Monday, January 31, 2011

What Do Employers Want To Know About Buying HRIS?

Compare HRIS.com has an extensive knowledge library on HR and Payroll software topics. Some of their articles are more popular than others. So, they’ve taken a look at the top 10 most frequently read pieces. These offer a sneak peek at what business owners and HR decision makers want to know as they shop for HR software. Most of the topics that get lots of hits fall into 3 basic categories: money, IT, and functionality.

Money

There are two things employers want to know about HR software. First, how much will it cost? Second, how much will it save? Smart vendors generally answer both these questions by answering a third: How much is it worth? Author Chris Scroggin points out that it’s nearly impossible to do an “apples to apples” price comparison for HRIS software with an online search. That’s because companies that offer high value software typically choose to demonstrate that value to a customer before going into detail about price. As time consuming as it may be, it really is necessary for software vendors to consult with HR clients to identify their specific needs. Then, vendors can show how their HRIS software can be leveraged strategically to reduce administrative overhead and speed ROI.

IT

Information about how to work with IT in selecting and implementing HRIS is always a big draw for HR professionals. CEO Shafiq Lokhandwala from NuView HRIS Payroll, Inc. offers a tongue in cheek look at this topic in “IT is from Mars & HR is from Venus”. At Emerald Software, we encourage clients to enlist the aid of an HRIS analyst to help bridge the gap between HR and IT. This does wonders for ensuring successful implementation, integration, and interfacing with minimal conflict.

Functionality

As with any complex buying decision, sometimes you just don’t know what could benefit your organization until you realize what’s available. For example, it’s not unusual for an HR client to look at Universal Onboarding and discover that the application addresses compliance issues they didn’t realize they had. So, HR decision makers are looking for information that educates them about what they need and how to get it. It’s also interesting to look at what is important to other employers when they start shopping for an HRIS system. Check out this breakdown (by company size) of what HR typically views as the most and least critical software features.

Monday, January 24, 2011

Why Buying Specialized HR Software Makes Sense

A recent HR software debacle at Wichita Falls ISD demonstrates that applications that try to do too much can be less useful than a series of well designed niche solution. The school’s CFO (Tim Turner) faced some tough questions recently from school board members about their $1 million investment in software from Prologic Technologies. The suite they bought includes such features as grade tracking, core HR, and paycheck issuance. That’s a pretty diverse range of functions to include in one software package.


Three years into the implementation, the WFISD’s CFO is very displeased with how much time he has to spend every week administering the software. He’s especially tired of dealing with glitches that cause misprints on paychecks. Turner admits that these problems usually crop up when there are errors or omissions in the information entered on the HR side. Since how teachers (especially substitutes) are paid can vary depending on many factors, getting the data right is challenging. The system apparently doesn’t include built in rules to help ensure that information is entered correctly.

Software Doesn’t Offer Full Functionality

One issue that the software vendor definitely should have addressed by now is the fact that Turner can’t generate the reports he really needs. This limits visibility into budget management – a huge concern for pretty much every school district in the country. The WFISD suspended payments to Prologic months ago because of ongoing dissatisfaction with the software’s performance. They want to give the vendor one last chance to get the bugs fixed. If that doesn’t happen, they plan to cancel their contract and review the original bids they received from other vendors in 2006 to find an alternative solution.

Why Looking at Outdated Quotes Isn’t Likely to Help

Given how fast the software landscape evolves, that might not be the best approach. To really get what they need, the board should take a fresh look at their specifications and expectations and clarify their requirements. The valuable lesson WFISD can learn from this experience is that they need to work with a vendor who understands the special challenges of the education industry and can create a tailored solution.

They may not be best served by a single provider either. Instead, they may want to have each function serviced by a separate SaaS vendor (with appropriate interfaces between applications). This could entail a couple of benefits. First, they won’t get so enmeshed with one vendor that they are stuck spending years putting up with less than satisfactory customer service. Second, they can select Best of Breed applications that limit human mistakes. As we’ve demonstrated with our Universal Onboarding software, eliminating errors and omissions is just a matter of making this a priority in the design stage.

