PeopleSoft Human Resources Management … PeopleSoft is an Enterprise Resource Planning (ERP) II...

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DPRO-89838Daniel B. Stang, Gerald Arcuri

Product Report8 April 2003

Historical

PeopleSoft Human Resources Management Applications

Summary

PeopleSoft’s HCM 8.8 includes enhanced operational and transactional functions, and added strategicmanagement applications, including tools mapping transactions and operations to corporate initiatives.

Table of Contents

Overview

Analysis

Pricing

Competitors

Strengths

Limitations

Recommended Gartner Research

Insight

List Of Tables

Table 1: Operating Environment: PeopleSoft HRMS 8.8

Table 2: Features and Functions: PeopleSoft HRMS 8.8: Human Resources

Table 3: Features and Functions: PeopleSoft HRMS 8.8: Benefits Administration

Table 4: Features and Functions: PeopleSoft HRMS 8.8: FSA and Pension Administration

Table 5: Features and Functions: PeopleSoft HRMS 8.8: Payroll and Stock Administration

Table 6: Features and Functions: PeopleSoft HRMS 8.8: Other Modules

Table 7: Features and Functions: PeopleSoft HRMS 8.8: Decision Support and Performance Management


© 2003 Gartner, Inc. and/or its Affiliates. All Rights Reserved.DPRO-898388 April 2003 2

Corporate Headquarters

PeopleSoft Corp.

4460 Hacienda Drive

Pleasanton, CA 94588-8618, U.S.A.

Tel: +1 888 773 8277

Tel: +1 925 694 3000

Fax: +1 925 694 4444

Internet: www.peoplesoft.com

Overview

PeopleSoft is an Enterprise Resource Planning (ERP) II vendor, with particular strength in the services-intensive domain. Focusing traditionally on the human resources (HR) software market, its enterprisesoftware product suite has since expanded, supporting Financials, Supply Chain Management (SCM),Customer Relationship Management (CRM) and Supplier Relationship Management (SRM). AnEnterprise Performance Management (EPM) suite offers corporate performance measurement tools foreach application area. An Internet architecture, first introduced in PeopleSoft 8, supports inter- and intra-enterprise collaboration, application and business process integration.

The PeopleSoft Human Resources Management System (HRMS) suite, part of the Human CapitalManagement product family, consists of integrated workflow-based applications supporting theoperational and strategic goals of the HR department. The traditional HR applications provide operationaland transactional HR automation and include:

• HRMS

• Benefits Administration

• Flexible Spending Account (FSA) Administration

• Payroll (Global and North American options)

• Time and Labor

• Stock Administration

• Pension Administration

Collaborative applications support self-service functions for employees, managers, recruiters andapplicants, and provide transaction capabilities to manage work and life events, content from internal andexternal sources to provide more complete information to facilitate decision-making, and training tools forprofessional development. Collaborative PeopleSoft HR applications include the following:

• eBenefits

• eCompensation

• eDevelopment



• eEquity

• ePay

• ePerformance

• eProfile

• eRecruit

PeopleSoft supplements its transactional and collaborative HR applications with its Human CapitalManagement (HCM) software designed to help organizations align their workforce with corporateobjectives and improve overall business performance. Examples of these types of applications includeSales Incentive Management, Enterprise Learning Management and a series of workforce-relatedanalytics applications.

Table 1: Operating Environment: PeopleSoft HRMS 8.8

Platforms

• HP-UX.

• OS/390.

• AIX.

• Microsoft.

Databases Supported

• IBM DB2 on OS/390, DB2 for Unix on IBM/AIX hardware.

• Microsoft Structured Query Language (SQL) Server 7.

• Oracle 7.3x and Oracle8 on major Unix platforms.

• Sybase SQL Server 11.9x.

Clients

32-bit Windows only (browser based).

Release Date

December 2002.


Description

Supports personnel and basic benefits processing.

Features include globalization as well as multiple components of pay to define and

administer pay rates specific to employees, jobs or a general employee population.

Data warehousing and Online Analytical Processing (OLAP) support is also

included for Total Compensation Reporting and Analysis.

Additional standard reports are included.




Description

Multiple Job Capabilities

HR allows employers to designate the primary job of focus for an employee, even if

the employee holds multiple jobs.

Base Benefits allows users to define the jobs contributing earnings toward certain

benefit deductions when multiple jobs are paid by a single check or when they are

paid via individual checks.

Benefits Administration allows users to specify the job or group of jobs controlling

benefits eligibility and how multiple jobs should combine to meet eligibility

requirements.

Payroll allows users to generate a single check for employees with multiple jobs

within a company, across pay groups.

Stock Administration supports options eligibility determination and Employee Stock

Purchase Plan (ESPP) benefits for employees with multiple job classifications.

Pension Administration allows users to process employee job data based on

pension plan eligibility.

Fair Labor Standards Act (FLSA) calculations account for all of an employee’s jobs

within the company.

Nonemployee Data Tracking

Nonemployee data in the HRMS can be tracked and processed.

Global Payroll and the HR nonemployee data management capabilities enable

payroll processing for nonemployees.

Stock Administration can administer stock transactions for participants not normally

managed by PeopleSoft HRMS, including nonemployee directors and consultants.

Pension Administration can administer pension plan data for employees and

nonemployees.

Commitment Control

Provides a central budget control and encumbrance accounting mechanism for a

company, allowing the enterprise to establish PeopleSoft HR budgets and funding

sources for earnings, employer-paid deductions and employer-paid taxes at varying

levels (for example, department, position pool, position, job code and

apportionment).

Allows users to calculate, process and create PeopleSoft HR-related accounting

transactions for encumbrance and pre-encumbrance amounts on a fiscal-year

basis. Automated processes recalculate and update PeopleSoft HR-related

encumbrance and pre-encumbrance amounts on an ongoing basis as online

changes are made.

Integrates with PeopleSoft Budgets by sending baseline job and position data from

HRMS to Budgets, and by downloading the complete budget data from Budgets to

HRMS at the end of the budgeting cycle each fiscal year.




Description

Data Sensitive Functions

Data-sensitive functions include the following:

• Organizational Structures

• Employee Data

• Base Benefits

• Position Management

• Recruitment

• Career Planning

• Compensation Administration

• Training Administration

• Business Correspondence

• Regulatory Reporting

Organizational Structures

Allows the HRMS to reflect the organization’s policies, procedures and structures,

which can include departments, work locations or different companies.

Jobs are structured by employee or position.

The PeopleSoft Tree Manager, a graphical tool, builds and modifies a hierarchy of

organizational entities or employees.

Employee Data

Provides data needed to manage the workforce, including home address, health

and safety records, and performance reviews.

Supports complex employee work arrangements, such as demand for multiple

employees in one job, one employee in multiple jobs and international assignments.

Base Benefits

Users can manage benefits options, including medical, dental, life, profit sharing

and pensions.

Defines specific deductions and calculates rules for each benefit plan, benefit

deductions and types of employee leave accruals.

Records Qualified Medical Child Support (QMCSOs).

Manages benefit records and answers inquiries.

Designates and maintains coverage rate schedules, benefit calculation rules and

benefit-related payroll deductions.

Position Management

HR system can be based on employees or positions.

Data pertaining to each position is accessible. The data also can be set up as a

dynamic hierarchical structure of positions online, regardless of where positions are.

Supports developmental departmental budgets for any time period.




Description

Recruitment

Processes large volumes of applicants for open positions.

Allows creation of job requisitions, entry of applicant background information,

scheduling of interviews, recording of interview results, and searching through the

system for employees and applicants possessing specific skills.

Allows monitoring of recruitment expenses.

Recruit Workforce can be used in stand-alone configurations or with other recruiting

modules, including eRecruit, eRecruit Manager and Resume Processing.

Resume Processing

Processes e-mail, fax and paper resumes from the U.S., the U.K., Canada,

Germany, Spain and France.

Extracts data from resumes and enters it into PeopleSoft data fields.

Enables resume review via browser.

Integrates with other PeopleSoft applications for recruiting.

Training Administration

Rewritten as part of PeopleSoft’s Enterprise Learning Management (ELM)

component. See ELM listing in the table “Features and Functions: PeopleSoft

HRMS 8.8: Other Modules,” included later in this report.

Competency Management

Identifies and associates competencies with individuals, jobs, positions and project

teams, showing relationships between them.

Performs gap analysis between individuals and jobs, positions or project teams.

