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CORPORATE L EADERSHIP COUNCIL®
Profiled
Industry
Institution
A Media
B Health Care
C Hospitality
D Telecommunications
E High-Tech
Table of Contents
Executive Summary
HRIS Function Charts:
Strategic and Technical
HRIS Function Charts:
Technical Focus
Evaluation Methods
Research Methodology
OCTOBER 2006
www.clc.executiveboard.com
Fact Brief
Determining the Scope and Structure of the HRIS Function
Key Questions:
Employees Revenues
How do companies structure and staff the HRIS function?
50,000 – 100,000 $5 billion – $10 billion
10,000 – 50,000 More than $10 billion What are the responsibilities and goals of the HRIS function?
10,000 – 50,000 $500M – $2 billion How do company leaders evaluate HRIS function performance?
2,000 – 10,000 $500M – $2 billion
10,000 – 50,000 $5 billion – $10 billion
Issue Overview: Managing HR Information Systems to Meet Business Needs
To address the expansion of HR Information Systems’ role in HR operations…
2
As organizations further embed HR Information Systems (HRIS) and human capital applications into business operations, HR leaders must
continually reevaluate the management and utilization of these systems to drive more effective service delivery and create value for the business.
3
Increasing demand is driving this continued expansion: a 2005 CedarCrestone survey reveals that while business users are generally satisfied
with HR systems’ core compliance and transactional capabilities , a majority are not satisfied with their systems’ abilities to inform workforce
9 decisions, a critical component of HR’s business contribution.1
13
…internal HRIS functions balance technical expertise with the ability to support business objectives…
14
To address this ongoing need, HR executives must determine how to structure internal HRIS functions to leverage staff with technical expertise,
HR expertise, or balance capabilities to support both functions . As internal HRIS functions hone technical capabilities around systems
management, many organizations expand the function to provide strategic support, utilizing staff with cross-functional expertise and business
acumen to provide improved reporting and high-level analysis of human capital data. By blending high-touch with high-tech capabilities,
companies utilizing HR applications for strategic HR tasks experience an average overall financial growth of 17% compared to companies that
do not fully utilize their HR applications.22
…to better serve internal customers and business leaders.
The structure, role, and expertise of the HRIS function determine its abilities to effectively manage the HRIS and generate strategic insight.
This brief examines how five organizations have organized and tasked the HRIS function to leverage HR and technical expertise, improve
service capabilities , and directly support the needs of business leaders throughout the organization.
 2006 Corporate Executive Board. All Rights Reserved.
Catalog No.: CLC16G8KPL
DETERMINING THE SCOPE AND STRUCTURE OF THE HRIS FUNCTION
OCTOBER 2006
EXECUTIVE S UMMARY
To effectively manage the enterprise HR Information Systems (HRIS), companies have created internal HRIS functions dedicated to overseeing implementation and expansion of
HRIS capabilities.3,43,These groups are structured according to organizational needs and employee capabilities, and typically fall under the HR department. Findings reveal that most
of the HRIS functions at profiled companies attempt to balance technical capabilities with strategic contribution. That said, HRIS functions at two profiled companies focus more on
technical elements of HRIS management to improve service and reporting capabilities. This research brief provides an overview of the structures and objectives of these two types
of HRIS functions.
I. BALANCING TECHNICAL S TRENGTH WITH
BUSINESS S TRATEGY
Balanced HRIS Function
Structures
While a majority of profiled companies’ HRIS functions are
dedicated to technical and strategic responsibilities,
the structures in place typically vary based upon alignment with
HR functions, scope of HR technology in place at the
organization, and internal service requirements.
Consolidated HRIS Function—Company A recently
consolidated its previously decentralized HR department.
The centralized structure results in one HRIS function
responsible for both technical and strategic objectives.
Dedicated Teams within the HRIS Function—Company B
has created four distinct groups within its HRIS function:
§ Business System Services
§ Information Services
§ Human Capital Analysis
§ Technology Strategy
The first two are dedicated primarily to technical and
information services , while the latter two focus on more
business support and strategy development.
Dispersed HRIS Support—Company E has three main HRIS
support groups, located within both the HR and finance
departments:
§ HR Enabling Technologies (HR)
§ HR Service Solutions (HR)
§ Global System Administration (Finance)
Similar to Company B’s approach, these dispersed groups take
on specific duties around implementing and supporting HR
technology.
II. PROVIDING TECHNICAL EXPERTISE TO THE
ORGANIZATION
Technical HRIS Function
Structures
The HRIS functions at two profiled companies align primarily
with technical objectives. These groups focus on technical
expertise to drive service delivery and data management
capabilities.
Technical Bench StrengthThe HRIS team at Company C is
a relatively small group, made up of five analysts with significant
experience in HR technology and HRIS management. These
analysts rotate system management work assignments to
develop expertise in all areas of HR, such as recruiting and
compensation.
Divided Technical Capabilities—Company D divides its HRIS
function into three teams:
§ SAP
§ Technical
§ Transaction
Each team focuses on the technical, administrative, or system
management duties around the SAP HRIS.
 2006 Corporate Executive Board. All Rights Reserved.
PAGE 2
III. EVALUATING HRIS FUNCTIONS
Methods for Measuring HRIS Function
Effectiveness
Research indicates that companies evaluate HRIS function
performance in the following ways:
Monthly Metrics Reports—Company A tracks service and
reporting metrics to generate a monthly report distributed
throughout the company.
Internal Service Evaluations —Company D’s HRIS function
gathers service feedback from internal customers around
service quality and speed.
Company-Wide Performance Goal Surveys —Company B
conducts “blueprinting” interviews with business leaders to
gather feedback on what leadership needs from the HR
function.
DETERMINING THE SCOPE AND STRUCTURE OF THE HRIS FUNCTION
OCTOBER 2006 PAGE 3

