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How to Hire an Employee Llc


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									                                     Human Capital

                                          BPI - Overview

January 2007 (v1.0)   The Rushmore Group, LLC              1
           Goal of HCM

• Right People for Right Job at the Right Time
• Functions
  –   determining staffing needs
  –   recruitment and training
  –   time management
  –   performance issues and performance monitoring
  –   compensation and benefits
  –   proper alignment of corporate and personnel goals

  January 2007 (v1.0)   The Rushmore Group, LLC           2
            Shift in HCM

• Effects of Globalization and Technology
  – Stereotype shift
        •   Payroll
        •   Personnel Department
        •   Human Resources
        •   Human Capital Management
              – shift from brute labor force to quality workers
                   » get rid of the fishing nets and bring in the lines
              – transform employees into competitive resources

  January 2007 (v1.0)     The Rushmore Group, LLC                         3
           Modules within HCM

• Personnel Management
   – HR Master Data, Personnel Administration, Info. Systems, Recruitment,
     Benefits & Salary Administration,
• Organizational Management
   – Organizational Structure, Staffing Schedules, Job Descriptions, Planning
     Scenarios, Personnel Cost Planning
• Payroll Accounting
   – Payroll Administration, Payroll Simulation
• Time Management
   – Shift Planning, Work Schedules, Time Recording, Absence Determination
• Personnel Development
   – Career/Succession Planning, Profile Match-ups, Training, TEMs

  January 2007 (v1.0)   The Rushmore Group, LLC                                 4
           Integration of HCM

• HCM with Production
  – Shift Planning (Capacity)
• HCM with FI/CO
  – Payroll
  – Personnel Cost Planning
• HCM with MM
  – TEMs (Training and Event Management)
• HCM with SD
  – Salespeople - Commissions

  January 2007 (v1.0)   The Rushmore Group, LLC   5
           Organizational Data

• A hierarchy in which the organizational units in an
  enterprise are arranged according to task and
• Are static data and are rarely changed
• The definition of organization units is a
  fundamental step, it is a critical factor in how the
  company will be structured

  January 2007 (v1.0)   The Rushmore Group, LLC          6
             Structure of HCM

•   Enterprise Structure

•   Personnel Structure

•   Organizational Structure

    January 2007 (v1.0)    The Rushmore Group, LLC   7
            Organizational Structure for HCM

• Enterprise Structure
  – This structure makes up the legal identity of the company
  – The Enterprise Structure is made up of the following
        •   Client
        •   Company Code
        •   Personnel Area
        •   Personnel Subarea

  January 2007 (v1.0)   The Rushmore Group, LLC             8
           Enterprise Structure

• Client
   – technical structure feature
• Company Code
   – highest level of the enterprise structure
• Personnel Area
   – divides the company into sub-units (unique to a client)
   – locations or divisions
• Personnel Subarea
   – subdivision of the personnel area (the grouping of the personnel
     area and subarea must be unique to a company code)
   – departments

  January 2007 (v1.0)   The Rushmore Group, LLC                         9
         Enterprise Structure: Pen Inc.

    Client                                     Client 420

  Company                                    Pen Inc 100

  Personnel                            P100                        P101
    Area                        Pen Inc. Central Office        Pen Inc. MFG Center

  Personnel             0001                        0002                         0001
   Subarea            Administration                 Finance                   Manufacturing

January 2007 (v1.0)   The Rushmore Group, LLC                                                  10
           Personnel Structure

• This structure describes an employee’s position
  within the company in regards to work hours and
• The Personnel Structures is made up of the
  following elements
  – Employee Group
  – Employee Subgroup
  – Payroll Area

  January 2007 (v1.0)   The Rushmore Group, LLC     11
           Personnel Structure: Elements

• Employee Group
  – represents a division of the companies employees and
    establishes a relationship between the company and the
  – defines the extent which the employees capacity is
    available to for the company
        • Active Employee, Pensioner, Interns, External Employee

  January 2007 (v1.0)   The Rushmore Group, LLC                    12
           Personnel Structure: Elements

• Employee Subgroup
  – refines the relationship between company and employee
        • Standard Salary, Executive Salary, Daily Wage, Hourly Wage,
  – control features for the personnel structure are defined at
    this level.
        • employee relationship with payroll
        • eligible work schedules, wage types, attendance policy,
          restrictions for collective agreement provision

  January 2007 (v1.0)   The Rushmore Group, LLC                         13
           Personnel Structure: Elements

• Payroll Area
  – groups employees together that are paid the same (time)
        • Weekly, Bi-Weekly, Monthly
  – the payroll area is determined from a combination of the
    Employee Group and Employee Subgroup
        • number of employees in the payroll run
        • specific dates of the payroll run