Helps users identify an individual’s proficiency level within a specified set of skills.

Career and Succession Planning

Helps identify career paths for jobs. This information can be used to determine

company readiness for periods of transition, specifically when shifts occur in

positions held by key employees.

Creates an online network of jobs and supports multiple career paths for

employees.

Rates key employees on performance; assigns force ranking and career potential

ratings; and tracks career goals, strengths and development plans.

Identifies organizational bottlenecks and develops alternate career paths for

individuals ready for promotions.

PeopleSoft Tree Manager can be used to analyze graphical hierarchies of positions,

incumbents and candidates.




Description

Group Build

Creates a group membership based on user-defined criteria, supporting employees

and nonemployees.

Defined groups can be used across PeopleSoft HR’s compensation modules (for

example, Salary Planning, Variable Compensation, Total Compensation) to manage

employee compensation.

Group Build in the Training Administration module identifies and administers a

group of workers eligible for training. In Stock Administration, it identifies a group of

members eligible for allocation of stock awards.

Salary Planning

Supports budgeting and salary planning by defined groups.

Users can create several budgets for the same group and budget period.

Users can view variance between any one budget and all others, approve a budget

and view salary increases for each employee in a group.

The Employee Review function allows users to review individual employees or

groups.

Managers can resolve the total points an employee receives in a review into a

standard review band and compare and adjust actual and desired review results

distributions.

Total Compensation Reporting

A cube shows employee head count and full-time equivalent (FTE) based on

dimensions similar to the Total Compensation Cube.

Users can toggle between currencies, view multiple business units simultaneously

and specify reporting period frequencies within a given time frame.

Development of Workforce Processes

Points of integration are shared between Recruit Workforce, Manage

Competencies, Administer Training, Plan Careers and Plan Successions modules.

Recruit Workforce differentiates applicants from employees in HR processes.

Applicant data security is based on hiring manager and recruiter roles.

Manage Competencies integration can populate competencies into the job

requisition.

Users can maintain the original competencies for the job or add or delete

competencies as needed.

Administer Training supports cut-session training courses, allowing users to

schedule courses not running on consecutive days from start to finish.

A session planner can check the availability of trainers and training rooms before

scheduling a session.

Provides a group enrollment feature.

Effectivity dating is included at the proficiency level so employers can track when

their employees reach specified levels of proficiency. Users can customize the

rating scales and have different scales for different competencies.

Planning Careers and Successions provides access to the competency data set up

and administered with the Manage Competencies module. An inquiry feature helps

users track employee review dates.




Description

Multiple Components of Pay

Automated calculations, such as seniority-related payments, allow the addition of

seniority components (percent of Base Pay) based on the amount of time an

employee has spent in the company.

A standard hours field is linked with a standard frequency field to track the number

of hours worked over a period of time, as defined by the user.

FTE calculation is based on the standard hours per standard work periods, as

defined by the user. Users can specify the default values for these variables and

override them at the employee level. It is also possible to apply FTE to pay

components in the compensation calculation.

Personal, Job, Position, Labor and Absence Data

Records multiple addresses and national identification numbers for an employee.

Defines and specifies employee categories and subcategories as regulated by

national labor agreements.

Provides grievance and disciplinary action tracking capabilities.

Tracks badge information for employees.

Allows users to define holiday schedules by regulatory region.

Position Management includes position description, health check and signature

authority fields; automatically updates position pages when movement occurs in the

tree manager; and displays how much of the planned head count for a particular

position is filled.

Compensation Administration

Provides consistency in salary structures for managing compensation activities.

Provides online access to salary structures organized by region and summaries of

employee compensation activity.

Manages salaries for multinational organizations.

Variable Compensation

Administers incentive compensation, including bonus, stock, executive, noncash

awards and commissions, for individuals and groups.

Supports multiple plan types, including funded (top-down or bottom-up) or

nonfunded plans, prorated or nonprorated plans, hierarchical and nonhierarchical

plans, monetary or non-monetary plans, stock-type programs and formula-driven or

performance-driven plans.

Supports budgeting for variable compensation awards by plan and defined groups.

Supports Goal Matrix plans, providing management reporting, tracking guarantees

and administering carryover awards.

Can be used to administer incentive awards by hierarchies other than department

structure.

Business Correspondence

Integrates Windows-based word processing applications for generating standard

business letters, such as job offers, promotion notices, job postings and training

course enrollments.




Description

Composed of Base Benefits and Benefits Administration.

Provides user-defined eligibility parameters, default enrollment processing, waiting

periods, minimum/maximum amounts, open enrollment processing/event

maintenance, election validation, multiple plan-year synchronization,

nondiscrimination testing, and Web-based self-service for review and enrollment.

Maintains benefit program definition tables organized by program, plan type, options

and costs.

Supports open enrollment and event maintenance.

Organizes and manages benefits programs and plans.

Capabilities

Groups related sets of plans and defines their rate using parameterized tables, age-

based tables, service-rate tables, and deduction rules for each program and plan

combination.

Enrolls employees and records job information for benefits, benefit changes, and

employee communication.

Relays information to payroll for benefits-related deductions.

Administers Consolidated Omnibus Budget Reconciliation Act (COBRA) coverage.

Provides extracts for benefit carriers.

Administers leave plans.

Administers Family and Medical Leave Act (FMLA).

Provides effective dated information to create what-if models and perform analysis.

Produces standard reports of employee and benefit plan information.

Supports benefits billing.

Benefits Plans

Supports benefit plans, including medical, dental, vision, hearing, life, supplemental

life, accidental death/disability, dependent life, survivor income, short- and long-term

disability, and 401(k) and other savings plans. Plans can be created for each benefit

the company offers.

Processes multiple plan years to work with open enrollments for next-year and

current-year enrollment simultaneously. Automatically enrolls employees based on

default coverage and current coverage, and automatically terminates coverage.

Supports Flexible Benefits cafeteria plans.

Defines, calculates and administers general and plan-based flexible credits, and

manages FSA claims.

General and plan-based credits and prices can be defined based on flat amounts

and length of service, coverage base, age, sex, smoker-graded, percent of salary or

benefits base rate.




Description

Savings Plan Support

Projects and monitors Maximum Exclusion Allowance limit and alternative limits for

415(c).

Supports limits for 401(a)(17), 402(g), 415 and 403(b).

Earnings used for calculating employee contributions and for applying regulatory

limits are unlinked, so users can apply different accumulators for the two processes.

Reports amounts not taken due to limiting via messages identifying regulatory limits

exceeded and by how much.

Supports employer-only plans and employer-matching or nonmatching contributions

using threshold percentages.

Supports “$0” elections in savings plans, allowing suspension and restarting of

contributions throughout the year.

Supports validation for dependent/beneficiary court orders.

Enforces court-ordered dependent coverage and beneficiary allocations and

supports spousal waivers (collected when life insurance or savings plan benefits are

not assigned to a spouse).

Benefit Plan table defines “minimum spousal beneficiary allocation,” supporting

Employee Retirement Income Security Act (ERISA) for Qualified Joint and Survivor

Annuities.

An audit report identifies potential violators of court-ordered coverage requirements

or spousal beneficiary allocations.

Benefits

Central point of entry to PeopleSoft applications for employers and employees

supporting benefits and payroll processes.

Provides role-based transactional, analytic, knowledge-based and collaborative

content.

Integrates supplier information into eBenefits.

Allows employees to review and update elections.

Supports Web-based open enrollment periods, including elections, validations and

confirmation statements.

Supports life events administration, guiding users via road maps through required

and optional steps for recording life events (for example, birth and marriage) and

work events (for example, new hire, promotion and termination) into the Benefits

system.

Employees can review their paychecks via Web, manage their W-4, and review their

direct deposits and W-2.

Users can manage their personal profiles (for example, name, address, emergency

contacts and marital status).

Users can calculate their estimated pension benefits.




Description

Supplier Program

Complements eBenefits.

Provides access to benefits vendors’ information and services.

eBenefits provides single sign-on, profile maintenance, user interface, context-

based navigation, notifications and search capabilities.

Knowledgebase providers answer employee benefit questions and offer content and

educational information to help employees make informed benefits decisions.

Physician search allows users to search for and access physician information during

the enrollment process. It includes a single sign-on and allows employees to

compare benefit plan offerings.

Links to Benefit Plan Providers give employees access to their specific coverage

information, plan details and information on deductible status.

