Position Management

1. Position Management A Boon or a Bane – Case Study of a Life Sciences Company

2. Agenda

3. Value Proposition of Position Position Control integrates HR, Comp, and FP&A and puts them on the same page when it comes to managing positions, tracking headcount, and managing vacancies

4. An effective design around managing roles, and headcount should meet the following business challenges… Line Managers and HR do not have a reliable way to determine open vs. filled positions The requisition process to fill headcounts often requires several levels of approvers to authorize the hire For global organizations, their HR Organization structure is evolving; employee to HR Generalist mapping constantly changing FP&A performs quarterly headcount updates in their systems, that do not synchronize with HR

5. An effective design around managing roles, and headcount should meet the following business challenges… In the absence of a clear delineation between jobs and positions, the number of jobs in the HR system proliferates over a period of time, resulting in redundant or duplicate job titles Compensation spends more time in pricing jobs as opposed to doing it once With acquisitions, new employees and their legacy titles are required to be validated against internal job titles Reorganizations, especially cost center changes, demands flexibility and ease of use from the system

6. Case Study of a Life Sciences Company

7. Project Highlights • Currently on 11i version of Core HR, and iRecruitment • Deploy HCM on a single oracle R12 instance with the following modules in scope. Core HR, ESS, MSS, iRecruitment, and OLM • The deployment to be carried out in 4 phases. • Pilot • International – Core HR data • Rest of US, and • International Self Service

8. Client’s Current Business Challenges • Proliferation in the number of Jobs due to ad-hoc requests for new title, or title changes. The ratio of Jobs to employees was getting close to 1:1 • As Jobs were not standardized and almost equal to a person, for every new hire, Compensation had to price the job • A 5 segment jobs KFF made the Job function more as a position • Unable to track the open positions, and budgeted vs. unbudgeted

9. The Design Approach Helped HR, Compensation, and FP&A SME’s articulate their current bottlenecks and their expectations from the new system Conducted workshops with SME’s that provided in-depth understanding of the full capability of Position Management - jobs and positions, position types, standard position control, advanced position control, position control and budgeting. Through a process of elimination, finalized the adoption of standard position control and integration with FP&A system Prototyping, testing, and deployment!

10. The four scenarios of Position Control • Annual upload of existing positions from Oracle to FP&A headcount system • Forecast Positions in FP&A system at the beginning of the annual process, but only create approved Positions via Position Control in HR system • Create new positions during the year after the annual process, via Position Control in HR system • Update to an approved Position i.e. Eliminate, or Freeze a position

11. Scenario 1 : Annual upload of the existing positions from Oracle to BPC BPC system updated with Positions Oracle eBS HR Positions Upload process BPC Oracle HR

12. Line Manager notified Discuss the need for new Positions at the start of the annual process Line Manager Create the new Position via Position Control HR Plant Controller/ FP&A Review and approve the position Report/notify approved Positions to HR Create ‘unique’ placeholder Positions in BPC Review & Approve the Position Compensation BPC module updated with the correct Position BPC Scenario 2: Forecast Positions in BPC at the beginning of the Annual process, but create approved positions in Oracle HR

13. Line Manager notified Line Manager Discuss the need for additional positions during the year Create the new Position HR Review and approve the position Plant Controller/ FP&A Review & approve the Position Compensation Upload into BPC BPC Scenario 3: Create new positions during the year after the annual process in Oracle HR

14. Review and approve the position Update BPC Update a position per the Qtrly review Report/notify Eliminated/Frozen Positions to HR Plant Controller / FP&A Update the Position Status in Oracle HR HR Review & Approve the Position Compensation Line Manager notified Line Manager Scenario 4: Update to an existing position i.e. Eliminate or Freeze

15. Key Business Benefits Realized • Eliminated the practice of defining new jobs for ad-hoc requests such as title changes, or for new hires • Eliminated the practice of assigning HR Reps and HR Directors at employee level. This is now derived from the Positions • Majority of the Self Service, iRecruitment, and other workflow processes derive HR approvers from Positions • In the event of a re-org, automated program will update the HR Reps and HR Directors assigned to Positions • HR security derived extensively from Positions

