Thursday, July 12, 2012

Benefits and Principles of HR Software

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Benefits and principles

The major benefit offered by a computerized HR system is the ability to generate ready management reports necessary to support the Department’s HRM functions. These include manpower planning, performance management, recruitment and staff development and training. Without such a system, reports must be compiled and updated manually. This is a very labour intensive job and will take a great deal of time, wading through paper files with the persistent danger of human error requiring repeated checks. Without a central database there is a tendency to distribute the maintenance of such details as absence collation individually, usually in different formats. This results in duplication of efforts and may give rise to data inconsistency.

Below are listed the Professional and Legal Requirements as quoted and referenced from GEE Human Resources information services.

A quick overview of the Data protection act states that

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Personal data must be processed fairly and lawfully.

Personal data must be obtained and used for specified and lawful purposes.

Personal data must be adequate, relevant and not excessive.

Personal data must be accurate and where necessary, kept up to date.

Personal data must not be kept for longer than necessary.

Personal data must be processed in accordance with the rights of data subjects.

Personal data must be kept secure.

Personal data must be properly protected when transferred overseas

While personal data must not be kept for longer than necessary, payroll information must be kept for a certain period of time, for example

Tax and National Insurance returns 7 years

Payroll and wages records 6 years

Statutory Sick Pay and Statutory Maternity Pay records years

The Inland Revenue will normally only go back six years in checking records unless fraud is suspected, in which case their limitation is 0 years.

If an employee has had an industrial accident, records for personal liability claims may need to be kept for 1 years.

Disclosure of Personal Information to Third Parties

Information provided by an employee as part of their employment should not be disclosed to third parties without their written permission. Requests for addresses, earnings, etc. should be refused, although the employer can volunteer to pass on to the employee any such requests for information.

The exceptions to this are where disclosure has been ordered by the courts or the information has been requested as part of an official enquiry from organisations such as

1. The Department for Work and Pensions

. The Inland Revenue

. HM Customs & Excise

4. The Child Support Agency

5. The Police

Collection and Maintenance

At Select Software details are collected on personal information, job details, employment contracts, pay details, performance appraisals and absence data. A self service intranet product is also installed which allows employees to maintain their own data where appropriate.

The demo data described here demonstrates how all details are visible to the employee, and using the Edit Details button at the bottom of the screen any necessary changes can be made.

Where the data cannot be edited by the employee � such as sickness data, the data is provided openly to the employee in order that they might query any anomalies or raise issues as needed � note the email HR button on the left of the screen is always available.


Reporting all aspects of the information held in the system is a regular and necessary part of the HR function. Attached are a number of demo data reports that show comparisons of ethnic origin break down or absence trends.


As useful interpretative tool for absence data is Bradford Factor report which is well placed to highlight suspect absenteeism (i.e., regular short-term absenteeism).]

The basic formula for each absence is I × I × D, where

I = the number of instances of absence in the last 5 weeks

D = the number of days of absence in the last 5 weeks

For an employees with 0 days absence in one year the number of points built up through absence can vary hugely.

One absence of 0 days scores 0 points 1I × 1I × 0D = 0

Ten absences of two days score 000 points 10I × 10I × 0D = 000

0 absences of one day score 8000 points 0I × 0I × 0D = 8000

Using the Bradford Factor means that management can be given a standard to work to and have guidelines from which to approach an employee with their concerns.

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