Other Features

Eligibility parameters include home and work addresses, FLSA Status, Salary

Administration Plan and Grade, and Regulatory Region.

Include/Exclude Eligibility feature defines exclusionary and inclusionary eligibility

rules.

Cross-Plan Validation feature allows system to perform checks for “prerequisite”

plans and coverage amounts when determining employee eligibility for enrollment in

another plan.

“Job” and “nonjob” event processes are in separate tables.

Passive Events processing for processing events affecting eligibility and occurring

as time passes (for example, employee reaching age of retirement; employee

service data reaches a specified threshold, such as one year of employment).

Event management tools allow users to review and delete unprocessed events and

manually insert family status change (FSC) and miscellaneous (MSC) events for

later Event Maintenance processing.

Event-class hierarchy controls allow the setup and use of event-class hierarchies to

process events in a prearranged order, to avoid “same-day event” processing

errors.

On-Demand Event Maintenance feature allows users to run an individual employee

through all the phases of event maintenance—from preparing options to entering

elections to finalizing and printing confirmation statements—from a single panel.

Benefits Election Entry self-service allows employees to make benefits elections via

corporate intranet.

Supports extension of employee health benefits to domestic partners and other

nonqualified dependents.

Tracks QMCSOs as well as primary care physicians.

Processes Canadian taxes via support for Goods and Services Tax, Provincial

Sales Tax, Provincial Premium Tax, Provincial Sales Tax on Insurance and

Harmonized Sales Tax.



Table 4: Features and Functions: PeopleSoft HRMS 8.8: FSA and PensionAdministration

FSA Administration

Tracks and manages FSA claims, monitoring claims submitted, approved, paid,

amounts denied and amounts pending.

Identifies and prevents duplicate claims, keeps claims from exceeding available

amounts and prints FSA claim checks.

Enables users to process healthcare and dependent-care FSA claims in-house,

track pledges, process claims, disburse monies, print checks and account for funds.

Pension Administration

Automates pension administration functions, including data storage, benefit

calculations and estimates, employee communications, flexible system design,

retiree administration and reporting, and data extraction.

Available as a stand-alone application.

Users can calculate benefits for a group of employees using an Event Data Alias,

which can vary by individual (that is, users can calculate benefits commencing at

Normal Retirement Date—a date varying per individual—for an entire group).

Benefits can also be calculated for a pre-defined group of individuals, where the

group is defined by a custom statement. Generates a benefits statement containing

estimates and accrued benefit information and supports early retirement window

calculations.

A self-service benefit calculator helps pension plan participants estimate their

retirement benefits over the Web.

Pension processing supports multiple concurrent jobs.

The eligibility process considers all active jobs, not just zero record, when

determining an employee’s eligibility, enabling employees with multiple jobs to

accrue pension service on all of their eligible job records, potentially in more than

one pension plan. Users can resolve definitions in either all jobs or just eligible jobs

when applicable.

The system resolves database aliases from the primary job record. Users can apply

action reason codes to determine whether or not a job is active.

Other Features

Supports withdrawals of employee contributions, repayment of contributions, “buy

back” of forfeited service and service purchase for eligible periods, such as military

leave.

Additional forms parameters automatically calculate the nontaxable portion of a

benefit using the Simplified Method.

Payment processing allows users to process a preliminary run, review results online

or in a report and finalize results with a confirmation run.

Panels display contents of the trustee extract.

Supports nonspouse beneficiaries and automatic spousal benefits when the plan

provides a continuation benefit to the employee’s spouse at no cost to the

employee.

Can override Social Security wages without affecting plan earnings information.

Tracks Domestic Relations Orders and Qualified Domestic Relations Orders.



Table 5: Features and Functions: PeopleSoft HRMS 8.8: Payroll and StockAdministration

Global Payroll




Global Payroll

Payroll system, including a rules-based engine defining and executing payroll and

absence calculations, enabling creation and maintenance of payroll rules, and

allowing users to work in their respective language or currency.

A payroll-processing framework offers ways to define and execute payroll- and

absence-processing flows using calendars, run types, pay periods and process lists.

Country-specific payrolls provided separately from the core application include

statutory and customary rules, mandatory reports and self-service applications for

each country. In-country pages support the ways different users conduct payroll in

each specific country. Country-specific payrolls are available for the U.K., France,

Germany, Switzerland, Italy, Spain, Mexico, Hong Kong, Japan, Singapore, New

Zealand, India and the Netherlands.

Performs payroll calculations when needed. Rather than recalculating payroll for all

employees, the system can recalculate payroll for only the employee records

adjusted by the user.

Supports European Monetary Unit (EMU or “Euro”) processing.

Pay items, called “elements,” are used to make changes to or maintain payroll

processes without relying on the programmers to make system changes. Users

name and define different elements, including earnings, deductions, formulas,

proration rules, rounding rules and accumulators.

Users define and customize rules for calculating a payroll without modifying or

customizing the code. Users create and store rules as data entered via online

pages. The rules define the actual payroll process. The core application does not

include packaged, pre-defined, country-specific rules. These are supplied as part of

the country-specific payrolls.

Uses “segmentation” to handle instances in payroll that cause differences in data

during a specific pay period (for example, salary based on a 31-day month is

increased in the middle of the month. The system will separate the gross-to-net

calculation components of pay and itemize them on the pay slip for the periods of

time when the employee was earning the initial salary and the increased salary).

Retroactively increases an employee’s salary, prompting the system to recalculate

the whole payroll for the employee from the date of change forward. The system

compares the results to the original and carries the deltas of net pay to be paid in

the current period.

Integrates with PeopleSoft HR, sharing the same relational data structure, user

interface, reporting tools and customization features. Also integrates with Time and

Labor, so users can exchange time and labor data with Global Payroll.

Integrates with general ledger applications (PeopleSoft and third-party products).

Other payroll functions include:

• Unlimited online access to payroll history online.

• Unlimited codes and definitions for earnings and deductions.

• Tracking of deduction arrears.

• Handling of multicompany processing, including common paymaster.

• Calculating gross-to-net and net-to-gross pay.

• Maintaining payroll calendars online.

• Supporting different payroll frequencies.

• Prorating mid-period pay increases, terminations and other transactions.




Global Payroll

Tax Requirements

Fulfills federal, state or provincial, and local tax requirements.

Provides tax tables, including state and local reciprocity rules.

Determines how to tax earnings and benefits.

Processes onetime tax adjustments.

Records and accounts for differences in federal, state or provincial, and local tax

laws, such as for retirement plan deductions.

Time Sheets

Paysheets and online time sheets enable users to view, enter and adjust payroll

information online.

Paysheets automatically set up standard earnings and hours for employees.

During pay confirmation, the system updates all month-to-date, quarter-date and

year-to-date payroll accumulators.

Reporting

Provides standard, customizable payroll reports.

Reports can be viewed online or on paper.

Users extract data using reporting tools or SQL-based query tools.

Other Features

Payroll for North America

“Derivation of Rates” allows users to assign pay rate codes to Employee

Compensation on the Job record, Additional Pay record and Paysheet entries.

“Final Check” processing.

Tax processing for federal, state and local taxes.

Garnishment Processing functions include:

• Proration of garnishments (U.S.).

• Identification of payments not subject to garnishment (U.S. and Canada).

• Refund of garnishments (U.S.).

• Garnishment on manual checks (U.S. and Canada).

• Custom garnishment rules (Canada).

• Provincial identification of payments subject to garnishment (Canada).

Tip-Processing features (U.S. only) allow users in hospitality-based businesses to

process Tip Credit, Tip Allocation and Tip Taxation.

Added self-service Web functions include:

• Paycheck Review—review confirmed paychecks by pay-end date.

• Direct Deposit Authorization—review, add or change current information

authorizing payroll direct deposits.

• Voluntary Deduction Update—update voluntary payroll deductions.

• Electronic W-4 Filing—view and update federal W-4 withholding information.

• Total Compensation—administer, track and report most types of cash and

noncash compensation for individuals associated with the organization.




Global Payroll

FLSA Support FLSA functionality supports employees covered by the special FLSA calculation

requirements of fire and police departments for paying overtime across pay periods

to these types of employees.

Expense

Management

Support

Using Application Programming Interfaces (APIs), integrates with PeopleSoft

Expenses and third-party expense systems for creating pay sheets for expenses

and paying them via payroll.

