Top performing organizations embrace superior human capital management as fundamental to building all aspects of organizational performance. The selection, configuration and implementation of a core HRIS solution provides the foundation necessary to realize long-term human capital strategies.
In a recent article, Bersin by Deloitte research confirms that more than twice the number of global companies are planning to replace their HRIS system than were a year ago. (http://www.bersin.com/News/Content.aspx?id=17376). For global organizations, HR leaders should build the capacity to manage a global workforce with a single, consolidated HR platform. Achieving this goal has the potential to build standard business processes, increase efficiency in HR administration, and yield cost savings in IT maintenance and support.
Here are six leading considerations for organizations planning to implement a core HRIS solution.
Will the proposed HRIS application have the capability of coping with the country specific requirements of each region that your organization operates within? The most effective applications will have this functionality inherent in configuration architecture. Localization capabilities must be a key consideration for HR and IT leaders in countries where local applications have been optimized to meet local requirements.
- Reporting & Analytics
Organizations need to be clear about their reporting and analytics requirements with both HRIS system vendors and implementation partners. Does the solution provide concise, standard reports that conform to regulatory requirements in each location? Does the implementation partner build these reports or are they “out of the box?” How user friendly are analytics and reporting functions for HR professionals and end-users?? Are there additional costs involved?
Integration with external business technologies (for example payroll, benefits and time systems) is another key consideration in choosing a core HRIS solution. Organizations would be well advised to integrate applications to minimize the number of platforms required. With Core HRIS, potential customers should determine how the core HRIS solution will integrate with seamlessly with third party vendors. Potential buyers should always demand customer references – ideally from customers in similar business sector. The leading cloud HRIS providers have built successful relationships with external vendors in order to streamline common integration points.
Global organizations tend to be involved in mergers and acquisitions on a regular basis. The proposed solution should have full capabilities to handle these occurrences and provide flexibility from an organizational structure, permissioning, workflow, and reporting standpoint. Customers should consider a core HR solution that enables an internal system administrator to perform such actions as opposed to ongoing reliance on external vendors. Customers should request a thorough demonstration of the proposed functionality and a detailed description of the applicable technology.
- Central Data Management
A core HRIS solution should provide the system of record for all employee data. Other HR modules should sit on the same platform and share common data. The employee experience should be seamless and provide key integration among human capital management modules (e.g., recruiting, performance management, compensation, etc.). This will reduce administration inefficiencies associated with overlapping systems. Potential customers should see evidence of these capabilities in the sales demonstrations.
- Business Rules
The most effective core HRIS applications will accommodate an appropriate level of flexibility in establishing custom business rules to administer efficient data management. The risk of data errors can be minimized by assigning data rules for specific occurrences. For example, a data rule may be as simple as assigning all employees in a particular location to have a common job level and pay grade. Another examples of a common HRIS rule that should be achievable is the setting of alerts to trigger when employees reach a probationary timeline or have been at a certain supervisor level for a fixed period of time. These rules should effortlessly feed into the talent management functionality if the customer is on one merged HR platform. If business rules are well defined in the implementation phase, organizations will the opportunity to minimize data errors. Customers should be assured that the proposed core HR application can manage these complexities.
Company leaders demand that employee data is timely, accurate and relevant. When disparate and incompatible systems in play, data may become inconsistent leading to flawed employee and organizational data analysis. The ongoing development of exceptional HRIS applications offer organizations the opportunity to consolidate HR functionality. This level of efficiency will enable HR professionals to focus on strategic HR activities.
Written by: Paul Rose, Knowledge Manager, Employee Central
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