New system bringing changes to employee management, compensation tools
By Michele Rainford
JUNE 27, 2006--Beginning late September, the new Human Capital Management system (HCM)—the PeopleSoft component that supports employee and human resources functions—will be implemented at UTMB.
The transition to PeopleSoft HCM is being managed by teams in Finance Administrative Systems, Payroll Services and Human Resources, as well as managers and members of the Entity Administrative Service Teams. It’s taken a tremendous amount of planning, collaboration and cooperation to get user input, design the process and system, test it, develop training and provide for ongoing user support. In the end, the goal is to ensure a smooth evolution to the new tools.
Why make the change? The current Human Resource Management System is becoming difficult to sustain and does not support the flexibility that we need in our environment. The new HCM system uses standard calculations that adhere to legal requirements and best practices in the health care industry. The HCM system brings important updates, new capabilities and enhanced features to campus. It provides some great benefits for employees, including easier-to-read and more detailed pay stubs, and the ability to securely access and update personal information, look up and track accruals, track use of time off, and view pay history.
In addition, employees who participate in the UT Saver 403(b) Tax-Sheltered Annuity Plan (TSA) and the UT Saver 457(b) Deferred Compensation Plan (DCP) will see a much-requested benefit: the system will allow deductions to be withdrawn from both the first and the second bi-weekly pay check. The current monthly contribution will be split into two equal amounts taken from each check, granting employees an opportunity to maximize their contributions (for those who desire to do so, up to the IRS maximum), invest contributions sooner, consistently invest a set dollar amount, and have more flexibility in budgeting. In the months when there are three bi-weekly paychecks, no additional amount will be deducted from the third check.
The PeopleSoft HCM also integrates seamlessly with KRONOS, the time capture system used to collect and record time worked and time paid. The marriage of these two tools will help to further consolidate and unify UTMB’s suite of administrative applications.
One other important change is that some employees will see a small to moderate decrease in their net or take-home pay due to an adjustment in the overtime rate calculation. Those who earn large amounts of overtime and receive the most longevity pay and other additional compensation will see the largest impact. Our nonstandard calculation rate benefited some employees, but collectively, those cents and dollars generated a considerable additional expense to the institution. See the related story, which offers additional information and examples of the impact o f the change.
The calculation rate change will be effective for the first biweekly pay check delivered in October 2006. Visit the HCM web site for information about this tool and to see examples of overtime pay calculations.
For information on KRONOS, visit the web site.
If you have questions or need more information, please call the Administrative Systems Help Desk (formerly referred to as the PSAsk Help desk) at (409) 747-7275. Call the Employee Benefits Center at (409) 772-2630 for specific questions on the TSA and DCP.