When expenses are paid, the expense system can send approved advance and

expense reimbursement amounts to PeopleSoft Payroll. Payroll receives these

amounts and creates pay sheets containing the expense items, withholding proper

taxes on taxable expense reimbursements or unsupported advances.

Taxable and nontaxable expenses are reported on the appropriate U.S. and

Canadian tax forms.

The system pays these items in an off-cycle pay run or the next regularly scheduled

on-cycle pay run.

Accounts Payable

(AP) Support

Via APIs, processes employee or employer deductions and sends them to

PeopleSoft or third-party AP systems.

Deductions include taxes, garnishments, benefit deductions and voluntary

deductions, such as savings bonds.

AP then issues payment via check or electronic funds transfer.

Final Calculation Locks the pay sheet from further updates once triggered.

When a change is made, the system will check to see if the pay sheet is locked. If it

is, the system does not require the user to recalculate a given employee’s pay sheet

entry. When data is changed while the pay sheet is locked, a message is displayed,

warning the user that a payroll is currently in process for the employee record and

that the data will not be processed until the next payroll.

Contract Pay Manages benefit deductions for contracted employees paid over the term of a

contract.

Users can specify benefit deduction amounts to be taken over the duration of the

contract period (for example, nine months) even if the coverage period is for a year.

Users can specify that additional benefit deduction amounts be taken for “x” pay

periods prior to the end of a contract.

Users can make different selections for different plan types, specifying that

premiums are to be prepaid for the time that an employee is not working.

Allows lump sum, retroactive contract payments in which the system calculates and

pays the lump sum amount owed to the employee, then takes the lump sum

payment into account for all future payments for the contract.




Global Payroll

Payroll Interface

Integrates with external payroll systems, providing employee data changes and

calculated deductions to third-party payroll vendors.

Provides access to the Payroll panels, allowing transfer of employee data and

updates from HRMS to the payroll system.

Calculates benefits deductions.

Accepts payroll data from the payroll system.

Provides payroll information online.

Users can run PeopleSoft North American Payroll for a specific population and

PeopleSoft Payroll Interface payrolls for two separate populations.

Using PeopleSoft Payroll Interface pay groups, users can export data for a multiple-

job employee’s separate jobs to single or multiple third-party payroll systems. Thus,

multiple-job employees can be paid out via multiple-pay systems, but users can only

send data for a particular job to one third-party system at one time, reducing the

possibility of accidentally sending data for a job to more than one payroll system.

Users can export multiple effective dated rows and, based on the options specified

in the PeopleSoft table definitions, export effective dated transactions for both

current pay periods and prior pay periods. The system exports any changes on a

HR employee field to third-party payroll systems, applying retroactive, current and

future-dated field changes.

PeopleSoft tables and user-defined tables containing Employee ID as either a part

of the key or as a field on the table are available for exporting into a third-party

payroll product.

Data exchange capabilities support data-delimited file structures for export and

import.




Global Payroll

Time and Labor

Supports scheduling, time reporting, prior period adjustments, updates to

paysheets, labor distribution and attendance reporting.

Provides tools for creating and defining rules.

Records data supporting compensation, cost accounting and organization

administration.

Individuals report time in terms of start and stop times.

PeopleSoft partners with electronic time clock suppliers and uses its Application

Messaging technology to integrate time capture devices.

A Time Collection Device interface and packaged integration points support

collection of clock and elapsed time data for processing.

Synchronizes setup data (for example, employee and group data, supervisor

information, task details and restriction rules) with the clock system. Also supports

scheduling, reporting, managing and applying rules for this method of time

reporting.

Scheduled Time, Reported Time and Payable Timetables allow users to apply

separate actions to different types of time. Users can run queries comparing

scheduled vs. reported time, and identify and investigate reported time exceeding

scheduled time.

Supports complex time reporting rules specific to a given country’s customs and

regulations. Translated pages are included, and users can record money in the

desired currency.

Rapid Time or Daily Time pages are used to report time.

Customizable data entry pages include a spreadsheet-style view supporting weekly

time reporting across a multiple-day range.

As setup objects change, the application finds instances of previously reported time

needing review or updating.

One batch process prepares reported time for payroll rather than multiple

processes.

Integrates with PeopleSoft North American Payroll and Global. Application

Messaging is utilized for interfacing and integration with third-party payroll systems,

allowing Time and Labor to export payable time and to import and distribute actual

labor costs.

PeopleSoft Projects APIs allow processed time to flow back and forth between

Projects and Time and Labor. An interface with Performance Measurement allows

extraction of processed time from Time and Labor when necessary.

Synchronizes project data between HRMS and financial management databases.

Publishes messages of labor charges. PeopleSoft Projects accepts these messages

to update project accounting. Time and Labor also subscribes to project and

resource definitions and validates project codes.




Global Payroll

Other Features

Reports time in four different ways, including only once for a range of dates, for an

entire crew, in a pattern or in a lump sum.

Security access security features.

Establishes optionally entered rate codes.

Allows copying of established workgroups for creating new workgroups.

Approves time via batch process.

Employees can view and update their own time via Web-based self-service

functions, and managers can approve time via Web.

Rapid Update allows users to populate or update daily timetables without running

the Scheduling or Create Time batch processes.

Integrates with Project Costing.

Mobile Time Management

Captures time and related information as employees work off-site.

Integrates with PeopleSoft Time and Labor, Payroll and Projects.

Supports Win32 laptops and Pocket PCs.

Data can be synchronized with the network via Internet.




Global Payroll

Stock Administration

Description




Global Payroll

Administers stock options and employee stock purchase programs.

Integrates with PeopleSoft Human Resources, Payroll and Benefits.

Tracks and reports on Incentive Stock Options (ISOs), Nonqualified Stock Options

(NQs) and ESPPs.

Integration with PeopleSoft North American Payroll allows two-way exchange of

U.S. tax data with the payroll system and tracking of employee ESPP contributions.

Integration with PeopleSoft Human Resources allows notification of changes to

personal or job data, such as terminations or leaves of absence, affecting stock plan

eligibility.

Users define business rules for fair market value calculations for stock option and

ESPP plans, and regulatory reports.

Users can identify individuals for proxy and Section 16 reporting.

Stock Option functionality generates grants based on stock awards allocated in

variable compensation.

Users can build custom vesting schedules.

Supports plans allowing exercises before shares are vested and repurchase of

shares exercised before vesting.

Identifies eligible individuals for repricing. Eligible individuals can elect the grants

they wish to reprice. Users can set restrictions on reprice grants by changing the

vesting schedule or setting exercise restrictions.

Users can track the $100K Section 422 limit compliance for ISO during repricing

and deferred vesting schedule changes.

ESPP administration integrates with PeopleSoft Benefits and Benefits

Administration, allowing use of benefits enrollment, deduction and eligibility-

checking when setting up and administering ESPPs. Users can administer fixed and

rolling offerings and process and track nonemployee ESPP participants. Users can

monitor the $25K Section 423 rule and other rules and limits as defined under the

employer’s ESPP.

Restricted Stock functionality allows tracking and administration of restricted stock

(83b) filings, awards, exercises, releases and pre-purchases. Receipts and reports

support restricted stock awards, and integration with PeopleSoft North American

Payroll allows processing of ordinary income and taxes on restricted stock

transactions.

Pre-defined customizable reports provide summary and detail of potential diluted

options outstanding; individual statement, receipts and transmittals; reconciliation

reports; payroll and tax reports; and transfer agent and brokerage reports.

Other features allow users to:

• Administer different stock option types.

• Calculate fair market value (FMV).

• Customize vesting schedules.

• Automatically update stock plans.

• Populate groups for granting stock options.

• Use worksheets to generate grants.

• Manage and administer grants with one panel group.

• Support multiple stock exercise types.

• Use pre-defined reports to meet regulatory requirements.

• Administer ESPP activities with online functionality.




Enterprise Incentive Management (EIM)

Sales Incentive Management (SIM)






SIM is the first product to be delivered as part of the EIM suite of applications.

SIM is designed to model, manage, communicate and measure sales incentive

compensation opportunities in alignment with corporate objectives.

SIM applications support specific industries (for example, PeopleSoft SIM for High-

Tech and Industrial), including:

• Banking—performance incentives for employees at all levels of commercial and

retail banking.

• Insurance—incentives for employees and independent brokers/agents in varying

lines of insurance.

• Communications—sales incentives for employees and independent personnel

selling communications services (wireline, wireless, Internet service provider [ISP]).

• Retail—sales incentives at the individual, team, department and store level for

retail institutions.

