The Components of a Human Capital Management System: How To Be - - PowerPoint PPT Presentation

The Components of a Human Capital Management System:

How To Be Strategic in Human Resources

Presented by:

Mark V. Amato

Director of HRIS Services Health & Benefits

J u n e 2 0 1 4

What Business Leaders Talking About Today…

• Affordable Care Act
• Administering New Legislation (Paid Sick Leave,

Wage Theft Prevention Act , 2013 New I9 form)

• Collaboration
• Efficiency (elimination of paper touches, redundancies

and errors)

• Most Important: People As Assets

The Technology & Terms

• SaaS and Cloud Based Systems
• Pre boarding / On Boarding / Off Boarding
• Manager and Employee Self Service
• Portals and Links
• Device Agnostic Solutions

The Components

Which Ones Apply To Your Organization?

The Components Recruiting & Applicant Tracking

Requisitions Job Postings Hire/Reject Approvals Interview Pre Boarding Internal & External

The Components On Boarding

– Employee Orientation – Document Management – Benefits Enrollment

The Components Benefits Administration

– Payroll Interface/Integration – Carrier Connections – Open Enrollment (on-line)

The Components Performance & Talent Management

– Performance Reviews – Training and Education – Compensation

“85% of all employees in the United States have no idea what their companies goals are!”

The Components Time & Labor

– Payroll – Time Off – Time Keeping

The Components

Tracking (Full-Time) Employee Population

• Full-Time Employee

– 30 hours of service per week – 130 hours of service per calendar month

• Look-Back Measurement Method

– Tracks hour in prior period

• Measurement Period

– Determine offer of coverage in successive period

• Stability Period

New Reporting for Calendar 2015

• IRC 6055 Information Reporting of Minimum Essential

Coverage

– IRS to determine individual mandate penalty – Carrier or plan sponsor (self-funded)

• IRC 6056 Information Reporting by Applicable Large

Employers on Health Insurance Coverage

– IRS to assess employer mandate penalties and review individual federal subsidies – Applicable large employer members

• Alternative reports/less data

– Meet certain standards

IRC 6055 MEC

Information for Enrollees During Calendar Year

• Name, address, tax identification number (i.e. SSN)

– Employee, former employee (includes deceased)

• Name and SSN for all dependents

– Date of birth if SSN not available – DEMONSTRATE REASONABLE EFFORT TO OBTAIN SSN

• 2 solicitation minimum
• Employer/multiemployer information

– Name, address, employer identification number (EIN)

• Coverage dates

– Months for which individual is enrolled in and entitled to coverage at least one day in the month

IRC 6056 for Applicable Large Employers

General Method for Calendar Year

• Employer name, address, EIN, contact person information
• Certify offer FT employees (and dependents) opportunity to

enroll in employer MEC plan by calendar month

• Number of FT employees each calendar month
• For each FT employee

– Name, address, and taxpayer identification number (SSN) – Months during calendar year

• Employer MEC plan was available
• Employee was covered under the plan
• Employee contribution for lowest cost MEC plan

– NOT necessarily contribution for plan in which employee is enrolled

IRC 6056 for Applicable Large Employers

More General Method Information (indicator codes)

• Does plan provide Minimum Value
• Did employee have ability to enroll spouse
• For each calendar month

– Total number of employees – Was an employee in waiting/measurement period

• Employer part of controlled group of corporations

– Name and EIN of each employer member company of the controlled group

• n any day of the calendar year for which the information is reported
• Third party information

– Name, address, and ID (such as a TPA) reporting on behalf of employer

• Employers may contract with third parties to facilitate filing and issue statements

Strategic VS Administrative Predictive Analytics

Predictive analytics can help organizations more proactively manage their talent. Example: Retention Predictor Determines the probability that an individual will stay with the

• rganization for the next 12 months.

Strategic VS Administrative

• 1. Turnover Analysis
• 2. Projecting Hiring Needs
• 3. Visibility to your Internal Resources/Talent
• 4. Scheduling and Staffing Model
• 5. Training & Education
• 6. Compensation Analysis

Strategic VS Administrative Most Important

– Intuitive Reporting Tools – Extensive Reports and Query Library – User Group Collaboration

Human Capital Management

Do You Need a Payroll HCM Assessment?