Balanced Technical Evaluating HRIS

HRIS Structures HRIS Structures Functions

Balancing Technical Strength with Business Strategy

Three of the five profiled companies indicate that the HRIS function contributes a combination of technical expertise and strategic input to serve the larger organization. To
effectively contribute to business and strategic objectives, these HRIS functions reduce service costs, improve reporting capabilities, and dedicate resources to collaborating with
business leaders and aligning HRIS capabilities with business strategies. That said, the extent to which strategic contribution and technical expertise are supported by the HRIS
function varies based upon function structure, employee background, and business needs. The following section outlines the HRIS function structures of those profiled companies
offering both technical and strategic capabilities.

CONSOLIDATED HRIS FUNCTION AT COMPANY A

Industry: Media
Company A Revenues: $5 billion - $10 billion
Employees: 50,000 - 100,000

Characteristics: The HR Decision Support function at Company A is composed of 11 corporate employees : the group head and assistant; four PeopleSoft analysts and a
manager to whom they report; a metrics specialist; a payroll specialist; a Web master; and an additional manager focusing on HR projects. The four
PeopleSoft analysts are all experienced in system navigation and training, and most come from an HR systems background. The project manager
balances both technical and business acumen, with experience in HR metrics and analytics.

Company A transformed the HR department in August 2005 to better support a proactive business orientation by consolidating a previously decentralized
department and outsourcing most of the highly technical elements of HR systems management, such as server maintenance and SQR programming,
to Hewitt Associates .

Implications: The 2005 transformation has realigned the HRIS function’s orientation away from the purely technical elements of HRIS management and toward a
proactive support of business unit needs. Maintaining PeopleSoft analysts enables the HRIS staff to build out PeopleSoft functionality to drive utilization
and further build out PeopleSoft capabilities based upon Company A’s needs.

Objectives and Future-State Goals at Company A

Short-Term Objectives Long Term Objectives

ü Continue creation and posting of monthly metrics
reports to HR intranet for company-wide HR staff
ü Provide PeopleSoft navigation/query training to
market groups
ü Standardize training, development, and
communication processes for expanded HR
applications and functionality
ü Support manager self -service roll-out with
communication, training, and design support around
interface
ü Enhance HR analytics and metrics reporting to drive
use of HRIS capabilities for business goals
ü Support Hewitt’s consolidation of data from all of
Company A’s HR applications.
ü Support PeopleSoft upgrades as determined by
Hewitt

 2006 Corporate Executive Board. All Rights Reserved.

DETERMINING THE SCOPE AND STRUCTURE OF THE HRIS FUNCTION
OCTOBER 2006 PAGE 4

Balanced Technical Evaluating HRIS

HRIS Structures HRIS Structures Functions

Balancing Technical Strength with Business Strategy

CONSOLIDATED HRIS FUNCTION AT COMPANY A (CONTINUED)

The figure below outlines the HR Decision Support function structure at Company A:

Figure 1: Function Structure—Consolidating HRIS Function Capabilities at Company A

