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decisionwise
HowtoChoosetheBestHRSoftwareTools
?DecisionWise?801-515-6500?
Introduction
HRtechnologyisexplodingexponentially.TherearemorechoicesthanevertohelptheHRprofessionalmanagewhatisbecominganincreasinglyimportantbusinessfunction.WhetheryouarebuyingacomplexHRinformationsystemorlookingtoimplementatimeandattendancesolution,makingtherighttechnologychoiceis
critical.WehavepreparedthisguidetoassisttheHRprofessionalinmakingtherightHRtechnologydecision.
Beforewediveintothedetails,however,weneedtoshareafewkeyinsightsabouttechnologythatwehavelearnedfromourownexperienceandfromourclients’
successesandmissteps.
?Technologycannotsolveabusinessprocessyoudonotunderstand.
?Technologycannotcompensateforlackofexperience.
?Technologycannotdothethinkingandanalysisforyou(eveninthiseraof“bigdata”).
?Themoredatayoucollect,themoredatayoumustprotect(fromunauthorizeddisclosures–i.e.,databreaches).
?DecisionWise?801-515-6500?
CASESTUDY:
HowtoWaste$20,000aYear
Ananecdotefromseveralyearsagosomewhatillustratestheselessons.Wewere
advisingastart-upthatwasfoundedbyagroupofmarketingprofessionals.Admittedly,theydidn’tunderstandmuchaboutfinanceoraccounting,buttheybelievedtheycould“fill”thisholeintheirexecutiveteambybuyingacomplexenterpriseresourceplanning(ERP)softwaresystem.TheERPtheypurchasedwasasystemthatwasmostoftenused
byorganizationsthatemploytensofthousandsofworkers,havemultiplelocations,hundredsofsuppliers,intricateoperatingprocesses,andcomplicatedinventory
systems.
Ourbrilliant,yetmisguided,foundersmistakenlybelievedthatthemorefeaturestheirsoftwarehad,the“smarter”itwas.And,“Ifthebigcompaniesuseit,thentheyshouldbeusingittoo.”Distilledtoitsessence,theybelievedtherewasnoneedtohiresomeonewithafinancialbackgroundbecausethesoftwarecoulddoeverythingforthem,plus
more.TheyputtheirtotalfaithinthisERP.
Intheend,theyspentnearly$20,000ayearonasolutionforacompanyoflessthan15people.And,overthenextfewyears,theircompanywascontinuallyhamperedbyan
accountingsystemthatwastoocomplicated,tooexpensive,toohardtounderstand,toohardtouse,anditdidn’tintegratewithanyothertechnologytheyusedintheirbusiness.Insteadof$20,000peryear,theycouldhaveboughtQuickBooksforafewhundred
dollarsandbeenmuchbetterserved.
Ifyoueverhearasalesrepresentativetellyouthattheirtechnologywillsolveallyourproblems,ouradviceistorun;don’tevenwalk!Technologyismerelyatool,andit
isonlyasgoodastheuserwhounderstandstheunderlyingbusinesstheoriesandprocessesthatwillbemanagedbythetool.
GETTINGSTARTED
Thisguide’spurposeistohelpyounotonlyfindandselecttherighttechnologybasedonfeaturesandprice,butalsotohelpyouidentifyandconsidertheserelateddeploymentissues:
1.Keepingtheprocessunderbudget
2.Managingtheimplementationandtimeframe
3.Minimizingyouruser’slearningcurve
4.Addressingscalability–willthetechnologygrowasyourorganizationsgrows?
5.Ensuringintegration–willthetechnology“talk”toyourotherlegacysystems?
6.Canthesystembecustomized?
7.Doesthesystemcomewithqualitysupportandtimelyservice?
8.Willtheimplementationrequiredramaticchangestoyourbusinessprocesses?
Tip:Beforeyoubuyexpensivesoftware,makesureyouhavelookedatyourchallengesandconsideriftheymightbesolvedusing
simplersolutionsorbyoptimizingyourcurrentbusinessprocesses.
?DecisionWise?801-515-6500?
