SaaS vendor Plateau Systems and advisory firm Saugatuck Technology released the results of an interesting survey earlier this year. The 200+ HR executives who participated in the study made it clear that they have compelling reasons to choose SaaS. Plus, they know what they want in an SaaS vendor. Online software access has become common enough that the novelty of the delivery system is no longer a prime selling point. Businesses can source core HR software from among a broad field of competitors. So, executives can afford to make comparisons.
Up front implementation is one area where businesses are looking to save money. By now, human resource execs know that it’s easy for an SaaS product to look great in the slick sales brochure - but that everything will fall apart without appropriate interfaces. HR is are catching on to the fact that they can’t just contract with an SaaS vendor and expect IT to do the heavy lifting in making the application work. Employers expect vendors to provide implementation assistance and troubleshooting. Ongoing support is also a negotiating point at the HR table. In other words, they want the service part of the Software as a Service package to mean something.
Effectiveness Draws HR to SaaS
As the focus in HR turns more and more toward strategic planning, executives are realizing that their business performance is lagging compared to other departments. They have the right priorities but simply don’t have the right tools to improve operations. While core HRIS is a central feature of SaaS for HR, niche products are also being sought to address strategic needs quickly and efficiently. Talent acquisition, management, and retention are all key areas where HR is trying to close the gap.
Onboarding is an obvious area of potential improvement for the mid to large size businesses involved in the Saugatuck survey. From the perspective of service, Emerald Software Group makes it a priority to help clients ensure a successful onboarding software implementation by collaborating with IT and HR. We also address another top HR executive concern (data security) through adhering to industry best practices. For more information, contact us at 770-569-5122.
Wednesday, December 22, 2010
Monday, December 13, 2010
Can HR Negotiate Better Software Deals?
The HR Capitalist has an amusing and insightful blog post up about why so many Human Resources professionals tend to be poor negotiators. Many people get into HR because they enjoy helping people – not because they enjoy driving a hard bargain. This generous attitude has its place in creating great employee relations, but it doesn’t serve HR well at the bargaining table when money is on the line. HR decision makers need to be ready and willing to negotiate with their software vendors to get the best product and the best deal.
Pricing Isn’t Always Set In Stone
For core HR software that can be purchased from many different vendors, pricing is usually a negotiable point. This is more likely to be the case with on-site licensed products than with SaaS. Vendors that use traditional licensing as their primary business model often have significant wiggle room if their pricing is inflated. Figuring out where the padding is can help HR determine where to ask for price breaks. Pricey ongoing maintenance/service packages allow many of these software vendors to generate a substantial portion of their revenue. This is an area where HR may be able to vigorously negotiate for better pricing.
In the SaaS market, the profit margins are not always as flexible. The vendor is already taking primary responsibility for all the software maintenance, upgrades, security, etc. Plus, these vendors are often pricing their products very aggressively to earn a larger market share in an industry still dominated by traditional licensing. However, with SaaS vendors who require a contract rather than a no-commitment monthly subscription, there is sometimes a potential to negotiate a longer contract term in exchange for a lower fee. It never hurts to ask.
It’s Not All about the Money
Niche and Best of Breed HR software vendors may be less likely to come down on their pricing because they are not in competition with as many other products. However, this doesn’t mean there is nothing on the table to negotiate. For example, your organization might need to interface the vendor’s software product with another application such as your HRIS, ERP, or a third party program.
A savvy SaaS vendor might have a vested interest in helping develop such an interface. Building a track record of successful interoperability with a broad category of applications gives the vendor a competitive advantage and widens their prospective client base. At Emerald Software Group, we are constantly adding to our portfolio of interfacing capabilities for Universal Onboarding. So, let us know your needs in this area – we are ready and willing to negotiate!
Pricing Isn’t Always Set In Stone
For core HR software that can be purchased from many different vendors, pricing is usually a negotiable point. This is more likely to be the case with on-site licensed products than with SaaS. Vendors that use traditional licensing as their primary business model often have significant wiggle room if their pricing is inflated. Figuring out where the padding is can help HR determine where to ask for price breaks. Pricey ongoing maintenance/service packages allow many of these software vendors to generate a substantial portion of their revenue. This is an area where HR may be able to vigorously negotiate for better pricing.
In the SaaS market, the profit margins are not always as flexible. The vendor is already taking primary responsibility for all the software maintenance, upgrades, security, etc. Plus, these vendors are often pricing their products very aggressively to earn a larger market share in an industry still dominated by traditional licensing. However, with SaaS vendors who require a contract rather than a no-commitment monthly subscription, there is sometimes a potential to negotiate a longer contract term in exchange for a lower fee. It never hurts to ask.
It’s Not All about the Money
Niche and Best of Breed HR software vendors may be less likely to come down on their pricing because they are not in competition with as many other products. However, this doesn’t mean there is nothing on the table to negotiate. For example, your organization might need to interface the vendor’s software product with another application such as your HRIS, ERP, or a third party program.
A savvy SaaS vendor might have a vested interest in helping develop such an interface. Building a track record of successful interoperability with a broad category of applications gives the vendor a competitive advantage and widens their prospective client base. At Emerald Software Group, we are constantly adding to our portfolio of interfacing capabilities for Universal Onboarding. So, let us know your needs in this area – we are ready and willing to negotiate!
Tuesday, December 7, 2010
Newest HR Software Terminology – PaaS
Software as a Service (SaaS) has become practically a household name in the HR industry. However, there is always a new development just around the corner and it’s hard to keep up with the technical lingo. The latest concept making its way into HR software vendor’s vocabularies is PaaS. Platform as a Service refers to more than the practice of offering a specific application over the web. With PaaS, Web 3.0 is in the mix. Software companies develop and run instances of their applications on the cloud computing platform. These resources are made available as a service by companies such as Amazon. Client data is hosted, stored, and transferred using virtual servers (this part of the picture is sometimes referred to as IaaS or Infrastructure as a Service).
What’s Different for HR?
The actual applications are still accessible via the internet just like traditional SaaS. The end user’s experience of the software doesn’t really change with a PaaS approach. However, there are other issues that can impact HR software choices from a strategic perspective. With virtualized servers and highly flexible platforms, it is possible to run an entire HRIS suite in the cloud environment. What was once the province of niche applications is becoming a standard offering from even the largest HR software vendors. IT and HR will need to collaborate closely to determine if and when moving the management of HR data and processes to the cloud is beneficial from a cost, maintenance, and security perspective.
The ability of smaller, niche HR software providers to serve clients is also enhanced with the advent of PaaS. Now, it is possible for them to run as many instances of an application as needed without increasing their costs for maintaining a permanent infrastructure. This server space and the computing capability being used can be scaled up and down practically instantaneously (which is why Amazon’s service offering is called the Elastic Compute Cloud). The ability to provide a separate instance of an application for each client also means SaaS vendors can offer greater customization without significantly adding to costs. Vendors can also serve a larger client base with rapidly changing capacity requirements.
Coming Soon?
There is speculation that Web 3.0 will make using multiple SaaS products together much simpler as interfacing between various programs becomes more commonplace. The popularity of Service Oriented Architecture (SOA) in software development has already moved web-based programs in this direction. SOA makes applications more likely to be interoperable as a basic design feature instead of an afterthought. This advance will create more flexibility for HR departments that want to use many Best of Breed niche products for the highest level of functionality in all areas of human capital management. HR might eventually have the option of ditching outdated suite software that contains applications that aren’t needed or used and simply cherry picking the best tool for each job. Of course, at Emerald Software Group, we’re already offering Universal Onboarding as a PaaS option for our clients. It’s a great place to start!
What’s Different for HR?
The actual applications are still accessible via the internet just like traditional SaaS. The end user’s experience of the software doesn’t really change with a PaaS approach. However, there are other issues that can impact HR software choices from a strategic perspective. With virtualized servers and highly flexible platforms, it is possible to run an entire HRIS suite in the cloud environment. What was once the province of niche applications is becoming a standard offering from even the largest HR software vendors. IT and HR will need to collaborate closely to determine if and when moving the management of HR data and processes to the cloud is beneficial from a cost, maintenance, and security perspective.
The ability of smaller, niche HR software providers to serve clients is also enhanced with the advent of PaaS. Now, it is possible for them to run as many instances of an application as needed without increasing their costs for maintaining a permanent infrastructure. This server space and the computing capability being used can be scaled up and down practically instantaneously (which is why Amazon’s service offering is called the Elastic Compute Cloud). The ability to provide a separate instance of an application for each client also means SaaS vendors can offer greater customization without significantly adding to costs. Vendors can also serve a larger client base with rapidly changing capacity requirements.
Coming Soon?
There is speculation that Web 3.0 will make using multiple SaaS products together much simpler as interfacing between various programs becomes more commonplace. The popularity of Service Oriented Architecture (SOA) in software development has already moved web-based programs in this direction. SOA makes applications more likely to be interoperable as a basic design feature instead of an afterthought. This advance will create more flexibility for HR departments that want to use many Best of Breed niche products for the highest level of functionality in all areas of human capital management. HR might eventually have the option of ditching outdated suite software that contains applications that aren’t needed or used and simply cherry picking the best tool for each job. Of course, at Emerald Software Group, we’re already offering Universal Onboarding as a PaaS option for our clients. It’s a great place to start!