Company A
Industry: Media SVP, HR
Revenues: The HRIS assistant handles
$5 billion–$10 billion office management,
Employees: scheduling, and administrative
50,000–100,000 VP,
support for the HRIS function.
HR Decision Support
HRIS Function
HRIS: PeopleSoft Administrative
Employees: 11 Assistant

Manager, Director, Manager, Manager,

Webmaster
HR Decision Support HR Decision Support HRIS Projects Payroll Interface

PeopleSoft Analyst PeopleSoft Analyst

This Director provides expertise The Webmaster oversees
in HR metrics and analytics self-service implementation
research to improve monthly and and administration.
PeopleSoft Analyst PeopleSoft Analyst
ad hoc reporting capabilities and
drive metrics applicability to
business issues.

The four PeopleSoft Analysts

align with Company A’s
major market groups.
The analysts, as well as the
manager overseeing them,
average more than 10 years
of experience working with
PeopleSoft and HR
interfaces.

 2006 Corporate Executive Board. All Rights Reserved.

DETERMINING THE SCOPE AND STRUCTURE OF THE HRIS FUNCTION
OCTOBER 2006 PAGE 5

Balanced Technical Evaluating HRIS

HRIS Structures HRIS Structures Functions

Balancing Technical Strength with Business Strategy

D EDICATED T EAMS WITHIN THE HRIS FUNCTION AT COMPANY B

Industry: Health Care

Company B Revenues: Over $10 billion
Employees: 10,000 - 50,000

Characteristics: The HRIS function at Company B is staffed by 12 employees, all with backgrounds in HR and HR information technology/applications and with at least 5
years tenure with Company B. HRIS function staff work closely with systems analysts in the IT department as well as systems experts from
several outsourced service providers to meet organization HRIS technical demands . This group is divided into four main teams, two or which focus
primarily on technical capabilities for systems, reporting and data management, while the other two focus on HR analytics and technology strategy issues.

Implications: By defining responsibilities within the HRIS function that address both business strategy and technical services, Company B’s HR leadership has created
a function that can support both aspects of HRIS management. Full-time alignment with either technical or strategic elements dedicates resources,
ensures strong capabilities and expertise within the function, and enables function staff to collaborate effectively with internal/external service providers
and communicate system needs and HR goals .

Objectives and Future-State Goals at Company B

Short-Term Objectives Long-Term Objectives

ü Continued service improvement and ongoing cost
reduction
ü Further build out consolidated HR/personnel data
library with standardized data from the entire
organization
ü Further development of HR analytics capabilities
ü Reduce need for ad hoc reporting with increased
self-service capabilities and regular reporting

 2006 Corporate Executive Board. All Rights Reserved.

DETERMINING THE SCOPE AND STRUCTURE OF THE HRIS FUNCTION
OCTOBER 2006 PAGE 6

Balanced Technical Evaluating HRIS

HRIS Structures HRIS Structures Functions

Balancing Technical Strength with Business Strategy

D EDICATED T EAMS WITHIN THE HRIS FUNCTION AT COMPANY B (CONTINUED)

The figure below outlines the HRIS function structure at Company B:

Figure 2: Function Structure—Dividing Technical and Strategic Capabilities within the HRIS Function at Company B

Company B
Head of HR
Industry: Health Care
Revenues:
Over $10 Billion
Employees: Head of Talent
10,000–50,000 Strategy & Services
HRIS Function
HRIS: PeopleSoft
Employees: 12 Head of HRIS

Business Systems Human Capital

Information Services Technology Strategy
Services Analysis

The Information Services
group is responsible for
ad hoc and data reporting
and consulting around
PeopleSoft and other core
HR applications, maintaining
application security, and
developing an integrated HR
data repository.
Business Systems Services
oversees HRIS
enhancements, application
upgrades, and other
administrative tasks not owned
by IT. This group also offers
application consulting/training
and determines system
priorities and change plans.
The Human Capital Analysis
team provides expertise in
human capital analysis,
proactive data mining, KPI and
metrics analytics. Team
members meet with HR
Business Partners to provide
insights relevant to specific
areas of the business.
The Head of HRIS oversees Technology
Strategy and is responsible for aligning HR
technology with business objectives and
overseeing technical governance. The
Head of HRIS is responsible for defining and
planning the strategy , working with HR
leadership, business partners, and IT, and
maintaining oversight on the execution of
the technology plan.

