Why use Position Management?
  • Facilitate FTE budget tracking (Real Time Budget Checking – delivered in FMS and HCM 9.1)
  • Accurately track vacancy in approved, budgeted headcount
  • Encumber vacant positions immediately or upon requisition
  • Enable a clearly defined approval process for new (transactions are only loaded to the database if you use “Full Position Management”)
  • Improve data accuracy for job assignments
  • Less data entry in hiring and recruiting processes
  • Restricts creation of open job requisitions
  • To associate with Talent Attributes in Profile Management
  • To build an organization chart that represents roles and reporting relationships
  • To support Succession Planning

PeopleSoft Position Management allows hospitals to: track fraction of total headcount, fraction of total budgeted FTE’s, set of attributes that represent a job (department, location, FLSA status, salary grade, FT/PT, etc., …“placeholder” that exists regardless of the specific incumbent, or lack of (vacancy), defined place on the organizational chart (reporting relationships, and to control a Budget and or Head-count/FTE for a business unit/department.
Once implemented, hospitals can control and report:

  • FTE’s by department, location, job code, job family, etc…
  • Headcount by department, location, job code, job family, etc…
  • Employees on LOA
  • Future termination dates and reasons
  • Proactive staffing and planning
  • Hours scheduled/worked by department, location, job code, job family, etc…
  • Interface from scheduling and time clocks to PeopleSoft Time and Labor
  • Job Descriptions online by Position and Job Code
  • Position and Person – skills and competencies – right person / right job / right time
Deciding When To Use the Human Resources Manage Positions Business Process and Full Budget Controls

Delivered PeopleSoft Budget Position Control (of Commitment Accounting*) is often used to replace dated legacy Position Control/Budget Systems.  A robust and flexible Budget Position Control is critical to accurately forecast future costs, develop initial allocations, maintain current position FTE and related information for salary savings, cost control and data reporting, and to serve as the source for expense budget information to the Financial Management System.
*The term “Commitment Accounting” denotes HRMS functionality that facilitates the budgeting and tracking of actual
payroll costs and exchanges information with PeopleSoft Financials applications. This exchange keeps both systems in sync. Commitment Accounting is a part of the larger Commitment Control business process available in the PeopleSoft Financials modules and allows you to budget funds for labor expenses as well as establish default accounting information (funding sources) on how to distribute those expenses.
When deciding when to use the Manage Positions and Position Control for business process, consider the following:

  • If your organization is fluid—you tend to view broader groupings of employees and often create new jobs—you’ll probably find that structuring the system by employee is best. This method is useful if your organization is expanding, or if you often create new jobs or job types.
  • If your organization is fairly static—jobs and job descriptions are mostly fixed, and people move in and out of them—you’ll probably find that structuring the system by position is most effective. Government agencies and hospitals, which plan positions based on budgets, find this method useful.
  • If both methods serve you well in different areas of your organization, you can choose to structure Human Resources by position for some departments or management levels and by employee for others. Human Resources enables you to use both by selecting a setting called partial position management to use both methods wherever they suit you.
Using Position Management

You can structure your human resources system by position instead of by job and enforce full Budget Controls for position with delivered PeopleSoft. When you structure your HR system by employee, you get broader information about your organization’s jobs. Use job codes to group jobs into general classifications so job codes and employees have a one-to-many relationship. Many employees share a job code, though they might perform the work in different departments, locations, or companies. Identify the job an employee performs through the data you enter in their employee record.
Use positions to track details on a particular job in a particular department or location that usually have a one-to-one relationship with employees. When you structure your system by position, you attach data to the positions and move employees in and out of those positions. By focusing on the position, you can track information related to it, such as salary or standard hours, regardless of whether an employee holds the position. When the position is vacant you won’t lose the common thread that binds the data together. Use data specific to each position as the basis for organizational planning, recruitment, career planning, and budgeting.
And, you can setup of Commitment Control, defining budgets, and then creating budget journals, and budget checking transactions. They create budgets and budget check transaction through the position control process with validates checks at Budget Position, Encumbrance of Salary data.