HowtoSelecttheRightHRTechnologySolution
SAASVS.ON-PREMISE:IT’SASECURITYDECISION
SaaS(softwareasaservice)iscommonlyreferredtoascloudcomputingor
cloudservices.WithaSaaSsolution,thesoftwareproductisaccessedthrougha
website,whichmeansthesoftwareisnotinstalledorhostedonyourorganization’scomputersbutismanagedentirelybythesoftwarevendor.Thevendordoesall
thework.Theymanagetheupdates.Theymanagethestorageandtechnicalrequirements.
Anon-premisesolutioniswhereyoubuyandinstallaversionofthesoftwareon
yourorganization’scomputersystemsoryouhireadatacentertohostthesoftwareapplicationforyou.Withanon-premisesystem,youareresponsibletoeitherbuyamaintenanceprogramortakecareofthemaintenanceyourself.
Unlikeanon-premisesolution,aSaaSofferingmeansyoudonothavetobuyspecialhardware,maintainanyhardware,deploysoftwareupdatesorpatches,orotherwisehireexpensiveITprofessionals.AndwhileSaaSsystemsaremucheasiertouse,
therecanbeadownside–youlosecontrolofhowyourdataissecured.Whileyourdataitistypicallytransmittedtothevendor’sserversovertheinternetthroughanencryptedchannel,youlosecompletecontrolofthedataonceithitsyourvendor’sservers.So,buyerbeware.Itisimperativethatyoudoyourduediligence.
Vs.
?DecisionWise?801-515-6500?
Ifavendoriscompetentatadatasecurity,thenyoumightrealizebettersecuritybyusingaSaaSmodel.However,ifyourITsystemisuniquetoanindustry,suchashealthcare,
thenyourproprietaryITsystemmightbebetteratprotectingyourconfidentialdata.
InformationsecurityisacriticaltotheHRprofessional,sinceHRprofessionalsare
constantlyhandlinghighly-sensitive,personalinformation.HRdepartmentsstore
everythingfromanemployee’sannualsalarytoanindividual’sperformanceratings.Hence,dataprotectionandsecuritymaybethemostimportantfeaturetoconsiderasyouexploretechnologysolutions.
Tip:IfyouselectaSaaSmodel,pleaseaskfordocumentation
showinghowtheysecureandprotectyourconfidentialdata.
Youmightneedthisinformationtoprovetoothersthatyou
areexercisingreasonablecareinsecuringyourorganization’s
confidentialdata.Youmightalsoconsideraskingwhetherthe
SaaSproviderhasacyberinsurancepolicythatwouldcoveryourorganizationintheeventofadatabreach.
ADDITIONALRESOURCES
ThefollowingarticledoesanexcellentjobatconsideringtheprosandconsofSaaSvs.On-Premisesdeployment:
/pros-cons-saas-vs-premises-deployment
ThislinkdirectsyoutoacybersecurityquestionnairethatcomeswithaCreativeCommonscopyright:
https://digitalimpact.io/document/vendor-cyber-security-questionnaire
ThistypeofsecurityquestionnairewillhelpyounavigatethemyriadofissuesthatcomewithprotectingandsecuringconfidentialHRinformation.
?DecisionWise?801-515-6500?
WhatTypeofTechnologyDoYouNeed?
Inmostcases,HRtechnologyisdesignedtotakeanexistingprocessandeither
automatetheworkfloworimprovethewaythebusinessprocessfunctions.For
example,priortoemployeeHRself-serviceportals,theexistingprocesswasto
provideemployeeswithinformationthroughphysicaldocuments(printednoticesandletters),posters,PDFs,andotherelectronicfiles.Now,anemployeecan
logontoawebsitewheretheywillfindallsortsofrelevantinformationabouttheiremploymentrelationship.Wecallthistypeofsoftware–ProcessImprovement
Technology.