Technical Expertise Strategic Contribution

 2006 Corporate Executive Board. All Rights Reserved.

DETERMINING THE SCOPE AND STRUCTURE OF THE HRIS FUNCTION
OCTOBER 2006 PAGE 7

Balanced Technical Evaluating HRIS

HRIS Structures HRIS Structures Functions

Balancing Technical Strength with Business Strategy

DISPERSED HRIS SUPPORT AT COMPANY E

Industry: High-Tech
Company E Revenues: $5 billion - $10 billion
Employees: 10,000 - 50,000

Characteristics: The Management of the HRIS at Company E is dispersed between three main groups within the organization:
§ Global System Administration (GSA)—Within the Finance department, GSA is dedicated to system administration, maintenance, and providing answers to “how to”
questions regarding PeopleSoft.
§ HR Enabling Technologies (HRET)—Responsible for general oversight and utilization of PeopleSoft, as well as implementation of new products and processes, this
group consists of business analysts responsible for providing expertise around system capabilities and operations to senior leadership. While HRET supports the entire
organization, the group works primarily with HR centers of expertise to determine business needs and evaluate and implement system enhancements to meet those
needs. The Director of HRET is currently involved in the development of an overall HR strategy, which will ensure HRET’s alignment of the technology with business
strategy.
§ HR Service Solutions (HRS D)—HRSD provides transactional support, including training and process evaluation, to HR Business Partners and field HR staff during
roll-out of new HR technologies and programs.

Data collection and entry for self-service transactions and remote employees is outsourced to Hewitt Associates.

Implications: The division of responsibilities around the HRIS provides the organization with clear pathways for working with HRIS and HR technology. The HR teams
provide relevant HR expertise, aligning with HR functions (e.g., compensation, recruiting) to build and modify technology applications to meet current
needs. The GSA team provides technical bench strength, focusing on technology issues and general applications issues for all of Company E.
Working together, the two main divisions bring their respective strengths to managing the HRIS, enabling high levels of HR-specific relevance and
technical expertise. That said, challenges arise in communicating needs and capabilities between the two divisions, as HR experts and technology
experts, by nature, possess different capabilities. These three groups collaborate to promote standardized technology strategies and meet the service
needs of the organization.

Objectives and Future-State Goals at Company E

Short-Term Objectives Long-Term Objectives

ü While Company E has designated no specific cost ü Provide HR technology perspective to influence
reduction benchmarks, the HRIS function continues to development of overall HR strategy
minimize costs of ongoing support through increased ü Generate an HR technology strategy to align with
automation and self-service. overall HR and CIO strategies

 2006 Corporate Executive Board. All Rights Reserved.

DETERMINING THE SCOPE AND STRUCTURE OF THE HRIS FUNCTION
OCTOBER 2006 PAGE 8

Balanced Technical Evaluating HRIS

HRIS Structures HRIS Structures Functions

Balancing Technical Strength with Business Strategy

DISPERSED HRIS SUPPORT AT COMPANY E (CONTINUED)

The figure below outlines the structure of the dispersed HRIS groups at Company E:

Figure 3: Function Structure—Dispersing HRIS Support at Company E

Company E
Industry: High-Tech
Revenues:
$5 billion–$10 billion HRIS Oversight
Employees:
10,000–50,000

HRIS Function SVP, Human

HRIS: PeopleSoft Finance
Resources
Employees: 19

VP, HR Solutions VP, HR Client Program

Delivery Services Management Office

HR Service Solutions Director, HR Director, Global System

10 Consultants Enabling Technology Administration

Senior Analyst, Senior Analyst, Global System Global System

Compensation Corporate University Administrator Administrator

Senior Analyst, Senior Analyst, Global System

Recruiting General Purpose Administrator

Company E selects Senior GSA team members have

Analysts with HR experience primarily technical
and provides them with backgrounds and training.
technical training for the HRET works closely with GSA
HRIS function. Senior to ensure all HR
Analysts with HR experience considerations are accounted
more effectively align with for in system changes and
HR functions. data management.

 2006 Corporate Executive Board. All Rights Reserved.

DETERMINING THE SCOPE AND STRUCTURE OF THE HRIS FUNCTION
OCTOBER 2006 PAGE 9

Balanced Technical Evaluating HRIS

HRIS Structures HRIS Structures Functions

Providing Technical Expertise to the Organization

Two of the profiled companies indicate technical objectives as the primary focus of their HRIS functions. These organizations leverage HRIS staff with backgrounds in technology
to ensure strong data management and service delivery capabilities with HRIS. The following section outlines the structures of profiled HRIS functions leveraging technical expertise
to accomplish primary objectives with the HRIS.

