PeopleSoft HCM 9.1 Succession Planning

How important is it to an organization?

The recession storm seems to have settled down and IT companies are in a hiring spree, much to the trend seen in the Formula one racing, its Schumi’s re-entry and some good show by Force India team and Adrian. It all seems to be drilling down to the race line.. eagerly awaiting to jump on the gas pedals in this 2010 season.

Yes, the software industry too – is looking forward for a jump start and many IT organizations are preparing themselves for the race, the race which will win them new clients in new areas and the world economy seems to get back in its ‘once’ fruitful track.

As many of you are aware, Oracle has come up with the PeopleSoft 9.1 Version with some cool features, Lets see why one of the new features of Peoplesoft 9.1 seems to be interesting as it justifies the HR operations with its functionality. One of the reasons for Indian IT organizations to spend a lot of effort and cost in hiring new employees and especially high profile positions within an organization seems to be the lack of succession planning and career planning.

Succession planning enables an employer to organize its talent pools based on the employees person profile, job code, position and a plan that is unique to it. Initial and continous mapping of employees competency, performance and interests with the employer’s goals (position, jobcodes) makes it easier for the organization to plan and sustain its growth in the event of its new project wins. As stated in

Learning Management System drives a companies growth

Peoplesoft 9.1 brings in easier integration options with the Enterprise Learning Management (ELM) module thereby providing consistent career paths for the employees to pursue inorder to accomplish the succession planning. Both the HR Administrators and Managers are well equipped with the Visualization (user friendly reports) and Self Service  layer in accomplishing the tasks.

Features like tracking an employee’s successor in terms of number of years makes the job even easier for the HR to identify / probably mine through the talent pool of the organization.

Let’s see how IT organizations are quick in implementing the Succession planning feature of PeopleSoft 9.1 and Let’s assure them that its a vital part for a growing organization.

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PeopleSoft 9.1 HCM Compensation and Performance Appraisal Cycle

It’s Appraisal Season, Like the leaves which change color in fall and fall off their trees – IT Sector may witness a lot of attrition during and after the appraisal cycle. The reason being the outcome of the appraisal process .

 It is vital for a growing organization to streamline their appraisal process with planning their funding channels, organizing the pay components and administering it.

Existing PeopleSoft features of Tree Manager, Approval Workflow Engine (AWE), HCM Delegation Framework and pagelet wizards are inter woven with a streamlined process to accomplish what Oracle calls PeopleSoft 9.1 Compensation. Interestingly, the interoperability aspects with ePerformance, Core HR and variable compensation adds more value and increased ROI for the organizations which would implement PeopleSoft 9.1 HCM Compensation.

The first thing that an organization eyes is their budget/Funds for an appraisal / Compensation cycle, followed by the planning and allocation of collective Compensation aspects. Embedded analytics and user friendly interface enables Compensation Administrators or Managers to build what peoplesoft terms it as “Compensation Cycle”.Initial Setup would involve defining proration rules, rounding rules, salary plan, action reason,.. and Configuring compensation matrix.

Example Appraisal – Compensation Configurable matrix:
Rating             Funding Pct       Min Percent     Max Percentage
————-     —————       —————     ——————–

6                               42                       42                            42

5                               30                       30                            30

4                               19                       18                            19

3                                8                          8                             8

2                                2                          2                             2

1                                2                          1                             2

For a compensation cycle, the funding overview for salary plans  summarizes the total number of head count which would be involved in the appraisal cycle along with the calculated total salaries, calculated amount, calculated percent, qualified headcount, qualified salaries, funded amount, funded percent, proposed amount, proposed percent.

Once the compensation cycle (01JAN2009 to 31DEC2009) is defined, the appraisal team works with the variable compensation plans and compensation rules to manage the available funding for an appraisal cycle. The Pay out periods as well as the Pay out types are also defined using the cash or available stock options. It is one of the features in which many employers tend to provide stocks instead of a cash hike. Followed by the compensation team, the manager self service of PeopleSoft is used by the managers to update appraisal info of an employee or a group (direct reports / Indirect reports) along with their review ratings. The Approval process plays a vital role in approving the planned / updated compensation details using the delivered roles of “submitter” “reviewer” and “Confirmer”.

On the other hand, the administrator is equipped with the compensation dashboard which constitutes the Process flow Build->Open->Load->Close and status history which manages the manager’s access rules (notification period, default, review period, update period)

PeopleSoft 9.1 Compensation also allows employers to handle exceptional cases during an appraisal cycle by incorporating “Key Resource Bonuses” on the Award Plans present with the compensation module.

In total, PeopleSoft 9.1 HCM Compensation seems to be quiet promising in bring in transparency and streamlined appraisal cycle within a growing organization.

Know More About: Peoplesoft 9.1 HCM