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A lot of work and development has been done in MDM in the field of customer data, material and vendor data management. However not many MDM applications are seen on Employee Information Management.

 

In today’s globalized economy, with mergers and acquisitions happening all across the globe, it is easy to face a scenario of a conglomerate / organization which has a set of multiple companies working in different geographies. In such cases, we quite frequently see the movement of employees across different countries, geographies and roles within these conglomerates.

 

Consider such a scenario where each group company separately maintains the employee information catering to employee’s current profile for e.g. 

 

If an employee is working out of India, all the information related to him like his current/permanent address, current role/designation, hierarchy in organization etc would be maintained by the HR systems. Also there would be the finance department which would separately store the information like India Payroll details, bank details, etc.  Now if the same employee goes on a long term project assignment to a group company in USA, then the new company also maintains a separate HR data (his current contact address, role/designation etc) in USA. At the same time, the finance department will simultaneously maintain his USA bank details, payroll information etc.

 

Due to legal and business requirements, the companies cannot delete and have to maintain his past information records. This is case for just one employee. If the employee count is in tens of thousands, the scale of redundancy, data duplication can easily be well imagined.

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The above example explains how the critical employee data is typically fragmented across HR, Finance, IT among other systems across companies which are kept in silos and often maintained inconsistently within individual local systems.

  

MDM can play an important role here. Using Master data management in a global implementation, we can provide a coherent picture by maintaining central, harmonized and consolidated information of employees across organization.

 

For e.g.,

  • All data related to an employee can be stored together in one place. The repository can be modeled by having qualified tables like communication data, address, payroll details, organizational assignments to maintain multiple and country specific information for employees.
  • Lookup tables like Bank Details, Employee Groups, Organizational Units etc can help consolidate data from various systems into a centralized location thereby giving a unified view
  • Validations in MDM can help implement customer specific business rules and checks.
  • MDM can ensure complete de duplication of records by effective matching and merging process which cater to the business rules / requirements. This ensures that accurate data consolidation and harmonization is done across the conglomerate.

 

There might be legal requirements which might prohibit sharing/storing critical financial data of employees outside the country, but still some information (basic payroll information like payroll run date, active bank details, etc) can be easily maintained at a central hub.

 

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Key Business Benefits

  • Effective auditing, compliance adherence
  • Increase operational efficiency
  • Reduced maintenance cost and efforts
  • Higher employee satisfaction
  • Accurate resource management
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4 Comments

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  1. Michael Nicholls
    Hi Kamal

    So, would the HR team use the MDM tools to manage the HR data? Would they do org management using MDM? Who’s going to work out the de-duplication rules? How am I going to transfer sensitive data from my HR system to and from MDM? What levels of control do I have with the MDM repository? How does all this fit in with IDM and GRC systems?

    I appreciate you’re trying to get people interested in using MDM, but probably employee isn’t the most likely candidate.

    Cheers

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    1. Kamal Khanna Post author
      Hi Michael,
      Thanks for showing interest in the blog.
      The idea here is to make MDM act as a single source of data. Organization Management can be done using the local master data. As far as de-duplication rules are concerned, it’s a business decision which has to be finalized in conjunction with the department heads or business owners.  Also, Control over MDM repository can be ensured by assigning proper rights and authorizations to each user role so as to ensure only relevant data is made accessible.

      Best Regards,
      Kamal

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      1. Michael Nicholls
        If an organisation already has a central HR system (hopefully an SAP one!) then that is the main maintenance framework for employee data. The screens etc for doing employee maintenance have already been optimized for use by that organization. The on boarding process will have also been setup to handle any people who are rejoining, so de duplication will not be an issue. Also, I don’t know of many companies with multiple HR systems in place, so I can’t think of many times when you will end up with the same employee in different systems. In the case of most of the SAP infotypes, there are also date ranges, which are messy to setup as qualified tables in MDM. User access rights in MDM are also not as easy to maintain as control of SAP infotypes. I would be interested in what your model looks like for the employee repository.
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        1. Kamal Khanna Post author
          Hi Michael,
          I guess you are talking about the HR system within one single organization. However the scenario I was trying to explain is one about which we hear almost daily, when one company is acquired by another, or two or more companies merging together. Then both companies can have different HR systems( of different vendors, say SAP and Peoplesoft) and employees can move across for various assignments. In such scenarios, MDM can play key role when these organizations are looking to consolidate their employee data instead of managing them across different systems/ geographies.
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