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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 🙂

PeopleSoft HCM — A view from the top

We return to exploring PS HCM now, do excuse the break in blogging, was into the festive season here.
In today’s post we will look at PS HCM and how and where it fits into an organisation’s implementation and also explore the different modules of PS HCM that we will focus on in this blog.
When we look at the ERP implementation of a typical organisation, we are sure to find a HCM, a FSCM, a CRM and a ticketing system. And of course a mail exchange system will be in place and probably an AD (Active Directory) would be implemented and maybe a Single Sign On as well.
So a typical organisation may implement a few of the above tools , all of them or perhaps more, in many such implementations, a HCM may provide the User ID and Employee ID(we shall use EmplID in our posts) to be used across the ERP platforms, other software like ticketing systems , legacy applications if any, mail exchange tool , AD etc.
Thus in many implementation, a HCM like PS HCM would be the mother publishing system for employee identification, personal and basic employment data.
The figure next explains how EmplID and UserID(OPRID in PS HCM) are the key fields shared across an implementation with PS HCM being the mother publishing application also called as single source of truth.

Please note Exchange, AD etc systems subscribe to first name, last name, role etc data as well depending on your implementation, I have focused on the key fields in the diagram, and other ERP applications, legacy systems etc will subscribe to a whole lot of data from PS HCM depending on their own functionality and the overall system design.

And this User ID and Employee ID/Person ID data for every employee in your organisation is created and maintained as a result of the Administer Workforce business process.
Administer Workforce business process is a part of the core HCM functionality and starts with generating an Employee ID also referred to as a Person ID for every employee hired into the organisation. If your implementation includes Talent Acquisition Manager then the Person ID for the to be hired employee will flow in through internal IB , when it is in TAM the Person ID belongs to an applicant, now and here it represents an employee. An EmplID is used to refer to and access an employee’s personal, employment, compensation, benefits, training etc. data in PS HCM across all the modules.
Figure following represents the EmplID being used across all PS HCM modules,
Also please note the term EmplID is used in older versions of PS HCM, the term Person ID has replaced EmplID on all PS HCM pages ver 9.0 onwards, I am using EmplID to emphasise that it is used for an employee, we will look at the difference between Person ID for an employee and non-employee in later posts.

As is evident from the figure above, the Administer Workforce module generates EmplID and this EmplID along with employee personal and employment information (stored in tables PS_PERSONAL_DATA and PS_JOB) are shared with and used by all modules in PS HCM, most of these modules also share data back with the core HCM tables, especially PS_JOB and the tables underlying PS_EMPLOYMENT.
Depending on the module the data is either shared by underlying PeopleCode when the component loads or by internal IB.
Also please note that Core HCM is more a concept than a rigid set of modules , hence the modules I have indicated in the figure above are a fluid depiction of the components of a core HCM system, it could include more or less at any times.
That is all for today folks, we will return soon with focus on Administer Workforce.

PeopleSoft HCM – Company Setup

As promised in my previous post today we will create a multi Company organisation in PS HCM

before you actually log onto the application and start the configuration it is essential to sort out how you are going to organise and share control data in your implementation, assuming you are planning to setup a multi company organisation, some questions you have to answer before you start could be:

i) Will the Departments be shared across the implementation fully or partially or not at all, keep in mind that the decision you take in relation to Departments affects the access allocation for power users directly, so watch out on this one.

ii) and Will the Locations be shared across the implementation fully or partially or not at all, Locations refer to those cities where your organisation does business.

iii) Will you have a list of Business Units setup and let all the Companies share them or will you create BUs specific to each Company.

And please note that the answers to these 3 questions are essential and should be well though out. And there is no hard and fast rule for this, you can share Locations or restrict them and same holds good for the Departments too(again think access here).

One of the implementations i have been part of shared Departments and Locations across a multi Company organisation under a single Set ID.
Another implementation had shared Locations and out of the bunch of Departments created, the majority were shared across a set of 3 Companies and the rest were created and maintained specific to each Company.This translates to a single Set ID for the Locations data and Company specific Set ID plus a common Set ID for the Departments.
And do keep in mind that a Business Unit definition maps thru Set ID to JobCodes, Salary Plans, Salary Grades etc control data which are crucial to Core HCM.


Assuming we are looking at a scenario where we will share Departments & Locations across the implementation, we create a TableSet ID i.e. a SetID called SHARE using below path after logging onto PS HCM

PeopleTools >> Utilities >> Administration >> TableSet IDs

Once this is done, we can create all the necessary Departments and Locations under this SetID, also remember that both Departments & Locations are effective dated so choose the effective date appropriately, usually a back date like 1/1/1900 is choosen.

Path for creating Department is
SetUp HRMS >> Foundation Tables >> Organization >> Department

remember Departments can have heirarchy that comes into play for row data access and reporting, so remember to establish the heirarchy using the Department Tree at the Tree Manager menu.

and Location is
SetUp HRMS >> Foundation Tables >> Organization >> Location

Now we have created Department & Location data shareable across the organisation,

Next as an example, we go on to create Company specific data, and we start with creating a Set ID for the Company using the same path as above

PeopleTools >> Utilities >> Administration >> TableSet IDs

we will call this Set ID as SAMP

next create the Company using below link
SetUp HRMS >> Foundation Tables >> Organization >> Company

A Company has a Company Code and Description and we will assume our Company Code is SMP for puposes of referance, remember a Company is effective dated, while creating a Company we will associate the previously created Company specific Set ID SAMP with it on the Company creation page using the Default SetID field.

so now onto assigning defaults to the Company.

We use the path below and associate the earlier created Set ID with the Company Code, assign a Currency Code and default Country to it

SetUp HRMS >> Foundation Tables >> Organization >> Business Unit Options Default

so here we have associated SAMP to Company Code SMP and default it to IND & INR.

next we create the business units, for this the path is

SetUp HRMS >> Foundation Tables >> Organization >> Business Unit

we create a business unit SMPD and select the appropriate value in the Set ID field, this value ties to the Default Record Set Groups referenced by this Business Unit and should be the Company specific SetID SAMP if the BU will be specific to the Company and if the BU will be shared across the organisation choose SHARE as the value.
Next access the TableSet Control for this BU and set the SetID values for the Record Groups that will be Company driven to SAMP and leave the rest as it is. for example, If you want JobCodes and Salary Plans(and hence Salary Grades) to be Company specific then select SetID value for Record Group HR_02 for Jobcodes as SAMP else leave it as the default SHARE.
For Salary Plans, the Record Group is HR_05.

Navigation for this is
PeopleTools >> Utilities >> Administration >> TableSet Control

next we create Salary Plans, Salary Grades and Job Codes in order, again all these three are effective dated, so there….

path for Salary Plan is

Setup HRMS >> Product Related >> Compensation >> Base Compensation >> Salary Plan

we create a salary plan SLSM under the setID SAMP because remember we want Salary Plans to be Company driven

and then Salary Grades

Setup HRMS >> Product Related >> Compensation >> Base Compensation >> Salary Grades

we create Salary Grades SM1, SM2 etc under the Set ID SAMP and Salary Plan (also called Salary Administration Plan) SLSM

and next using these we create JobCodes following the path

SetUp HRMS >> Foundation Tables >> Job Attributes >> Job Code Table

we create jobcodes 10001, 10002 etc

Now we are ready with a Company that has been setup in PS HCM and this entire procedure or relevant parts of it have to be followed for each Company you create in a multi Company structure.

So till next time, take care folks 🙂