• Professional Services—sales incentives for staffing, consulting and accounting

firms.

• Consumer Goods—sales incentives for Consumer Packaged Goods (CPG)

manufacturers’ field personnel.

• Healthcare—sales incentives for employees selling pharmaceuticals and medical

equipment.

SIM is designed to manage and control routine data collection and processing. It

provides Web support, drill-down functions and workflow processes.

SIM provides specialized libraries related to specific industries and business

requirements of these industries, allowing customers to configure SIM to support

their specific business requirements and processes.

Industry-specific components include the following:

• Plan definitions—defines the business process and typical incentive components,

such as commissions, bonuses and contests.

• Sample data—simplifies configuration with common industry plans and transaction

data.

• Formulas—use specialized rule-driven calculations.

• Data feeds—map data into PeopleSoft Open Digital Studio (ODS), CRM, HCM,

SCM and Financial Management systems.

• Participants—provides access to role-based profiles for sales, administration and

management personnel.

• Participant User Interface—uses specialized homepages and functional screens

designed for participants in specific industries.

• Reports—produces industry-specific reports and queries.

• Business Objects—address unique reference data and transaction types with

specialized data elements.

Other EIM applications will be released in the future, including:

• Variable Incentive Management (VIM)—for variable compensation, piece rates,

executive incentives, stock and distribution.

• Channel Incentive Management (CIM)—for channel sales partners.

• Partner Incentive Management (PIM)—for suppliers and alliance partners.

• Intellectual Property and Royalty Management (IPRM)—for management of

intellectual property and royalties.






Enterprise Learning Management (ELM)

Allows enterprises to plan, manage, deliver and measure different types of learning

requirements, regardless of delivery method used.

Allows deployment of different learning methods, including Web-based, virtual

classroom, on-the-job and ad hoc learning assignments.

Integrated with PeopleSoft HRMS and Financials to support learning driven by HR-

defined competencies, HRMS initiatives, business plans, initiatives within sales

management systems or results from specific key performance indicator (KPI)

measurements.

Supports Sharable Content Object Reference Model (SCORM) and Adaptive

Intelligent Cruise Control (AICC), providing open support for systems and content,

and integration to third-party content management, testing and assessment,

authoring tools and virtual classrooms.

HelpDesk for Human Resources

A call center solution.

Accesses knowledge bases and HR processes to answer questions.

Workforce members can perform self-service transactions and search a Solution

Advisor Knowledge Base. If the Knowledge Base cannot resolve the problem, the

employee can create a case for an HR agent to investigate.

The system pulls HRMS HR agent competency data to match case to an

appropriate agent.

Provides a detailed view of an employee’s HRMS data.

A case page provides links directly into HRMS data and applications.

Case page security provides data only to authorized HR agents.

Agent accesses knowledge bases, including PeopleSoft’s Solution Advisor and

Authoria, and HR processes to answer questions.

Records every resolution an HR agent attempts on a case to serve as an audit.

Self-Service Applications

eBenefits

Provides employees online access to their benefits programs, including health,

dental, vision, insurance and savings plans.

Self-service functions include plan changes, dependent/personal data changes and

life-event processing.

Links connect employees directly with benefits suppliers.

Rules engine governs elections or changes.

Activity Guide identifies if each step in a process is optional or required and

structures the self-service process.

Provides workflow processing and business approval routing.

eCompensation

Shows employee history of all cash and noncash compensation, including base pay,

bonuses and details on stock options received via variable compensation plans.






eCompensation Manager Desktop

Gives managers access to compensation information for their direct reports and to

third-party benchmarks for making compensation decisions and acting on them

online.

Can perform base-salary increases for employees. The requests are routed for

approval either during standard review cycles or on an ad hoc basis.

eDevelopment

A collaborative application supporting employee personal and professional

development.

Includes training management and delivery, skills and competency management,

and career and succession planning.

Faculty can review and edit information about professional memberships, student

advising, teaching responsibilities and presentations.

Employees and faculty can review training options and enroll in classes.

Managers can approve training requests.

eEquity

A collaborative application allowing users to access information about a company’s

stock option plans and stock purchase plans.

Employees can model gross and net gain based on value and taxation

assumptions.

Reports sales online to the organization.

Integrates with brokers, transfer agents, stock tickers and other business partners.

Employees view grants, exercises, releases, sales, repurchases and

cancellations/expirations in a specific date range.

Managers can view detail on all active grants and vesting details for direct reports.

ePay

Provides employee access to personal payroll data.

Employees can modify voluntary deductions, request duplicate W-2 forms or

change federal tax withholding information.

Displays information in the user’s local language.

Can import payroll data into third-party financial applications for tax preparation and

filing.

eProfile

Employees maintain their own profile, including name, address/phone, marital

status and other information.

Establishes a central location for user authentication and security.

eProfile Manager Desktop

Allows managers to control information regarding location and job changes,

promotions, terminations and retirements.

Managers can review employee demographic information and receive reminders

about performance review cycle.






eRecruit

Includes self-service functionality for employees and external applicants.

Employers post job descriptions and requirements online, and applicants submit

resumes online.

Designed to provide communication about application status and interview

schedules to all applicable parties (applicants, managers, HR).

Collects interview results online.

eRecruit Manager Desktop

Includes self-service functionality for managers and recruiters.

Users can search a talent pool, screen applicants, perform background checks and

manage online job postings via Internet.

Prepares and approves job offers, reviews references and initiates pre-hire

activities.

Managers can create and edit job requisitions online and track and manage open

requisitions.

Supports interview scheduling and entry of results online.

Searches internal talent pool for qualified candidates.

Uses Recruit USA for posting requisitions to Web-based job boards.

Performs background checks, referral checks, drug testing and behavioral

assessment via HireRight services partnership.

ePerformance

An application allowing managers and employees to collaborate on performance

review.

Employees and managers can personalize objectives and relate them to personal or

business goals.

Individual objectives can be set to match enterprise objectives.

Tracks performance progress throughout the performance period.

Writing Assistant tool helps provide language-sensitive feedback.

Provides assessments of results and behavior/competencies.

Use of ePerformance with Workforce Analytics allows organizations to monitor

manager compliance, manage performance to pre-defined distribution curves and

balance employee performance with enterprise awards.

Table 7: Features and Functions: PeopleSoft HRMS 8.8: Decision Support andPerformance Management

Enterprise Performance Management

Analytics designed to help users make strategic and operational decisions based on

comparisons of performance results with benchmarks, metrics and KPIs.

An Enterprise Warehouse provides a main data repository for OLAP, Crystal

Reports, nVision and Web-based reporting.

An Enterprise Scorecard strategy management application measures and reports

KPIs in role-specific perspectives.



Table 7: Features and Functions: PeopleSoft HRMS 8.8: Decision Support andPerformance Management

Enterprise Performance Management

Enterprise Scorecard

A strategic analysis tool measuring performance from financial, customer and

internal processing perspectives.

Can be used to set targets at corporate, department and individual levels to monitor

performance against goals.

KPI calculations can be based on data from PeopleSoft and third-party data

sources.

Enterprise Warehouse

Consolidates data from business applications and provides reporting and analysis

tools for decision support.

Financials Insight includes pre-defined analytic templates for role-based analysis.

Templates include metrics for customer, product and channel profitability; cash flow

and market value trends; and actual vs. budgeted expenses.

HRMS Warehouse

A data repository for workforce-related data.

Includes 150 pre-packaged HR-specific metrics.

Metrics are pre-mapped to other PeopleSoft applications.

Provides trending via time series analysis.

Provides 19 analysis and reporting templates specific to individual roles and

industries.

Workforce Planning

Designed to help business planners manage human capital as part of a business

strategy.

Users can define a workforce strategy from recruiting, head count and competency

management perspectives.

Workforce Rewards

An analytical application designed to identify top performers and align compensation

and retention initiatives with strategic objectives.

Allows users to assess workforce retention risks, value and replacement costs, and

to determine compensation strategies by workforce group.

Workforce Scorecard

Uses a balanced scorecard approach to present key HR data in a dashboard-style

interface for communicating and viewing workforce metrics.

Thirty-three pre-defined measures are provided.

Analysis

PeopleSoft’s HR product suites are designed to accomplish two main goals: to automate HR processes tominimize costs associated with them and to provide strategic elements to the software’s HR functionssupporting management of HR processes in ways meeting business objectives.

