02 Jul Put in Place the Nuts and Bolts
Any HRMS must have a strong foundation, and Core HR, Benefits, Payroll and often time and attendance functionality serve that role. The perfect system will manage your employee from hire to termination or retirement. It will also make onboarding new personnel easier and more efficient. In order to reach the higher level of functionality today’s HR executives are truly seeking, those nuts and bolts of the system must first be put in place.
Back at Fuel Work in Minneapolis in May, these concepts were presented alongside client Winston & Strawn.
Evaluating Core Functions Before Bells & Whistles
To find your perfect system, start by determining the answer to one thing. Does the software vendor really understand human resources? Or was that an afterthought to some other functionality such as talent acquisition or talent management. Similarly, payroll vendors that branched into HR could face challenges, if their path to a full suite of systems wasn’t strategically followed. Also, throughout the selection process, try to feel out whether the vendor is simply selling a system as a path to a bonus.
Evaluate the core HR functions. Figure out how the systems differentiate in the areas of Core, Payroll, Benefits and Time. What other components and aggregators might be required in order to make them fully functional, such as a global payroll aggregator or a workforce management add-on.
During the sale, if your vendor focuses only on bells and whistles and using the latest buzz words, you’ll need to combat this distraction. Don’t rely on canned data they’ve entered into their systems to make your decision. By requiring live demos, and perhaps making them scripted, you’ll be able to watch the vendor add records or create a report, thereby showing how easy and functional the system is. Be sure your bells and whistles are layered over a strong foundation.
What Else Is There?
It’s important to consider other department members’ needs and wants when choosing the right system. Does it include coaching and development? Does it provide the interactive communication with employees you need? Are there reporting tools for non-HR tasks?
When thinking beyond core, the most common areas to consider when looking at a full suite are whether you’ll require a talent acquisition point system, and whether the system facilitates performance management ongoing feedback and talent management that develops skills and competencies of employees.
When Does It All Go Wrong?
When your system fails because of poor functionality, it’s often the lack of a strong foundation that either caused the issue. If you have low impact errors, it may blow over, but if you experience high-impact errors, you will lose employees as the system loses credibility. Suddenly, you see inaccurate core data. Problems in payroll and benefits start popping up. People begin to doubt the system and your entire HR department suffers. The ability at that point to add new modules and achieve system adoption will be compromised.
It’s important to remember this: You and your vendor have different timelines and different goals! Stick to your goal of finding a strong core system that will meet your needs.
If You Already Have a System That Has Failed?
The solution is a 2-step process.
Step 1: Assess the system by evaluating what’s working and what isn’t, effectively auditing how the system works. Assign priorities and levels of effort needed to correct the issues
Step 2: Correct the problem through an Agile or Waterfall project methodology.
The corrected baseline provides you with the most current and accurate data in your HRMS.
The bottom line is that, as the title of the Fuel Work session indicated, you must put in place the nuts and bolts so your people don’t go nuts and bolt! Having a properly functioning HR system can actually lower turnover, not just with the metrics you’ll have for managing the organization, but also with the team of people using the system. Ready to discuss a plan of action? Contact the team at https://hivetechhr.com/