16. How to lead a transformation http://youtu.be/1nlgmKJEcS8

17. Key cultural issues that impacted the integration • Organizations are not ‘resistant’ to change, they are ‘hesitant’ to change. Continued reliance on ‘old’ ways of doing things, and expecting that the new system would fit into their old ways of doing things • Conflicting priorities for HR, Comp, and FP&A made the integration very challenging • Lack of executive sponsorship for the integration

18. Annexure’s

19. Annexure 1: Key Definitions • Job: A ‘Job’ is a ‘broad’ role of an employee that indicates their job function, responsibility and authority. For e.g. HR Manager, Sales Manager etc. • Position: A ‘Position’ is a ‘very specific’ instance of a ‘Job’ within an HR Organization. For e.g. Sales Manager of Neuro, Director of Talent Acquisition etc. • Position Control: When a combination of positions, budgeting, and workflow functionality supports a set of business requirements, then we refer an organization as a ‘Position Control’ enabled organization

20. Annexure 2: Best Practice around Jobs and Positions • The industry accepted best practice for an Organizations that uses Jobs and Positions together to represent an employee’s role is to: • Configure Jobs at a higher level than Positions. This means there is a one to many mapping between Jobs and Positions, and the count of Jobs is far lesser than Positions • Leverage ‘Jobs’ to drive the compensation and incentive levels • Leverage Positions to track budgeted vs. un-budgeted, open vs. filled positions, and assign every person to a position

21. Annexure 3: A glance at Jobs and Positions

22. Annexure 4: Examples of industries where Jobs, or Positions apply • For a global fashion retailer, a salesperson is required to sell products for multiple cosmetic brands. In this case the organization utilizes the skill sets of the salesperson in a variety of sales settings. The organization requires flexibility in managing employee assignments. Thus, defining roles using Jobs would be a better choice • For a large global manufacturing organization, a dipping operator is assigned for a specific work and his/her skills cannot be used as a stripping operator. The organization tracks roles, compensation in a more structured manner. Thus, defining roles using Positions would be a better choice • For software Organization a consultant moves from one client to other assuming different roles. The organization needs flexibility to manage employee roles and thus using Jobs to define roles would be a better choice

23. Annexure 5: What does jobs and positions mean to an Organization • By committing to jobs: • HR and Comp manage employees and their skills in a flexible manner • Reporting on open headcounts, budgeted vs. un-budgeted positions, etc. is derived • By committing to positions: • HR and FP&A manages fixed roles within a department opposed to with HR and Comp managing people and their skills • Such fixed roles remain active usually surviving multiple incumbents • Roles and compensation is tracked in a more structured manner

24. Annexure 6: What does Single Incumbent Positions mean • Can very easily detect the "Open" positions. • Allows defaulting of valid grades and salary ranges by geographical location • Allows setting up default position descriptions for global organizations. Though this will an upfront high volume task, it saves effort while creating vacancies in iRecruitment • Saves data entry effort of attributes like payroll, valid grades, location, working hours etc while doing transfers, promotions via self-service HR • Allows overlap as needed

25. Annexure 6: What does Single Incumbent Positions mean • Requires a "net" new Position for a hire if the position does not exist. • Will require a "net" new position in situations of transfers, promotions if the position does not already exist. • Requires creation of "net" new positions in cases of re-orgs/acquisitions • Best practice for setting up PR's/PO's hierarchies, when using the Positions model, is single incumbent • Best practice for setting up AME's (approvals management)

26. Annexure 7: What does ‘Pooled’ Positions mean • In this model "Open Positions" will be a misnomer. Instead it should be referred to as "Open Vacancies". • Does not offer the ability to default valid grades, and salary ranges by geographical location. Thus it will require line Manager's to assign the salary range while creating vacancies. • The job posting has to be updated manually while creating a vacancy under iRecruitment if the posting needs more specific information. • If the Position title undergoes a change, the new position title will apply to all the holders of the Position

27. Annexure 7: What does ‘Pooled’ Positions mean • Does not need "net" new positions for hires, transfers, or promotions scenarios. • Requires creation of "net" new positions in cases of re-orgs/acquisitions • May cause failures on the workflow while doing transactions for PR's/PO's if there are multiple holders to a Position • Can cause failures with AME's (approvals management) if there are multiple holders to a Position

28. Q & A

29. Wrap up… Thank your for participating in this session www.ohug.org/sessioneval