Smooth Java HRIS Recommendations

1. Smooth Java HRIS Recommendations May 1, 2008 Matthew Cotugno Bridgett Larkin Sheri Schlicher Justin Vollmer

2. Agenda • Introduction • Smooth Java Goals • ASP Model • Functional Area Analysis • Definition • Smooth Java Requirements • Examined Vendors • Detailed Analysis of Selected Vendor • Implementation Timeline

3. Automate HR Functions Information Accessibility Improve HR Services Smooth Java’s Overall Goals

4. The ASP Model • Strategic focus for HR • Removes need to increase IT personnel • Current & Future Viability • Improved reliability and security • Shorter software cycles • Handles growths • Lower cost model • Single application • Costs diluted across user network • Blanket upgrades • Up-front cost awareness • Small-scale Integration • Standardized • Need for expertise eliminated on client side • Easier to integrate w/ Great Plains software

5. Recruitment & Selection Bridgett Larkin

6. Recruitment & Selection • Recruitment • Searching for qualified candidates and generating their interest in applying for a position • Selection • The process by which candidates are selected for a particular position. • The screening, interview, and on boarding process

7. Smooth Java’s Goals • Creation of a qualified applicant pool • Establishment of a solid recruitment plan for managers • Ensure proper compliance with laws and regulations • Procedure for screening and hiring the most qualified applicants from the pool • Proper procedure for both servers and cashiers • Ensure compliance and proper evaluation of all candidates

8. Recruitment Plan for Managers • Business Requirements • Integrated process with recruitment and selection • Efficient and Streamline recruitment processes • Establish a Lean System • Ability to cope with High Turnover • Obtain expert knowledge on millennial generation • Maintain compliance with all HR regulations/rules procedures • Discrimination, Employment Laws

9. Essential System Requirements

10. Desired System Requirements

11. Vendor Analysis • Stepstone Solutions • Provides talent management solutions • Over 1200 customers worldwide • No capability to support other functional areas, difficult for integration • Authoria • Founded in 1997 as an employee benefits plan provider • Ease of use and complete talent management functionality

12. Vendor Analysis • Bond StarSearcher • Developed by Bond International Software. • Specifically for recruitment and selection in mid-size companies • Satisfies all essential and most desirable system requirements • Limited scope

13. Training & Performance Management Sheri Schlicher

14. Training & Performance Management • Training: • A process dealing primarily with transferring or obtaining knowledge, attitudes and skills needed to carry out a specific activity or task. • PerformanceManagement: • The process of maintaining or improving employee job performance through the use of performance assessment tools, coaching and counseling as well as providing continuous feedback.

15. Smooth Java’s Goals • Ensure quality and consistency in product delivery • Knowledgeable workforce that can provide superior customer service • Development of consistent training program • Creation of metrics to determine success of training initiative • Develop a program that encourages promotion from within, with an emphasis on rewarding team performance • Creation of a process that utilizes MSS, placing minimal administrative burden on the HR department • Development of a process that supports Smooth Java’s strategic business goals

16. Training Challenges • High Turnover • Scattered Workforce • Identification of key performance measures • Development of metrics to measure the success of training programs

17. Performance Management Challenges • Quantifying the attributes that lead to top performance • Measuring team performance • Creation of a fair, consistent process for all employees

18. Key Success Factors • Development and documentation of programs. • Ability to train employees across geographic locations • Consistency in training • Development of systems and processes that can grow with Smooth Java

19. Essential Requirements

20. Desired Requirements

21. Vendor Analysis – Training • Allena Beta • Organize, manage, maintain and track your staff's training requirements. Automatically schedule recurring training for employees. • Halogen • Make your full training catalog easily accessible to managers and employees. Measure effectiveness by tracking employee performance improvements over time. • People Trak • At the trainee level, course history, skills acquired, and costs accumulated are tracked. Maintain an extensive catalog of courses and track instructors, facilities, equipment, and costs.

22. Vendor Analysis – Performance Management • Appraisal Smart • Web-based, enterprise-wide. Includes 360 Degree Feedback, online Job Descriptions and additional Ad-hoc Appraisal capability. • CRG emPerform • Web-based, employee performance solution developed to meet the ongoing employee appraisal needs of the evolving organization. • HRN Management Group • Include pre-loaded goals and weighted performance factors, e-mail alerts, language check, multi-appraiser option, approval routing, comment coaching.