LEVERAGING T ECHNICAL BENCH STRENGTH AT COMPANY C

Industry: Hospitality
Company C Revenues: $500M - $2 billion
Employees: 10,000 - 50,000

Characteristics: Company C’s HRIS function comprises 5 employees primarily focused on technical issues related to management of the company’s PeopleSoft
system. HRIS function leaders look for employees with backgrounds in HR technology consulting and/or PeopleSoft implementation, and all
current function staff have this experience. Day-to-day work is primarily technical, which includes configuring systems and supporting system
developers. The HRIS Director rotates work assignments among the analysts, developing analyst strength in all areas of HRIS and HR
management (i.e., recruiting, compensation).

Implications: HRIS analysts support business strategy by leveraging technical expertise to address the needs of HR peers. Analysts with technical expertise are able
to provide testing and evaluation of small HRIS projects to improve functionality and drive full employee utilization of PeopleSoft’s capabilities. In addition,
Company C’s HRIS function is able to address most technical issues relatively easily, drawing upon functional staff expertise in HRIS systems and
interfaces. The HRIS function’s technical bench strength also allows the analysts to build foundational processes in reporting and change management,
as well as to support data collection throughout the organization.

Objectives and Future-State Goals at Company C

Short-Term Objectives Long Term Objectives

ü Develop and communicate formalized reporting ü Use training and product support to educate
processes across the organization as a starting point organization HR staff around integrated HRIS platform
for standardized data collection capabilities to encourage data gathering and analysis

Potential Changes

q Increasing end-user awareness of self -service may increase demands for formal report creation
q Oracle/PeopleSoft changes requiring additional system education and evaluation

 2006 Corporate Executive Board. All Rights Reserved.

DETERMINING THE SCOPE AND STRUCTURE OF THE HRIS FUNCTION
OCTOBER 2006 PAGE 10

Balanced Technical Evaluating HRIS

HRIS Structures HRIS Structures Functions

Providing Technical Expertise to the Organization

LEVERAGING T ECHNICAL BENCH STRENGTH AT COMPANY C (CONTINUED)

The figure below outlines the HRIS function structure at Company C:

Figure 4: Function Structure—Ensuring HRIS Technical Bench Strength Across the Function at Company C

Company C
Industry: Hospitality Head of HR
Revenues:
$500M–$2 billion
Employees:
10,000–50,000 Head of HR
Design & Services
HRIS Function
HRIS: PeopleSoft
Employees: 5
Director, HRIS

Senior Senior Business Analyst Business Analyst

Business Analyst Business Analyst

One Business Analyst has
primary responsibility for the
performance management
tool, in addition to other
rotating tasks around the HRIS
In order to vary workloads and provide insight into cross
functional impact, HRIS analysts at Company C typically
do not focus on one specific topic area, but instead rotate
responsibilities to increase overall knowledge of system
functionality and HR requirements

 2006 Corporate Executive Board. All Rights Reserved.

DETERMINING THE SCOPE AND STRUCTURE OF THE HRIS FUNCTION
OCTOBER 2006 PAGE 11

Balanced Technical Evaluating HRIS

HRIS Structures HRIS Structures Functions

Providing Technical Expertise to the Organization

FOCUSING ON T ECHNICAL CAPABILITIES AND EXPERTISE AT COMPANY D

Industry: Telecommunications
Company D Revenues : $500M - $2 billion
Employees: 2,000 - 10,000

Characteristics: The HRIS function at Company D consists of 11 employees across three service groups : transactional, technical, and SAP. HRIS employees primarily
have technical backgrounds, with expertise in programming, database administration, and Web design. The function is responsible for providing HR
reports, maintaining integrity of the SAP system, and working with HR to provide process improvements and recommendations on how to simplify and
automate manual processes such as data entry.

Implications: HRIS staff provide a combination of technical capabilities to develop business-relevant tools and system functionality. By building administrative and
technology expertise into the HRIS function, Company D enables HRIS staff to focus on improving the system and the technical components of
self-service, and additional automation needed to improve reporting capabilities and drive utilization. As such, the function’s current focus on rebuilding
the HR intranet, creating new metrics dashboards for leaders, incorporating payroll data into SAP, and further building out a data warehouse for
consolidated data retrieval leverage the expertise of the staff to achieve goals as efficiently and cost effectively as possible.