HRMS



The HRMS suite consists of collaborative and self-serve applications, including Recruiting, BenefitsAdministration, FSA Administration, Compensation Management, Development, Payroll, and Time andLabor, and Stock and Pension Administration. A portal structure provides application access and self-service functions for benefits, recruiting, payroll, stock administration, development planning andperformance reviews. Business Intelligence and analytic tools provide HR-specific analytics for measuringperformance and optimizing workforce effectiveness.

Recruitment

PeopleSoft supports recruitment functions specific to managers, recruiters, applicants and employees,respectively. Managers can check budgets, create job requisitions, schedule interviews and ratecandidate skills. As part of the recruitment process, a competency management function matches skillswith open requisitions and alerts managers to appropriate matches. Applicants can apply for jobs onlineand submit resumes via e-mail, fax, paper and scanned documents. A resume-processing functionextracts data from incoming resumes in e-mail and in scanned and HTML document formats, and storesthe data in a database for further review and processing. This feature is designed to help organizationsbuild a candidate pool and maintain relationships with prospects outside the organization. Another featuresupports prospective candidates anonymously applying for jobs. With this function, candidates create aprofile based on specific criteria, such as job title, location, skill set or department. When a job match isfound, the software notifies the applicants and allows them to submit an application. The Recruitmentapplication also sets up interviews, tracks candidate status and generates offer letters. PeopleSoftpartnerships with third-party content providers. HireRight, AIRS, and RecruitUSA offer background,reference and criminal check services; posting of job openings on Internet job sites; Web-based searchesfor qualified candidates; requisitions for temporary staff; and automated pre-employment screening.

Self-Service

PeopleSoft self-service applications for employees, managers and job applicants support the followingfunctions:

• Employee Data—users review and update personal data (for example, home address, e-mailaddresses, phone numbers, emergency contacts and marital status). Managers generate lists of thepeople working for them, view their personal data and approve or request status changes, such aspromotion, transfer, termination or pay-rate increases.

• Recruitment—employees and job applicants view job postings and apply for specific jobs via onlineresume or job interest form. Managers generate job requisitions and manage hiring processtransactions, review resumes collected for a specific job posting, report results of an interview andrequest-offer letters.

• Workforce Development—employees create training requests (routed to managers for approval),review training courses they have completed, and update competencies and accomplishments.Managers enroll employees in training programs, approve training requests, review an employee’straining summary and enter performance appraisals.

• Employee Compensation—managers request salary changes by employee or group, allocatevariable compensation awards, approve salary changes/incentive awards, and view compensationhistory and total compensation. Employees review their compensation history to date.

• Benefits—employees view benefit selections online, update personal data regarding dependents,make changes to beneficiary allocation and savings plan contributions, and use an “OpenEnrollment” wizard to enroll in benefits programs for the first time.



• Payroll—employees review current/historical paycheck data; manage deductions, direct deposits andtax withholding designations; and request historical earnings and tax reporting data.

• Time and Labor—employees use Employee Time Reporting to report time, specify the type of timereported (vacation, overtime) and review their work schedule. Managers generate lists for reviewing,approving or modifying data collected here.

• Stock Administration—employees review their ESPP activities, enter sales and transfers, and addissuance instructions.

PeopleSoft integrates these applications with third-party content provider services. Integration withGeoAccess allows employees to search for healthcare providers by physician name, location or healthplan affiliation. Integration with Authoria helps answer queries about employee health, welfare andretirement plans. A link to eBenX enables exchange of health enrollment data and financial data betweenthe enterprise and health and welfare carriers.

Added Products in Release 8.8

PeopleSoft introduced additional applications with Release 8.8, including Performance Management,ELM, EIM, HelpDesk for HR and Mobile Time Management.

Performance Management Features

An ePerformance application provides planning and tracking of employee performance goals. The overallstrategic goals of the enterprise can be considered and drive individual goals of employees in thisapplication, ensuring all employee goals are aligned with specific business objectives of the company andmeasuring individual performance as a contribution toward the business objectives of the company. Tomap individual goals to corporate goals, managers trace the individual objective up toward a higher-levelcorporate objective it impacts. Viewing these relationships gives employees a better understanding of howtheir direct individual contribution is linked to the achievement of larger business objectives.

ELM

The ELM application plans and manages learning requirements, deploys different learning methods, andtracks and measures learning effectiveness. It schedules instructor-led and Web-based training andmanages facilities, human resources and materials associated with courses. The ELM can also drivelearning programs, matching established objectives in various business departments with learningoptions. For example, if a sales goal is to improve sales to a specific target group, the ELM can bedesigned to provide and recommend specific sales-based learning courses. If an objective is to improvecustomer satisfaction, the ELM may recommend customer communication skill courses or relatedPowerPoint presentations. ELM, AICC and SCORM are for integrating third-party provider content,testing, assessment and authoring tools.

EIM

EIM applications are a work-in-progress for PeopleSoft. They are designed to align individualperformance with corporate objectives. PeopleSoft plans to add role- and industry-specific functions usingthe underlying EIM tools. The EIM infrastructure handles incentive planning, manages data acquisitionand validation, manages the approval and incentive issuance, and measures plan performance—in aneffort to more effectively manage sales incentives, variable compensation and objective plans. The firstapplication available in the series, SIM, defines and executes incentive plans, and enables organizationsto align sales compensation with business drivers, such as customer satisfaction and pipeline activity,allowing employers to optimize the sales incentive process from planning through payment. A specific



SIM user interface offers typical process configurations, industry-specific formulas, tailored screen layoutsand industry-specific reports.

As part of Release 8.8, PeopleSoft released a SIM application specific to high-tech and industrial markets,for automotive, aerospace and industrial equipment companies. In the future, PeopleSoft will provideother industry-specific SIM applications for Banking and Capital Markets, Insurance, Business Services,Communications and Consumer Packaged Goods.

HelpDesk for HR

PeopleSoft’s HelpDesk for HR is a call center solution, borrowing infrastructure from its CRM applicationsto resolve HR-specific questions and problems. In addition to the CRM-related call center functions, theapplication includes computer telephony integration (CTI), load balancing, escalation routines andknowledge bases. An employee initiates a query (via the Web, phone, e-mail or fax). The query isdirected via load-balancing routine to the agent most qualified to answer the question. Case Managementsoftware manages the query process from initiation through notifications, escalations and resolution. Theagent can view all pertinent data about the caller and provide access to a knowledgebase of data toresolve the problem. If the original agent cannot resolve the call, it can be escalated to a more qualifiedrepresentative. A self-service capability allows callers to check the status of the inquiry online until it isresolved.

Mobile Time Management

Mobile Time Management uses PeopleTools Mobile Agent capabilities to provide an HTML applicationinterface for Web access via Win32 laptops and Pocket PCs. The application allows users to downloadcurrent period work schedules and enter work times when they are away from the office, via disconnectedclient. Users can then synchronize the data from the mobile device with the network and the Time andLabor application, which validates the data and sends it to payroll for processing. Mobile Agenttechnology supports access and integration of other applications, such as PeopleSoft Financials or CRMvia mobile device. It also issues alerts and notifications during synchronization, allowing organizations tocontact mobile workers, update data on the mobile devices or issue errors occurring during datasynchronization.

Multinational Support

Local statutory and regulatory functions specific for Canada, France, Germany, United Kingdom, UnitedStates, Belgium, the Netherlands, Japan, Italy, Spain, Mexico, Australia and Hong Kong, among others,are included. Regulatory Region functionality allows users to control how the system responds to differentlocal country processes. Customers can access as much or as little of the country-specific functionality asneeded. If the user wants to create a multinational workforce, the Administer Workforce panels provideaccess to the core and local functionality for meeting the domestic and international hiring and workforcesupport needs required to build such a workforce. PeopleSoft provides global and customization featuresfor global address format support and country-specific enhancements, such as Kanji characterenablement, phonetic search, multiple compensation components, postal code lookup and regulatoryfeatures supporting Japanese customers. PeopleSoft applications support foreign currencies, such as theEMU’s Euro.

Country-Specific Features

PeopleSoft HR 8.8 country-specific features include the following:

• Italian legal requirements support includes the capability to record ID numbers assigned to thecompany by Italian regulatory authorities, such as the VAT ID (Partita IVA) and the Tax ID (Codice



Fiscale); support for personal data of employees, such as INAIL code, union membership details andmilitary service information; and details of temporary contracts (Contratto a Tempo Determinato).Users can define productive units (unita produttiva) based on the company’s union agreements, andemployees are linked to their corresponding productive units. Supports absences and can track adoctor’s visit to a sick employee. Users can record employee hires, transfers and resignationsspecific to Italian organizations. Regulatory reports are supported, including Pari Opportunia (EqualOpportunity), disability and union reports.