Option #1 – Implement Full Position Management with Commitment Controls (Budget)

Requires the setup of Commitment Control (defining budgets and then creating budget journals, and budget checking transactions). PeopleSoft  budgets allow budget check transactions through the position control process and validates Budget Position and Encumbrance of Salary data.
Every employee in the hospital (or in the Health System) would be assigned to a Position Control Number (PCN), which is unique to the position occupied by that person. The PCN can change over time, such as increasing or decreasing in FTE, changing Cost Center or Funding Distributions, or Reclassification into a different Job Code or Series. Where PeopleSoft Position Management would build history on the employee’s Appointment(s) and Distribution(s), PeopleSoft HRMS builds history on the employee as well as the position.
When budgetary changes in Appointment and Funding (Commitment Controls/Budgets) are made to an employee’s record,
PeopleSoft recognizes it as a change to the Position; therefore, changes must be made in the panels directly related to the PCN; (i.e., Position Distribution panel). When making Distribution changes or FTE changes, it is important to think in terms of the PCN, rather than the employee, e.g., department personnel staff can process funding changes on Position Distribution panel, but FTE/Appointment changes must be processed through the HR Records Unit or Management that controls budgets for the Add/Update Position Information panel.
Estimate
Effort:
9 months (including the implementation of Commitment Accounting in HCM and Commitment Control in
FMS and limited conversions).

Pros Cons
  • Ensures data integrity by validating company, department, location, and job code through systems edits, and requiring users to hire all employees into positions with Budgeted Salary information.
  • Allows identification of vacant, filled and approved position data to be reported
  • Full control over Position Definition, Budgeted Accounting Distribution,
    Assignment of Position, Payroll Accounting Distribution, General Ledger  Integration, Error Detection
  • Options of using percentage of distribution rather than fixed amount

 

  •  Required PeopleSoft Budget implementation for Position Control (Commitment Accounting) functionality in HCM and Commitment Control (Ledgers) in Finance
  • Requires that all positions be budgeted and enforces commitment (budget checks)
  • Requires that a position is created or vacated before hiring an employee
  • Increases complexity of data conversion of groups not currently using position management
  • If non-employees are going to be captured in the employee records, they would also need to be associated with positions
  • Additional system data overhead created
  • Maintenance: Requires maintenance and set up of  budgets, positions for all employees and possibly non-employees (contractors  and temporaries).
  • Conversion:   Commitment Controls (Department Budget tables  at various levels) and Position Management (requires that all position funding  , employee records, including historical rows, be associated with a position).
  • Upgrade to future versions:  Not  an issue as this is current PeopleSoft functionality.
Option #2 – Implement Full Position Management without Commitment Controls (Budget)

Similar  to Option 1, but without the requirement for PeopleSoft Budgets implemented.  Full Position Management would be used by an organization that requires every employee to have a separate and unique position.  It also means that a position must either be vacated or created before an employee is hired.  Companies using the succession  planning functions within PeopleSoft must use position management.
As delivered, Full Position Management does not prevent a user from hiring more than the maximum number of incumbents into a position.  It also does not restrict the number of incumbents a position may have. Following is a list of pros and cons associated with implementing Full Position Management.
Estimate Effort: 6 months (includes limited conversion effort)

Pros Cons
  • Ensures data integrity by validating company, department, location, and job code through systems edits, and requiring users to hire all employees into positions.
  • Allows identification of vacant, filled and approved positions.
  • Enables identification of supervisor or manager through “reports to id” for all
    employees.
  • Reduces data entry because most employee- related job data defaults from position data.

 

  •  Affords an organization limited flexibility in workforce management.
  • Requires that all employees be assigned to a position.
  • Requires that a position is created or  vacated before hiring an employee.
  • Increases complexity of data conversion of groups not currently using position management
  • If non-employees are going to be captured in the employee records, they would also need to be associated with positions.
  • Additional system data overhead created.
  •  Maintenance: Requires maintenance and set up of  positions for all employees and possibly non-employees (contractors and  temporaries).
  • Conversion:   Full Position Management requires that all employee records, including historical rows, be associated with a position..
  • Upgrade to future versions:  Not an issue as this is current PeopleSoft functionality.
Option #3 – Semi-Implement Partial Position Management

