Human Resources, Health & Safety and Equalities Panel 20 January Head of Human Resources HRE 301

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1 Report title e-hr Strategy Agenda item 4 Meeting Human Resources, Health & Safety and Equalities Panel 20 January 2009 Date Report by Document Number Head of Human Resources HRE 301 Summary This paper responds to a request at the last Human Resources, Health & Safety and Equalities (HRE&HS) Panel meeting to consider a restructured delivery timetable to maximise organisational efficiencies and cost savings. Recommendations(s) That the HRE&HS Panel: receives this report notes that there is no provision for the additional funding in 2009/10 draft budget to bring forward additional investment and decides whether to recommend that this is considered during the ongoing budget process. Background 1. A paper reviewing the Authority s progress in developing e-hr functionality and detailing an e-hr strategy was presented to HRE&HS panel on 13 November The approach proposed was accepted by panel, but members requested that HR review the delivery timetable to ensure that priority was given to those elements of the strategy that offer organisational efficiencies. 2. This review has been completed and a potential revised delivery schedule is attached to this paper. Delivery Timetable

2 3. HR conducted a review of the Products matrix contained within the previous paper, and examined each product against the criteria of efficiency savings and costs of delivery/development. 4. The products have been reworked into groups which deliver efficiency savings, whilst still maintaining a logical approach. Development and delivery of the following products would lead to efficiency savings: - Development of forms to automate the update of employee details - Attendance management system - Payments - Online recruitment system - Workflow processes 5. A draft revised delivery schedule is at Appendix Delivery of the products identified in paragraph 4 and their scheduling within the annual IT work programme (which includes the Business Solutions Group work plan) will be managed in accordance with existing processes. Namely, the prioritisation of all new developments, and assignment of sufficient resources to support them, is determined on the basis of projects approved by members. Accordingly, resources will be assigned to support this initiative in the 09/10 IT Work Plan. Progress on delivery of the products will be subject to regular monitoring through, amongst other things, the submission of highlight reports to the and Technology Steering Group. Cost and Efficiency Implications 7. Efficiency savings as a result of e-hr implementation were identified as part of the HR restructure. This includes a reduction of 10 posts by implementing an attendance management system and online recruitment (2 posts have already been removed). Overall this delivers an annual saving of 309k as set out below. This is separate form the 350,000 staff savings in the 2008/09 budget ( 200,00 in year) and the 299,000 of proposed staff savings in 2009/10 8. The original cost model for e-hr investment was 190k per year over a three year period. Accelerating the products that deliver efficiency savings (plus any related items) would change the cost model to 296k in Year 1, 184k in Year 2 and 85k in Year 3 (assuming 50% of the spend for the attendance management and recruitment systems was in Year 1 and the remainder in Year 2). Dependent on the speed of delivery in Year 1 and 2 it may be possible to move Year 3 products forward. 9. Table A shows the impact of investment on savings as set out in the November Report and Table B sets out the same impact based on the proposed delivery timescale within this paper. Investment is shown annually whilst savings are shown cumulatively as the investment is a one off, but the post savings are on-going. Table A Year 2009/ / / /13 Investment Nil

3 Saving

4 Table B Year 2009/ / / /13 Investment nil saving # The 5k contingency over the three years in Table A has been removed in Table B # This assumes half the savings from attendance management can be brought forward 10. It should be noted, however, that to achieve Table B would require additional funding in 2009/10 of 106k and that there would be no additional savings achieved in the same year. The savings would be accelerated with the full 309k achieved one year early. Under the previous proposals the savings would have fully funded the investment by 2013 and this would be brought forward a year under the proposals in table B. It should be noted that investment includes 132,740 contributing to improved efficiency but without identifiable cash savings. 11. The provision of the additional 106k investment is currently unfunded and would need to be financed either via additional savings or alternative re-balancing of the budget. 12. The 2007/08 budget removed 2 FRS A (MG12) posts from the Expenses team (due to planned e-expenses solution). This is shown as a cumulative saving for 2009/ The e-recruitment proposal would free up 3 x FRS B and 1 x FRS A posts arising from complete automation of the recruitment application processes. The changes to sickness absence management are designed to reduce the administrative requirement there by 4 x FRS B posts upon completion of the proposed changes. This equates to 253k pa new savings additional to the 56k savings already taken, and bringing the total cumulative annual saving to 309k. 14. Furthermore products not directly resulting in staff savings still provide opportunity for efficiency savings, more effective working practices and other benefits such as upskilling of employees and staff engagement opportunities. Recommendations 15. That HRE&HS Panel receives this report notes that there is no provision for the additional funding in 2009/10 draft budget to bring forward additional investment and decides whether to recommend that this is considered during the ongoing budget process. Authority s Strategic Objectives 16. This paper supports the Authority s strategic objective of delivering improved services at lower cost

