by Alison Weiss , February 2014
HCM systems used to just collect and keep track of labor cost management and compliance data related to payroll, scheduling, and policies. Today, HCM professionals and company executives want to look beyond simple transactions and do strategic analyses on the information to understand how to streamline workforce management procedures, make better decisions involving hiring and retention, and improve competitive advantage.
But a recent survey by the Aberdeen Group reveals that while HCM is becoming more strategic and aligned with the overall business, only 25 percent of organizations are able to use relevant workforce data in a timely manner for decision-making.
Oracle’s new PeopleSoft In-Memory Labor Rules and Monitoring solution leverages Oracle Engineered Systems and PeopleSoft HCM applications to give organizations the ability to quickly access and analyze workforce management data. These innovative technologies provide real-time insight into labor policy rules and planned and actual labor cost data.
According to Paco Aubrejaun, senior vice president and general manager, Oracle’s PeopleSoft, labor cost management and policy compliance are ideal areas for HCM improvement because whether companies produce actual products or provide services, typically their largest cost component is labor. Any new efficiencies can save money and boost profitability.
The deployment of people and associated costs based on demand is pretty fundamental, but new technologies exist that can bring this data into memory, do analysis quickly, and get results faster so that better decisions can be made.
“The deployment of people and associated costs based on demand is pretty fundamental, but new technologies exist that can bring this data into memory, do analysis quickly, and get results faster so that better decisions can be made,” he says. “And global competition and compliance obligations are not new, but if you don’t have the right tools to manage them, you put your organization at risk.”
Until recently, when HCM decision-makers in organizations with large numbers of hourly employees wanted to analyze trends in overtime hours, they were often limited to batch processing and accessing payroll data after the fact – when overtime costs had already been incurred and it was too late to make adjustments. Now, the PeopleSoft In-Memory Labor Rules provides real time information with labor rules that can run when labor hours get entered. The solution provides pre-configured integration between PeopleSoft Time and Labor and Oracle Policy Automation, as well as an intuitive, configurable dashboard.
the percentage of organizations that are able to make relevant workforce HCM data available in a timely manner to stakeholders to enhance decision-making. (Source: Aberdeen Group’s 2013 HCM Trends survey)
For international companies with departments in various countries, maintaining policy compliance has been a challenge not only because rules can change with the adoption of new contracts, but also because stakeholders haven’t had visibility into what other departments are doing regarding maintaining policy rules. The new solution takes advantage of a natural language memory rules engine to create predefined, easily understood labor policy rules, such as overtime rules, that are visible across the organization – reducing the risk of non-compliance. In addition, if a change needs to be made, an administrator can modify a rule and easily run a what-if analysis to see what impact the change would have, taking out the guess work and clearly showing the potential impact on the business.
And because the new PeopleSoft solution is optimized to run on Oracle Exadata Database Machine, and Oracle Exalogic Elastic Cloud or Oracle SuperCluster, it takes advantage of cutting-edge capabilities of Oracle Engineered Systems, including InfiniBand and flash cache, to speed processing and provide high performance and scalability.
Along with PeopleSoft In-Memory Labor Rules and Monitoring, PeopleSoft customers interested in embracing in-memory HCM applications have several additional options. PeopleSoft InMemory Real Time Bottom Line enables CFOs to do what-if financial analysis in real-time on production financial data, while PeopleSoft In-Memory Project Discovery uses the Oracle Endeca search and analytics engine to correlate structured and unstructured project data to enable organizations to answer complex questions very quickly.
“PeopleSoft In-Memory applications leverage the HCM investments and innovations happening across Oracle technology and applications so our PeopleSoft customers can do things in ways that weren’t possible before,” says Aubrejaun. “They can make better decisions that can really change their businesses.”
Alison Weiss is a freelance writer in the San Francisco Bay Area and a frequent contributor to Profit.