ALBANIA ATTESTATION OF PAYROLL MODULE IMPLEMENTATION 1. Introduction This report contains the valuation and the vision the consultants have on the strategies undertaken by the Direction of Public Administration (DoPA) for the implementation of the Human Resources Management Information System (HRMIS). HRMIS was developed to support DoPA in carrying out its tasks under their government mandate. The system will facilitate the oversight functions of DoPA in ensuring that all Human Resources Management tasks are implemented in a proper manner according to all legal provisions. In order to achieve this objective, the existing Oracle version of HRMIS was converted to a SQL Server Platform together with a partial reengineering of its main processes. HRMIS main components are: Organization management of institutions, organizations and work positions Management of Payment Schema and Grades Management of Employee’s Personal File Document Generation System administration The flow in HRMIS starts with the IT unit in DoPA which is responsible for creating users, creating security groups, putting users to security groups and giving appropriate permissions to them. From the perspective of HRMIS flow there are six (6) main user groups that operate on HRMIS, as shown in the figure below: 2. Objective The objective of the consultancy is to make an assessment of the current status of implementation of HRMIS, including its main components (Data Base Conversion, HR, Payroll and Treasury Interface) and the identification of future actions to improve its functionalities. Expected results from this consultancy: (i) high-level diagnostic of current HRMIS system, including recommendations towards implementation of a fully functional HRMIS system for Albania; (ii) assessment report on overall compliance by Infosoft with all deliverables and of their level of performance, leading to final acceptance by GIZ of their deliverables. Specifically: The consultants will devote their work towards producing and delivering a high level diagnostic of the current HRMIS system and provide recommendations for its expansion and extension as well a costing exercise to make the system fully operational. This includes also a recommendation on the integration with other existing systems as well as an interface with the payroll system The consultants will take stock on what has been achieved so far by Infosoft through their contract with GIZ, and advise the project team leader regarding their performance and compliance on the contractually agreed deliverables by the end of the project 3. Methodology The consultants conducted a review of technical documents, interviewed several officials of DoPA in the area of Human Resources and Information Technology, Technology - Ministry of Finance Information and professionals from Infosoft responsible for the development and implementation of HRMIS. The methodology also included realization of a Workshop conducted by the consultants, with HR and IT participants from selected pilot institutions (DoPA, NAIS, Ministry of Finance, Ministry of Interior and Prefecture), as well as the HRMIS project team and Infosoft. The purpose of the Workshop was to present initial findings and suggested enhancements to the system, to further discuss with participants and obtain their feedback on the main issues identified during the gathering process. 4. Findings The Direction of Public Service Administration, the central agency for personnel management, has not had an entirely clearly defined role. Its capacity to plan, regulate and generate useful information for managing public employment is weak. For human resource management, each Institution has its own payroll information system, making it difficult to compile a unified database for comparing and analyzing information on individual public servants or to perform audits or automated checks. In the absence of standardization and integration, a ways of aggregating information is through Albania Ministry of Finance Treasury System (AMoFTS), which is not interconnected or loaded directly with information from the various entities. This leads to duplication of work in information processing and higher transaction costs, and may affect the quality and timeliness of reporting. Payroll and Compensation A review of compensation business processes concluded that there are a high number of customizations that calculate individual employee compensation, automate compensation changes, and through customized processes provide automation that ultimately passes the compensation data to the payroll process. HRMIS, by removing the automation and keying the changes directly to the system, can eliminate many of these custom processes. DoPA should develop a self-service Web application that enables employees to review and update their compensation information: (i) review and update their direct deposit instructions, (ii) view paycheck information and (iii) review and update general voluntary deductions. DoPA must spend some time reviewing the delivered pages, putting standardized business processes in place for self- service functionality and identify any modifications to meet their business requirements. From high level discussions of the Web application, there will be modifications necessary to streamline the self-service processes, eliminate data entry errors, and to make the application user-friendly for all employees. Human Resources The following high-level Human Resources opportunities were identified: Implement the functionality to improve the efficiency of the applicant screening, consultant staffing, candidate interviewing and pre-hire document tracking processes Implement employee review, competency management, career planning and succession management functionality to replace the IPPR (individual project performance review) system and enhance the strategic management of personnel and employee training processes Implement a web-portal to host employee self-services such as leaves, training, payroll