  January 2007 (v1.0)   The Rushmore Group, LLC            14
            Organizational Structure

• This is an overview of your Company’s Organizational Plan (Org.
   – Depicts the reporting structure and task distribution
• The Organization Structure is made up of the following elements
   – Organizational Unit
         • represent functional units within an enterprise (ex. departments)
   – Position
         • spots that are occupied by individuals (Salesperson)
   – Job
         • classifications of functions within an enterprise
               – ex. Job: Officer, which is used for Positions: CEO, CFO, COO
         • job description for numerous positions
   – Person
         • the individual, he/she is assigned to a specific position

   January 2007 (v1.0)       The Rushmore Group, LLC                            15
           Organizational Structure: Pen Inc

Organizational Units



 January 2007 (v1.0)   The Rushmore Group, LLC   16
          HCM: Master Data

• Master data is relatively fixed
    – Record that contains all the necessary information to conduct
      business transactions
    – Information within a master record can and will change, our hope
      is that it does not change frequently.

• Before making the master data configurations,
  you must have completely defined the
  organizational structures

 January 2007 (v1.0)   The Rushmore Group, LLC                       17
           Employee Data

• Information must be recorded and maintained
  effectively for every employee
  – Infotypes (Information Types) are units of information
    that aid in the entry of master data and group like
    information together
• Status of the Employee will determine what
  information should be gathered
  – Active vs. Intern
  – Exempt vs. Non-exempt

  January 2007 (v1.0)   The Rushmore Group, LLC              18
          Employee Data: Infotypes

• Numerous infotypes will be created for each employee
   – Organizational Assignment must be the first infotype recorded

 January 2007 (v1.0)   The Rushmore Group, LLC                       19
            Employee Data: Infosubtypes

• Certain data that is entered in an infotype can trigger the
  need for a infosubtype
   – ex. Family Member/Dependents
         • If you enter that you are married or have children it will generate the
           need for a spouse/child infosubtype to capture the information about the
           spouse or child(ren)
• Subtypes also allow you to account for time constraints
   – Different addresses may be current at the same time
         • Permanent Residence
         • Temporary Residence
         • Home address

   January 2007 (v1.0)   The Rushmore Group, LLC                                 20
           Employee Data: Personnel Actions

• Personnel actions are a series of predefined
  infotypes that are grouped together to speed the
  data entry process
  – Hiring, Firing, Reassignment, Retiring – would all be
    examples of procedures that could be represented by a
    Personnel action
• Personnel Actions enable users to enter
  information about an employee without having to
  access each individual infotype

  January 2007 (v1.0)   The Rushmore Group, LLC             21
          Personnel File

• Information maintained about an employee is stored in their
  Personnel File

 January 2007 (v1.0)   The Rushmore Group, LLC                  22
         HCM: Process/Functions

               Recruitment                Employee

                                                         Training and

      Cost Planning                   Employee
       Reporting                                            Manage Work
                                                            Time (CATS)

                      Administration                Compensation
                                                     & Benefits

January 2007 (v1.0)     The Rushmore Group, LLC                           23
         Recruitment – Selection - Hiring



     Hire                    Select & Notify
                                                Profile Match

January 2007 (v1.0)   The Rushmore Group, LLC                   24
           HCM Process: Recruitment

• allows you to monitor and meet the personnel
  requirements within the company
• determines vacancies within the company
  – maintained by Personnel or Line Managers
  – the system will generate a list of all positions that are
    marked vacant
• once a vacancy has been identified advertising can
  be initiated

  January 2007 (v1.0)   The Rushmore Group, LLC                 25
           Recruitment: Advertising

• Vacancies are published in advertisements
  – internal or external announcement of a position
• The advertisements are recorded in the system
  enabling you to gather information about that
  –   cost
  –   applications
  –   medium
  –   recruitment instrument

  January 2007 (v1.0)   The Rushmore Group, LLC       26
             Recruitment: Applicant Administration

•    allows a company to coordinate and monitor all the steps involved in
     the applicant process
                                      • Applicant Administration is a
                                         combination of
                                                    – receiving applications
                                                    – profile match
                                                    – selection of applicants

    January 2007 (v1.0)   The Rushmore Group, LLC                               27
           Recruitment: Applicant Administration

• Maintaining applications
  – Applicants are the central object of Recruitment
        • it is a person who expresses interest (through job application) in employment or
          position change within the company
  – All applicants must be maintained in the system
        • maintenance responsibility must be delegated (one or more people)
        • the status of the applicant will determine the information that is needed

• Profile Matching
  – Compares skills of the applicant to the requirements of the position
        • can the applicant offer what the company needs
              – is there another vacant position that he/she would have a better match

