Safeway has cut human resources-related costs by £3m since moving
its HR operations online 12 months ago, the grocery retailer
revealed last week.
The company, which has 480 stores across the UK, expects the 40%
saving to be repeated annually.
Using the Internet-based human capital management application, from
software provider PeopleSoft, all HR matters are dealt with in real
time rather than being delayed for up to two weeks as in the past,
said Jeremy Wyman, business systems manager at Safeway.
"Take, for example, sickness reporting," he said. "Previously, it
was paper-based and then keyed in at the back office - a process
that took about two weeks. Now it is two or three clicks on a
browser and all the information is readily available, which makes
contingency planning much easier."
A key benefit of the software is that it can run on Safeway's
in-store radio frequency networks, Wyman said. "This means a
manager can connect to the software via a mobile device and access
HR information immediately," he said.
Automating HR processes can provide a real return on investment for
companies with high employee turnover, said Tony Hart, managing
analyst at research firm Datamonitor.
"Retailers have a high turnover of staff so automating processes
such as enrolment can provide real 'hard dollar' value by cutting
down administration costs," Hart said. "There is also the security
aspects, such as turning off e-mail access and credit cards for
ex-employees."
The success of the human capital management implementation means
Safeway has decided to roll out PeopleSoft's financial management
package to integrate the separate aspects of its financial
operations, Wyman said.
"Once you see a method working well it is easy to justify other
modules," he said. "There is also a strong argument for installing
common systems across the back office as controlling the
architecture becomes much easier."
The Safeway board is very keen on real-time financial reporting.
"Board members already get sent an SMS message twice a day with
sales figures so this is a natural progression," he said.
"Information about, for example, how much cash is in the safe at
any given time can be vital."
The financial management software, which includes procurement and
purchasing modules, will be fully installed by next autumn, Wyman
added.
Some industry experts have questioned how real time a retail
operation needs to be, pointing out that a lot of information
reporting works well on a batch basis.
However, Wyman disagreed, "Real time has got to be better than
history."
n PeopleSoft's human capital management software is being included
at the core of the e-HR component in IBM's Dynamic Workplaces
initiative.
Case for implementing online HR software
- Real-time reporting of sickness and holiday aids contingency
planning
- Automation produces real return on investment with high
turnover of staff
- System works via Safeway's in-store radio frequency
networks.