APPENDIX B

HEPPS Improvements

The University's Higher Education Payroll/Personnel System (HEPPS) and the associated manual processes were implemented in 1982. Since the original implementation, human resource statutes, federal and state regulations, interpretations, policies and the system itself have all changed dramatically. Employee benefits have grown enormously in scope and complexity. Significantly expanded professional staff numbers, increased collective bargaining units and the elimination of the HEP Board have changed the regulatory context. Affirmative action mandates and requirements for non-US citizens have changed substantially. The current system of payroll processing is an amalgam of manual and automated processes that cut across every organizational entity of the University. Different parts of the institution have responded and adapted to these changes in different ways resulting in a complex organic tangle of forms, procedures and approval processes that defy easy comprehension or modification. Yet, this system is arguably the life blood of the institution and any failure would have serious consequences.

The objective of this project is twofold: 1) to examine the payroll business rules, policies and processes in the context of the entire financial management system and the opportunities presented by new, standard information technologies; and 2) to define the human resource information requirements for all campus constituencies. These information requirements will determine what kind of application system features need to be developed and implemented to insure major improvements in the payroll process. It will also identify opportunities for streamlining the central processes which will undoubtedly yield significant improvements in the way payroll information is collected and processed. Concepts such as: empowering the front line employee with knowledge, authority and responsibility for complete processes; post transaction audit; elimination of tasks, organizational change; job redefinition; etc. will be explored and applied.

It is envisioned that this effort can identify many changes and solutions that can be implemented immediately. More complex solutions will also be brought forward and implemented in a pilot project approach within selected departments, then reviewed, revised and re-implemented, i.e., prototyped, until ready for campus-wide implementation. This effort will involve:

• Analyzing and defining the full spectrum of human resource information requirements
• Defining the extent of HEPPS process problems, especially as viewed by campus departments
• Establishing criteria to measure the success of process changes
• Exploring best practices at other universities, medical centers and companies
• Identifying feasible options with estimates of costs and benefits
• Assessing implications for future direction of financial systems, payroll, personnel and technology application
• Continuing to review processes and identify options/solutions for future implementation
• Implementing process, systems and policies changes

HEPPS involves three broad constituencies who perform tasks, work with the system and receive services. The groupings are generally identified as: central offices; college/department (includes payroll coordinators); and faculty and staff (i.e., individual clients who receive direct service). Current on-line capabilities are concentrated to support the central offices, some are provided for the department Payroll Coordinators and only minimal inquiry is available to faculty and staff.

The objective for this project is to change this balance of services and capabilities by providing a secure, easy to use, web-based interface. Any individual with a web browser and appropriate authorization will be able to access the new features and update their own information. Emphasis will be on self-service, i.e., timely information directly to and from the client. The general concepts underlying the new application features include:

• Developing and implementing secure departmental interfaces to the HEPPS system and database using new technology
• Leveraging existing resources by joining the current mainframe-based system and database with the emerging, open, public, client/server, web-based campus-wide information systems
• Delivering more customer service options in the environment of the client, such as: inquiry/reporting direct to clients; help text, instructions and codes provided on each web page; provide easy access locations available to all employees; etc.
• Empowering the front line payroll coordinator with the knowledge, authority and responsibility for complete processes with on-line access to policies, procedures, help information and implementation of the post transaction audit concept

Assuming reasonable progress on the web-based technology infrastructure and the business process reviews, the likely approach and deliverables (i.e., criteria for measuring progress) for this project, would be as follows:

• HEPPS Short Term Improvements

Additional potential features include:

• On-line update for the employees to:

• On-line update for the employees to submit changes for:

• On-line update for Payroll Coordinators to submit changes for:

The largest obstacles to a significantly improved payroll process are: the maze of laws, regulations, policies, procedures surrounding it; its history - long established personnel and payroll practices some of which are embedded in the current systems; and the accelerating rate of change impacting the human resource/payroll area.

Employee Assistance Program

Employers have long recognized that employee assistance programs are effective in identifying and resolving problems that adversely affect the well-being and work performance of their employees. Throughout higher education, productive, valued members of university communities have used such programs to resolve personal difficulties (such as family crisis, addiction, financial or emotional stress) which might otherwise undermine their professional performance. A University of Washington-managed program, tailored to our specific needs, would have the following three goals:

• Preservation of the personnel asset - Provision of an employee assistance program would attest to the importance of individual contributions in an institution dominated by salary and benefit costs. The University's human resource investment merits a dedicated effort to foster, preserve, and enrich that resource. An employee assistance program is a critical step in transforming our work environment to recognize human resources as our most valuable asset.
• Productivity gains - Employee assistance programs save money. The University of Michigan, one of 22 of our peer institutions that provide institutionally-managed employee assistance programs for faculty and staff, has subjected its own program to cost/benefit analyses which have consistently shown a 3:1 dollar return, based on reduction in sick time use alone.
• Affirmative management of risk - An effective employee assistance program is consistent with the University's recent adoption of a risk management philosophy for complaint management. Proactive response to difficulties in the workplace addresses problems before they escalate, forestalling adverse impacts on co-workers and students, and avoiding costly and lengthy litigation.

