HR Systems 3: Key Points
It is essential to keep focused on the organisational requirements when specifying HR software. There can be no other consideration
The acquiring organisation must always be sure beforehand of what they require. This requires objectivity; in many cases this process can benefit from an independent and informed view, on the premise that the client may not be aware of all the benefits (or disbenefits) that can accrue.
There are any number of checklists out there to “assist” the identification of the perfect system, but they take no account of actual business processes, which vary from organisation to organisation.
Once the benefits have been determined, a Return on Investment calculation and a Capital Budget can be set. Traditionally, this has been a minefield, as many HR and Payroll departments have not always been able to clearly quantify what the financial implications are and justify them to the Board.
Bear in mind the effective life of an application such as this will be around 4-5 years.
Always remember to include the costs of Migration of Data and any possible Server and in-house software upgrades that may be necessary.
Some applications do not run at optimum on certain platforms.If you are having Automation or Triggered Actions (or its advanced form, Workflow), make sure your email client is compliant with that of your proposed system.
Do not burden yourself with software that requires an army to keep it running at full capacity. You are paying for all these lovely features from which you may derive very little benefit or have no place in the business objectives of the organisation.
Remember who has to use this on a day-to-day basis. Of course, senior HR professionals view Reporting as the strategic output, and they are right to think so. Ensure that the Report writer can be understood and used by others who will be producing those reports.
When selecting, do not be overly swayed by the fact that the favoured provider has a well-advertised profile, has supplied to competitors or sector peers and is deemed to be a substantial player, and therefore risk-free (and by implication, blame-free if the selection doesn’t work out!)
Perfectly adequate systems, costing less from smaller and less well-known suppliers can be overlooked or discarded.
Look for a provider who is constantly evolving and improving their product offering. An active User Group is usually a good indicator of this.
Be very clear about Self-Service and the benefits. They may not be so great as can appear at first sight, will only work well in certain organisational environment, and involves considerable culture shift. Do the sums; I have only ever seen a few very good business cases for it.
The biggest gains from a well-selected HR system?
1. Automation (or Triggered Actions / Workflow):
Quite simply put, Automation will take care of the routine tasks without anything falling down the cracks of manual diaries and peoples’ memories; you can programme a whole series of date / action driven events to occur and know that they will be executed. When you come to weigh the benefits, one of the biggest “earners” on your investment will prove to be the reduction of administration.
2. Reporting:
A good Report Writing utility enables detailed and timely data for any purpose. It will be intuitive for all users to set up and use, and turn the production of management information into a pleasure rather than a chore.
3. Confidence:
An appropriate system encourages use; one that is not well-chosen withers on the vine. There are thousands of businesses in the UK with HR software that has all but been mothballed, or being used for a fraction of its capability because it was not chosen correctly.
In summary:
Big is not always Beautiful..all that matters is that the offering meets all your immediate and medium-term business needs.
Use the power of metrics to refine your decisions. Once you start to use ROI benchmarks, your decision path will be that much easier to navigate.
© Denis W Barnard September 2009