Monday, December 6, 2010
Should HR Interface or Integrate Applications?
Spectrum HR has an excellent whitepaper available online discussing the benefits of interfacing vs. integrating various aspects of HRIS. What happens when an HR department is rigidly determined to have as few software vendor relationships as possible? The organization may actually be shooting itself in the foot by choosing a partner that offers an integrated HR system as part of its product offering.
Payroll is obviously a highly specialized field and requires software that makes it possible to effectively manage all aspects of employee compensation from overtime calculations to leave accrual to tax withholding. The state and federal rules for payroll management are constantly changing, so outsourcing this function or hiring a specialist to run an in-house program makes sense. However, payroll software vendors aren’t really the best choice for HRIS. Their products are too narrowly focused and HR simply doesn’t get all the tools needed to manage non-payroll aspects of workforce management. Inevitably, HR must add other third party applications to pick up the slack.
An ERP suite software provider may have a more complex HR offering and the pricing is likely to be attractive as part of a package deal. However, key areas of functionality are still likely to be missing. This leaves HR struggling to develop workarounds that are inefficient and not agile enough to remain compliant with labor laws.
What’s the Answer
The conclusion reached by the authors of the Spectrum paper is that Payroll and ERP vendors simply don’t provide the solutions HR needs for human capital management. The obvious answer is to implement a Best of Breed HRIS product rather than trying to integrate critical HR’s processes with the limited functionality of software that is not designed with HR’s needs in mind. The HRIS can then be interfaced with the Payroll partner and the ERP application as needed to share data.
HRIS Still Doesn’t Have It All
The relationship between HRIS applications and onboarding software is identical (albeit on a smaller scale) to the difference between ERP and HRIS solutions. Onboarding is too often thrown in as an afterthought rather than being designed for compliance, efficiency, and practicality. That’s why Emerald Software continues to offer Best of Breed Universal Onboarding software for our clients to interface seamlessly with their existing HRIS program.
Payroll is obviously a highly specialized field and requires software that makes it possible to effectively manage all aspects of employee compensation from overtime calculations to leave accrual to tax withholding. The state and federal rules for payroll management are constantly changing, so outsourcing this function or hiring a specialist to run an in-house program makes sense. However, payroll software vendors aren’t really the best choice for HRIS. Their products are too narrowly focused and HR simply doesn’t get all the tools needed to manage non-payroll aspects of workforce management. Inevitably, HR must add other third party applications to pick up the slack.
An ERP suite software provider may have a more complex HR offering and the pricing is likely to be attractive as part of a package deal. However, key areas of functionality are still likely to be missing. This leaves HR struggling to develop workarounds that are inefficient and not agile enough to remain compliant with labor laws.
What’s the Answer
The conclusion reached by the authors of the Spectrum paper is that Payroll and ERP vendors simply don’t provide the solutions HR needs for human capital management. The obvious answer is to implement a Best of Breed HRIS product rather than trying to integrate critical HR’s processes with the limited functionality of software that is not designed with HR’s needs in mind. The HRIS can then be interfaced with the Payroll partner and the ERP application as needed to share data.
HRIS Still Doesn’t Have It All
The relationship between HRIS applications and onboarding software is identical (albeit on a smaller scale) to the difference between ERP and HRIS solutions. Onboarding is too often thrown in as an afterthought rather than being designed for compliance, efficiency, and practicality. That’s why Emerald Software continues to offer Best of Breed Universal Onboarding software for our clients to interface seamlessly with their existing HRIS program.
Monday, November 29, 2010
HR Versus IT: Rogue SaaS Applications
One of the benefits associated with greater mainstream acceptance of SaaS is that it reduces the conflict between HR and IT. Business leaders in many different departments are often tempted to implement SaaS solutions without input from IT. That’s because the process of vetting software can seem to take forever. When strategic decision makers get tired of waiting around, they may move forward on their own. According to survey results floating around the blogosphere, IT often has no idea that managers are going behind their backs to contract with SaaS vendors. As you can imagine, when a CIO finally catches on to the presence of these “rogue software applications” this doesn’t go over well.
Why HR Might Circumvent IT
In many HR departments, just getting through the day-to-day pile of work is hard enough. Lobbying for support from IT to get new software implemented can take a lot of time and effort. Often, it seems that any suggestion regarding software improvement that doesn’t originate in IT is summarily rejected. Plus, HR may have a very small budget to spend on upgrading their processes. This makes the use of SaaS applications that don’t require IT involvement very appealing. SaaS vendors know this and will often use it as a selling point for their products.
Pitfalls of this Approach
When an HR director decides to go rogue and sign an SaaS vendor contract behind IT’s back, there may be serious problems ahead. A back door approach to implementation does nothing to strengthen collaboration between HR and IT. That may be bad news later when events transpire that lead to the discovery of the maverick software. This can happen if:
• HR realizes after the fact that the SaaS application requires customization to make it work for their organization
• The application interferes with other company software systems
• The software needs to be integrated with other, existing HRIS applications to make it really useful
• The vendor did not provide adequate security or data backup services and critical employee data is compromised
It may be easier to ask forgiveness than permission. But no HR executive really wants to have to go, hat in hand, to IT for help solving a problem with an SaaS application that IT didn’t approve in the first place. At Emerald Software Group, we encourage HR and IT to work together. We’ve got the expertise to speak their language as well as yours – so you have someone in your corner at the negotiating table.
Why HR Might Circumvent IT
In many HR departments, just getting through the day-to-day pile of work is hard enough. Lobbying for support from IT to get new software implemented can take a lot of time and effort. Often, it seems that any suggestion regarding software improvement that doesn’t originate in IT is summarily rejected. Plus, HR may have a very small budget to spend on upgrading their processes. This makes the use of SaaS applications that don’t require IT involvement very appealing. SaaS vendors know this and will often use it as a selling point for their products.
Pitfalls of this Approach
When an HR director decides to go rogue and sign an SaaS vendor contract behind IT’s back, there may be serious problems ahead. A back door approach to implementation does nothing to strengthen collaboration between HR and IT. That may be bad news later when events transpire that lead to the discovery of the maverick software. This can happen if:
• HR realizes after the fact that the SaaS application requires customization to make it work for their organization
• The application interferes with other company software systems
• The software needs to be integrated with other, existing HRIS applications to make it really useful
• The vendor did not provide adequate security or data backup services and critical employee data is compromised
It may be easier to ask forgiveness than permission. But no HR executive really wants to have to go, hat in hand, to IT for help solving a problem with an SaaS application that IT didn’t approve in the first place. At Emerald Software Group, we encourage HR and IT to work together. We’ve got the expertise to speak their language as well as yours – so you have someone in your corner at the negotiating table.
Monday, November 22, 2010
Ease Of Training A Plus for HR SaaS
Blogger Andy Porter from Fistful of Talent offers a particularly candid view of what HR executives really think about most HR software sales reps. His many pet peeves include the habit some vendors have of sending an entire entourage to make a presentation when only one person is really required. Fancy graphics that don’t really convey useful information is another issue causing Porter to feel angst. All he really wants to know from HR software technology vendors is:
• How easy it is to for end users to operate the system
• How it will help managers do their jobs better
In Porter’s opinion, software should be so easy to use that it doesn’t actually require training. It should be designed to be intuitive and self explanatory. To his way of thinking, offering extensive training on a system isn’t a plus. It’s an indication that the developer has not put the customer’s needs first in designing the system. SaaS applications have an obvious advantage in this area since basically every end user is familiar with web based software.
According to Andy, the benefits to managers should be simple enough to sum up in a few clear cut sentences. The answer shouldn’t be a long-winded explanation of what the software can DO from a bells and whistles standpoint. It should be about what actual results it creates for the client’s organization. Many SaaS HR solutions do actually give managers powerful tools for working more effectively. However, Porter is quite correct in his assertion that not all vendors know how to communicate this fact.
How Does Universal Onboarding Measure Up?
From the viewpoint of a new hire, Universal Onboarding is completely intuitive. The only instructional prompts needed are provided on screen as the user navigates this wizard based application. Training for HR administrators is pretty straightforward as well. The process of creating new data panels is one HR personnel will already be familiar with if they know how to use Adobe Reader. In the event that any in-person training is desired, this can be provided on site or at Emerald Software’s facilities.
How does this software help HR managers do their job better? Reducing the cost of onboarding, eliminating errors and omissions on forms, and increasing legal compliance are the three biggest ways our solution achieves this objective. That’s just the tip of the iceberg as you can see if you browse our Universal Onboarding product details.
• How easy it is to for end users to operate the system
• How it will help managers do their jobs better
In Porter’s opinion, software should be so easy to use that it doesn’t actually require training. It should be designed to be intuitive and self explanatory. To his way of thinking, offering extensive training on a system isn’t a plus. It’s an indication that the developer has not put the customer’s needs first in designing the system. SaaS applications have an obvious advantage in this area since basically every end user is familiar with web based software.