5 Head of Legal and Democratic Services comments 17. The Head of Legal and Democratic Services has read this report and has no further comments Head of Finance comments 18. The budget proposals presented to the Authority in November included a growth proposal for 190k in each of the three years from 2009/10 to 2010/11 in order to fund this e-hr project. This was in order to achieve a total ongoing full year saving of 309k by 2012/13. The saving during the implementation of the project is projected to be 56k in 2009/10 rising to 180k in 2010/11 and 2011/12 before achieving the full amount in 2012/ The report demonstrates how this saving in 2010/11 might be increased to 240k (an additional 60k) and the full year saving achieved a year earlier in 2011/12 (an additional 129k) by accelerating the project through increased investment of 106k in 2009/10. This indicates that this additional investment would pay for itself by 2011/12. However it is not included in the current budget proposals for 2009/10 and further savings would need to be identified in order to fund it. Environmental Implications 20. There are no environmental implications arising from this paper. Equalities Implications 21. There are no direct equalities implications arising from this paper. List of Appendices to this report: 1. Products/timescales LOCAL GOVERNMENT (ACCESS TO INFORMATION) ACT 1985 List of background documents Proper officer Contact officer Telephone James Dalgleish Head of Human Resources Jim Robinson ex Jim.robinson@london-fire.gov.uk

6 Appendix 1 Schedule of e-hr Products Costs Product ehr Area on Employee Home Page Benefit Already achieved or go-live 2008/9 Book courses Train & Develop Reduced admin by Training Service Desk, online authorisation View PRF online Reduced storage, easier access View payslip Reduced paper, cost of distribution Booking leave online directly updated in StARS Online expenses - basic expenses PRDS online adminstration and reporting - version 3 Train & Develop Removes need for admin input locally. Benefit to all depts. Reduced rekeying and checking in HR, audit trail Facilitates full and effective implementation of PRDS system Saving - cashable or non cashable Timescale Years 1-3 Cashable (already realised) - Cashable - HR (already realised) - Cashable (already realised) - - savings locally for administrators - Cashable - HR (already realised) - - Estimated Costs Plus Contingency Total Estimated Costs

7 View training history Train & Develop Reduced calls to Service Desk, employee can track own records Forms (can be developed as group) Update and manage personal No rekeying in HR, reduced details e.g. home address, errors, reduced timelag in emergency contact updating, Discipline and greivance - manager input with employee view Exit interview process via web form e.g completion of initial questionnaire View P60 (cannot be fully realised until all online & reliant on HRMC rules) No rekeying in HR, more timely update, manager ownership No rekeying in HR, ability to analyse data and report on trends No distribution requirements, reduced paper usage Update/view bank details No rekeying in Payroll, employee ownership of data Attendance Management Attendance management system (manager, HR and OHS access) Book a well being appointment Payments Online expenses - all remaining expenses (e.g. mileage) Improved management of attendance, reduce multiple systems, improved information for managers and HR Encourage take-up Reduced rekeying and checking in HR, audit trail, removes paper processes Process overtime payments Reduced processing and rekeying in Payroll, removes - Cashable - HR 10,720 2,144 12,864 Cashable - HR 54,925 10,985 65,910 Cashable - HR 24,450 4,890 29,340 Year 1 Non cashable (small time saving) (small time saving) 5,520 1,104 6,624 7,310 1,462 8,772 Cashable - HR 100,000 20, ,000 - HR (small time saving) Year 1-2 1, ,200 Cashable - HR 36,130 7,226 43,356 Cashable - Payroll (in Year 1 26,195 5,239 31,434

8 Internal Processes Workflow processes e.g. leaver process via relevant trigger points Apply for benefits online (e.g. season ticket loan, childcare vouchers) Recruitment Fully e-enabled recruitment process incl. manager tracking and shortlisting Training and Development Viewing progress on course application Online administration/viewing of Solace Induction process - manager and employee area, interactive process Administration Recruitment paper processes More effective processing, reduced paperflow, audit trail Reduced paperflow, more effective processing Reduced adminstration and handling of paperwork and data. Online input and tracking for manager and applicants Finance budget already) Cashable - HR 18,900 3,780 22,680 Non cashable - HR (efficiency saving) Cashable - HR Year 2 33,400 6,680 40,080 Year ,175 31, ,010 Train & Develop Reduced calls to Service Desk (small time saving) 9,100 1,820 10,920 Train & Develop To expand current PRDS process Non cashable 18,900 3,780 22,680 to senior managers Year 3 Train & Develop To support new induction policy, ensure new employees receive correct induction and to ensure manager engagement for staff and managers View Pay History Improved information to employee, reduced calls to payroll Non cashable Non cashable Year 3 1, ,200 6,415 1,283 7,698

9 Payroll forecasting/analysis of staff costs (for managers) Provides support and information to managers Non cashable 4, ,370 Total Remuneration information View of Job Description/JE information Improved information to employee Links to PRDS, more information available to employee Non cashable 18,945 3,789 22,734 Non cashable 8,250 1,650 9,900 Policies directory - link to new search facility Authority information/knowledge e.g. Staff Code, training notes Departmental specifc sites, display updates, personnel news, newletters Communication/engagement e.g staff attitude survey, Shout Role appropriate reports, information cascade, work alerts e.g. complete RTWI Knowledge Knowledge Knowledge Communications Managers Area Upskilling and engagement of employee, information easily available Upskilling of employee, improved information easily available Upskilling of employee, improved information easily available Upskilling of employee, improved information easily available Upskilling managers, reduced HR intervention, improved staff management Non cashable 1, ,200 Non cashable 1, ,200 Non cashable 1, ,200 Non cashable 1, ,200 Non cashable 14,425 2,885 17, , , ,882

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