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.
Tuesday, January 4, 2011
Wednesday, December 22, 2010
What HR Executives Want From SaaS
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.
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.
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.
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