HUMAN RESOURCES SOFTWARE STRATEGY
HRIS Strategy
The persistent pressure to reduce Human Resource costs has resulted in reduced HR staffing, benefits slashing, and decreased HR services. Human Capital Management (HCM) is now a story about how to reduce the ratio of HR staff to employees. One company boasts that they have one HR staff to 10,000 employees and they plan to improve those numbers. This trend poses a difficult challenge for HR managers and executives. In addition to retention, recruitment and benefits management, HR managers have to do more with less people.
Fortunately, technology has been able to close this gap by enabling automation, reducing errors, and providing more services. Companies and public sector entities are realizing the advantages of Human Resource Information Systems (HRIS) and have included these systems into their HCM strategies. The software technology sector has responded with a multitude of solutions, addressing different HR issues, different industries, and different delivery models. The field now includes a plethora of different flavors of HRIS solutions, some much more complex than others.
Understanding The Current Environment
So how does a company go about selecting the right human resource software system? The answer is all about best-fit and to understand best-fit, companies must first identify and prioritize their needs and goals. Self-evaluation does not have to be a painful process. A simple exercise in documenting current culture and recognizing top critical issues can lead to targeted and measurable objectives as well as specific and weighted requirements. Growth strategies should also be considered as the targeted solution needs to meet not just the immediate goals but also future needs resulting from growth or business changes.
Must Haves for an HRIS Solution
With these requirements in hand, companies can now start to look at the HR packaged software field and identify a list of vendors that meet the businesses requirements. The list should include solutions that meet both your specific business requirements and at least some basic best practices that may benefit your enterprise.
The HRIS solution should be easy to use. You can build it, but if they cannot use it, they are not going to come. Easy to use should also translate to easy to access to key information. If users cannot get the information they need quickly, in the format and manner that is useful, the system ceases to be helpful.
Shared data is another must. Data that is entered into the system should be easily integrated with other systems. Better yet, if HRIS is integrated to the ERP and CRM solutions, companies can enjoy the ultimate benefit of an all-in-one system that can decrease errors, lower cycle times, reduces turnaround time, and support management decisions. The ability to generate daily, monthly, yearly and comparative reports are critical to any HRIS.
Lastly, system administration and sustainability must be understood, budgeted and scheduled. The technology behind the HRIS must be easily supported and maintained. This often means newer technology that is popular, current, and versatile. Using an HRIS technology that only a handful of people know or understand could limit the benefits. In addition, the vendor must also be viable, stable and committed to their product. This might mean looking into the vendor’s financials, setting up mitigation tools such as escrows and bonds, and inquiring about the vendor’s R&D budget and product road map. The HRIS vendor should also be able to provide support, not just on how to use the system but on how to perform job tasks related to HR functions, such as boarding or terminating an employee.
Nice to Have to Consider
Integration to third party administrators and business applications is a high priority “Nice to Have” as it could increase ROI and reduce errors and costs. Look for solutions that can integrate to benefits providers, state and local agencies, background checking services and payroll services. Paper work and its pitfalls can be greatly decreased while providing quicker turnaround time and using fewer resources. This leaves more time for your staff for more value added and strategic responsibilities.
Self-service can be available for limited functionality and is not meant to take the place of HR staff. Employees can enter their personal information directly into the system, which can be verified by HR staff, thereby reducing misspelling and handwriting mistakes. Self-service can also greatly reduce errors and processing time during the Open Enrollment process which is often tedious and time consuming.
Web delivery can be the main delivery or part of the delivery of the HRIS, which could include the traditional client-server architecture where your users must have the application loaded in their computers. Many systems offer both means of access. Browser based, online web applications give you the convenience of portability (users can access the system from home or on the road) and enables companies with multiple locations better accessibility.
Skills tracking and learning management functionality are also a plus in some companies that have a large skilled or professional labor force, especially those that involve accreditations, licensing and compliance. Being able to report to professional or government agencies could save time, money and risk of non-compliance.
The Importance of Change Management
Implementing a new HRIS is usually a little less painful than other business software systems. This is in large part because the change is mostly confined to HR staff and employees are do not often interact directly with the HRIS unless they are new or participating in open enrollment. However, change no matter how little or big, is stressful and prone to resistance. Employees should be made aware of the benefits of a new HRIS, how it affects them personally as well as how the company can benefit. Management should not downplay the importance of training and possibly process and procedure changes.
Conclusion
These strategies can help companies select the best fit solution to meet their needs and ensure a successful HRIS implementation. Finding a good HRIS is as critical as selecting any other business software system that supports and enables the company’s business goals and strategy.
HR Software Strategy
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