Extract from complinet.com, September 2005
Human resource management systems are becoming increasingly sophisticated, promising everything from basic employee record keeping to self-service options that allow staff to update personal information. Whether you are upgrading or installing a completely new system, how do you select the right one?
What's on offer?
HRMS are typically a series of modules that cover different aspects of the HR function which operate either on their own or together to form a seamless system. HR software can be an off-the-shelf product, customised to fit the buyer's requirements or written specifically for an organisation. It can be either licensed or purchased.
A core product will store personal data, such as absence and holiday records, career and salary history, disciplinary records, qualifications, training needs and performance reviews. The data can also be analysed to provide information on a range of issues, including compliance with legislation, absence and turnover rates, and career progression.
All of the market-leading HR software companies have a core personnel management product. 'People' lies at the heart of the Ciphr series from Computers in Personnel and combines employee record keeping with the ability to quickly assess both individual and departmental training needs and match existing skills sets to projects and new or vacant roles. Similarly, 'Evergreen', from Snowdrop Systems, is a personal records solution that also allows HR to generate strategic information, including salary modelling, retention levels and working time data.
..“HR and IT need to develop a close working relationship throughout the procurement process and the implementation stage.” — Jen Paice, Snowdrop Systems
..Knowing what you want
According to the Chartered Institute of Personnel and Development's latest survey of HRMS, more than a quarter (28 per cent) of those polled said that their systems were difficult for the HR department to use. This suggests that a relatively large proportion of organisations are getting their software selection wrong. "Many of our customers are disgruntled with their existing system and are looking for an alternative", said Jen Paice, business development manager at Snowdrop Systems.
. .Although HR should lead the project to ensure the new system meets its needs, IT involvement will be necessary to make certain that the proposed HRMS is compatible with the organisation's existing IT infrastructure, as well as to offer technical advice. "HR and IT need to develop a close working relationship throughout the procurement process and the implementation stage," said Paice. With more and more aspects of HR being devolved to line managers, they should also be involved in developing the system's requirements.
...Reviewing the existing HR procedures will determine the level of functionality required and identify how HR processes information. These can be built into the system specification so that system meets the needs of the people who will be using it on a day-to-day basis.
This information will feed into the system specification, which details the required functionality — ranging from the basic, such as the number of users and employee records, to the more sophisticated, such as training needs analysis and competency monitoring — together with payroll requirements and technical information, including compatibility with existing business and financial systems. "Connectivity throughout the business is crucial", warned Paice.
The specification will form part of the tender document that is sent to shortlisted suppliers. Invitations to tender should ask for a full breakdown of costs, including installation, training, maintenance charges, timescale and post-implementation support, and give details of how suppliers will be assessed and instructions on completing the tender.
Comparing software
Completed tenders are normally scored against the specification, rating each requirement on a scale of say, one to five, with the higher rating given to systems that exactly match the purchaser's needs. System requirements will normally be a mix of mandatory elements that suppliers' products must provide and things that are either highly desirable or just desirable. Mandatory requirements tend to be 'ease-of-use' needs, such as integration with Microsoft Office or Lotus Notes and single point of input for all data.
.. According to Paice, potential customers should also investigate the implementation process before making their decision. Does the supplier just supply a disk or does it help manage the implementation? Is the implementation training tailored to the customer and does it occur in-house, or does it take place externally and with other clients? Asking such questions will give an indication of the level of support the supplier is likely to provide now and in the future..