According to Andy, the benefits to managers should be simple enough to sum up in a few clear cut sentences. The answer shouldn’t be a long-winded explanation of what the software can DO from a bells and whistles standpoint. It should be about what actual results it creates for the client’s organization. Many SaaS HR solutions do actually give managers powerful tools for working more effectively. However, Porter is quite correct in his assertion that not all vendors know how to communicate this fact.
How Does Universal Onboarding Measure Up?
From the viewpoint of a new hire, Universal Onboarding is completely intuitive. The only instructional prompts needed are provided on screen as the user navigates this wizard based application. Training for HR administrators is pretty straightforward as well. The process of creating new data panels is one HR personnel will already be familiar with if they know how to use Adobe Reader. In the event that any in-person training is desired, this can be provided on site or at Emerald Software’s facilities.
How does this software help HR managers do their job better? Reducing the cost of onboarding, eliminating errors and omissions on forms, and increasing legal compliance are the three biggest ways our solution achieves this objective. That’s just the tip of the iceberg as you can see if you browse our Universal Onboarding product details.
Wednesday, November 17, 2010
Why Choose a Niche Product for Onboarding? Part 1
Last week, we took a look at some of the HR software solutions Emerald has experience integrating our programs with. These include big names in the SaaS HRMS field (UltiPro, SilkRoad, etc). Many of these commonly used suite solutions provide some form of onboarding module. This means employers often have the ability to minimize or eliminate the use of paper in their new hire forms administration using the option offered by their suite software. So, why are customers who have already invested in software for the full range of HR processes still seek out a niche solution for their onboarding needs?
Greater Compliance
For employers who are really sticklers about compliance, every step of an onboarding process must be viewed in light of how it promotes this goal. Suite providers often grasp that electronic forms are needed. Some also automate the flow of data collected on these forms into other systems (such as Payroll) to reduce HR’s workload. However, not all systems go the extra mile to ensure that there are no errors or omissions and that the actual process of collecting data and signatures is done the right way. Employers have to ask these questions when comparing a suite solution with a niche product for onboarding:
• Which system provides a complete library of up-to-date federal and state required forms?
• Which system presents these forms in an electronic data collection format that enforces the government’s instructions regarding how the form must be filled out?
• Which system permits the incorporation of unlimited forms to cover all an employer’s policy acknowledgement and data collection needs?
• Which system prevents new hires from submitting electronic forms that are incomplete or incorrectly filled out?
• Which system complies with all the requirements of the 2000 e-Sign Act so that the legality of electronically collected signatures cannot be called into question later?
• Which system can be interfaced with e-Verify to enhance compliance with ICE best practices for worker eligibility verification?
These are all important questions because they impact an employer’s level of risk. Mistakes on forms don’t just lead to errors in how HR handles data. They can also have real consequences that may include fines and penalties in the event of an audit by a government agency.
In the next blog post, we’ll look at additional reasons why HR looks to niche products like Universal Onboarding for greatest ease of use.
Greater Compliance
For employers who are really sticklers about compliance, every step of an onboarding process must be viewed in light of how it promotes this goal. Suite providers often grasp that electronic forms are needed. Some also automate the flow of data collected on these forms into other systems (such as Payroll) to reduce HR’s workload. However, not all systems go the extra mile to ensure that there are no errors or omissions and that the actual process of collecting data and signatures is done the right way. Employers have to ask these questions when comparing a suite solution with a niche product for onboarding:
• Which system provides a complete library of up-to-date federal and state required forms?
• Which system presents these forms in an electronic data collection format that enforces the government’s instructions regarding how the form must be filled out?
• Which system permits the incorporation of unlimited forms to cover all an employer’s policy acknowledgement and data collection needs?
• Which system prevents new hires from submitting electronic forms that are incomplete or incorrectly filled out?
• Which system complies with all the requirements of the 2000 e-Sign Act so that the legality of electronically collected signatures cannot be called into question later?
• Which system can be interfaced with e-Verify to enhance compliance with ICE best practices for worker eligibility verification?
These are all important questions because they impact an employer’s level of risk. Mistakes on forms don’t just lead to errors in how HR handles data. They can also have real consequences that may include fines and penalties in the event of an audit by a government agency.
In the next blog post, we’ll look at additional reasons why HR looks to niche products like Universal Onboarding for greatest ease of use.
Wednesday, November 10, 2010
Commonly Integrated Systems for AllegroHR & Emerald Green Office
One of the most pertinent questions HR and IT can ask about our Emerald Software suite of products is “Will what you provide work with what we already have?” In most cases, the answer is yes. If we don’t currently have an integration solution on hand for a product, chances are there’s something in the works. We know that when customers have the ability to interface Emerald products with their existing enterprise software this is a big point in our favor. After all, our software is designed around the concept of automating as many processes as possible. This means the more interfaces we can successfully implement, the higher the value our product delivers. So, while we may be viewed as a “niche” software provider, this doesn’t mean that we don’t know how to “play well” with other vendors’ applications.
Below is an overview of some of the applications we have experience integrating our software with. We also have the capability to integrate with any third party that uses the HR-XML NewHire standard for interoperability. If you don’t see the software you currently use on the following list, don’t worry. Your personal Emerald Software Group business development consultant can fill you in on the complete list of 3rd party integrations we can currently perform.
• iRecruiter
• Kenexa
• SilkRoad
• OpenHire
• UltiPro
• ADP
• PeopleSoft
• Abra Suite
As you can see, these applications range from recruitment and applicant tracking to payroll and general HRIS. Since our own product offerings run the gamut from our always popular Universal Onboarding to document creation and business process management, we don’t just focus on integrating with other applications in the HR realm. We’ve also got a handle on interfacing with suite solutions such as EnterpriseOne. This means data can be delivered from our software to any area of an organization’s ECM system. The ability to transfer, compile, and analyze data from all applications across an organization leads to the development of more accurate metrics, improved performance, and controlled costs. So, don’t let your HR and enterprise data sit segregated in many different applications. Let us help you start connecting the data points today.
Below is an overview of some of the applications we have experience integrating our software with. We also have the capability to integrate with any third party that uses the HR-XML NewHire standard for interoperability. If you don’t see the software you currently use on the following list, don’t worry. Your personal Emerald Software Group business development consultant can fill you in on the complete list of 3rd party integrations we can currently perform.
• iRecruiter
• Kenexa
• SilkRoad
• OpenHire
• UltiPro
• ADP
• PeopleSoft
• Abra Suite
As you can see, these applications range from recruitment and applicant tracking to payroll and general HRIS. Since our own product offerings run the gamut from our always popular Universal Onboarding to document creation and business process management, we don’t just focus on integrating with other applications in the HR realm. We’ve also got a handle on interfacing with suite solutions such as EnterpriseOne. This means data can be delivered from our software to any area of an organization’s ECM system. The ability to transfer, compile, and analyze data from all applications across an organization leads to the development of more accurate metrics, improved performance, and controlled costs. So, don’t let your HR and enterprise data sit segregated in many different applications. Let us help you start connecting the data points today.
Thursday, November 4, 2010
Can SaaS Work For Large HR Departments?
While many current SaaS solutions are targeted at small to mid-sized businesses, there are a number of larger corporations that are testing these waters as well. Some challenges are unique to large businesses when using remotely hosted software both for niche services and enterprise-wide solutions. This is especially true in multi-national organizations where data privacy regulations in foreign countries may prohibit certain types of information storage and transfer.
Workday Takes On the Tough Questions
Author Stan Swete on Workday.com posted a blog article in September that highlights additional issues. He addresses many common concerns clients have about using SaaS and cloud computing for core HR systems in organizations with more than 5,000 workers. It’s a quick read and well worth a perusal. Below is our take on some of the questions he raises.
On the one hand, using a full suite of SaaS products from a single HR software vendor helps ensure ease of integration between the hosted applications. However, it also means that the SaaS solutions may “touch” many more applications throughout the enterprise structure. This can impact the cost and complexity of interfacing the HR system with other applications.
Far Reaching Service Reliability a Must
When faced with servicing a workforce numbering thousands (or tens of thousands) of employees, small-time SaaS vendors may not have what it takes to handle the workload. Those that are most likely to be successful from a scalability standpoint are taking advantage of the cloud platform to cater to clients of all sizes. For multinational employers, SaaS vendors must also be able to guarantee reasonably reliable access from any point on the globe. Not every country has high-bandwidth capability, so this must be taken into consideration during the planning stage for global integration of an SaaS solution.
Customization is Vital
In addition to scalability, multi-state and multi-national companies must have the capability to customize workflows within the SaaS application to meet local employment law requirements. This is critical from an HR compliance standpoint. Vendors who offer just an off-the-shelf solution or who run only a single instance of their application can’t generally supply this type of targeted service. However, at Emerald Software Group we have designed our Universal Onboarding system to be configurable for any unique business process you require. This customizability is built in to the system since we know that labor laws are constantly shifting and HR needs to be able to keep up.
Workday Takes On the Tough Questions
Author Stan Swete on Workday.com posted a blog article in September that highlights additional issues. He addresses many common concerns clients have about using SaaS and cloud computing for core HR systems in organizations with more than 5,000 workers. It’s a quick read and well worth a perusal. Below is our take on some of the questions he raises.