Thursday, January 20, 2011

Interesting HR Software Acquisitions

If your organization does business with any of the major players in the HR software industry, you may see some new product offerings in 2011. Last year, a large number of firms made strategic acquisitions of products to add to their portfolio of applications. Here’s a quick look at a few that made the news:


Epicor Acquires Spectrum
This is a significant acquisition for a couple of reasons. It is a blending of separately developed Enterprise Resource Planning and Human Capital Management solutions to be distributed now through a single vendor. Epicor, in choosing to buy Spectrum is showing that web-based HR software is viewed as adding value to the business services software the company makes available to clients. Epicor is leveraging cloud computing and SaaS to make this end-to-end solution highly accessible for a global customer base.

Lawson Absorbs Enwisen
Another SaaS acquisition that hit the news in December is HR software provider Lawson buying Enwisen. Previously, Lawson was reselling Enwisen’s services to its clients. So, they knew the demand was healthy. The addition of this Employee Self Service application rounds out the company’s suite of HR and business solutions.

Administaff Buys OrgPlus
In an example of an HR services firm outside the software field buying up valuable tools, Administaff purchased the OrgPlus line of applications from HumanConcepts. This gives the PEO firm a useful tool to assist clients in planning and modifying their organizational structure. Mid-sized and small businesses may benefit from having access to this application to determine their staffing (or employee leasing) needs on an ongoing basis.

Buying Frenzy Still Ongoing

That’s just brushing the surface of all the deals that went down in 2010. Workforce Management has an overview of additional acquisitions in the talent management field. One aspect of all this buying and selling that may impact customers is the fear of service disruption. Fortunately, with web-based applications the transfer of responsibility from one vendor to another is often easier than it would be with on-premise licensing.

What is clear is that suite HR software vendors know there are still many niche product out there that are better than what they are currently offering their clients. That’s why they are rushing to buy them up. At Emerald Software Group, we take a slightly different approach. We focus on partnering with other firms that are offering their own Best of Breed products that interface with our AllegroHR applications. That way, our clients can choose exactly the services they need for their specific industry without paying for anything they don’t need.

Tuesday, January 18, 2011

Cloud Computing Primed For Expansion

In 2010, HfS Research and the London School of Economics surveyed over 1000 organizations about their outlook on Cloud Computing in the business software sphere. The results clearly show that top level executives are buying into the concept of the cloud in record numbers. What’s interesting is that CEOs and COOs appear to be even more excited about this technology than CIOs are. They view the benefits of outsourcing portions of their IT infrastructure management and tapping into the Best of Breed applications available as the result of low-cost software development as key for promoting more cost-effective business practices.

This doesn’t mean IT executives are hesitant about adopting cloud-based software. In fact, according the HfS survey results, 1 out of 3 CIOs anticipate using a significant portion of their IT budget on cloud based business services in the coming year. Mid level IT managers are a little less eager to see their organizations make the switch. This might be because the need for employers to keep managers on staff to supervise low level IT personnel will decrease as more day-to-day maintenance functions are outsourced to cloud providers. Organizations may be looking to pare down their IT staff to a few good strategic planners and savvy trouble shooters. This, in turn, may make things easier for HR by reducing the demand for a steady stream of IT hires (a field where demand often outstrips availability of talent).

What Do Leaders Find Attractive about Cloud Services?

Both general business executives and CIOs are attracted to the cloud for many reasons.  However, interest from non-IT executives is particularly high when it comes to the following benefits:

• Faster implementation of mission critical, best in class software applications that would have been unavailable or too difficult to access using a legacy system

• Less reliance on IT to create custom applications that support business goals

• Money spent on IT actually being used to improve business processes throughout the organization

Emerald Software Group has been keeping up with the latest trend by making applications such as Universal Onboarding available on one of the industry’s leading cloud platforms. You can read more about the benefits of the cloud approach to onboarding over at Chuck’s blog.

Friday, January 14, 2011

Is Fast HR Software Right for Your Business?

Workforce Management has an interesting article online about the ways HR gets bogged down when it comes to software development. The piece focuses on a new concept called “Fast HR”. This approach to the development of training materials and other HR applications is based on the idea that it’s better to have something usable in a short time frame than something perfect that takes so long to complete that it is outdated by the time it goes live.


One software expert interviewed for the article noted that it can take almost a year of preparation to create a 1 week instructional course. That’s just too long when an organization’s needs change rapidly. In another example of the snail-pace of some HR processes, survey data collected from employees at large organizations may take months to analyze. By the time the results are turned into a final report, they are no longer representative of the current opinions of the workforce.