As examples, peer institutions report the following actual incidents and the resolutions achieved through the use of their employee assistance programs.

• A department chair was notified that a professor had begun having angry vocal outbursts in class and throwing objects across the classroom, alarming students and colleagues alike. The chair called the University’s employee assistance program, which immediately began working with him to define for the professor the behavior considered acceptable by the department and the department’s expectations that the professor seek treatment. The professor went to the employee assistance program for assessment of his problem, which was ultimately diagnosed as chronic depression. He obtained treatment and successfully returned to his teaching responsibilities.

• Employee assistance programs are also used extensively to assist newer faculty members who have difficulty adjusting from doctoral student status to faculty status. They often experienced stress from their new responsibilities of teaching, conducting research, and publishing; some suffered from situational anxiety and depression, causing them to become stalled in making the expected academic contributions. Their departments have referred these tenure-track faculty members to the employee assistance program, where professional counselors who understand higher education can help the faculty members to systematically evaluate their options and choices. Over the years, some have chosen to remain in their appointments and, with assistance, have made the personal adjustments necessary to succeed in their new roles. Others have used the counseling services of the employee assistance programs to identify alternative career paths, and have opted to resign their appointments. In either case, the academic administrators have found that the frequency of performance problems resulting in difficult negative mid-career reviews has been reduced.

• In another situation, a university’s employee assistance program was called to consult with a supervisor and manager about how to effectively manage a potentially violent staff employee who was frightening co-workers and was a consistently disruptive presence in the workplace. The counselor helped the supervisor and manager to distinguish the performance problems from the behavioral problems, and to appropriately intervene in periodic workplace incidents. The supervisor and manager became more comfortable with a clearer understanding of their roles and were able to control the employee’s impact on the unit.

In these situations, university-managed employee assistance programs provided faculty and staff members with effective assistance, relieved academic and staff administrators of the burden of managing difficult situations alone, and helped to build the skills and knowledge of the institutions’ managers. They also contributed to the affirmative management of risk by assisting in the resolution of difficult situations. Studies performed over a 25-year period of the work of such programs throughout higher education show that 10-20% of faculty and staff members have personal problems which undermine their professional performance. Of our 24 peer institutions, 22 have a university-managed employee assistance program available to faculty and staff and their family members.

The University of Washington would model its employee assistance program after well-regarded programs at other institutions of higher education, and would provide services for assessment and referral, short-term problem resolution, monitoring and follow-up counseling. Special emphasis would be placed on assisting academic administrators and staff managers and supervisors to effectively identify, intervene, and refer troubled academic and staff personnel for assistance. Immediate crisis intervention services as well as follow-up counseling would be included. Services for individual faculty and staff members would be provided at confidential, professional offices located conveniently to the campus. Management consultation services for academic administrators and staff managers and supervisors would be provided on campus and by telephone.

The Employee Assistance Program services would be independent and confidential, while fully integrated with University-provided services and benefit programs. Our program would also follow the lead of employee assistance programs throughout higher education in providing sophisticated training programs, periodic newsletters and other informational materials to campus personnel.

The University Human Resources Committee would establish policies and expected outcomes. Periodically, an independent assessment of outcomes would be done to measure utilization rates by various populations, patterns of referrals, client outcomes, impact on absenteeism, impact on work performance, or other criteria recognized in the professional community of program providers.

Based on preliminary proposals provided by local service providers, the costs for providing a University-managed employee assistance program for state-funded units would be approximately $500,000 annually for all the services described above as well as the internal costs of program administration. It is expected that with a University-managed program, a utilization rate of 8% - 10% would be realized. Over 2,000 faculty and staff and their family members would be receiving timely, professional assistance with personal problems which would otherwise affect their lives, diminish their work performance, or even cause legal liabilities to themselves and the University. Additional costs associated with self-sustaining units would be recharged to those activities on the basis of anticipated and actual utilization. As confidentiality and independence are critical considerations to faculty and staff members, it is assumed that the program can best be provided by contracting with a private external provider.

Currently, the University pays the state-operated Employee Assistance Service $47,500 annually, which has been deducted from the resource need presented above. The state-run program has not been significantly utilized by the academic community, particularly faculty members. With their current staffing ratio, the state EAS program cannot meet the University’s needs.