Tuesday, May 24, 2011

Is Core HR Changing?

Workforce.com has an article available exploring how the perception of core HR software is changing as new players enter the market. It raises some very interesting questions about how HR processes and functions are evolving. Applications and features that might not have been considered “core” are now viewed as essential by many organizations. At the same time, traditional ways of delivering core HR applications are losing ground. Employers are getting used to the idea of hosting even the most basic aspects of personnel data on an HRMS in the cloud or on a server operated by an SaaS provider.


The most obvious difference between the HRIS of today and 15 years ago is advanced reporting capability. Companies aren’t content to simply use HR to administer a workforce anymore. True human capital management is coming into its own – and the decision-making process is driven by data, data, and more data. A core HR suite that doesn’t provide business insights is missing fundamental functionality.

SaaS Vendors Rely on Affordability to Build Market Share

For large businesses with an established on-premise HRMS, letting go of that substantial investment to go with an admittedly more cost-effective SaaS solution can sometimes be a tough call. There has to be a clear reason to switch based on if the suggested SaaS replacement actually improves HR processes and if it has a good ROI. However, for small businesses just starting up, the choice is a little easier. They can get affordable access to a greater variety of core HR products without having to worry about the IT side of things. Also, they may have fewer concerns about building interfaces with backend systems since their overall IT picture is typically simpler.

Greater Core HR Compliance Is Needed

One area where neither large enterprises nor small businesses can afford to skimp is HR compliance. This aspect of core HR software should be considered just as important as fancy reporting functions. However, many vendors are still lagging behind in building rules enforcement for things like records retention, E-Sign Act compliance, audit trails, and so forth into their applications.

At Emerald Software Group, we’re actually at the leading edge of HR software that focuses on increasing compliance. That’s one reason we consider our Universal Onboarding software a component that should be part of every core HR system. After all, new hire forms are where your HRMS data comes from in the first place. Eliminating errors and omissions in this part of the data collection process should be foundational – not an afterthought.

Monday, May 9, 2011

Why HR Analytics Matter Part 2

This week, let’s continue perusing the Oracle/CedarCrestone whitepaper on HR Analytics. We’ll pay special attention to the ways onboarding practices and software relate to workforce data analysis. At the most basic level, analytics help organizations make better decisions. Information alone doesn’t provide this benefit. The data has to be packaged and presented in a way that makes sense. Otherwise, it’s just numbers.

Efficient Reporting is Essential

That’s why reporting functions play an important role in analysis. With a tool like Universal Onboarding, identifying bottlenecks in the forms completion process is possible because the amount of time new hires spend on each screen is documented. HR can view this information in aggregate and drill down for details to identify places where forms may require additional instructions for faster completion. On the acculturation onboarding side, analytics can be used to show everything from the success of orientation and training initiatives to which socialization activities are most popular with new employees.

The Oracle paper points to several areas of workforce management that are impacted by analytics. Here are a couple that matter most in onboarding:

Acquisition: Best practices in recruitment and hiring form the foundation of a strong workforce. Applicant tracking that highlights which recruiting sources consistently deliver quality talent is one example of HR analytics. In onboarding, analytics support decisions that speed new hires to productivity and lower costs. For example, an analysis might show that training and acculturation through the use of e-learning and other web-based tools is the best choice for a large workforce.

Compliance: Oracle’s focus on compliance deals with diversity and licensing. These are important metrics, but most non-compliance in onboarding is due to incorrect or incomplete forms and missed deadlines for completion/filing. Software such as Universal Onboarding not only allows HR to see that forms are completed fully and on time, it also enforces rules for compliance. This is the logical next step after analyzing current compliance levels. Since adherence to state and federal laws is built into the system, HR can easily compare it with old, paper based practices to see an immediate improvement in administrative processes.

Wednesday, May 4, 2011

Summer Seasonal Hiring is a Hot Topic

Summer is approaching and lots of businesses are taking steps to cope with the influx of customers that is already occurring. Tourist hot spots around the country are definitely getting ready for the peak season. However, closer to home there are also retailers staffing up. Workforce.com points out that warm weather brings out the DIY home improvement crowd in droves. This means industry leaders like Home Depot and Lowe’s are in the market for lots of new talent. These companies have been planning for the big spring and summer hiring push since last fall. The process of hiring tens of thousands of part time workers began in March and is still ongoing.


Quality as Important as Quantity

Customers who go to a home improvement store are usually not there just to browse. They have at least a general idea of what they need – but not necessarily where to find it and which item will work best for their project. New hires in these stores have to learn very quickly how to assist customers. It’s not good enough to have dozens of employees on the floor if only one or two have the knowledge and experience to actually locate products and help customers make smart selections. Home Depot in particular is taking steps to standardize and improve training for new hires. That way, they can fulfill their role without the customer ever realizing they are talking to a “newbie”.

Online Learning Helps

Virtual training tools are making a huge difference in the efficiency and speed of training. Home Depot claims a 90% decrease in the number of training hours required per seasonal employee since implementing its own customized e-learning program. New hires can access their training materials via the web at home or at work and become proficient in basic job skills (like product knowledge and store layout) faster.

Emerald Software Understands Speed

Our Acculturation Portal and Universal Onboarding modules are designed to achieve greater speed to productivity for new hires. These tools make HR’s job easier – especially during peak hiring seasons when getting part time employees up to speed is critical for capturing seasonal revenue. Fortunately, our products are easily adaptable to any business large or small with pricing that makes it affordable for every client.

Monday, May 2, 2011

Why HR Analytics Matter Part 1

At mid-sized to large companies, extensive HR software use is the norm. However, not all programs are created with the same capabilities; and even the best software doesn’t act as an effective business tool if it isn’t being used to its full capacity. Oracle and CedarCrestone have published a whitepaper about HR technology and processes as they relate to driving return on an organization’s human capital investment. The paper naturally focuses on the ways Oracle’s products support the effective use of HR analytics. However, the principles discussed can be used to evaluate your use of any current HR application and help you explore the value of new products.

The Paper’s Conclusions

• Businesses may experience significant losses of talent as the job market improves and employees leave to look for more satisfying work experiences or better compensation.

• Today’s businesses have access to software tools that can identify high value employees and factors that drive satisfaction. Employers need to start leveraging this information to retain talent.

• Businesses can make wiser human capital investments in areas like employee development with the use of more accurate HR analytics.

Survey Results

One part of this paper that you will definitely want to read is the section that offers information about performance for businesses that leverage existing and emerging HR technologies properly. This is the kind of data HR can bring into discussions with C-suite executives to make the case for investing in relevant HR technology. For example, the combination of ESS, MSS, and an automated HR help desk is linked to higher operating income growth compared to businesses that don’t implement these applications. Universal Onboarding is another self-service application that would dovetail well with the trend toward relieving the burden on HR and increasing worker satisfaction.

Next week, we’ll look at the ways HR analytics support best practices and how onboarding fits into the picture.