Executive Considerations for HRIS Investment
While enterprise investment decisions are significant at any time, they are even more so during periods of economic downturn. For most companies, investments in HR are especially critical as they have a profound impact on their most important resource – THEIR PEOPLE. In my experience, the only exceptions are those companies that have an overwhelming advantage based on their intellectual property (IP) and the staff required to implement the strategy becomes a secondary consideration….very few companies enjoy this benefit. The right HRIS solution will save a company substantial time and require fewer resources (in paper and people) to manage existing processes. Bottom-line savings and overall cost reductions are only some of the factors that should be discussed when considering an investment to automate and streamline HR and payroll processes.
A worthwhile HRIS solution will provide the following benefits:
- Enhances employee satisfaction.
- Increases worker productivity.
- Eliminates time consuming and costly errors.
- Simplifies administrative interactions with employees.
In general, the investment should provide the added benefit of making the employees feel like the company is investing in them. This can have an extremely positive impact on employee satisfaction, overall morale and, in turn, retention rates.
Now that we discussed the motivation for HRIS investment it would be useful to mention some important criteria that should be used when selecting a business partner:
- First, and foremost, be sure they will truly be a partner and not just a vendor. Look for proof points associated with previous customer experiences that demonstrate a culture of customer service and good client retention rates.
- Don’t over emphasize the entry price, but rather think about the long term costs associated with the service.
- Be sure the service can be easily implemented and is easy to use and learn so your employees will be able to realize efficiencies and benefits immediately.
- There should be an adequate set of self-service capabilities that will enhance the benefits of the service, leverage the capabilities of the HR department, and eliminate paper processes wherever possible.
- Realistically layout your business requirements, and ensure that the service meets those requirements now and will be there for ongoing support in the future. Be careful not to pay for capabilities you will not use.
In conclusion, most Executives must focus on making their HRIS investments maximize employee morale and overall employee retention rates.