stubs, certification of employment, etc Workflow Over the course of consultancy, project representatives attended a workflow presentation and the topic of workflow applicability was discussed. They expressed interest in the workflow functionality and have experimented with a workflow prototype developed in-house, for the processing of Applicant information. The organizational readiness issues that surround workflow administration, workflow design and the actual ownership of the implementation will have to be addressed in the project planning for a second phase. Position Management – Positions and Job Codes Institutions use full position management with the general rule being a one-toone relationship between positions and employees. DoPA has made customizations to position data to further classify positions, track points associated with each position, and classify positions into job families. With the implementation of a Recruitment/Applicant module, business processes must be put in place to include position management in the recruiting efforts. Governance of the system Improve the governance of the system to better articulate the functional and technical efforts which should not be separated. It is necessary to reinforce DoPA with technical personnel to interact better with the rest of the institutions and with Infosoft, the software developer. Data Cleanup HRMIS uses the data from other modules as inputs in all of its processes. Indicative data values from the HR module such as marital status, employment dates and family status can change the results of pension calculations. In a similar manner, reliable historical payroll data is also critical to ensure accurate pension calculations. DoPA should engage in a separate data cleanup project that will address many of these issues. 5. Recommendations Procedures need to be established to maintain data integrity and consistent information within the system. Reporting capability could be improved significantly with procedural controls. In addition, Query and Crystal reporting functionality have not been used. This allows users to access all data in the HURIS system and circumvents any existing PeopleSoft security constructs. The IADB also has redundant system capability in reporting that could be eliminated by using the Crystal, Query and Reporting capability of PeopleSoft. This would also provide for a secure reporting capability in gaining access to information. Human Resources The replacement of the IPPR (Individual Project Performance Review) system with new employee review functionality is another upgrade goal that was identified during the initial analysis. The move to a central system for employee reviews allows DoPA to continue implementing career planning and managing the growth and development of their workforce in HRMIS system. To prepare for the transition away from the IPPR legacy system and toward the employee review system DoPA will need to prepare data conversion plans and develop user training schedules. Recruitment DoPA currently manages employee recruiting in separate systems outside of the HRMIS environment. The implementation of a new functionality is consistent with the stated goal of operating one integrated system for all human resources processes. Implementation of a Recruit Workforce module, as a part of the upgrade effort, will require to define recruiting business process and business requirements and develop a detailed conversion plan for migrating data from the legacy systems forward to HRMIS. Competency Management Incorporating Competency Management functionality into the upgrade product is a targeted area of enhancement for the upgrade project. Competency Management will allow DoPA to rank employees and measure performance more consistently across institutions. Competency Management is related to the employee development and career planning goals that has been identified and is an important step in building an integrated workforce management system. One of the preliminary tasks that DoPA must complete prior to the implementation of competency management is the identification all relevant competencies and all competencies that will be monitored. DoPA should initiate this competency identification process as soon as possible. Additional setup tasks such as identifying competency clusters, establishing rating models and associating competencies with training programs must be completed as well. DoPA does not have a legacy competency system so data mapping will be less of problem. Other existing sources of competency setup data such as employee reviews and job descriptions will be evaluated in the setup process. Payroll and Compensation During the consultants analysis, the compensation and payroll systems and business requirements where reviewed with the goal of reducing system customizations and increasing system effectiveness. As a result of this analysis it was determined that DoPA has several unique business requirements that will require continued customizations. Many of these customizations simplify and automate data flow by carrying data from the point of user input through to the payroll system. The cost of migrating these customizations must be compared to the cost of hiring additional staff to manage the manual processing alternative. 6. Conclusions The enhancements to HRMIS discussed above were cost in conjunction with Infosoft, the company responsible for the development of the application. The estimated cost for the new functionalities is: Add a new work-flow to manage the recruitment and hiring processes: €30K Integrate the current Individual Performance Evaluation into the HRMIS work-flow: estimated cost €10-15K Develop a self-service platform to allow users to interact with HRMIS services: estimated cost €20-25K Enhancing HRMIS reporting capability: estimated cost €25-50K Develop a comprehensive system support plan covering post guarantee period: estimated cost €35-70K
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