The Puzzling World of HR Technology

After assisting multiple clients with the system selection process I always get a bit surprised when the process seems to bog down the closer we get to the demo.  Historically, we spend a lot of time in Discovery, interviewing staff and collecting requirements.  Then we create a RFI or RFP so we can evaluate the vendors in order to invite the strongest three (3) vendors to demo.

Once the RFP is completed, we usually begin working on the demo script.  Often I do get queries from a client as to why we need the script and just don’t schedule the vendor in to “show us the system.”  After some discussion, everyone usually begins to understand that you would not take a trip without a good map or plan, and that is exactly what the demo script will provide.  It assures that those attending the demo will see the same functionality from each vendor and be able to better compare each vendors system performance.

The demo script for any system should be created in a life cycle flow.  For an PR/HR system, as an example, you would start with recruiting, then to employment, to benefits, compensation, Payroll and on through the termination process.  Then you can look at reporting and system set-up.  I usually suggest that there be an agenda for each section of the demo so various members of staff can come into the demo on features which will impact their area of responsibility.  The one thing I normally stress with a client is that everyone be in the same sections for all demos.

Usually I recommend that items on the demo script also be weighted with a priority.  This allows you to weight the scoring after the demo is done and put more focus on the items which are critical to the running of the company.  It does help in creating a Vendor Comparison Report which will show in one page the major areas of the demo and how well each vendor did to the requirements.  The Vendor Comparison Report and the Decisions Drivers are usually the key elements used to select the vendor of choice.

There is a lot of activity going on during the development of the demo script and coordinating the actual demo. I recommend that companies look at using an outside resource from HRchitect to assist with these tasks.  This resource will allow the full client team to be focused on the demo and not on the administration.  If you have any questions about the demo, be sure to ask your HRchitect representative on how they can help make the demo a smooth process.

It has been a very active couple of weeks in the acquisition market for HR systems.  This has sparked many discussions and conjecture within the HR systems industry on how these acquisitions will effect the future of the HR systems market.  While much has been discussed, it is still too early to fully know the impact to the final look and feel of the product.  What appears is that the major ERP players are moving into Software as a Service (SaaS) and, as predicted, there will continue to be consolidation in the HR systems market.

Every time there is a major merger or acquisition announcement, I continue to get calls and emails from HR professionals asking about how these changes will impact their system.  Even if you are not a client of the acquired vendor, the acquisition can impact your currently used technology.  The acquisition could have a profound change in the direction of the specific genre of software or it could result in an entirely new product being developed which will scientifically change the way HR technology is used.  The one thing that is certain, the changes we have seen will continue to occur.

To better prepare yourself for changes in the market, it is very important you have a full understanding of the technology you are using and what are the plans to interconnect the technology.  If you have not created a HCM technology strategy, now is the time to consider the undertaking.  If you do have a strategy, you may want to revisit your original assumptions during the creation to assure that your plan is still viable.  I realize that undertaking such an exercise in a time of smaller staffs can be difficult, but the payback with a solid strategy can help avoid any costly mistakes.

When updating any strategy it is best to get input from system experts.  This can come from organizations such as IHRIM or from reliable consulting firms such as HRchitect.  The knowledge you can obtain from outside resources can eliminate hours of research for you.  When updating your plans to address changes in the HCM technology future, consider using outside resources.  You will save time and update your plan to include the impacts of the recent software mergers and acquisitions.