Thursday, March 24, 2011

Making The Case For ESS And Onboarding

Hagel and Company have put together an excellent article on how to build a business case for buying HR software. The arguments they make are designed to convince executives to invest in HR technology such as ESS even when the economy is taking a beating. Here are their arguments and some thoughts about how implementing an ESS and Onboarding at the same time might be an even smarter move.


HR Software Must Align With Business Goals

Pretty much all businesses want to increase productivity while lowering costs, so that’s a good goal to align your HR software purchase with. Reducing or eliminating paper forms is one way an ESS can help achieve this goal. It also means each employee is responsible for making updates to his/her own data directly in the database, saving HR the trouble of rekeying data into the HRMS.

Sound familiar? Yes, Universal Onboarding does the same thing from day one when most employee paperwork is typically generated. When you use automated onboarding, new hires will naturally adopt use of the ESS as well. It promotes a DIY culture that can minimize routine employee queries to HR. Interfacing onboarding directly with an ESS portal means no extra work for HR in setting the new employee up in the system.

Stop Wasting Time

Hagel and Company point out that 80% of HR’s time is spent on low value, routine processes. They don’t mention where they got that statistic, but even if your organization only spends 50% of HR’s labor hours on repetitive admin, that’s too much. Automating the transfer of ESS and onboarding data into an HRMS or other back end systems saves HR time and reduces errors. The time saved can be used to mine data from these applications to be used in developing better HCM strategies.

Positive Framing is Essential

Check out the full article for how the author suggests framing your business proposal. It involves steps like identifying the functional requirements for the system, explaining the shortcomings of your current system, and more. One step that differs is the ROI calculation. The author mentions the costs being loaded at the front end. That’s true for traditionally licensed software. With SaaS, the costs remain constant (and affordable) over time.

Combine Your Efforts

With either approach, there will be a time investment with IT and HR to implement the onboarding software. The time commitment varies depending on the number of integrations required. Assessing onboarding and ESS at the same time makes it possible to ensure the systems are compatible (Universal Onboarding is compatible with most ESS portals). Plus, rolling the two projects into one might make it easier to get IT to collaborate.

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