PROCESSIMPROVEMENTTECHNOLOGY
Thiscanbecategorizedintothefollowingthreesubcategories:
1.SoftwareforcomplianceandHRdepartmentefficiency
2.EmployeeapplicationsthatprovideemployeeswithHRinformation
COMPLIANCE&HRDEPARTMENT
?Payroll
?HRIS
?BenefitsAdmin
?TimeandAttendance
?Compensation
?Analysis
TALENT
ACQUISITION
?ApplicantTracking
?Web-basedInterviews
?JobBoards
?BackgroundScreening
3.Talentacquisitionsoftwarethathelpscompaniesfindapplicantsandmovethemthroughthehiringprocess.
EMPLOYEEAPPS
?HealthcarePortals
?EmployeeRecognition
?FinancialPlanning
?LMS-Training
?DecisionWise?801-515-6500?
STRATEGICTECHNOLOGY
STRATEGIC
BUSINESSNEEDS
?DataAnalysis
?Engagement
?WorkforceImplementation
?TalentManagement
?CertainAssessments
TheotherprimarycategoryofHRtechnology
involvesbreakingnewgroundbyaccomplishingnewthingsorcompletelyreinventinghowwehandlehistoricHRtasks.Forexample,data
analysisthathelpscompaniespredictfutureworkforceshortagesishelpingtheHRfunctioninwaysthatarenewandinnovative.ThistypeoftechnologyisbestdescribedasStrategic
Technology.
WhilebothProcessImprovementandStrategicTechnologiesareexcitingandoffersignificantbenefits,StrategicTechnologyisgame-changingbecauseitdoesn’tjustmaketheHRfunction
better,itcontributestotheorganization’soverallsuccess.StrategicTechnologyprovidesa
returnoninvestment(ROI)thatisrealandsignificant.StrategicTechnologymovesacompanyforwardbysolvingfundamentalbusinessneeds,notjusthandlingpersonnelissues.
Tip:Startwithaclearunderstandingofwhatyouaretryingto
accomplishandwhichtypeoftechnologywillbestserveyourpurpose:ProcessImprovementvs.Strategic.
?DecisionWise?801-515-6500?
CONSIDERYOURRETURNONINVESTMENT
AnewpieceofHRtechnologyshouldprovideyourorganizationwithanROI.InthecaseofProcessTechnology,theROIcomesbywayofefficiencyandcost-savings
(suchasreducedlaborcoststofulfillthesameresponsibilities).Incontrast,StrategicTechnology’sROImaybemoredifficulttolabelandquantify,butinmostinstances
theStrategicTechnology’s’ROIwillbemuchmoresignificant,asnotedabove.
Tip:MakesureyouunderstandtheexpectedROIand,inaworldoflimitedbudgets,youshouldconsidertheincreasedROIofferedbyStrategicTechnologyofferings.
?DecisionWise?801-515-6500?
5StepstoEvaluateProcessImprovementTechnology
WhenevaluatingProcessImprovementTechnology,theanalysisislinearandstraightforward.
1.IDENTIFYTHEPROCESSORWORKFLOWYOUNEEDTOIMPROVE
Forexample,youremployeeswouldlikeabetterwaytomanagetheirinsurance
benefits.Thebestpracticeistowriteyourgoalsdownandrevisethemuntilyouaresureyouknowexactlywhatchallengesyouwanttosolve.
2.LISTYOURSPECIFICREQUIREMENTS
Thisiswhereyoualsoaddressyourdeploymentissuessuchascustomizationneeds,implementationtimetables,etc.Youmightbetemptedtoskipstepsoneandtwo,butweencourageyoutakethetimetoclarifyyourthinkingbypreparingawell-
craftedrequirementsdocument.Notonlywillarequirementsdocumenthoneyouranalysis,itwillhelpdrivetheprocessbyprovidingstructure.Itwillalsocomein
handyasyoucangivethisdocumenttopotentialvendorstohelpexplainwhatyoureallyneed.
3.BUILDALISTOFVENDORSTHATADDRESSYOURREQUIREMENTS
OrganizationslikesSHRMpublisharticlesandguidesthathelpHRprofessionalsfindandratesoftwarevendors.WehavealsofoundCtobeanexcellent
wayoffindingandrankingsoftwarevendorsintheHRspace.Arecentsearchfor
“benefitsadministration”onCapterrareturnedover100potentialsoftwareproducts.
