Charles Candy, a consultant at HR software provider Snowdrop, talked to Complinet about the "nuts and bolts" of implementing an HR software system.

Some people use a scoring method to identify their needs then detail the exact requirements and take them to tender, Candy said.

Going to exhibitions is also a good way to find out a lot in a short space of time. Delegates can talk to the suppliers for 15 minutes or half an hour, find out what the systems can actually do and then write a list to take along to future supplier meetings.

"It is important to set objectives quite early on, looking at things you are hoping to improve on - such as saving admin time and monitoring developments more efficiently. Most systems now have a workflow tool, which is an e-mail automated engine. It queries the data in your database and enables users to be more proactive and pick up on trends before they become problems."

Candy said an example would be an absence trend. If there is an employee that takes Mondays and Fridays off sick and this is emerging to be a pattern, the workflow tool will pick up on that trend and e-mail the person’s line manager, rather than relying on HR to sift through calendars and do it manually. The other thing it can do is produce reminders so, for example, if someone’s appraisal is due it is not missed.

Candy said that once a supplier had been identified, it was useful to look at internal processes in HR. "We find it useful if people can provide Visio documents of their processes and then the project manager can look through those and see how they fit with the system they are going to implement and how they can make those more efficient. Process mapping is a resource that many suppliers will offer to clients because it is really useful."

It is then useful to assign a project manager internally - to read training packs, organise meetings and make sure timescales are met.

"Project planning is a key area. The supplier will produce the project plan for you but it is important that you make sure the plan fits in with your expectations and timescales. If you have a project planning meeting it will give you the chance to highlight any peaks and troughs of activity so you can ensure, for example, you are not expected to be managing all your data - putting it into the right format - while you are doing your year-end and resources are needed in other parts of the department."

Data in, data out

One of the biggest processes in installing a new system is putting all the data in. This is a good opportunity to cleanse current data and check whether it fits in with UK legislation and employment law.

"The system can only be as good as the data within it. You need good, clean data so your reporting will not be skewed," Candy said.

He added that it was important to have IT buy-in as much as possible - preferably at an early stage so that the department feels it has had its fair share of input. It is also important to develop a system that fits well with the existing IT infrastructure. "Most suppliers will try to make HR as independent as possible but it is obviously an IT product, so it is important to get buy-in."

It is crucial to identify any areas where the system needs to be customised - an example might be where sick pay or maternity pay policies need to be customised.

"If you can speak with the project coordinator at an early stage, it is a good way of identifying whether it is needed. Sometimes people think they need something and then, when they have it, realise they do not. This means more cost and time."

A good way of deciding if something is necessary is having an evaluation version of the system to give users the chance to see how the data will be held and if they really do need any customisation. Other suppliers will recommend firms start off with a vanilla system, and add functions as needed.

Implementation time will vary depending on package selected and the size of company. For a simple, fast implementation of an off-the-shelf product, the time frame could be four weeks. This could stretch out to 12-months if the system is complex and needs a lot of customisation and multiple modules.

Corporate acceptance

Candy noted that corporate acceptance was an important factor when procuring an HR system. Some employees might think that a self-service HR system is just another thing they are burdened with. Suppliers need to communicate it in a way that excites employees.

"One way is to have a beta system that employees and their line manager can use. It is good if you get people who are really ’anti’ the system so that when you convert them it gives it more meaning. The beta lets people explore the system themselves."

Training is important and it can be a good idea to have a supplier champion, who can be responsible for giving out the training to new starters. If it is made a priority in the induction process when someone else comes into HR there will be less need to change the system because they will be comfortable with what they are doing, Candy noted.

As far as cost is concerned, some suppliers go by the number of records on the system, some do it by concurrent user licences and others do it on company-wide licences.

An average price for a standard HR self-service system would be between £20,000 and £30,000. That is based on an organisation of about 300 employees with four-to-five users and then the web user licence as well - allowing employees to access their records.

For a company of 3,000 to 9,000 the cost could be from £70,000 as a starting point up to £150,000. Systems can be branded to the company buying them.

Candy concluded: "It is very important for the client not to overstretch themselves and be realistic with timescales. If you are looking at having a system that incorporates lots of different HR systems - such as payroll, recruitment, self-service and training administration - then it is important that you set out a realistic timescale of this delivery. Go for a phased approach, getting the central HR system up and running so that employees are happy using it. You can then later roll out the self-service, then potentially the training administration. As suppliers, we need to make sure people do not take on too much and hinder the efficiency of the implementations."