23. Compensation& Benefits Matthew Cotugno

24. Compensation and Benefits • Compensation • The process of directly or indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks • Benefits • Indirect and non-cash compensation paid to an employee • Either mandated by law or varies by firm

25. Smooth Java’s Goals • Collect survey information and develop compensation policy for the following job titles: • Managers • Store Managers • Assistant Store Managers • Develop a system for evaluation of jobs • Establish internal equity among jobs • Expand current benefit offerings to become more competitive with other employers • Determine appropriate benefits and proper administration

26. Essential Requirements

27. Desired Requirements

28. Key Success Factors • Technology based solution that integrates with other functions • Solution that eliminates transactional tasks • GOAL: Provide high-level service to employees • Use benchmark data from similar organizations • Implement a comprehensive system

29. Vendor Analysis • Wide array of choices • Many 3rd party vendors offer competitive systems • Lack of integration • Most 3rd party vendors do not offer both systems • RESULT: Compromise in favor of integration • Data driven • Systems offer a way to drill-down and simplify the challenges that arise with compensation and benefit planning & administration

30. Vendor Analysis - Compensation • HCR • CompXL system translates traditional Excel data • Merit increases, incentives, spot bonuses, etc. • Minimal resources needed • Berkshire Associates • BalancePAY system runs salary equity analyses • Develops flexible, market based pay structure • Develop pay grades and how to structure system

31. Vendor Analysis – Benefits • BRMS • Vbas system manages employee benefit data online • Online communication, automated enrollment, employee self service • Verifies employee statuses • Avant Serve • Benefits Concepts is web based tool that manages benefits • Ensure compliance with HIPPA, COBRA, Retiree billing

32. Vendor Selection Justin Vollmer

33. Carpe Diem – The Need for Integration

34. Vendor Analysis - Integrated • SuccessFactors • Business intelligence capabilities. Focus on performance management and training. Lacks full benefits administration, but is compatible with most other modules. Customer support is a major strength. • CheckPoint HR • More a BPO than a traditional ASP, focuses on its partnerships for process and content. Not a full service system. Select from four tier option table. Strengths are payroll and benefits administration. • Ultimate Software • Effective customization toolkit and specializes in third-party integration. Focused on developing both server management and DBA support.

35. Recommended Vendor: Employease, INC. • Acquired by ADP in 2006, founded in 1996 • Significant financial momentum • 35 Consecutive Quarters of Revenue Growth • 50% revenue growth year over year • Profitable since 2003 • Over 1,500 customers • Partnerships with ADP, Google, and numerous legal compliance sites • Competitive • Winner of 2006 Codie Award for Best HR solution

36. The ADP Employease HR Solution • A thin client application without software requirements for workstations • A full-featured, web-based Human Resources and Benefits Administration system • Includes Employee and Manager Self-Service with workflow • Provides powerful and intuitive reporting tools • Integrates with ADP’s payroll applications

37. Key Features

38. Potential Benefits for Smooth Java • Has helped reduce HR necessity for new store rollouts by 50% • Streamlines launch cycle • Hire new personnel rather than HR staff • Has helped support rapid growth • One client: 100 to 1200 employees in 5 years • Reduce benefits administration by 50-60%

39. Potential Benefits for Smooth Java • Reduce turnover costs • Average turnover cost is three months wages • Reduction in time for new hire process • From 7-8 days to 20 minutes • Elimination of over 80,000 pieces of paper • Benefit enrollment efficiency • 70% enrollment within a week • Consolidation of benefit plans

40. Meeting Smooth Java’s Goals • Creation of internal and external job postings • Pre-qualifications measures • Creation of rules to comply with internal and legal policy • Automated requirement filtering for applications • Candidate “mining” • Application status review • Creation of rules to comply with internal and legal policy

41. Meeting Smooth Java’s Goals • On-line training • Access forms and links • Event log and notification to managers • Ad-hoc reporting • Scheduling Wizard – Review planning • Performance Review Wizard – Guides process for reviews • Edit Wizard – Flexible tracking for accountability and compliance

42. Meeting Smooth Java’s Goals • Centralized database • Plan Design Wizard • Enrollment Profiler • Benefit and confirmation statements • Creation of rules to govern compliance • Full benefit resource tool • Intuitive question/response feature • Compensation analysis • Employee and Manager Self-Service • On-demand data management

43. Smooth Java Self-Service

44. Technical Requirements • Entirely web-based • Internet Explorer 7 • ADP Employease Extend Core Services • Open architecture web service to assist clients in data management • Application Programming Interfaces • Single-Sign On (SSO) • Trust Host Authentication (THA) • XML-based data exchange • Simple Object Access Protocol

45. Cost Requirements • One time implementation cost • Between $7,000-10,000 (based on 500-person organization • Average cost • $ 6 - 10 per person/monthly • Estimated cost for Smooth Java • $10,000 + $30,000 ($120 per person per year) = $40,000 Start Up Cost $30,000 Annual Cost

46. Potential Challenges for Smooth Java • Controllership • Design and customization • Lose proprietary opportunities • Security • Data • Impact from media • Productivity and exposure • Service and function reliability • At the mercy of market and provider • Aggressive pricing • Size matters • Over-importance of cost

47. Implementation Plan • Average implementation time: 60 – 90 days Communication

48. Questions?