4.NARROWYOURLISTDOWNTOTWOORTHREEFINALISTS
Thisiswhereyoumustdosomegumshoeworkbyschedulingsoftwaredemos,readingreviews,reachingouttocolleaguesforadvice,andotherwiseconductingresearchonwhat’savailable.Mosttechnologyprovidersprovidecomparison
matricesthatshowhowtheirfeaturescompareacrossthecompetition.
?DecisionWise?801-515-6500?
Tip:Priceshouldn’tbetheultimatedecidingfactor.Inmany
respects,it’sthevendorthathelpsyouunderstandwhatyou
reallyneedthatmightbethebestoptionforyourorganization.
Thisalsothetmewhereyouconsiderotherfactorssuchasprice,responsiveness,supportavailability,timeliness,quality,reputation,andthelong-termviabilityof
thevendor.Finaldecisionsatthisstagearealsobasedonrapportwiththevendor,consensusamongyourteam,andalignmentwithyourorganizations’cultureandneeds.
Atthisfourthstage,youwilllikewisewanttoaddresstheseadditionalkeyquestions:
?Howmanysuccessfulimplementationshasthevendorhandledbefore?
?Whatdoestheend-usertraininganddocumentationlooklike?
?Whowilldothetraining–internallyorbythevendor?
?DoyouneedITexpertstohelpwiththeinstallationand/ormaintenanceoftheproduct?
?Whatbusinessprocesseswillyouhavetochange,ifany?
?Howmanycustomersdoesthevendorhavethatarelikeyourorganization?
?Doesthesolutionhitthebasicrequirementsandwhatadditionalfeaturesdoesitprovidethatareaddedbenefits?
?Howlongwillittakeforyoutobefullyupandrunningwiththissolution?
?Howcustomizableisthesolution?
?Istheproducteasytouseandnavigate?
5.DOYOURDUEDILIGENCE
Askforandtalktoreferences.Makesureyouunderstandhowmuchthereferencespent,intotal,toimplementthesolution.Howlongdidtheprocesstake?How
distractingwastheprocessanddiditrequirealotofinternaltimeandeffort?Didtheyexperienceanybugs?Weretheirconcernsresolvedthroughthevendor’s
supportfunctionandhowlongdidthattake?Wouldtheydoanythingdifferently?Finally,hasthesolutionsolvedtheproblemitwassupposedtoaddress?
?DecisionWise?801-515-6500?
EvaluatingStrategicTechnology
WhiletheevaluationprocessforProcessImprovementTechnologyisstraightforward,understandinghowtoselecttherightvendorwithStrategicTechnologycanbequitechallenging.
ThemostdifficultpartaboutStrategicTechnologyisthatitoftenrepresentsa
discretionaryspendofresources,whichmeansyoumustthinkabouthowyouspend
yourresourcestogetthebestresultsforyourorganization.Youcan’ttackleeveryneed,sowhicharethemostimportant.
Wesuggeststartingwithanimplementationmatrixtoinformyouranalysis.
Onceyouhavetakenthetimeallocateyourchallengeswithinanimplementationmatrix,thenwesuggestyouprioritizeyourefforts.Onceyouarereadytomoveforwardwithastrategicsolution,thedecision-makingprocessshouldfollowthesamemethodologywedescribedforProcessImprovementTechnologyintheprecedingpages.
HIGH
IMPACT
LOW
VALUEANDQUICKWINS
DEDICATEDTOSUCCESS
ASPOSSIBLE
LOWEFFORTHIGH
?DecisionWise?801-515-6500?
Conclusion
AsanHRprofessionalinthe21stcentury,yourjobistohelpyourorganizationwin.Whetherthatiswiningbyincreasingsalesorwinningbecauseyournonprofitis
betteratmeetingitsmissionandobjectives.Nonetheless,thegoalistowin.
OnewayyoucontributetothiseffortisbyimprovingtheHRfunctionandbymakingstrategicHRdecisionsthathelptheorganizationfi
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