On the one hand, using a full suite of SaaS products from a single HR software vendor helps ensure ease of integration between the hosted applications. However, it also means that the SaaS solutions may “touch” many more applications throughout the enterprise structure. This can impact the cost and complexity of interfacing the HR system with other applications.
Far Reaching Service Reliability a Must
When faced with servicing a workforce numbering thousands (or tens of thousands) of employees, small-time SaaS vendors may not have what it takes to handle the workload. Those that are most likely to be successful from a scalability standpoint are taking advantage of the cloud platform to cater to clients of all sizes. For multinational employers, SaaS vendors must also be able to guarantee reasonably reliable access from any point on the globe. Not every country has high-bandwidth capability, so this must be taken into consideration during the planning stage for global integration of an SaaS solution.
Customization is Vital
In addition to scalability, multi-state and multi-national companies must have the capability to customize workflows within the SaaS application to meet local employment law requirements. This is critical from an HR compliance standpoint. Vendors who offer just an off-the-shelf solution or who run only a single instance of their application can’t generally supply this type of targeted service. However, at Emerald Software Group we have designed our Universal Onboarding system to be configurable for any unique business process you require. This customizability is built in to the system since we know that labor laws are constantly shifting and HR needs to be able to keep up.
Wednesday, November 3, 2010
SaaS Data Security for HR
Not all of the concerns HR may have about the security of SaaS are necessarily unfounded. Although top notch HR software vendors can afford to implement the latest security measures both online and in their data facilities, not all SaaS vendors are created equal. Employee data is always highly sensitive. Employers routinely collect information that could be used to perpetrate identity theft on a massive scale if it falls into the wrong hands. The damage to employee/employer relationships in the event of a data breach (even if no fraud results) is massive.
According to this whitepaper slideshow from Softscape, the average cost of a compromise in the security of HR data is over 6 million dollars. That’s not a risk organizations can afford to take – and not one they should have to worry about when it comes to the security of their data in the hands of an SaaS vendor.
Investigate Before You Sign Up With a New SaaS Company
In the slideshow mentioned above, the folks at Softscape outline several security concerns that HR clients should explore with their IT department and potential SaaS vendors. For example, if a multi-tenancy structure is used (which is typical for SaaS), a closer look at data segregation is warranted. If all employee data for multiple customers is hosted in a single database, this increases the risk of data being unintentionally exposed to the wrong client. With niche vendors who have a small client base and little capital to work with, this is the kind of corner cutting that can lead to real problems.
An SaaS vendor that takes security seriously will have multiple layers of physical and virtual security measures in place to prevent both accidental data breaches and intentional attempts at hacking/sabotage. They will also work with each client’s own IT department to implement further measures as needed to ensure the application is truly secure.
For some clients, this is accomplished most effectively by providing an on-premise version of the software rather than going with SaaS. However, this is only the better option if the client’s organization actually has a highly secure internal data center. For the average customer, the costs of maintaining a state-of-the-art data facility are prohibitively high. So, most HR departments may actually be keeping data safer by relying on a best of breed SaaS vendor to host it off site. To find out more about the safeguards we put in place to keep our clients’ new hire onboarding data secure, contact us at 770-569-5122.
According to this whitepaper slideshow from Softscape, the average cost of a compromise in the security of HR data is over 6 million dollars. That’s not a risk organizations can afford to take – and not one they should have to worry about when it comes to the security of their data in the hands of an SaaS vendor.
Investigate Before You Sign Up With a New SaaS Company
In the slideshow mentioned above, the folks at Softscape outline several security concerns that HR clients should explore with their IT department and potential SaaS vendors. For example, if a multi-tenancy structure is used (which is typical for SaaS), a closer look at data segregation is warranted. If all employee data for multiple customers is hosted in a single database, this increases the risk of data being unintentionally exposed to the wrong client. With niche vendors who have a small client base and little capital to work with, this is the kind of corner cutting that can lead to real problems.
An SaaS vendor that takes security seriously will have multiple layers of physical and virtual security measures in place to prevent both accidental data breaches and intentional attempts at hacking/sabotage. They will also work with each client’s own IT department to implement further measures as needed to ensure the application is truly secure.
For some clients, this is accomplished most effectively by providing an on-premise version of the software rather than going with SaaS. However, this is only the better option if the client’s organization actually has a highly secure internal data center. For the average customer, the costs of maintaining a state-of-the-art data facility are prohibitively high. So, most HR departments may actually be keeping data safer by relying on a best of breed SaaS vendor to host it off site. To find out more about the safeguards we put in place to keep our clients’ new hire onboarding data secure, contact us at 770-569-5122.
HR Software and Blended/Hybrid SaaS
Over the last few weeks, we’ve been looking at a lot of the reasons HR may choose SaaS over on-premise software. This special report from Workforce.com offers an in-depth look at the options available for HR applications.
What is Pure SaaS?
This definition is, of course, open for debate. However, here’s one description of what a pure SaaS vendor might look like: The vendor would have data from multiple clients all stored in the same infrastructure and run on a single instance of the software leaving it somewhat vulnerable to catastrophic failure or security breaches. Little or no customization of the application would be possible for individual clients beyond basic settings options. All upgrades would be mandatory – regardless of whether they interfere with a client’s existing interfaces with back end systems.
The Reality of SaaS
Obviously, most vendors in the HR software sphere aren’t advertising products that have such serious limitations as those you might see with “pure” SaaS. They may work with one of a variety of different multi-tenancy structure approaches that securely segregate each client’s data and offer some flexibility in tailoring the application to the client’s needs. In addition, many SaaS vendors give customers the option of whether or not to deploy various updates based on the impact this would have on the client’s other systems.
Some SaaS vendors even offer a distinct instance of their application for each client that can be customized to match an HR department’s unique business rules. They also completely partition one client’s data and software application from the next by creating separate “virtual” servers. With the advent of cloud computing and server virtualization software, this has become a way for SaaS vendors to offer customization and higher security without driving up the cost of their products too much.
Emerald Software Group Offers Hybrid Options
A number of vendors in the HR field offer on-premise software, a multi-tenancy model of SaaS, and a dedicated instance of their application delivered online. However, in the onboarding niche this is not the case. Virtually all of Emerald Software’s direct competitors offer only an SaaS version of their onboarding software with no on-premise version available. We don’t believe in turning customers away when we can accommodate their needs by staying on top of clients’ demands for flexible options. That’s why we have so many different choices available including licensed, hosted, and managed versions of our onboarding software.
What is Pure SaaS?
This definition is, of course, open for debate. However, here’s one description of what a pure SaaS vendor might look like: The vendor would have data from multiple clients all stored in the same infrastructure and run on a single instance of the software leaving it somewhat vulnerable to catastrophic failure or security breaches. Little or no customization of the application would be possible for individual clients beyond basic settings options. All upgrades would be mandatory – regardless of whether they interfere with a client’s existing interfaces with back end systems.
The Reality of SaaS
Obviously, most vendors in the HR software sphere aren’t advertising products that have such serious limitations as those you might see with “pure” SaaS. They may work with one of a variety of different multi-tenancy structure approaches that securely segregate each client’s data and offer some flexibility in tailoring the application to the client’s needs. In addition, many SaaS vendors give customers the option of whether or not to deploy various updates based on the impact this would have on the client’s other systems.
Some SaaS vendors even offer a distinct instance of their application for each client that can be customized to match an HR department’s unique business rules. They also completely partition one client’s data and software application from the next by creating separate “virtual” servers. With the advent of cloud computing and server virtualization software, this has become a way for SaaS vendors to offer customization and higher security without driving up the cost of their products too much.
Emerald Software Group Offers Hybrid Options
A number of vendors in the HR field offer on-premise software, a multi-tenancy model of SaaS, and a dedicated instance of their application delivered online. However, in the onboarding niche this is not the case. Virtually all of Emerald Software’s direct competitors offer only an SaaS version of their onboarding software with no on-premise version available. We don’t believe in turning customers away when we can accommodate their needs by staying on top of clients’ demands for flexible options. That’s why we have so many different choices available including licensed, hosted, and managed versions of our onboarding software.
Tuesday, November 2, 2010
Why SaaS Is Working For HR – Part 3
One of the primary reasons HR departments turn to SaaS solutions for niche applications is to avoid involving IT in the day to day support of these programs. However, there is simply no avoiding the fact that a really useful piece of software doesn’t operate in a vacuum. It has to be integrated effectively with the rest of the HRIS portfolio to fulfill its true potential. As this 2008 article from informationweek.com points out, it’s not installing an SaaS app that is costly and challenging – it’s the integration that can be problematic. Too often, employers end up footing the bill in terms of IT labor for this stage in the implementation process.
However, as customers become more aware of the potential hidden costs of SaaS solutions, vendors are being forced to step up to the plate. With a ‘pay as you go’ model, it’s just too easy for businesses to switch to a different provider if they aren’t satisfied. When very little integration has been accomplished, it is relatively simple for customers to extricate themselves from a relationship with a specific SaaS vendor. It is in the best interests of vendors to step in and take some responsibility for ensuring that their products can be readily integrated without a huge time investment on the customer’s side. The more systems an SaaS solution is connected with in a client’s software environment, the less sense it makes for HR to start over with another vendor.
