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SaaS HCM and Traditional HCM

Today we look at traditional or On Premise HCM Applications like PeopleSoft HCM and also at SaaS or On Demand HCM like Workday.


Are you wondering why i choose to name PS and Workday here from a plethora of On Premise and On Demand HCM applications available ? Well there is a reason and the reason happens to be these two inspiring and gritty gentleman who found Workday in 2005-2006. The duo David Duffeild and Aneel Bhusri were part of the PeopleSoft leadership team who witnessed the takeover of PeopleSoft in 2004(David was a founder of the erstwhile PeopleSoft).
And what would i do if i had to face a similar situation, maybe lick my wounds in private and turn bitter but no sir, that was not what the duo did, they created a top notch ERP again and this time it has an additional dimension to it, it was cloud enabled, in other words it was an On Demand or a SaaS application.
I salute the never say die spirit of Workday.
So what does SaaS mean,
Software as a Service simply means a software that is hosted and made available to the customers by the vendor over the internet.

Software as a Service simply means a software that the vendor has hosted on cloud and lets you use it over the internet, so in a way you rent a sofware hosted on the vendor’s infrastructure instead of buying the software and then installing and hosting it on your servers as in traditional software models. Along with you many other users/organisations also avail of the same software and use it without bumping into each other’s space, think of a mail service like gmail or yahoo (but with a fee), you do not download or install anything, just type in the url, create an account for yourself and get started. And in the case of traditional software when the vendor rolls out a new version of the application, it is upto the customer to work and upgrade to the newer version but in the case of a SaaS application, the vendor upgrades the application hosted on his cloud and the new version is rolled out to all subscribing customers.

When you implement an On Premise software application(another name for traditional software models) you buy the software license and then pay an Annual Maintainance Cost i.e. AMC to retain rights to use the software, in an On Demand software (another name for SaaS) you pay a monthly fee and a fee for any services that you may avail of fromn the vendor.

An On Premise software can be customised to a large extent by your development or consulting teams depending on your business needs whereas On Demand software cannot be customised by you as you are renting the software and this software is owned by the vendor and shared by many others, so the customisation route is not possible here. So you have to adapt to the functionality offered by the SaaS tool and you cannot adapt it to suit your business needs.

As you can see there are tradeoffs against both the models.

So see ya soon with another post :

PS HCM – Data Flow for Compensation & Benefits Data

So I am back and today we look at how the monies are handled in PS HCM :). we will look at how salary data and benefits data is handled in PS HCM. we will use the figure below to aid us as we go.



We have the applicant data that has flown into the Talent Acquisition Manager module through the Candidate Gateway, when a recruiter makes an offer to an applicant it will include the salary details also, from here the offer details flow into the Workforce Administration module when the hiring takes place by the HR user. Now we have the Compensation data for the employee in the system and it visible when you navigate to the Compensation page in the Job Data compenent. As and when the HR team updates the Compensation details of an employee or group of employees either the data as part of a performance appraisal or the salary components as part of a process change etc, data gets updated on the Compensation page. Data updates as these can be handled by the delivered PS compensation mass update program or by a custom app engine – component interface combo.

Employees can view their compensation data and detailed salary breakup under the Payroll and Compensation feature of the Self Service menu.

Please note that till here PS HCM holds your compensation details but has not processed or calculated your salary. For that data flows to one of the payroll modules, depending on your implementation you could be looking at Payroll Interface , Global Payroll or North America Payroll.

Global Payroll and NA Payroll calculates the salaries by taking into account the earnings, deductions and benefit choices and deductions whereas Payroll Interface lets a third party application handle all the processing and calculation part and is all about preparing the employee data for use by the TPA and then importing the calculations back into PS HCM.