Objectives and Future-State Goals at Company D

Short-Term Objectives Long Term Objectives

ü Create new self -service and data collection
dashboards for managers
ü Transition remaining paper-based data collection
(e.g., performance management) to electronic,
automated applications
ü Further build out a central data entry point for
improved automation of data gathering
ü Rebuild and improve HR intranet
ü Drive additional business focus by aligning function
employee competencies and performance goals to
overall business strategy
ü Implement and promote automated/self-service
processes (e.g., performance appraisal)
ü Incorporate all payroll data into SAP

 2006 Corporate Executive Board. All Rights Reserved.

DETERMINING THE SCOPE AND STRUCTURE OF THE HRIS FUNCTION
OCTOBER 2006 PAGE 12

Balanced Technical Evaluating HRIS

HRIS Structures HRIS Structures Functions

Providing Technical Expertise to the Organization

DIVIDING T ECHNICAL CAPABILITIES AND EXPERTISE AT COMPANY D (CONTINUED )

The figure below outlines the HRIS function structure at Company D:

Figure 5: Function Structure—Dividing Technical Capabilities within the HRIS Function at Company D

Company D Head of HR
Industry:
Telecommunications
Revenues:
$500M - $2 billion
Employees: VP of HR
2,000–10,000

HRIS Function
HRIS: SAP Director, HRIS
Employees: 11

Transactional Team Technical Team SAP

Manager Manager Project Manager

Provide administrative Transactional Technical Provide SAP expertise to

SAP
services, such as data entry, resolve system issues and
Analyst/Administrator Administrator Analyst
filing, and answering evaluate system performance
employee questions
(i.e., “help desk”) related to Transactional Technical
HRIS applications Analyst/Administrator Administrator

Transactional Technical
Analyst/Administrator Administrator

Technical Manage HR intranet portal,

Administrator HR data warehouse, and
provides both ad hoc and
monthly data reports to HR
partners, C-level managers,
and business units requestors

 2006 Corporate Executive Board. All Rights Reserved.

DETERMINING THE SCOPE AND STRUCTURE OF THE HRIS FUNCTION
OCTOBER 2006 PAGE 13

Balanced Technical Evaluating HRIS

HRIS Structures HRIS Structures Functions

Evaluating HRIS Function Effectiveness

Companies should evaluate the overall effectiveness of the HRIS function as it contributes to technical bench strength, business relevant contribution, or both. Profiled companies’
methods for measuring HRIS function performance vary, with feedback surveys, metrics reports, and performance evaluations all offering insight into function strengths and
development areas. Research indicates that techniques for evaluating HRIS functional performance do not vary based upon technical or strategic alignment. Instead, profiled
companies select evaluation methods that assess specific function performance objectives such as cost reduction and service improvement. The following section highlights some
of these evaluation techniques.
Monthly Metrics Reports

To evaluate performance of the HR Decision Support
group at Company A, function staff capture metrics
around service request timelines, service trends,
and issue resolution. The HR Decision Support
leader generates a report every month highlighting
trends in service quality and delivery, which is
delivered to the Senior Vice President of HR. This report is
then compiled into a monthly newsletter detailing the
accomplishments of all HR centers of expertise (COEs) and
distributed company-wide. The table to the right highlights
some common HRIS and HRIS function performance metrics :5iv
Internal Service Evaluations
HR leaders at Company D assess HRIS function performance with annual internal evaluations of HRIS staff individuals around the functions’ performance objectives
and service capabilities , such as overall service satisfaction and project delivery timelines . The function distributes these surveys to internal customers upon
completion of short- and long-term projects .
Table 1: HRIS and HRIS Performance Metrics
Metric
HR Technology Expense Rate
HR Technology Expense /
Technology Expense * 100
HRIS Average Days to Entry
Total Days to Data Entry /
HRIS Transactions
HRIS Late Transaction Rate
Late HRIS Transactions /
HRIS Transactions * 100
HRIS Transaction Error Rate
HRIS Transaction Error /
HRIS Transactions * 100
Definition
Measures the portion of the organization’s overall technology expense devoted to HR
technologies. Most useful for organizations that monitor technology spending by
organizational function to weigh investment priorities.
Indicates the average length of time that elapses between an action and the data entry
of the transaction into systems. Most useful for organizations with reporting needs
requiring timelines or whose reporting and management have been hampered by
untimely data entry.
Indicates the percentage of HRIS transactions that are entered after the prescribed
target period. Target period for entering transactions may be based on a specified
number of days after an action or on a month/quarter-end close date. Most useful for
organizations with reporting needs requiring transaction timelines.
Measures the percentage of HRIS transactions that contain errors and provides an
indication of quality and of the relative volume of rework within the HR function.
Most useful for organizations with poor HRIS capabilities, previous transaction quality
issues, or potentially understaffed HRIS functions.