HR Is Still In Control
Fortunately, one of the great things about SaaS for HR is that some of the most common problems are those that you don’t have to be an IT specialist to understand and anticipate. That puts HR in the position of being able to sniff out and avoid some potential problems before the stage where IT has to become involved. The fewer SaaS solutions IT has to evaluate and reject as inadequate, the less frustrated they are likely to become with the whole process.
So, HR clients comparing SaaS options would do well to ask about integration capability up front. Taking the vendor’s word that their product is “really easy to connect to other applications” isn’t sufficient. Specifics are much more helpful. Here are some questions that may help HR narrow the field of competitors:
• Do you have templates and instructions put together for how to integrate your software with other commonly used HR programs?
• Can your API (Application Programming Interface) be used to connect your program with any other software that also features an open API?
• Will we need to use one or more third party integration tools or services to connect your application with our existing software solutions?
• If I give you a list of all the programs we need to connect to your software, can you tell me whether you have successfully completed an integration involving each one of them?
• What role will your technicians play in working with our IT department to ensure a successful integration?
• Can you describe the steps in a typical integration process for me and the average time to implementation?
• Have you ever had an integration attempt that just didn’t work out? If so, what alternative solution did you suggest to your customer?
The questions and answers will get a lot more technical from there, but at least the vendor’s responses will give you an idea of how much thought they put into integration when they designed their software -and how hands on they plan to be in helping your company with implementation. If they hem and haw and give you vague responses, that’s not a good sign. Do you want to see how a really responsive SaaS vendor acts when it comes to delivering top service and excellent integration capability? Give Emerald Software a call at 770-569-5122.
However, as customers become more aware of the potential hidden costs of SaaS solutions, vendors are being forced to step up to the plate. With a ‘pay as you go’ model, it’s just too easy for businesses to switch to a different provider if they aren’t satisfied. When very little integration has been accomplished, it is relatively simple for customers to extricate themselves from a relationship with a specific SaaS vendor. It is in the best interests of vendors to step in and take some responsibility for ensuring that their products can be readily integrated without a huge time investment on the customer’s side. The more systems an SaaS solution is connected with in a client’s software environment, the less sense it makes for HR to start over with another vendor.
HR Is Still In Control
Fortunately, one of the great things about SaaS for HR is that some of the most common problems are those that you don’t have to be an IT specialist to understand and anticipate. That puts HR in the position of being able to sniff out and avoid some potential problems before the stage where IT has to become involved. The fewer SaaS solutions IT has to evaluate and reject as inadequate, the less frustrated they are likely to become with the whole process.
So, HR clients comparing SaaS options would do well to ask about integration capability up front. Taking the vendor’s word that their product is “really easy to connect to other applications” isn’t sufficient. Specifics are much more helpful. Here are some questions that may help HR narrow the field of competitors:
• Do you have templates and instructions put together for how to integrate your software with other commonly used HR programs?
• Can your API (Application Programming Interface) be used to connect your program with any other software that also features an open API?
• Will we need to use one or more third party integration tools or services to connect your application with our existing software solutions?
• If I give you a list of all the programs we need to connect to your software, can you tell me whether you have successfully completed an integration involving each one of them?
• What role will your technicians play in working with our IT department to ensure a successful integration?
• Can you describe the steps in a typical integration process for me and the average time to implementation?
• Have you ever had an integration attempt that just didn’t work out? If so, what alternative solution did you suggest to your customer?
The questions and answers will get a lot more technical from there, but at least the vendor’s responses will give you an idea of how much thought they put into integration when they designed their software -and how hands on they plan to be in helping your company with implementation. If they hem and haw and give you vague responses, that’s not a good sign. Do you want to see how a really responsive SaaS vendor acts when it comes to delivering top service and excellent integration capability? Give Emerald Software a call at 770-569-5122.
Why SaaS Is Working For HR – Part 2
In this second blog post about how HR is utilizing SaaS solutions, let’s take a look at another article that talks about our current topic. This is a piece from 2008 which may seem like eons ago in the fast paced world of technological evolution. However, it still makes some points that are relevant in 2010. Author Cindy Waxer at HR World contrasts the previous dearth of niche solutions with today’s array of choices for every application. There is really something for everyone, from performance management to new hire onboarding – any process HR wants to focus on improving can be addressed by a specialty program.
ERP vendors are struggling to keep up since rolling out upgrades for fast implementation by end users is not exactly their forte. However, some major players are offering more “off the shelf” functionality than before that permits HR to add on features as needed when their current suite falls short. Unfortunately, for clients using older versions, implementing these newer solutions can still be a very lengthy process.
That’s one reason newer businesses sometimes choose to build their HRIS from the ground up using SaaS solutions rather than investing in a system that will be outdated almost as soon as it is up and running. Companies with existing ERP systems are also choosing to add new features using products provided by SaaS vendors rather than launching extensive projects to revise their legacy software.
Will On-Site Licensing Persist?
In the future, a non-SaaS performance management solution outside those sold by the really big name vendors in HR software may be hard to come by at all. According to Waxer (quoting an IDC study) over 80% of vendors in that niche are already using the SaaS model to deliver software services to their HR clients. This doesn’t mean SaaS is always the best way to go. But as it becomes more prevalent, the momentum of the movement is likely to convince more and more employers that this type of solution has merit.
SaaS for HR Is Expanding in Scope
While SaaS has long been viewed as the province of niche software suppliers (including Best of Breed providers like Emerald Software), some vendors are beginning to expand their offerings to become more like traditional suite providers. It will be interesting to see to what extent these companies maintain their agility as their portfolio of product offerings grow. These vendors will need to remember that ease of integration with other solutions is still critical.
The more collaboration and cross compatibility we SaaS solution architects can generate, the better our chances of survival in a world where HR clients have an ever growing array of options. The days of crowding out everyone else are over – even for the giants in the HR software industry. This is why we focus strongly on building strategic partnerships. In the end, it is likely that those who cooperate the most effectively will be the most successful.
ERP vendors are struggling to keep up since rolling out upgrades for fast implementation by end users is not exactly their forte. However, some major players are offering more “off the shelf” functionality than before that permits HR to add on features as needed when their current suite falls short. Unfortunately, for clients using older versions, implementing these newer solutions can still be a very lengthy process.
That’s one reason newer businesses sometimes choose to build their HRIS from the ground up using SaaS solutions rather than investing in a system that will be outdated almost as soon as it is up and running. Companies with existing ERP systems are also choosing to add new features using products provided by SaaS vendors rather than launching extensive projects to revise their legacy software.
Will On-Site Licensing Persist?
In the future, a non-SaaS performance management solution outside those sold by the really big name vendors in HR software may be hard to come by at all. According to Waxer (quoting an IDC study) over 80% of vendors in that niche are already using the SaaS model to deliver software services to their HR clients. This doesn’t mean SaaS is always the best way to go. But as it becomes more prevalent, the momentum of the movement is likely to convince more and more employers that this type of solution has merit.
SaaS for HR Is Expanding in Scope
While SaaS has long been viewed as the province of niche software suppliers (including Best of Breed providers like Emerald Software), some vendors are beginning to expand their offerings to become more like traditional suite providers. It will be interesting to see to what extent these companies maintain their agility as their portfolio of product offerings grow. These vendors will need to remember that ease of integration with other solutions is still critical.
The more collaboration and cross compatibility we SaaS solution architects can generate, the better our chances of survival in a world where HR clients have an ever growing array of options. The days of crowding out everyone else are over – even for the giants in the HR software industry. This is why we focus strongly on building strategic partnerships. In the end, it is likely that those who cooperate the most effectively will be the most successful.
Wednesday, October 27, 2010
Onboarding Software And SaaS
Last week, we took a look at Emerald Software Group’s traditional licensing option and why this is one of the choices we make available to our clients. Now, I’d like to talk a little more about our Software as a Service (SaaS) solution and why it is popular with so many of our customers.
Minimal Up Front Investment
With the SaaS hosted agreement, there is no license to pay for. Clients simply pay a set price per new hire per month for access to the software application and accompanying data storage. Maintenance and upgrades are included, so there are no unexpected expenses. Treating this software as an operating cost rather than a capital expenditure makes budgeting much simpler for some employers. ROI is easy to calculate and cost savings are often realized as soon as the client begins using the system.
Infrastructure Costs are low
When we host the software on our own servers, an employer’s setup costs are minimized in several ways. No hardware needs to be purchased or upgraded to implement the onboarding solution. The client only needs to provide internet access and a computer terminal – something every modern HR department already has in place. With our recent addition of a cloud computing option, each client’s access can be immediately scaled to handle a higher volume of new hires as needed. There’s no cause for IT to worry about purchasing additional server space or equipment.
Limited IT Involvement
With our SaaS option, IT does not have to invest significant resources in implementing and maintaining the software. It’s still necessary for IT to be involved in initial discussions to make sure everyone is on the same page regarding topics like data security and integration with backend systems. Fortunately, our products are designed to interface readily with most top brands of HR industry software.