PeopleSoft offers another option called Partial Position Management. Partial Position Management allows users to assign employees to either job codes or positions.  This is particularly useful in companies where some departments or management levels require the structure offered by position management, and others do not need to distinguish between individual roles.  This feature is also advantageous to companies converting records that are not currently associated with positions.  They may be converted with job codes and then associated with positions once they are in the new system.
Following are some pros and cons associated with implementing Partial Position Management.
Estimate Effort: 6 months

Pros Cons
  • Allows Position Management to be used selectively by parts of the organization.
  • Vacant, approved and filled positions may be tracked where appropriate.
  • Position hierarchies may be built and maintained for parts of the organization using positions.
  • Job codes may be used instead of positions for groups that do not need to
    distinguish between individual roles.
  • Position history may be tracked on the position and the employee records where
    positions are used.
  • Affords the option of implementing position management incrementally:  groups that do not currently use position management may be rolled into it post-conversion.

 

  •  Requires development and implementation of a process strategy to determine operationally where and when to use Position Management.
  • May present a training issue if different rules apply to different parts of organization – this option does not prevent users from hiring employees without positions.
  • May create limited reporting capability, if all employees are not associated with positions.
  • Restricts transactions that will be loaded to the database when using Manager Self Service
  • Some of the Manager Self Service transactions will not load to the database.  It sends a notification to the HR Administrator Role to handle
  •  Maintenance:  Requires set up and maintenance of positions for those employees hired or transferred into position managed departments.
  • Conversion:  With this option, employee data records do not have to be associated with positions prior to conversion.
  • Upgrade to future versions:  Not an issue as this is current PeopleSoft functionality.

In order to reap the benefits of both worlds, PeopleSoft can be set to optimize partial position management.  In some areas of the organization, driving the system by employee is preferred, while in other areas of the organization, the business process requires driving the system by position.  For example, you might find that driving the system by position serves well for only some departments or management levels in the company, and that driving the system by employee works well for  others.  PeopleSoft Human Resources provides the flexibility to use both.  By selecting a setting on the installation table called partial position management either method can be utilized.
The hospital may decide to utilize encumbrance processing to manage labor costs in HRMS and Financials.
There are three elements in encumbrance processing:

  1. A pre-encumbrance is a request to spend and can be included in budget checking to verify that funds are available for the position
  2. An encumbrance is an approved and budgeted position and tied to a chartfield string
  3. Actuals are funds that are spent in payroll and reversed out of the encumbrance balance
Open Item – Lessons Learned
  • Are you planning to switch “Full” PM?  If not, you may want to push that agenda?  A big step, but if the health system is ready to take the leap ,now is the time to sell it…love “Cold Turkey” after Thanksgiving!
  • Is Finance completely on board?
  • Are you considering a position management strategy for Person of Interest (POI)’s and contingent workers?  This may be the opportunity to build your position management process for every person that has a relationship with health system.  POI’s and Contingent Workers (CW)’s may be unbudgeted positions, but they still require other elements of position data to track properly.  You can then build POI and CW records into the rosters within eProfile Manager Desktop for the manager to control just like any other budgeted position. (Contract begin/end dates, Reports To’s ,etc…).
  • Another huge advantage to building positions for every person is the integration possibilities with Information Security (system credentialing/profiling) and Physical Location Badge Access.
  • Stay on top of the Vacant Position Inactivation policy.  This can create serious position creep if not into your process.  I would recommend no more than 45 days to inactivate a vacant position.  Make the manager request a new position if they exceed the 45 day limit.  The Budget will most likely still be there but this will create a higher sense of urgency and diligence to manage their existing active positions.
  • Definitely see the need for a custom position request form and approval workflow.  Not sure why PeopleSoft has not developed this option yet in eProfile Manager Desktop? Keep it simple and hopefully your approval process is  straightforward.  Consider developing a process whereby the requestor can set a flag to automatically create a job opening upon final position/budget approval. This option will allow for a much faster posting process if necessary by eliminating a second round of approvals. Most positions created mid-year are of “immediate” need anyway.  Your managers will love you for it!
  • Considering an Imaging solution?  Many have used it to create the position request form?  I recommend creating the custom request page using PeopleSoft tools and integrate your data elements directly from PeopleSoft tables?