• Spanish functionality includes support for Spanish name fields; addresses; telephone numbers;social security requirements, risk, workgroup and work center; and the capability to track Spanishindustry activity codes, insurance companies, contracts, national IDs, unions and union fees, andhiring centers.

• Switzerland functionality includes support for personal data, such as national IDs, which includeSwiss NID validations and local functionality for place of origin. Users can track multiple places oforigin for each employee, although only one can be the main place of origin. Job data supportincludes local parent/guardian validation warning for employees aged 18 and under. ID data includessupport for citizenship, passport and visa permit information. The visa permit tables include validvisa/permit types for Switzerland, and users can track company trade registry numbers, accidentinsurance numbers and AHV. Users can also track work council data for Swiss workers. The TrainingAdministration module includes the capability of Swiss employers to track and validate Swiss schooltype. Employers can also track employee disability data, including handicap percentage. The Swissversion also supports accident reporting (SUVA) and Company Statistic Reports (Betriebszaehlung).

• Enhancements to the U.S.-based product include EEO-1 and VETS-100 reports that supportfederally mandated changes, and the addition of the OSHA-300 report for updating injury and illnessrecord keeping. Federal government versions also include an interface to “USA Jobs,” which allowsusers to send requisition data for vacancies to “USA Jobs” in the proper format. U.S. functions alsosupport a variety of U.S. government regulatory requirements, including equal employmentopportunity (EEO), affirmative action, occupational safety and employment equity. Tracks health andsafety issues and medical surveillance exams to help identify potential risk factors.

• Belgium supports Belgian regulatory issues via the Regulatory Region feature. Belgian employmentcontracts and terms can be managed. Includes support for severance pay calculation based on theClaeys formula. Absence monitor capabilities are also provided. Supports unique Belgianrequirements for employee-level personal and job data.

• Canadian versions include an updated Canadian Federal Employment Equity interface to meetrequirements of the Canadian government’s Employment Equity Computerized Reporting System(EECRS) 2.0 software, updated Ontario Employment Equity Reporting functionality, which reflectsthat the report is no longer required by provincial legislation, and an updated Canadian FederalOfficial Languages Reporting interface to reflect changes in the reporting requirements in the OfficialLanguages Reporting Legislation. Support is also included for Academic Teaching StatisticsReporting for Statistics Canada, allowing users to collect data required for these surveys, process thedata according to Statistics Canada requirements, review and edit the results as needed, and sendfinal reports to Statistics Canada in the defined format. Canadian functions also include a utility toexport employee data automatically from PS/HR to the government’s EECRS.

• German versions include added Business Process Maps (BPMs) for clearer documentation of thesetup and administration of German tariffs, the management of German trainees and theadministration of DEUV data. Users can track first and last employee names separately, identify



employees as “cross border walker” employees, associate a company with one or more locations,track and report internal trainees (Auszubildende) via statistics for their professional education stepsand a report showing the complete training schedule for the trainee and current status, and store dataregarding tariffs associated with a specific position.

• French versions now feature added reports, including Workforce Monthly Report (Declarationmensuelle des mouvements de main d’oeuvre), Personal Register (Registre du Personnel), andAnnual Workforce Survey by Nationality and Professional Category (Enquete sur l’activite et lesconditions d’emploi de la main d’oeuvre). An added compensation forecasting tool allows Frenchcompanies to carry out masse salariale simulation and analysis, and to assess the impact of one ormore events on the compensation for a pre-defined group of employees over a given period of time.Events include compensation increases, head count increases/decreases, promotions, incentivepayments, seniority increases and work schedule changes. Other French functions support Frenchcompensation package management. Tracks French personal and job data for workers. ManagesCollective Labor Agreements (Conventions Collectives) for the company and its employees. Tracksand reports training expenses to the French government.

• Netherlands-specific versions now allow Dutch employers to transfer illness-related data to theDutch health and safety authority, insurance companies and the Industrial Insurance Administrationoffice. An added interface provides links to third-party products for reporting absence details,employee and company data to relevant organizations.

• U.K.-specific versions include enhanced ways to search for U.K. addresses via links to Accelerator, athird-party product by GB Systems that is based on the Royal Mail Postcode Address File.

Other supported countries include Australia, India, Malaysia, Singapore, Japan, New Zealand, Mexicoand Brazil.

Architectural Framework

PeopleSoft’s Internet Architecture, including the Open Integration Framework, enables integration ofPeopleSoft and third-party applications. The AppConnect tool enables application integration andprovides enterprise performance management functions. AppConnect products communicate using Webservices and legacy integration methodologies. AppConnect is compatible with J2EE and .NET, andworks with IBM WebSphere and BEA WebLogic application servers. PeopleSoft’s architectural frameworkprovides intra- and inter-enterprise application and process integration (see Features and Functions chartfor specific details). The Internet Architecture supports standards such as Extensible Markup Language(XML), Web Services Description Language (WSDL), Simple Object Access Protocol (SOAP), UniversalDescription, Discovery and Integration (UDDI). PeopleTools provides an Integration Broker, an XMLmessaging hub that publishes and subscribes synchronous and asynchronous XML messages betweenmultiple systems. Application Messaging supports this messaging function.

PeopleTools also provides the following four specific integration technologies:

• Application Messaging—a publish/subscribe messaging architecture handling asynchronousintegration among PeopleSoft applications and between PeopleSoft and third-party applications.PeopleSoft applications publish messages in XML, in response to business events, and they aredelivered to subscribing systems over a secure HTTP connection. Third-party systems can alsopublish and subscribe to messages via XML over an HTTP connection.

• Component Interfaces—allow third-party applications to call in to PeopleSoft applications, usingCOM, CORBA, Enterprise Java Beans or HTTP/XML. The Component Interface handles



synchronous integration from third-party applications to PeopleSoft applications and synchronousintegration between PeopleSoft applications.

• Business Interlink—allows PeopleSoft applications to call out to third-party APIs over the Web andallows application developers to invoke third-party applications based on object technologies,programming languages and interfaces, including COM, CORBA and Enterprise Java Beans; C andC++; and HTTP and XML interfaces.

• Application Engine (formerly the PeopleTools Application Engine)—an application processor for high-volume batch processes, developed to manage set-level data processing, as opposed to traditionalprocessing by programming languages on a row-by-row basis. As part of PeopleTools 8, Cobol wasabandoned, and the tool was rewritten in C++. A more visual environment was designed to helpdevelopers visualize the set-level processing.

Business Intelligence

PeopleSoft’s EPM technology is integrated with its applications suites and provides data acquisition,warehousing and analysis. The Enterprise Warehouse is the primary repository for data from PeopleSoft,third-party and legacy applications, and it provides the content for reporting and analysis across the HRapplications. An extract, transform and load (ETL) engine and 1200+ pre-defined ETL maps move datafrom the operational applications to a data store for consolidation and transaction-level reporting. A datawarehouse in the Enterprise Warehouse maintains the historical data view, and a data mart includes thepre-defined subject-specific metrics, template definitions, and role-based schemas for multidimensionalreporting and analysis. PeopleSoft’s HR-specific KPIs facilitate performance measurement, with real-timeperformance feedback to HR personnel and managers.

An HR-specific Workforce Analytics suite provides analytical applications and insight to help users createworkforce strategies aligned with business objectives. Managers using Workforce Analytics can reportand analyze integrated internal and external data collected from a PeopleSoft HRMS application, andworkforce strategy can be analyzed within a financial framework and compared against overall corporateobjectives. By reporting and analyzing workforce strategies and using data collected by the enterprisesystem to do it, Workforce Analytics can provide relevant analysis of past, current and future workforcestrategies. Integration of Workforce Analytics with PeopleSoft EPM allows Workforce Analytics users toaccess EPM’s data repository. The data contained therein can be extracted and applied in an HR context.

Workforce Analytics consists of the following:

• Workforce Planning—evaluates current competency levels in the workforce and simulates scenariosfor future redeployment and development to help effectively place employees in job positions.Identifies competencies critical to accomplishing enterprise strategic goals, helps determine the valueof the competency strategy and links the value to individual roles. Provides an understanding of thecompetency requirements of enterprise strategies.