Fast HR Requires Clear Thinking

The key to shortening the time required to roll out new processes involving customized HR software is to focus on what’s important. In the software development industry, there’s a project management method called Scrum that offers a peek at how this works. This process includes making a wish list of required items, prioritizing them, and working in short bursts on the most critical pieces. This ensures that no matter when the project ends, it has resulted in the production of a useful solution.

For this approach to work in HR, an organization must be very clear on the goals of its software. That’s because it simply isn’t possible to include everything when using this agile development method. It also isn’t realistic to expect the results to be error free. This means that HR has to have a platform in place for receiving feedback about any issues employees experience in using a particular tool. Then, there has to be a commitment to follow up and fix the problems.

Pros and Cons

The benefit of this continuous approach to software development for HR is that it provides a solution quickly to move an organization toward achieving its objectives. The downside is that it is requires ongoing resources and attention. It will never be truly “finished”. Of course, with a field that keeps changing as fast as HR, no application ever outgrows the need for revision and updating.

Emerald Software Solutions

Both the Universal Onboarding and Acculturation Portal we offer lend themselves to ongoing customization. HR can add panels on an as needed basis – starting with the most important. Typical times to implementation are in line with Fast HR methodology while still promoting a high level of compliance.

Friday, January 7, 2011

Buffet Style Product Selection A Benefit Of Web 3.0 HR Software

Robert Grey at Human Resources Magazine offers an in-depth look at cloud computing and how it will impact both software vendors and purchasers in HR. One area where web 3.0 applications may come out ahead of traditionally licensed suite software is in the way services can easily be split up and sold separately. The big names in HR software still focus on providing entire suites of applications. That’s a selling point for some employers. They want one-stop shopping for all their HR software and believe having it all sourced from a single vendor will make it easier to maintain. The up side for these vendors is that they capture all of an HR customer’s business and can sell them a bundled package that includes all (or most) of their applications.


Why Pay for What You Won’t Use?

The downside (from Grey’s perspective), is that many HR departments don’t really need all the modules they are being sold. So, they may end up paying for stuff they really won’t use. This doesn’t line up well with the drive toward lean and streamlined processes in other areas of business. As HR begins to rethink its software budget in light of which precise products it really requires, the perceived wisdom of purchasing a whole system may change dramatically.

Some traditional HR software suppliers are catching on to this by permitting HR clients to pick and choose from among their product offerings. However, this has only made it more apparent that the individual components of some of these suites lack the type of functionality HR is looking for. This leaves the field open for best of breed web 3.0 HR software providers to serve this growing customer base. Some employers may even choose to invest in their own PaaS platform that permits IT to develop specialized HR applications internally at low cost. Grey doesn’t see cloud base applications as replacing core HR systems. However, the future looks very bright for niche solutions such as new hire onboarding that can be readily interfaced with an HRMS.

Tuesday, January 4, 2011

Microsoft Talks SaaS

Microsoft is a leading force in the cloud computing revolution, so it’s not surprising that they have an interest in educating consumers about Software as a Service. Their knowledge library includes helpful information for IT departments exploring the benefits of SaaS. The material presented is straightforward enough for decision makers outside of IT to grasp easily as well. So, it’s a good resource for HR directors and VPs who want a crash course on the topic.

Risk Reduction

One of the first areas addressed in the MS article on SaaS is on reducing risk for IT in software selection and implementation. Acquisition and deployment is a risky process for IT. Rolling out an enterprise-wide system is complex, time consuming, and costly. With on-premise software acquisition, it is not unusual to get partway into the project and discover that it will be significantly more difficult and expensive than originally assumed. However, it is often too late to turn back at that point because a substantial investment has already been made.

Implementing SaaS isn’t always a walk in the park, but it is much easier to walk away from an SaaS deployment if it isn’t working out. This increases the chances that the final outcome will be satisfactory rather than a compromise that was reached just to put a cap on a project that is turning into a “money pit”.

IT and HR Both Stand to Gain from SaaS

Microsoft makes a good point that SaaS offers IT an opportunity to shift its focus from administrative tasks such as maintaining software to more strategic initiatives. Instead of spending all its resources on supporting the software applications, IT staff can turn its attention to ensuring that the applications in question are actually aligned with the business objectives of their organization.

In the case of Universal Onboarding software, SaaS delivery accomplishes the goal of creating greater efficiency for both IT and HR. With this application delivered via the web to handle new hire processing, IT and HR can spend less time trouble shooting and responding to crises and more time finding ways to increase performance, productivity, and workforce satisfaction.