HR management system cuts costs, boosts worker satisfaction

Employee Benefit News - April 15, 2006
Article by Dawn O'Callahan, now with Dresser & Associates.

"WCPA has grown its employee base by approximately 30% since implementing the HRMS, but we are serving them all with the same number of administrative staff because the HRMS has tied all of our data together into one seamless system. It's amazing how much more efficient we are now."

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HR management system cuts costs, boosts worker satisfaction

Dawn O'Callaghan
Employee Benefit News - April 15, 2006
"This company is screaming for the right software."

That was my first reaction when joining Washington County Psychotherapy Associates, a counseling service agency based in Machias, Maine, as employee information manager five years ago. My colleagues spent a great deal of time searching in filing cabinets for benefits and other HR information. One employee spent an entire week, every other week, doing payroll. Because payroll processing was outsourced, the agency had no flexibility for cutting checks on demand.

Many of our therapists and psychologists work outside the agency facilities, in the local community, which creates a logistical challenge for data collection and information distribution.

In 2002, we looked for an HR management system that would streamline operations, improve 24/7 communications between the business office and employees, and permit direct deposit of paychecks.

In 2003, WCPA started using Sage Software's Sage Abra HRMS to manage everything from new hire applications to attendance, benefits, payroll, and training records. Abra ESS, the Web-based employee self-service module, gives employees access to HR and payroll information 24/7.

We attempt to provide top-notch customer service to our employees, and I visualized the ESS solution as being the vehicle to put us out front in that area. Plus, it started saving us time and money right away with direct deposit.

We no longer process timesheets manually, deliver data to an outside agency, or mail checks. Timesheet, mileage and expense data is integrated with both the ESS system and Sage Abra's payroll system, saving us at least $8,000 a year in outsourcing and postage costs, plus the equivalent of a half-time employee. By writing simple custom panels into the software, we saved several hours per employee in time previously spent manually tracking data.

Impact on Employees
Employees are given information about our health and savings plans via the ESS system and use the system to link to our 401(k) provider's Web site to review their investments or track the status of an insurance claim. We use the login page to welcome new staff, so they feel part of the WCPA community right away.

Employees enjoy the events feature within our ESS system. If there is a new birth, change in marital status, or FMLA event, we use the ESS system to deliver all the information and forms required to transition through that event. It saves calls to the HR department and allows staff to function independently, on their schedule. Since we have staff working around the clock, it is nice being able to provide HR assistance whenever help is needed.

Before, it was inconvenient for night shift employees to communicate with the HR or payroll departments during normal business hours. Now they can go to the ESS system at any time, from anywhere, to request vacation time, check remaining sick time, print a copy of their pay stub, transmit a change of address, print a variety of payroll and benefit forms, or register for upcoming training classes. Employees enjoy having this freedom, and program managers like having additional reaction time so they can fill in work schedules in a way that minimizes overtime costs.

Using the software's attendance module, we offer program managers and supervisors tools to monitor the usage of sick, personal and vacation time, resulting in a savings of $40,000 a year.

Open Enrollment
Open enrollment used to be so time-consuming. Historically, insurance rates are not finalized with much lead time. Once rates were confirmed, we had to communicate new rate tables to staff, distribute enrollment forms, instruct staff how to complete them, collect the forms and transmit them to the insurance carrier. It would take four WCPA employees plus the insurance agent to complete this process. Even more frustrating, if we collected a form from a staff member on the midnight shift that was missing required information, it could be two days before we collected a corrected form.

That was until we implemented the online benefits enrollment system last year. We love this civilized alternative to the archaic and stressful manual open enrollment process, and our insurance carrier likes being able to transmit enrollments via a file they download into their database to update enrollment information. The employees get to see the costs of different enrollment choices and complete the open enrollment process at any time, anywhere.

Easy Changes
WCPA utilizes the login page of the ESS system to post urgent or timely messages and reminders. For example, several of our attendance options pay out a percentage of the total accrual balance at the end of the annual/fiscal year. I use the login page to remind staff of the last date for use of these accruals before that payout date. In mid-December, I will post a reminder, in preparation for W-2 filings, to have staff confirm and edit their address information. I also use the ESS system for a yearly reminder to submit changes in W-4 information.

Frequently, changes dictated by Maine will necessitate adjustments in our various clinical policy and procedure manuals. Before implementing ESS, it was time-consuming and costly for staff to make the changes. HR staff had to print additional sections and update manuals for management staff in six locations. Then management had to ensure each employee was aware of any changes to that particular policy. This same process is duplicated for any changes to our internal policy and procedure manuals.

With ESS in place, the compliance officer amends the master copy of whatever manuals have been affected. The ESS system is immediately updated with the new version of the manuals. The login page of the ESS system advises staff to review the changes and indicates the menu location. A process that used to occupy multiple staff members, require postage, and carry limited assurance of completion accuracy, was converted to a completely accurate 10-minute process.

WCPA has grown its employee base by approximately 30% since implementing the HRMS, but we are serving them all with the same number of administrative staff because the HRMS has tied all of our data together into one seamless system. It's amazing how much more efficient we are now.

Dawn O'Callaghan has served as the employee information manager for Washington County Psychotherapy Associates (WCPA) of Machias, Maine, since 2001. - E.B.N.

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