HR Technology: Enable True Innovation

HR Technology: Enable True Innovation

Leading organizations are constantly looking for ways to increase efficiency and quality in the organization. Many are continuing to realize the opportunities within the Human Resource function, which in the end affects the entire population of employees.  For those organizations that have not already done so, many look into three areas:
•    Consider New HR Technology
•    Reexamine HR Structure
•    Analyze and Change the HR Process

Considering New Technologies

Almost one-third of organizations plan to adopt new HRMS technology in the near future.  Of those evaluating a replacement for their HRMS system, 88% of organizations will look at software-as-a-service also known as SaaS.

Why is SaaS growing in popularity?

Organizations that choose SaaS as a platform site breadth of capabilities, lower ongoing costs, and peace of mind from always being on a current version of the software.  Many SaaS providers provide comprehensive solutions that include enhancements and updates with the subscription.  Beware that not all SaaS offerings are created equal. Many offer modules that can be purchased separately, which does nothing to help HR process transformation.  A module here and a module there is a band-aid to a business issue that ultimately creates new issues rather than solving business problems.

What to look for in a SaaS solution?

When evaluating an SaaS offering, be sure it offers a complete Human Capital Management solution, ideally with payroll incorporated in the same system.  While many claim to be a single system of record, it often takes quite a bit of digging to discover that the system is really just a collection of disparate platforms.  Look for a Human Capital Management solution that includes core human resource functionality, recruiting management, onboarding, performance management, benefits administration, self-service functions, time & attendance, and payroll.  Because of the segregation of duties between human resources and payroll, many organizations do not think to look for one system or only start looking for one or the other.  While segregation of duties is good practice, separate systems for human resources and payroll are not good practice. Look for a system that meets both needs, even if you start out looking for just one or the other, consider replacing both at the same time.

Innovation through Redesign and Reskill

There is a lot of talk about HR transformation.  When evaluating HR software, it may also be a good time to reevaluate your HR business processes.  HR needs a system that will move the team from HR Generalists to HR Specialists that focus on talent, both on the recruiting side as well as the development side.  With a solid system in place that provides a foundation that eliminates transactional activities, HR can focus on moving from a business partner to a strategic advisor.  Keep in mind that eliminating manual tasks and non-value added activities that HR historically performed will change the role of existing staff and may also require reskilling and retraining the HR team.  Implementing a new HRMS serves as a great opportunity and catalyst for innovative change for the whole organization, not just within HR, but also other processes that affect every employee, such as manager and employee self-service functions.

In the end, technology is not the solution for organizational challenges, however, it is an enabler and catalyst for process change – use it wisely.

This DATIS Blog was written by Erik Marsh, DATIS, on Jan 8, 2014 and may not be re-posted without permission

Towers Watson. (2013). 2013 HR Service Delivery and Technology Survey Executive Summary. 1-9.

Written by Erik Marsh

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