Benefits data that forms a part of the payroll processing consist of the elections made by employees for themselves and their dependants from the bunch of choices offered by your organisation. Base Benefits module is where the benefit plans and their costs are setup , employees can view the options on offer and choose or waive from the eBenefits page under Self Service feature. eBenefits rides upon Benefits Administration module which uses the benefits plans you setup in Base Benefits to enable you to present the employee with benefit options during open enrollment windows and life events.

This dear readers is a brief look at the flow of compensation and benefits data , we will deep dive into PS HCM very soon.

Wait for my next post where we will look at SaaS HCM vs Traditional HCM.. Till then see ya 🙂

PeopleSoft HCM – Data Flow

In today’s post we will run through some of the modules of PS HCM.

I will try to emulate the flow of data through the various modules of PS HCM from the perspective of both end users and power users.

We will keep the workflow related to compensation data aside and focus on the figure attached.

We have Candidate Gateway an internet facing portal which can be accessed by both internal applicants i.e. employees and external applicants, here job postings can be searched based on keywords, and applicants can apply to and keep track of open job postings, external applicants will require an userID and password to access the portal, internal applicants can access the same through the organisation’s AD or SSO and may also have additional features like Refer A Friend and job postings available for internal fulfillment.

And job postings are created and published by the Talent Acquisition or Recruitment team using the Talent Acquisition Manager(TAM) module, and here the recruiters have the option to choose whether these job postings will be open to internal fulfillment , external hiring or both and will consist of a job description, jobcode for which hiring is supposed to happen , number of openings for the positin among other parameters. Job postings thus created become available on the Candidate Gateway portal.

Using the TAM module, recruiters can keep track of job postings, can add external applicants into the system, can screen and route them to the interview team and can also schedule interviews and make offers. The process will be different for internal applicants , wherein screening, routing and scheduling of interviews happen but offers are not made. Selected internal applicants are marked for reallocation.

And when an applicant accepts an offer the recruiter pushes the external applicant data for hiring.

When the applicant data is pushed for hiring the HR users come into the picture and so does the Workforce Administration module. The HR user can hire applicants routed by the recruiter into the system wherein the applicant becomes an employee , the personal data of the applicant, his.her competency data and jobcode for ehich the hiring has happened will flow into the Administer Workforce module, the HR user can also enter additional personal and job data for the employee and save the same.

Also please note that the HR user can also hire employees who are not routed through the recruitment process, this can be done by either adding the employee data into the system through the Hire Employee feature or by using a pre-configured template i.e. Template Based Hires.

Now we have employees in the system with employee IDs referencing personal and job related data of the employee, employee ID or EmplID as familiarly known is the backbone of PS HCM. this field is used by all PS HCM modules to point to, to refer and to access employee data.

Ok so now comes in the employee himself/herself and the Self Serive options in PS HCM which the employee can use to update his/her personal data i.e. address, phone number, marital status etc, you may even have an approval step in place here.

If your organisation has chosen to implement employee and job profile management,
then Job and Person profiles are set up in the Manage Profiles module and employees can go through the My Profile pages to view and update their competency and skill data, certifications that they gain and also their educational qualifications etc, here also you can have a 1 or 2 step approval mechanism in place.

so you have employees using Self Serive and the My Profile options in PS HCM, next if you plan to carry out their goal setting and subsequent performance review process in PS HCM, we have the Performance Management module, here HR users can create and publish document templates to be used by the employees for goal setting and also for performance appraisal.
And managers use the Manage Self Service menu to access the goal and performance documents submitted by the employees and review the same.

And if the employee has been recommended any tranings as part of the performance review process or if the employee himself/herself wishes to avail of any training offered by the organisation then we have the Enterprise Learning module(please do not confuse this with ELM , that one is a bigger animal).

The training team uses the Enterprise Learning module to create Courses and sessions for training being offered and employees can enroll in such courses by using the self service feature of the said module.

Well so in a very concise manner this is how data flows in PS HCM, remember we have not touched the Compensation related part of the flow yet which i promise will be the focus in our very soon to be publised next post.

Till then see ya folks 🙂