HR clients appreciate the fact that they can finally automate their onboarding processes without waiting for IT to allocate a huge chunk of time to the project. We take care of the setup and maintain the software so your IT department doesn’t have to. This works well for:
• Small businesses that might have only one or two IT employees who can ill afford to spend time meeting HR’s needs
• Mid to large sized businesses that tend to adopt new technology slowly because the process for approving and implementing new software on-site is unwieldy
Fast Results
For HR departments that want to move quickly to reduce risk and increase compliance with labor laws, the SaaS option is often ideal. Speed to implementation and full adoption is very fast for most of our clients because they can leave so much of the process to us. At the same time, HR can be as hands on as they like in developing the electronic forms and workflow to ensure onboarding is carried out according to their company’s business rules every time. To learn more about Universal Onboarding and SaaS, go here.
Minimal Up Front Investment
With the SaaS hosted agreement, there is no license to pay for. Clients simply pay a set price per new hire per month for access to the software application and accompanying data storage. Maintenance and upgrades are included, so there are no unexpected expenses. Treating this software as an operating cost rather than a capital expenditure makes budgeting much simpler for some employers. ROI is easy to calculate and cost savings are often realized as soon as the client begins using the system.
Infrastructure Costs are low
When we host the software on our own servers, an employer’s setup costs are minimized in several ways. No hardware needs to be purchased or upgraded to implement the onboarding solution. The client only needs to provide internet access and a computer terminal – something every modern HR department already has in place. With our recent addition of a cloud computing option, each client’s access can be immediately scaled to handle a higher volume of new hires as needed. There’s no cause for IT to worry about purchasing additional server space or equipment.
Limited IT Involvement
With our SaaS option, IT does not have to invest significant resources in implementing and maintaining the software. It’s still necessary for IT to be involved in initial discussions to make sure everyone is on the same page regarding topics like data security and integration with backend systems. Fortunately, our products are designed to interface readily with most top brands of HR industry software.
HR clients appreciate the fact that they can finally automate their onboarding processes without waiting for IT to allocate a huge chunk of time to the project. We take care of the setup and maintain the software so your IT department doesn’t have to. This works well for:
• Small businesses that might have only one or two IT employees who can ill afford to spend time meeting HR’s needs
• Mid to large sized businesses that tend to adopt new technology slowly because the process for approving and implementing new software on-site is unwieldy
Fast Results
For HR departments that want to move quickly to reduce risk and increase compliance with labor laws, the SaaS option is often ideal. Speed to implementation and full adoption is very fast for most of our clients because they can leave so much of the process to us. At the same time, HR can be as hands on as they like in developing the electronic forms and workflow to ensure onboarding is carried out according to their company’s business rules every time. To learn more about Universal Onboarding and SaaS, go here.
Monday, October 25, 2010
Why SaaS Is Working For HR – Part 1
HR is one industry that is on the leading edge of SaaS adoption. In this blog post series, we’ll dig into several questions:
• Why HR?
• Why Now?
• What’s Next?
To start things off, take a couple of minutes to read Tom Malone’s TLNT piece on “The Top 5 Myths about SaaS”. The author delivers an even-handed look at what SaaS currently does and doesn’t offer. For example, some people think that SaaS solutions aren’t an option for handling complex processes. In fact, any BPM software application (or set of applications) that could be hosted on a legacy server can be hosted in “the cloud” and have its functionality delivered via the web.
HR Can Integrate Processes
In addition, the best SaaS solutions are constructed using an SOA (Service Oriented Architecture) approach. This means they are modularly designed with integration capability built in rather than tacked on as an afterthought. This is one reason HR looks to SaaS to address evolving needs that involve interfacing with other applications. HR processes touch those of many other departments such as IT, Payroll, Production, etc. Data must be shared for purposes of scheduling, security, and much more.
An on-site ERP suite can often provide this type of inter-compatibility; but rolling out new solutions may sometimes take more than a year of work on the part of IT. Here’s a story about Chiquita (the banana company) that shows how one employer decided to ditch the snail pace of traditionally licensed ERP development for the faster, global ERP implementation provided by an SaaS vendor.
HR Can Address Critical Needs
Of course, niche HR products that address a specific process such as onboarding are also attractive options for companies that have already heavily invested in an on-premise ERP solution and simply want to add more functionality. When HR’s budget is tight (which is pretty much always), promoting the use of a single SaaS program delivered via the web can be a lot easier to negotiate than a full system overhaul. Depending on the application and the degree of customization required, the roll out time for an SaaS product can be weeks instead of months.
• Why HR?
• Why Now?
• What’s Next?
To start things off, take a couple of minutes to read Tom Malone’s TLNT piece on “The Top 5 Myths about SaaS”. The author delivers an even-handed look at what SaaS currently does and doesn’t offer. For example, some people think that SaaS solutions aren’t an option for handling complex processes. In fact, any BPM software application (or set of applications) that could be hosted on a legacy server can be hosted in “the cloud” and have its functionality delivered via the web.
HR Can Integrate Processes
In addition, the best SaaS solutions are constructed using an SOA (Service Oriented Architecture) approach. This means they are modularly designed with integration capability built in rather than tacked on as an afterthought. This is one reason HR looks to SaaS to address evolving needs that involve interfacing with other applications. HR processes touch those of many other departments such as IT, Payroll, Production, etc. Data must be shared for purposes of scheduling, security, and much more.
An on-site ERP suite can often provide this type of inter-compatibility; but rolling out new solutions may sometimes take more than a year of work on the part of IT. Here’s a story about Chiquita (the banana company) that shows how one employer decided to ditch the snail pace of traditionally licensed ERP development for the faster, global ERP implementation provided by an SaaS vendor.
HR Can Address Critical Needs
Of course, niche HR products that address a specific process such as onboarding are also attractive options for companies that have already heavily invested in an on-premise ERP solution and simply want to add more functionality. When HR’s budget is tight (which is pretty much always), promoting the use of a single SaaS program delivered via the web can be a lot easier to negotiate than a full system overhaul. Depending on the application and the degree of customization required, the roll out time for an SaaS product can be weeks instead of months.
Friday, October 22, 2010
Onboarding Software and Traditional Licensing
At Emerald Software Group, we believe in giving our clients options that will work for every situation. Our SaaS offering is very popular; but not every company is ready to have software solutions hosted offsite. This doesn’t mean they have to miss out on the latest innovations in onboarding automation. As a Best of Breed vendor, we differ from most of our competitors because we can and do license on-premise installations upon request.
When might this approach be appropriate? One determining factor is how much responsibility a company’s IT department wants to take for the software - and how much control they want to exercise. For example, they may have a risk management policy that precludes storing sensitive data on off-site servers. Or, they might simply want to have more ownership of each aspect of BPM development and integration.
Solutions are On Hand
There are a couple of different ways IT can meet these objectives with Emerald Software’s products. We offer both a licensed agreement and a managed arrangement. With an on-premise license, our software is run on client provided equipment. Upgrades and support can be negotiated separately from the perpetual software license. For a business with a fully staffed, experienced IT department, the ongoing labor required to deploy version updates and service packs isn’t burdensome.
As an alternative, we can pre-install the requested programs on an appliance server that is added to the customer’s data center. This managed option is billed on an annual basis, so it has a lower up-front cost. The level and types of support and maintenance that come with this managed agreement are determined based on the client’s requirements.
What about HR?
HR often doesn’t have the final say in which option to choose. Fortunately, your experience of using this onboarding automation software should be the same regardless of whether it is run on site or delivered via the web. This includes the ability to easily add new forms and data panels as needed.
When might this approach be appropriate? One determining factor is how much responsibility a company’s IT department wants to take for the software - and how much control they want to exercise. For example, they may have a risk management policy that precludes storing sensitive data on off-site servers. Or, they might simply want to have more ownership of each aspect of BPM development and integration.
Solutions are On Hand
There are a couple of different ways IT can meet these objectives with Emerald Software’s products. We offer both a licensed agreement and a managed arrangement. With an on-premise license, our software is run on client provided equipment. Upgrades and support can be negotiated separately from the perpetual software license. For a business with a fully staffed, experienced IT department, the ongoing labor required to deploy version updates and service packs isn’t burdensome.
As an alternative, we can pre-install the requested programs on an appliance server that is added to the customer’s data center. This managed option is billed on an annual basis, so it has a lower up-front cost. The level and types of support and maintenance that come with this managed agreement are determined based on the client’s requirements.
What about HR?
HR often doesn’t have the final say in which option to choose. Fortunately, your experience of using this onboarding automation software should be the same regardless of whether it is run on site or delivered via the web. This includes the ability to easily add new forms and data panels as needed.
Who Should Be On Your Acculturation Team?
Workforce.com has an article up this week that is very relevant to acculturation onboarding. Author Kris Dunn (from the HRCapitalist website) has figured out the number one question to ask on employee engagement surveys to improve your corporate culture. It cuts through all the obfuscation and gets right to the heart of the matter. That $100,000 question is basically:
“Other than your current manager, if you could pick any manager in any department in the company to work for, which one would it be and why?”
Dunn speculates that the information you collect from this survey question would be a real eye opener. Coworkers talk amongst themselves and they all know who has the reputation as being the best boss to work for. However, what they value in a manager may be totally different from what business owners think of as most important. Getting a solid read on what rank and file workers want to see as far as management style and behaviors go offers insight into how to train current and future leaders for your company.
