holiday bookings, season ticket loan applications, online training and CPD monitoring for legally qualified staff and the storage of all personal details.

During implementation, Eversheds experienced the normal difficulties when engaging employees and managers to ensure uptake of the solution. Most new users of the self service solution tended to question "Isn't this extra workload for me?" and "We have an admin team to do this!" and "The more we do the less we need HR" which was/is definitely not the case.  In order to combat these issues and culture shock, they countered problems through good communication, stakeholder involvement, focus groups and selling the benefits of the system.
 
Following implementation, feedback was fairly positive with the business seeing clear benefits. The opportunity to release more information to employees, managers and partners was significant with managers being able to enter directly sickness and other types of absence, as well as accessing reports on sickness, holidays, staff lists and employment details.
 
The speed of releasing this type of information through self service also improved, freeing up more administration time. Another clear example of benefits to the business is the dramatic improvement of data integrity, with the number of queries around incorrect personal details decreasing substantially and automatic updating of organisational charts to reflect the true stance of the company.
 
Because of these benefits Eversheds are planning to expand the self service capability into more areas of the business in the future. They hope to include a range of transactions which can be initiated by the employee and manager, for example maternity notifications and employee resignations, as well as providing access to the self service product internationally.   This will all need to be communicated effectively and Eversheds will be looking to engender a collaborative approach to these changes to avoid the issues which were faced in the first implementation.

To discuss your own circumstances and to find out more about how self-service might be of benefit to your own organisation, please call us on 0844 335 8486 or email to This e-mail address is being protected from spambots. You need JavaScript enabled to view it