1. Changing Workforce Management for a 21 st Century NHS Maureen Edwards ESR Senior User/HR Director Electronic Staff Record HPA Conference 20 October 2006 1/23

2. Agenda ESR Vision Progress to Date Roll Out Plan ESR Benefits ESR - Challenge and Opportunity! 2/23

3. 1.2 m NHS Employees Now - Multiple, diverse, fragmented technology: 29 Payroll systems 38+ HR systems Unreliable Central reporting NOW ESR Solution - new, standard, future- proof, web-enabled HR & Payroll system: END OF PILOT ESR solution implemented at 39 Pilot organisations Integrated; standardised, comprehensive One point of data entry Employee/manager self-service access National and local reports Data moves with employee Interfaces e-Recruitment Pensions GL VISION ONE NHS ONE SYSTEM ESR ENABLES: Single employee portal e-Learning Time, Attendance & Rostering Regulation Registration Workforce Planning Migration to Shared Services During 2005 by 2008 END OF ROLL-OUT ESR single HR and Payroll platform for England and Wales Essential ESR Toolkit Further Healthcare staff 2008 & beyond ESR Vision 3/23

4. ESR Core Solution Composition of ESR Recruitment App. Quick Entry App. Management Mass Interview Core HR Inter-Authority Transfers Employee administration (New Hire –Changes -Termination)New Hire ChangesTermination Employee Relations Work Structures [Create – Location > Organisation > Position]OrganisationPosition Local Reporting Payroll Processing Data Capture Absence Pensions Travel & Expenses Security Training Administration & Career Management Bank Administration Data Warehouse - Central Reporting Underpinned by ESR National Business Processes Standard Interfaces NHS Jobs (e-Recruitment) NHS Pensions Agency Inland Revenue BACS Occupational Health Time & Attendance Contact (NHS Directory) General Ledger Standard Interfaces NHS Jobs (e-Recruitment) NHS Pensions Agency Inland Revenue BACS Occupational Health Time & Attendance Contact (NHS Directory) General Ledger EmployeeEmployee & Manager Self ServiceManager 4/20

5. Forward three pilot sites October 2004 – LIVE ! Agenda for change compliant solution in December 2004 e-Recruitment Interface in January 2005 Main pilot sites Go live in five phases: 1.End February 05 – LIVE ! 2.April 05 – LIVE ! 3.End May 05 – LIVE ! 4.August 05 – LIVE ! 5.October 05 – LIVE ! Progress to Date Solution acceptance granted in October 2005 Go Live in twelve waves: 1.March 20063. July 2006 2.May 20064. September 2006 As at 1 September, 409,640 staff paid in 216 organisations 5/23

6. 12 waves of Rollout Approximately 50 sites per wave with c100,000 employees per wave Go – Live every 2 months Engagement 14 months – Pre-Implementation 11 months – Implementation 8 months Critical path activities – training and data Rollout Plan ESR 6/23

7. Rollout Wave 5 – 9 (of 12) engaged Wave 5 57 Organisations, 23 Payroll Groups, 112,665 staff Wave 6 60 Organisations, 17 Payroll Groups, 112,760 staff Wave 7 58 Organisations, 21 Payroll Groups, 108,908 staff Wave 8 60 Organisations, 22 Payroll Groups, 103,504 staff Wave 9 55 Organisations, 18 Payroll Groups, 119,891 staff 7/23

8. ESR Benefits Modernisation Efficiency Information Empowerment 8/23

9. Who benefits? HR & PAYROLL Faster, more efficient processes Improved management information Line Managers Improved HR & Payroll Service Streamlined administration Improved management information Deliver improved service Improved skills & knowledge Improved staff morale Frontline Staff Improved HR & Payroll Service Access to own data via self-service Recruitment New Hire Employee data management Career management Leavers Pay PATIENTS Deliver improved service

10. Modernisation ESR is a world-class people management system for a 21 st Century NHS ESR is easy to use as it is web-based Staff can see and maintain their own personal information ESR reduces administrative overheads, increases accuracy and consistency over the entire HR & Payroll cycle In line with modernisation laid out in the NHS Improvement Plan and more specifically in the HR in the NHS Plan and links with other modernisation initiatives Modernisation 10/23

11. Modernisation NHS Jobs NHS Pensions Agency Occupational Health Smart Card e-Learning Pay Modernisation National Workforce Dataset NHS Professionals National Workforce Planners Tool ESR Existing Interfaces Future Interfaces Data Requirements already incorporated Ongoing relationships for future development Registration Authority e-KSF Time, Attendance & Rostering Occupational Health NHS Mail 11/23

12. Empowerment ESR empowers every NHS employee to take control of their own career Employees have: The ability to access and modify their personal details Online access to their Personal Development Plan The ability to browse the training courses and other learning opportunities A facility to request placement on a training course and see the result of that request Automatic association of their qualifications and training with local and national competence frameworks The ability to view past payslips Empowerment 12/23