  January 2007 (v1.0)       The Rushmore Group, LLC                                      28
           Recruitment: Applicant Administration

• Selection
  – Applicant Activities aid in Selection process
     • used to enter, log, and plan all the tasks for an applicant during the
       selection process
              – Activity Types: mail confirmation of receipt, mail invitation to interview,
                schedule appointment for interview, reject applicant, offer contract
                  » depending on the activity and the system output can be generated
              – Activity Status: planned, completed
              – Performance Date: when it was carried out
              – Person Responsible: person responsible for carrying it out
  – Upon completion of qualification review and interviews the position must be

  January 2007 (v1.0)      The Rushmore Group, LLC                                            29
           HCM Process: Hiring

• Master data (information) is obtained during the
  hiring process (employee data)
        • Personal Data, Payroll Data, Time Data, Etc.
• Hiring can be integrated with Recruitment
        • information obtained about an applicant can be copied into
          his/her personnel record
• Hiring can be done independently of Recruitment
        • through the Hiring personnel action (infotypes)

  January 2007 (v1.0)   The Rushmore Group, LLC                        30
            HCM Process: Personnel Development

• Personnel Development component is used to assess and create
  employee “value” that can be utilized by the company.
• Purpose is to manage the work efforts and develop the work skills of
  employees within the company
• A company’s Personnel Development needs are determined by
  comparing current or future work requirements with employees’
  qualifications, preferences, and aspirations.
• Personnel Development comprises of the following components:
   –   Qualifications/Requirements
   –   Appraisal Systems
   –   Career and Succession Planning
   –   Development Plans

   January 2007 (v1.0)   The Rushmore Group, LLC                     31
         HCM Process: Training & Development

                                 Career &
                                Succession      generate

    Appraisals               based upon

                              Qualifications/    creates     Training

January 2007 (v1.0)   The Rushmore Group, LLC                                32
           HCM Process: Training & Development

• Qualifications/Requirements
  – this component is used to define, structure, and manage
    your qualifications catalog
        • the catalog enables you to place requirements on positions and
          qualifications on employees (or applicants) within the company
              – perform profile match-ups (people and positions)
              – run reports to recognize qualification deficits and enact training

  January 2007 (v1.0)     The Rushmore Group, LLC                                    33
           HCM Process: Training & Development

• Appraisal Systems
  – used in
        • Personnel Administration
              – as an instrument to evaluate members of your organization in a
                planned, formalized and standardized manner
        • TEMs
              – training appraisals
              – attendance appraisals
        • Compensation Management
              – appraisal results can be used to influence remuneration

  January 2007 (v1.0)    The Rushmore Group, LLC                                 34
           HCM Process: Training & Development

• Career and Succession Planning
  – Career Planning
        • planning functionality that allows you to analyze an employees
          skills, preferences, dislikes, qualifications, potential and
          determine positions they should hold during their tenure at the
  – Succession Planning
        • planning functionality that allows you plan for positions in the
          company that will need to be filled because of turnover (or new
        • enables a company to analyze employees and determine and
          prepare potential replacements

  January 2007 (v1.0)   The Rushmore Group, LLC                              35
           HCM Process: Training & Development

• Development Plans
  – a series of development measures and information on
    the sequence in which they should be passed through
    and time requirements to provide an individual with a
    specific qualification
        • Generic Plans
              – training program (all prospective sales reps must complete a course
                on Fundamental Selling Techniques)
        • Individual Plans
              – comprises of all the items that a person has completed, is currently
                involved in, or will be involved in the future
              – proposes needed course work (integration with TEMs)

  January 2007 (v1.0)    The Rushmore Group, LLC                                   36
           HCM Process: Training & Development

• Training
  – enable new hires and current employees access to the
    necessary resources to build job skills needed for both
    current and future task assignments
        • this is figured through Qualifications/Requirements reports,
          development plans, career planning, etc
  – Encourage continually learning and professional
        • SAP offers a powerful resource to assist in scheduling training -

  January 2007 (v1.0)   The Rushmore Group, LLC                               37
         HCM Process: Training & Development

•   Training and Event Management (TEMs)
    – Component that enables
      a company to manage,
      track, and plan various
      different business events
    – Helps determine demand
      for courses and schedule
      dates, manage the
      resources, attendees, and
      costs associates with the

January 2007 (v1.0)   The Rushmore Group, LLC   38
            HCM Process: Training & Event Mgmt

• TEMS Catalog Structure
   – Business Event Groups
        •   Used to classify business event types

   – Business Event Types
        •   Time independent description of a
            business event

   – Business Events
        •   Actual time based event that is to take

  January 2007 (v1.0)            The Rushmore Group, LLC   39
         HCM Process: Training & Event Mgmt