Company-Wide Performance Goal Surveys

At Company B, HR leadership conducted a “blueprinting” survey—designed to help inform company strategies and functional objectives—that asked managers and senior leaders
to identify preferences in terms of developing and expanding the company’s HR capabilities. The survey found that internal customers would like HR to further develop HR
analytics and human capital measurement, and expand reporting capabilities. To meet these dem ands, Company B’s HR leaders are planning to dedicate additional resources
and align HR technology strategies to promote effective HR analytics.

S UPPORTING THE BUSINESS WITH THE B EST INFORMATION

“We have been successful in getting people to recognize the value of information coming from a central source. We’re trying
to emphasize the benefits of ‘one version of the truth,’ and we’re starting to show some success there. Our long-term strategy
is to provide an integrated information repository servicing the HR information needs of our business.”
—Head of HRIS,
Company B

 2006 Corporate Executive Board. All Rights Reserved.

DETERMINING THE SCOPE AND STRUCTURE OF THE HRIS FUNCTION
OCTOBER 2006 PAGE 14

T HE R ESEARCH PROCESS IN BRIEF

Research Methodology The Corporate Leadership Council conducted a comprehensive search of published materials regarding the structure and scope of the
HRIS function, drawn from previous Corporate Executive Board research, trade press journals, other research organizations, and the
Internet. Council staff then interviewed human resources professionals at five organizations. This report represents the findings from
secondary and primary sources.

Project Aims 1. What enterprise HRIS is in place at your organization?

2. Who oversees the administration and management of the HRIS function? How is it structured?

3. What is the reporting structure for the HRIS group?

4. How many employees staff the HRIS group, and do these people come from HR or technical backgrounds ?

5. What are the specific responsibilities of the HRIS function? Are these responsibilities primarily technical, strategic, or both?

6. What are the short- and long-term objectives of the HRIS function?

7. What metrics/feedback processes exist to determine how well the group performs its responsibilities?

8. What are some of the strongest successes or greatest challenges facing the HRIS group?

9. Are there any changes planned for the function?

Guide to Tables and Figures Figure 1: Consolidating HRIS Function Capabilities at Company A Page 4
Figure 2: Dividing Technical and Strategic Capabilities at Company B Page 6
Figure 3: Dispersing HRIS Support at Company E Page 8
Figure 4: Ensuring HRIS Technical Bench Strength at Company C Page 10
Figure 5: Dividing Technical Capabilities at Company D Page 12

Table 1: HRIS and HRIS Performance Metrics Page 13

 2006 Corporate Executive Board. All Rights Reserved.

DETERMINING THE SCOPE AND STRUCTURE OF THE HRIS FUNCTION
OCTOBER 2006 PAGE 15

PROFESSIONAL SERVICES NOTE

The Corporate Leadership Council (CLC™) has worked to ensure the accuracy of the information it
provides to its members. This project relies upon data obtained from many sources, however, and the
CLC cannot guarantee the accuracy of the information or its analysis in all cases. Furthermore, the CLC
is not engaged in rendering legal, accounting, or other professional services. Its projects should not be
construed as professional advice on any particular set of facts or circumstances. Members requiring
such services are advised to consult an appropriate professional. Neither Corporate Executive Board
nor its programs are responsible for any claims or losses that may arise from any errors or omissions in
their reports, whether caused by Corporate Executive Board or its sources.

1
Corporate Leadership Council, HR Information System Utilization Trends , Washington: Corporate Executive Board (October 2005).
2
CedarCrestone, "CedarCrestone 2005 HCM Survey," CedarCrestone.com (2005).
(Obtained through http://www.cedarcrestone.com/whitepapers.php). [Accessed 7 October 2006].
3
Corporate Leadership Council, HR Information System Utilization Trends .
5
CLC Metrics, The Metrics Standard, Washington: Corporate Executive Board (2005).

 2006 Corporate Executive Board. All Rights Reserved.