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.
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.
- 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.
Key Business Benefits
- Effective auditing, compliance adherence
- Increase operational efficiency
- Reduced maintenance cost and efforts
- Higher employee satisfaction
- Accurate resource management