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Executive Summary |How Does Macy’s Handle Large Turnover?

Macy’s, the 160-year-old iconic retailer, has 690 stores in 44 states. The company has 131,650 paid employees and associates. On average, the retailer hires 2,500 employees but at the peak of their season, that number can exceed 10,000 – in a single day! Not surprisingly, then, Macy’s is the largest payroll customer on Oracle HCM Cloud.

Macy’s benefits from the integration, centralization and streamlining of human resources that are made possible by Oracle HCM Cloud. These qualities facilitate a number of hirings and terminations that are part of every retailer’s world. Still, Macy’s has had challenges along the way, some of which they still hope to address.

Oracle HCM Cloud plays a relatively small, but very significant role in Macy’s human resource information system. Oracle HCM Cloud has been key to facilitating Macy’s “One HR” project that was focused on the complete transformation of Macy’s HR processes, policies, and technology. Macy’s partners with Deloitte Consulting, LLP, for implementation of modules for human resources, benefits, payroll, compensation and talent management.

Macy’s has a mission of being an industry leading team of HR professionals that rapidly adapt to changing the market and workforce conditions. This aligns with their business strategies to win in the marketplace through influence, innovation and enterprise-wide talent development and leadership. Macy’s team leaders believe that Oracle Cloud is essential to achieving this mission. Macy’s has configured a plan with three clusters of resources to contribute to this mission: people and organizations, process and technology. Oracle Cloud contributes to the technology goals for a flexible and efficient technology platform; integration between processes and technology to drive efficiency; seamless, simplified employee experience; rapid implementation of compliance requirements; and automated transactions.

Terminations and final payments are chief concerns for Macy’s and other organizations that have high turnover. With the transformation to the cloud, employees can initiate their own voluntary termination/resignation through employee self-service. Managers can initiate terminations for their direct and indirect reports, instead of handing it over to HR to handle as they had in the past. With Oracle HCM Cloud, processes are improved and the user experience is intuitive. A standard set of termination action reasons is clear. Once an action is entered into the system, all necessary partners are notified. Moreover, during the termination process, individuals in states requiring final pay within seven days or fewer are identified with the payouts automatically processed accordingly.

Johnson and Blair provide a chart of “Final Pay Flow” to describe the roles and responsibilities in their Oracle HCM World presentation “How Does Macy’s Handle Large Turnover?” The process begins and ends in Oracle HCM Cloud but there are many contributors along the way. Custom operational data storage middleware, for example, is used for the case management system and email notification. The process does have limitations. Macy’s has developed solutions for many of these. They hope, though, to work with Oracle to provide a final pay solution which is flexible and scalable to support. Macy’s would also like to be provided payroll reports for balancing.

Similarly, Johnson and Blair provide a chart for the Mass Assignment Termination Upload. Challenges reflected in the chart include the absence of a trigger for downstream events during mass uploads with Oracle. In the absence of this feature in HCM, a custom mass upload for termination has been developed with the custom payroll extension. Johnson and Blair have a “wishlist” for Oracle related to mass terminations.

You can review this list, along with other details about how Macy’s handles large turnover here.