Developing Effective Onboarding
The “popular” managers are also the ones you want working with HR to develop your acculturation onboarding program. These talented and skilled individuals have created loyalty among their direct reports and gained the admiration and respect of employees who don’t even work for them. That’s the spirit you want new hires to get a sense of even before starting their first day on the job. The people your employees identify as top managers can be involved in everything from designing welcome materials to suggesting improvements to the mentoring program. Take a look at the features available in our Acculturation Portal to start brainstorming ways for your team of top managers to get involved with this onboarding creation process.
It Doesn’t Stop with Onboarding
Kris makes an excellent point that once you hand a new employee over to his/her manager you lose control over the acculturation process. You can do your very best to make the experience in HR wonderful, but it’s no good if the freshly hired employees get a rude awakening when they reach their department. So, once you have figured out what your best-liked leaders are doing right, it’s time to develop your other managers to meet this higher standard. If you want to turn great onboarding into great long term retention, that’s an essential part of the picture.
“Other than your current manager, if you could pick any manager in any department in the company to work for, which one would it be and why?”
Dunn speculates that the information you collect from this survey question would be a real eye opener. Coworkers talk amongst themselves and they all know who has the reputation as being the best boss to work for. However, what they value in a manager may be totally different from what business owners think of as most important. Getting a solid read on what rank and file workers want to see as far as management style and behaviors go offers insight into how to train current and future leaders for your company.
Developing Effective Onboarding
The “popular” managers are also the ones you want working with HR to develop your acculturation onboarding program. These talented and skilled individuals have created loyalty among their direct reports and gained the admiration and respect of employees who don’t even work for them. That’s the spirit you want new hires to get a sense of even before starting their first day on the job. The people your employees identify as top managers can be involved in everything from designing welcome materials to suggesting improvements to the mentoring program. Take a look at the features available in our Acculturation Portal to start brainstorming ways for your team of top managers to get involved with this onboarding creation process.
It Doesn’t Stop with Onboarding
Kris makes an excellent point that once you hand a new employee over to his/her manager you lose control over the acculturation process. You can do your very best to make the experience in HR wonderful, but it’s no good if the freshly hired employees get a rude awakening when they reach their department. So, once you have figured out what your best-liked leaders are doing right, it’s time to develop your other managers to meet this higher standard. If you want to turn great onboarding into great long term retention, that’s an essential part of the picture.
Acculturation Onboarding Mid-Project
One of the main goals of acculturation onboarding is to speed new hires to productivity. With a job (such as entry level retail) that consists mostly of repetitive tasks, this can be done with a standardized training program. Once you’ve designed or selected a series of learning modules for that position, you can simply give new hires access and track their progress. However, with a more complex job that involves collaboration with others on a major project, the acculturation process may need to be more specialized.
In addition to introducing a new employee to his/her role within the department, it is necessary to provide an overview of where things stand on any current projects. For example, a new hire in an Engineering or R&D department would need to understand the phase of development or testing of each product currently in the pipeline. A sales employee might require a crash course in the current marketing/branding initiative.
Creating a Foundation of Knowledge
An agile onboarding solution that permits interfacing with other applications is an ideal solution in these situations. It should be relatively simple for a departmental director to conference with HR and update introductory modules to include relevant information on current departmental assignments. This might be as simple as uploading a pdf containing a project overview to the resource library. Or, it could include granting access to a third party educational program that other team members have already gone through in preparation for their participation in a project.
Obviously, the actual project details will be covered during meetings and in-person training. But when new hires go into their first departmental meeting with a grasp of the basics everyone benefits:
- Management won’t have to spend time explaining the fundamentals of the project
- The new hire will feel competent and ready to ask clarifying questions
- HR will have done its part to prepare the employee to succeed.
When a key employee is replaced in the middle of a major project, this type of customized acculturation can significantly reduce the loss of productivity when a new hire comes on board. With the AllegroHR Acculturation Portal, creating a customized learning environment based on specific job assignments can be done efficiently – ensuring that time is actually saved.
Tuesday, September 7, 2010
Acculturation Onboarding & Employment Agreements
Many companies are faced with a dilemma during onboarding when it comes to employment agreements. On one side of the issue is the desire to fully protect the organization's best interests at all costs. This is very evident in the way non-compete and intellectual property policies are written. Some employers take unprecedented ownership of every innovation an individual comes up with (whether at work or at home) as long as that person is an employee.
Who Owns an Employee's Creativity?
This has led to some hotly contested court cases over what a company can lay claim to and how. A recent case involving an employment agreement came down to a dispute over the exact wording used. In this situation, a worker claimed that his employer did not own an idea he came up with. The extensive agreement he signed did refer to inventions, designs, improvements, developments, processes - even "know-how". The employer's HR attorney must have cringed at having forgotten to include "ideas" on that list.
Of course, when employees are working in R&D or Marketing, the use of employment agreements makes sense. There is a high likelihood that an employee will come up with a useful and lucrative concept at some point. At the same time, workers in these fields are often well compensated so it can be argued that requiring such an agreement is not unfair or unduly restrictive.
However, there is some debate over whether every person in an employer's workforce should be required to sign such controversial agreements (and over exactly how they should be worded). Sure, you can get a new hire to sign almost any policy on their first day just because they are happy to have a job. But, starting people out by making them feel like they are signing away all their rights isn't necessarily going to endear you to them later on.
Acculturate Employees So They Want to Share
Is there a missing piece in this puzzle of how to get employees to value the success of the company they work for? In a recent Workforce Management interview with Dov Seidman, some interesting points about this "fortress" mentality on the part of employers came up. Seidman recommends encouraging compliance with policies that benefit your company by using inspiration rather than punishment/reward systems or authoritarianism. In this type of corporate culture, your employees would naturally bring their ideas and innovations to you rather than shopping them around to the competition.
This is one reason why acculturation is just as critical as gathering policy acknowledgement signatures in transactional onboarding. Your new hires should be introduced to a company that is interested in creating a win-win situation for everyone. Using the AllegroHR Acculturation Portal is a great way to start this process since it allows you to immerse new hires in your organization's history, current mission, and vision for the future in an easy-to-access online format.
Tuesday, August 31, 2010
Acculturation Onboarding for Executives
Are you bringing in a new addition to your C-suite? Onboarding an executive can be a pretty involved process. These are often the only individuals in a company who are hired under contractual instead of at-will employment terms. Hammering out the fine print and ensuring all agreements are clear is an important part of the transactional portion of onboarding. Then, there is the acculturation side of things.
An executive is actually responsible for helping create the company culture - as well as upholding the norms and expectations that are already in place. Here are some ways to use the acculturation process to set your new executive up for success as a leader in your organization:
Networking at the Top
An executive needs to be integrated into the company hierarchy starting at the top. Arranging a conference with the newly hired executive's peers can help start things off on the right foot. Department directors should be included in discussions about the role of the new executive to ensure that the importance of interdepartmental collaboration is emphasized early on.
Connecting with Middle Management
Arranging for an in-person group introductory meeting with managers and supervisors sets an example for good communication. This is especially effective if one or more helpful suggestions from the managerial staff are implemented by the new executive within his or her first 2 months on the job. Creating a reputation for taking advice from those who have been around long enough to "know the ropes" is a good precursor to making other changes that the executive may feel are necessary for improving operations.
Getting to Know the Troops
The exec should also be introduced to your rank and file employees. At a large company (or one with multiple locations), this can be done online. A podcast, a video introduction, a guest post on the corporate blog, and other social networking tools can be used to make the executive approachable. With the AllegroHR Acculturation Portal, uploading fresh content is a simple process that can be carried out whenever a change at the leadership level requires updated messaging. Having your executive go through the same process of online tutorials and orientation as your entry level employees can also be helpful in making sure the new exec fully understands your HR branding and how workers perceive the company.
Organizational Personality and Acculturation
The way your company goes about acculturating new hires has a lot to do with what type of "personality" your organization has. Author Vincent Natoli wrote an interesting whitepaper titled "The Organizational Personality & Organizational Performance" that offers a brief overview of workplace outcomes that are linked to different types of corporate cultures. Here's a look at each one and how acculturation onboarding could be improved in each situation.
Coercive
This type of organization is highly authoritarian and gains compliance from employees through punitive action. A new hire is likely to be called out publicly and berated for making mistakes instead of receiving constructive criticism in private to improve performance. Absenteeism, high turnover, bullying, and litigation are some of the negative outcomes that correlate to a coercive work environment. Using positive reinforcement instead of punishment based incentives and giving new hires more agency in decision making is one way to improve the onboarding process for this type of organization.
Normative
Non-profit businesses and religious organizations that rely heavily on volunteers tend to seek compliance by appealing to values that the members hold in common. Employees are encouraged to participate in decision making. There are a number of positive outcomes that are associated with this "personality" including job satisfaction and commitment. Oddly, this type of organization is also noted for retaliating against whistle blowers - perhaps because the high level of socialization leads to management feeling betrayed if someone is "disloyal" and goes outside the group to resolve a problem. Onboarding for new hires should ensure that rights and expectations are fully explained so the work environment remains professional while still being productive.