  – Integration Points

                      MM                                  SD

             FI                       TEMS                          CO

    Personnel                                                         Time
   Development                                                     Management
                      Organizational                Personnel
                      Administration              Administration

January 2007 (v1.0)     The Rushmore Group, LLC                                 40
         HCM Process: Time Management

                                           • supports planning,
                                             recording, and evaluation of
                                             internal employee time data
                                           • time data that would be
                                             gathered and evaluated
                                                –   hours worked
                                                –   leave
                                                –   illness
                                                –   overtime
                                                –   substitutions
                                                –   business trips
                                                     • conference, training

January 2007 (v1.0)   The Rushmore Group, LLC                                 41
           HCM Process: Time Management

• There are multiple methods for data collection:

                                                       Time Administrators
Time Manager’s Workplace
                                 Time Terminals

                                          Cross Applications Time Sheet
                                          Employee Self Service

           Mobile Technology

  January 2007 (v1.0)   The Rushmore Group, LLC                              42
           HCM Process: Time Management

• Time collection will be used for:
   –   payroll accounting
   –   personnel cost analysis
   –   internal cost allocations
   –   invoicing
   –   performance analysis
   –   capacity availability
   –   shift planning

  January 2007 (v1.0)   The Rushmore Group, LLC   43
             HCM Process: Compensation & Benefits

• Compensation is not the cut-and-dry subject it once was
   – Past – consisted of an employee's base salary or, at most, a
     base salary and commission.
   – Today - looked at as compensation packages; including:
         •   salaries, stock options
         •   employee stock ownership plans
         •   pay-for-performance plans
         •   bonuses, profit sharing
         •   commissions, non-cash rewards
         •   variable pay, and much more.

  January 2007 (v1.0)   The Rushmore Group, LLC                     44
           HCM Process: Compensation Management

• The balancing of company interests to operate within the
  company's fiscal budget and fairly paying employees
   – key component of attracting, developing, retaining, and rewarding
     high quality staff through wages and salaries which are
     competitive in the labor markets
• Compensation Management is comprised of the following
   –   Job Pricing
   –   Budgeting
   –   Compensation Administration
   –   Long-term Incentives

  January 2007 (v1.0)   The Rushmore Group, LLC                          45
          HCM Process: Benefits Administration

• benefits today are offered as a part of an employees overall
  compensation package
• this component allows a company great flexibility in creating and
  maintaining individual packages for your employees
   – Six international Plan Categories
• Allows for detailed company reporting
   –   Benefit Plan Participation
   –   Health Plan Costs
   –   Employee Demographics
   –   Benefits Election Analysis
• Country Specific Settings available
   – FSA, COBRA (US examples)
         • HIPPA Certificates

 January 2007 (v1.0)    The Rushmore Group, LLC                       46
         HCM Process: Payroll Administration

• SAP contains an international payroll driver that
  is modified for each country
• payroll is released for individual payroll areas
    – the run is for a specific group of employees and a
      specific period of time
    – upon release all affected personnel records are locked
• will generate an payroll results, and earning
  statement, bank transfers and check payments

January 2007 (v1.0)   The Rushmore Group, LLC             47
           HCM Process: Payroll Administration

• Payroll Process
  – determine Gross Amount
        • base pay and any other additional payment
              – overtime, sick pay, Christmas bonuses, special pay
  – determine Deductions (Net Amount)
        • processes garnishments, deductions, taxes, and benefits for
              – Federal/State Income Tax, Insurance (Health, Life), Loans
  – Integration with Financial Accounting & Controlling
        • G/L postings, payments processed, reports available

  January 2007 (v1.0)    The Rushmore Group, LLC                            48
           HCM Process: Cost Planning Reporting

• used to analyze, monitor, plan a company’s
  personnel costs, wages, salaries, and employer
  – cost plans are generated by developing and comparing
    multiple cost scenarios, these scenarios might be actual
    or projected

  January 2007 (v1.0)   The Rushmore Group, LLC            49
          HCM Process: Employee Self-Service

• Employee Self-Service (ESS)
   – empowers employees to create, display, and change their own
     personal information
         • streamlines and simplifies the HR data entry process
   – some of the capabilities include
         •   SAP Office – appointment calendar, employee directory
         •   Personal Information – address, bank information
         •   Time Management – record working time, request leave
         •   Business Trips – submit travel request, reserve flights, rooms, also
             expense reimbursement process
         •   Training – register for training, display your bookings
         •   Benefit Enrollment and Overview (Healthcare, Retirement, etc)
         •   Display Leave and Earnings Statements
         •   Qualification and Appraisal Review
         •   W-2 W-4 printout

 January 2007 (v1.0)     The Rushmore Group, LLC                                    50

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