Employees' Paychecks and Benefits May Be Delayedgreenspun.com : LUSENET : TimeBomb 2000 (Y2000) : One Thread
From Infoseek Y2K news dated April 27 1999 <:)=
Many leading companies in the United States are grappling with Y2K compliance and one area of critical importance is human resource systems, including payroll and Human Resource Information Systems benefits administration. According to a Towers Perrin survey of companies, which collectively employ more than two million wage earners, nearly 70% have not completed Y2K testing and readiness of their human resource systems.
According to Tom Keebler, a principal with Towers Perrin who conducted the survey, 27% of the companies surveyed are already Y2K compliant; the bad news is that 25% of those surveyed are not even halfway there yet.
Based upon the expected completion dates for Y2K compliance, 55% of the companies expect to be compliant by July 1, 1999. The remaining 45% expect to be ready after July 1, with some going as late as December.
"These figures confirm what many human resources practitioners have suspected anecdotally -- that human resources and perhaps other internal systems are a bit behind frontline systems that directly affect the business and its customers in achieving Y2K readiness," Keebler states.
"We believe the lack of preparedness is cause for concern, not just for HR systems themselves, but also because human resources interacts with so many other downstream systems. Internal to human resources are payroll and perhaps benefits administration. Beyond that, however, there may be a plethora of internal and external systems with which HR interacts -- for example, insurance companies, funds managers and HMOs," said Keebler, who has more than 12 years experience providing HR consulting to some of the nation's largest employers. "The concern is not just whether HR will be ready when the time comes, but whether their downstream systems -- and the interfaces between them -- will be sufficiently prepared as well."
The HR Service Center survey also found that the majority of respondents have a dedicated Y2K project team that goes beyond the human resources organization. "Having a dedicated Y2K project team indicates that these companies are taking this issue seriously and are most likely including finance and information technology in the process," added Keebler.
Towers Perrin is one of the world's largest management and human resources consulting firms. It helps organizations improve performance and manage their investment in people, advising them on human resource strategy and management, organizational effectiveness, compensation, benefits and communication. The firm has more than 8,300 employees and 78 offices in 71 cities worldwide.
-- Sysman (email@example.com), April 28, 1999
...pointing once again to the potential of business creating the bank run by stockpiling cash to meet payroll next January...
-- Brooks (firstname.lastname@example.org), April 28, 1999.
What are we talking about here? Let me see. Paychecks incorrect or not electronically deposited. Deductions incorrect(taxes,life ins., health ins., dental ins., long and short term disability,etc.). 401K. Many others. It is not just a matter of no checks, but incorrect amounts could take forever to fix. I would not like to lose medical or others for lack of payment by the corporation. HRIS is also used for numerous reports that the business uses to budget and plan. I am sure I have missed much. Anyone like to pick up on this?
-- Mike Lang (email@example.com), April 28, 1999.