Utilitarian/Remunerative
According to Natoli, this in-between category is where most businesses fall. This type of organization promotes compliance by rewarding employees for performance. This practical approach may be supplemented by disciplinary action under the punitive model or enhanced by socialization under the normative model. New hires need to receive detailed orientation information on how their performance will be measured and what types of incentives they can take advantage of for career advancement.
No matter what organizational personality your company is aligned with, you can use the AllegroHR Acculturation Program to help new hires understand both the written and unwritten behavioral expectations in your corporate culture.
Acculturation Onboarding For Moms (Or Dads) Returning To The Workforce
If you've been keeping up with the latest from Workforce.com, you may have read the recent article on stay-at-home parents who are transitioning back into the world of work. Women who have been sidelined for several years (or a couple of decades) by motherhood are a particularly sizeable group about 5 million strong. Many are looking for jobs now because their household income has fallen due to a spouse being laid off. Other moms are looking to get out of the house and land a career that offers payment and recognition - perks that are often sadly lacking in the endless job of being "mom".
If you are tapping into this talent pool of parents who are returning to the workforce, it's important to ensure their acculturation onboarding is a top priority. These highly motivated new hires are looking for a sense of connection with their coworkers and your organization as a whole. They also generally have a desire to excel as soon as possible and will be eager to access the tools to make this happen.
Connect On Values
Parents want to leave this world a better place for their kids and grandkids. This means they resonate with company values that stress community responsibility, sound planning for the future, and environmental sustainability. Make sure your HR branding and onboarding put these concepts front and center starting with the welcome letter and/or introductory video. Take advantage of the customizability of AllegroHR products to add links, text, and images to data panels that send a consistent message about your mission statement throughout the acculturation onboarding process.
Provide Pertinent Tools
Individuals who have been out of touch with the work world for a long time may have to get up to speed before becoming fully productive. They need access to plenty of information and in-depth learning modules. Make sure appropriate skill testing is performed early on to identify areas that could use improvement. The stay-at-home parent demographic is eager to get back into the groove and jumpstart their careers. The more readily available self-paced learning materials are the better. With Emerald Software Group's single sign-on approach, new hires can instantly access both in-house and third party training starting on their first day.
Wednesday, July 28, 2010
Acculturating for Policy Compliance
The current issue of Workforce Week highlights the fact that transactional and acculturation onboarding are really inseparable when it comes to compliance. Reducing risk by making sure that all forms are completed correctly and signed appropriately is only part of the picture. Ensuring that employees (especially managers) fully understand what is expected of them and that they are motivated to comply is essential.
Author Stephen Paskoff reveals that the federal government expects more than signed policy acknowledgements from companies that are looking to sidestep liability for an employee's unethical or illegal behavior. Instead, the U.S. Sentencing Commission is looking for practical, firm enforcement and an overall culture that promotes compliance. Encouraging appropriate behavior has to be an obvious priority within a company's structure and practices. So, if "on the ground" leadership is being pressured to ignore policy for the sake of getting things done or if some employees are routinely given a pass on questionable actions, this must change.
Acculturation Onboarding Can Help
Having new hires attend a training class doesn't qualify as putting forth a sufficient effort on the part of employers. Presenting information is great, but following up and making sure it is absorbed is crucial. With the AllegroHR Acculturation Portal, it is possible to analyze new hire's retention and understanding of any and all company policies from permissible technology use to anti-harassment and safety training. Scheduling these follow up tests and surveys over an extended period of time and providing refresher courses as needed is one example of how to take compliance seriously.
The information should always be accompanied with practical advice on what to do if the employee witnesses a violation of policy. HR and management must have an action plan in place that they follow rigorously whenever a worker makes a report. There should also be proactive steps that the company takes to monitor and ensure compliance at all levels (with no one exempt from the rules).
Since the AllegroHR acculturation platform is highly adaptable, video and interactive modules may be included to provide "real life" examples or case studies of what happens when an employee fails to comply with rules. Seeing the far ranging impact on the company, coworkers, and one's own job can help make new hires take this more seriously - but only if they see the same attitude reflected in the actions and decisions of management.
Acculturation Onboarding for Executives
Are you bringing in a new addition to your C-suite? Onboarding an executive can be a pretty involved process. These are often the only individuals in a company who are hired under contractual instead of at-will employment terms. Hammering out the fine print and ensuring all agreements are clear is an important part of the transactional portion of onboarding. Then, there is the acculturation side of things.
An executive is actually responsible for helping create the company culture - as well as upholding the norms and expectations that are already in place. Here are some ways to use the acculturation process to set your new executive up for success as a leader in your organization:
Networking at the Top
An executive needs to be integrated into the company hierarchy starting at the top. Arranging a conference with the newly hired executive's peers can help start things off on the right foot. Department directors should be included in discussions about the role of the new executive to ensure that the importance of interdepartmental collaboration is emphasized early on.
Connecting with Middle Management
Arranging for an in-person group introductory meeting with managers and supervisors sets an example for good communication. This is especially effective if one or more helpful suggestions from the managerial staff are implemented by the new executive within his or her first 2 months on the job. Creating a reputation for taking advice from those who have been around long enough to "know the ropes" is a good precursor to making other changes that the executive may feel are necessary for improving operations.
Getting to Know the Troops
The exec should also be introduced to your rank and file employees. At a large company (or one with multiple locations), this can be done online. A podcast, a video introduction, a guest post on the corporate blog, and other social networking tools can be used to make the executive approachable. With the AllegroHR Acculturation Portal, uploading fresh content is a simple process that can be carried out whenever a change at the leadership level requires updated messaging. Having your executive go through the same process of online tutorials and orientation as your entry level employees can also be helpful in making sure the new exec fully understands your HR branding and how workers perceive the company.
Monday, July 19, 2010
Teen Workers Need Good Communication for Acculturation
Do you hire high school students on a regular basis for part time or seasonal work? These employees need to be brought onboard with an eye toward the particular needs of their age group. This includes making the most of their youthful enthusiasm while taking into account that they may quickly lose interest in a new job. An exciting, informative acculturation onboarding experience can go a long way toward creating loyal employees out of teens who would otherwise see their job as simply a way to make some extra spending money.
Why is It Important to Make a Good Impression?
Responsible, hard working teens tend to hang out with peers who have the same characteristics. If you can convince your best teenage employees that your company is a great place to work, they will tell all their friends. Then, you won't have any shortage of high quality candidates to choose from to fill your open positions. The millennial generation really knows how to spread the word via social networking. You don't want your company to be featured on an employee's Facebook page under the heading "My new job sux!" So, make sure it doesn't.
Give Teens a Voice Internally
Since young people aren't always careful about what they say, asking them to comment publicly on a corporate blog may not be the best idea. However, they should have an online forum where they can vent without it being broadcast to the whole world. Invite teen employees to comment on the company's private discussion board to make suggestions for improvements in the work environment or processes.
Assign an HR staff member to follow up and respond to all comments within 48 hours so teens don't feel like they are being ignored. Make sure you have forum rules posted to prevent flame wars and to ensure compliance with all company policies regarding harassment and discrimination. This is SOP for most online forums, so enforcing these boundaries will generally be viewed as reasonable - even by teenagers.
Once a month, highlight the best suggestion on the corporate intranet website along with details about what the company is doing to make it a reality. This is a particularly effective approach for businesses with more than one location. It gives teens a sense of connection with other workers and makes them feel like part of an even larger team.
Wednesday, July 7, 2010
Immigration and Onboarding: Acculturating New Hires From Other Cultures
The U.S. currently hosts a thriving immigrant population from all over the world. In 2009, over 740,000 of these individuals became naturalized citizens. Many more are here as permanent residents or have other types of legal status that permit them to hold jobs in the U.S. workforce. Some have been living here for decades while others have just arrived on our shores looking for opportunities to make a better life. This July 4th week is a great time to talk about how employers can make these employees feel at home and integrate them into the U.S. workplace culture.
Diversity in Onboarding Starts with Language
On the transactional side of onboarding, making policies and forms readily available in a new hire's first language is the first step toward building trust and respect. When foreign born workers are met on their first day with an accessible onboarding experience (without having to jump through hoops) this sets the stage for good communication.
Policies Must Be Clear
A strong anti-harassment training program should be presented to all new hires highlighting the fact that discrimination based on national origin or ethnicity will not be tolerated. HR should take care to ensure that immigrant employees are aware of the complaint procedures to follow in the event an issue arises with a coworker.
Choose Enrichment Rather Than Conformity
Employers should bear in mind that foreign born employees (just like U.S. born workers) inevitable bring their own expectations and customs to the workplace. This can be especially evident if they live in an extended immigrant community that keeps their original language and traditions alive. An acculturation onboarding platform that permits the creation of individualized profiles is a great place for employees to introduce their coworkers to some interesting facts about their birth culture.
Some workers from other countries may express a strong desire to assimilate. They want to fit in and not have others focus on what sets them apart. However, others feel proud of their origins and aren't just here to learn to be "completely American" (whatever that might mean). Both attitudes should be respected and supported. Sensitivity and diversity training can help - especially if information is presented in a way that makes sense to U.S. born employees who haven't necessarily traveled to other countries.
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