13. Empowerment Managers can access information and instigate actions, including: Approving requests and changes made by employees Recording contractual changes – hours, position grade etc Recording transfer, promotion or termination of employees Conducting online Development Reviews Locating suitably skilled people for new job opportunities Empowerment 13/23

14. Self Service Employee requesting enrolment Employee Self Service enrolment Employees with access to Self Service can search for training events and request enrolment. ESR will send a request to the employee’s supervisor for them to approve the request. Considerable manual and paper-based effort can be saved and the student enrolment process made more efficient through the request and approve methods employed between Manager and Employee Self Service. 14/23

15. Competencies This form allows Trusts to view any national competencies and also create local ones, as demonstrated here By setting a renewal period of 1 year when this competency is awarded to an employee, an end date will automatically be populated on their record. This enables Trusts to report on employees requiring refresher training and plan for providing the appropriate courses. Competencies ESR stores and defines the national competencies associated with: Knowledge and Skills Framework (KSF), National Occupational Standards (NOS) National Workforce Competencies (NWC). These are set up and controlled centrally and are available to Trusts to be associated with: training classes and courses an individual employee’s competency profile post requirements 15/23

16. Employee Self Service – Change of Address In this example an employee is updating their home address. This information will be amended in ESR straight away. Employees are responsible for their own information and must ensure that any relevant changes are made in a timely fashion. In some cases changes go straight to the HR database (for example change of address). Information is therefore entered at source and only recorded once. 16/23

17. Information Recruitment - Improves ability to monitor costs against budget - Aids identification of most effective Recruitment sources & methods Sickness & Absence - Real-time information - Improves ability to monitor sickness and unplanned absence - Aids identification of sickness patterns – by department, staff group & organisation – utilises the Bradford Score Workforce Planning - Improves monitoring on vacancies, leavers, absence, employee demographic & skill profiles Training & Development - Improves ability to monitor cost & effectiveness of training/staff development - Aids effective training provision Data Warehouse Information 17/23

18. Information Reports Local Reporting Status of processes (e.g. payroll run) Standard forms and letters Report Workbooks covering: – Absence Management – Education & Training – Finance – HR – Payroll – Recruitment – Talent Management Regional Reporting Standard Reporting to support operation of regional organisations RoWIN, Workforce data Subsets of National data National Reporting Medical & Dental Workforce census Non-Medical Workforce census NHS Earnings survey Nursing campaign return Vacancy survey of NHS Trusts HR Performance monitoring Junior Doctor’s Hours Gender & Enthnicity Staff PDPs 18/23

19. "ESR will support the NHS in delivering the Efficiency Agenda...” * Improved productivity –Single Data Entry –ESR automates key activities. For example: Inter-Authority Transfer; Complex pay calculations –ESR supports improved working practices. For example: Absence recording; Self-service; Interfaces with e-Rec & NHSPA Reduced costs –Fewer interfaces will reduce maintenance & management costs –Integrated Data Warehouse will reduce cost of local resource needed to provide information to the centre Efficiency * Efficiency Review (2004) – Releasing Resources to the Frontline – Sir Peter Gershon 19/23

20. ESR / NHS Jobs - Interface Vacancy and Position Information Advertise Position Applicants Apply Shortlist Applicant Information Manage Applicants and Interviews Letter Creation HR Administration

21. Recruitment Activities Identifying Recruitment Media (Activities) The Recruitment Activity identifies where the vacancy (or vacancies) are being advertised – HSJ, BMJ, local paper, etc. The selection of media – in this example, NHS National Jobs website – triggers an outbound interface that populates the e-Recruitment website with details of the vacancy, thereby reducing data entry 21/23

22. Manager Self Service – Change of Hours Information on a change of hours is entered by the manager and submitted. If the manager has permission to make such changes without approvals, this is updated in ESR with immediate effect. The ownership and responsibility for maintaining employee contractual variations is transferred to the line manager and data is input at the source. As ESR is a real time system this data is effective straight away. 22/23

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24. Financial Benefits Total Benefit Potential per year - £119m NCR Cost of Lost Days due to sickness £50m CR Improved management of sickness and absence £42m CR Joining the Organisation £3m NCR Joining the Organisation £1m CR Leaving the Organisation £1m CR Maintaining the Employee Record £9m CR Elimination of Central Reporting Efficiencies £2m CR Facilitation of Improved Working Practice £7m NCR Facilitation of Improved Working Practice £4m 24/23

25. ESR - Integrated Workforce Management System - challenge and opportunity New Structures/models for service delivery New ways of working – new roles HR as a true ‘business partner’ New skills - for the line and HR Planning and Managing the change Delivering the efficiencies Supporting staff through change 25/20