• Workforce Rewards—models and simulates employee recruiting and retention. CompensationPlanning supports strategic decision-making for pay levels and pay allocation, allowing forecastingand budgeting based on scenarios linking compensation to corporate goals. ERP data can be used tobuild a competitive salary structure and assess the cost of implementing such a structure. RetentionPlanning links corporate goals and core competencies to identify key human assets. Determines theprobability of losing key employees and helps management build retention plans based on marketforces, reward structures and workplace factors.



• Workforce Scorecard—uses Balanced Scorecard techniques to measure and communicate HRobjectives and performance within the enterprise. KPIs evaluate how well HR employees areexecuting internal initiatives and how this performance compares to the financial and strategic goalsof the HR department.

Pricing

PeopleSoft prices its software under its Enterprise Licensing model based on size of a customer’senterprise. Business metrics define the size of the enterprise. For HRMS, the metrics consider thenumber of employees of the organization. Each contract has an Expansion of Rights Clause guaranteeingfuture license pricing if the customer expands past pre-agreed-on size thresholds. In exchange for a size-based price and expansion clause, PeopleSoft gives its customers the right to deploy and use as manyservers, users and workstations as they need within the defined enterprise size. The Enterprise Licenseincludes a right to use the software over the Web via corporate intranet or extranet.

GSA Pricing

Yes.

Competitors

There are many vendors targeting the HR market from different perspectives. There are, however, someuniversal criteria applicable to all the HR vendors, including ability to execute, longevity and market share,financial and corporate viability, and current size of the installed base. ERP II vendors take more time tobring emerging technologies to market and to sell their solutions to their established installed base.Nonetheless, their long-standing reputations as HR software providers, the depth of their productfunctionality, their ability to provide integrated applications spanning areas beyond the HR departmentand their ability to leverage established relationships with customers gives them an edge over emergingplayers touting robust functionality in a specific HR niche. In addition to PeopleSoft, the technologyleaders in the overall large enterprise HR market include PeopleSoft, SAP and Oracle. Other vendors alsocompeting in this space in varying capacities include Lawson, Ultimate Software, Cyborg, J.D. Edwardsand Meta4.

SAP

SAP has a strong presence in the ERP II space, particularly in the discrete manufacturing and assetintensive domains. SAP’s HR suite includes applications supporting transactional, strategic, analytic andself-service functions for a global enterprise. Applications include Personnel Administration; Payroll;Benefits; Time, Workforce and Organizational Management; Organizational Development, Training andLearning tools; Recruitment; Workforce Cost Planning; and Performance Management. SAP is identifyingthe collaborative attributes of its mySAP Enterprise Portal and extending these attributes and promotingcollaboration via role-based access for professionals, managers, employees and applicants. SAP is alsopromoting the strategic benefits of its HR applications, which include the ability to conduct comparativeanalyses of compensation plans and the delivery of role-based content and services. SAP expanded itsHR applications to target the Professional Services Administration (PSA) market. Specific functionssupport requirements of professional services organizations (PSOs), including monitoring projectactivities, revenue, open items and costs, and the ability to measure the profitability of a project during theproject’s life cycle.

Oracle

Oracle’s HR applications are an integral part of its e-business suite. To help enterprises enhanceemployee relationships and optimize the workforce, Oracle integrated a range of processes and



technologies throughout its HR product line, including a variety of intra-enterprise and inter-enterpriseworkflow-based self-service functions, portal-based dynamic content, global support and performancemeasurement tools. Oracle offers a series of applications in its HR management suite supportingtransaction-based processes in a global enterprise. A core Human Resources application acts as thecentral repository for data to help manage an enterprise’s human capital. Other applications support HRprocesses ranging from recruiting through succession planning. These applications include Recruitment,Time and Labor processing, Payroll, Benefits Administration, Training Administration, LearningManagement, Self Service HR and Business Intelligence.

Strengths

Entrenched, Established, Viable Player

PeopleSoft is entrenched, established and viable. The vendor’s core business always includes asignificant focus and expertise in providing large enterprise HR applications. PeopleSoft is established inthat it caters to a significant installed base of HR software customers. PeopleSoft continues to maintainthis installed base and to grow it by providing significant enhancements to its HR line of applications andtargeting different size enterprises, including midsize enterprises, in addition to its traditional largeenterprise focus. Drawing from its installed HR customer base and Application Service Provider (ASP)and PeopleSoft Select implementation strategies, the vendor can provide prospects with good samplingsof customer references in the different stages of implementation. Customers evaluating enterprisesoftware are best served when they can contact a vendor’s established customers in different stages ofimplementation. PeopleSoft’s HR focus, customer base, market clout and demonstration of vision in HRtechnology make it a viable vendor worth considering when evaluating HR software packages.

Process Integration

PeopleSoft provides an Internet architecture, portal infrastructure and the PeopleTools developmentenvironment to support inter- and intra-enterprise application and business process integration, with itsHR functions. AppConnect, consisting of Enterprise Portal, Enterprise Warehouse and Integration Broker,provides connection to applications and supports business process integration. Integration Broker workswith the Internet Architecture to handle routing and transformation of data between applications and tosupport enterprise-centric and inter-enterprise business process integration. HR integration point mapsdemonstrate links between HR functions and Financials, SCM, CRM, Learning and third-partyapplications.

Single-Source Options for Established Customers

PeopleSoft earned its reputation with its HR applications and continues to maintain a market leadershipposition. Its HR product line is designed to support broad and deep HR operational, transactional and,now, strategic requirements. As PeopleSoft adds more components to its HR products, establishedcustomers will be presented with options for considering PeopleSoft as a single-source for all of its HRtechnologies. Established customers already upgraded to PeopleSoft’s Internet Architecture (release 7.5)are in a good position to utilize PeopleSoft as a single-source HR technology vendor for more recent HRinnovations; specifically, the strategic and self-service functions. When evaluating more recent HRinnovations in the areas of Web-based self-service, workforce management, strategic HR management ore-recruitment, established PeopleSoft customers should compare PeopleSoft’s offerings and functionalityin these areas against those of short-listed best-of-breed and niche providers.

Limitations

Mobile Applications



PeopleSoft introduced for the first time Mobile Time Management product as part of release 8.8 inDecember 2002. The product provides basic functionality to download work schedules and to enter worktimes using a Win32 laptop and Pocket PC. PeopleSoft is planning, however, to strengthen thesecapabilities in later releases. For example, in the next release the vendor will offer the ability to capturepunch time with actual start/stop time, in addition to the current elapsed time it supports today. PeopleSoftwill also link mobile functions with its Projects application to enable contract employees to enter time andalso give managers the opportunity to handle leave requests and approvals. The vendor also plans to usePeopleTools to issue alerts to managers, link with the Learning application to review learning plans,download benefit enrollment pages, and download and review applicant data.

Release 7.5 Customers Not Upgrading Must Purchase Extended Support

PeopleSoft is discontinuing support for release 7.5 of its HRMS applications. Release 7.5 customers canopt to purchase extended maintenance for this version for one year from PeopleSoft. Customers can alsouse service partners, such as TomorrowNow or Crestone, for extended support of 7.5.

Recommended Gartner Research

Gartner’s Large Enterprise HRMS Magic Quadrant for 2002, IGG-10232002-03

Evaluation Criteria—Large Enterprise HRMS Magic Quadrant, M-18-3099

E-Recruitment Tools: Stiff Competition in a Niche Market, M-16-8737

Leveraging HCM Technologies to Control Labor Costs, COM-18-7559

Strategic Workforce Management: Critical Key Issues, COM-18-3282

Human Resources (HR) Applications: Perspective, DPRO-112368

Insight

PeopleSoft is an established provider of HR applications and an ERP II vendor providing enterpriseapplications supporting Financials, SCM, CRM and ESA, each of which also targets specific verticalmarkets. PeopleSoft’s HR applications include Human Resources, Benefits Administration, FSAAdministration, Pension Administration, Payroll, Resume Processing, Time and Labor, and StockAdministration applications. Added self-service functions for employees and managers, along withstrategic HR components, strengthen PeopleSoft’s ability to provide recent innovations in HR applicationsto its customers and to offer inherent integration with established implementations of PeopleSoftapplications. Customers currently running versions earlier than release 7.5 should consider “directupgrade” issues and possible additional costs applicable to their case when considering an investment inPeopleSoft 8.8.

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