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Human Resources Processes with ERP
software, which would allow Human Resources staff to easily find a time when all key
personnel would be available to interview a candidate. A group appointment calendar
(available in email systems and ERP systems such as SAP) allows users to check others’
calendars to schedule meetings. Without such a calendar tool, scheduling interviews is
frequently a cumbersome process, requiring the Human Resources employee to coordinate
the interview schedule between the candidate and the appropriate personnel at Fitter. Because
this is done by email and phone, it can take days and sometimes weeks to schedule an
interview. A similar problem occurs after the interviews have been completed. Gathering
feedback from all involved parties and ranking the candidates takes time and may require 163
multiple meetings. Managing the travel arrangements and reimbursing candidates for their
travel expenses are also cumbersome tasks. More than once, Fitter has lost a promising
candidate to another company because of delays in the Fitter interviewing and hiring process.
Fitter hires a human resources consulting firm to perform drug tests and conduct
background checks to verify that candidates have not falsified any information and do not
have serious criminal records. Fitter outsources this work because of the special skills
required. If the background check and drug test are satisfactory, this information is added
to the candidate’s file, and the job offer stands. If the consultant finds evidence of falsified
information or legal troubles or the candidate fails the drug test, the file is likewise
updated, and the job offer is rescinded with a written explanation.
On a new employee’s first day of work, he or she attends an orientation meeting, which
includes completing additional paperwork covering employment terms and conditions, tax
withholding, and benefits. All Fitter employees must sign a form that states that the
employee has been given a copy of—and agrees to abide by—the company’s policies and
procedures. The new employee must complete an IRS W-4 form, which tells the employer
the correct amount of tax to withhold from the employee’s paycheck. Next, a Human
Resources representative reviews Fitter’s benefits plan. Fitter offers a comprehensive
benefits plan that gives employees a range of choices for healthcare plans, life insurance,
retirement plans, and medical savings accounts. The employee’s dependents may also be
covered under Fitter’s health insurance plan. If the employee elects dependent coverage,
then the Human Resources Department must obtain basic information about each
dependent to include in the employee’s file.
Because employees must provide a significant amount of detailed data to properly
manage compensation and benefits, it is not surprising that Fitter frequently has problems
enrolling new employees in the correct benefits plans and establishing the proper payroll
deductions. It can often take months to manage the new employee’s compensation and
benefits correctly. The enrollment issues can generate many time-consuming phone calls to
Human Resources management—calls that would not be needed with an integrated system.

ANOTHER LOOK

Human Resources Data in the Cloud
Cloud computing, discussed in more detail in Chapter 8, is the use of computing services
provided by another company. Programs and data are stored on servers operated by the
cloud computing company and are accessed via the Internet. This arrangement can be
(continued)

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