ESS may be linked with total outsourcing of an administrative function, such as employee benefits administration or employment and salary verification, or it may be part of an internal system using a company's intranet and employee Web portal. Employers typically use Internet application if security is adequate, but place the employee portal on an intranet if security is a concern. In some cases, what draws workers to ESS is just a prelude to other possibilities. In the system standardized by TALX, when an employee applies for a loan and the lender needs employment and salary information, the employee gives the lender access information to the TALX system, and data previously routed through the employer is provided automatically. The latter application is especially valuable to companies with high turnover, vendors observe.
Managers enter ratings and proposed salary adjustments for each employee.
As each salary change is entered, a sum for the department is calculated and compared to a budget total. The system informs the manager if the planning process is complete and within corporate guidelines. The module supports merit, equity adjustments, promotion, bonus and variable pay options. The base product includes numerous pre-built, configurable components that can be readily interchanged or combined to create a customized version of the module. In the mid 1990s, the concept of centers of excellence and centralized service centers took hold.