| A Seven-Step Plan for Selecting Human Resources | | | | Step #4: Establish Reporting Requirements |
| and Payroll Management Software that Meets Your | | | | Look for a HRMS solution that has a significant |
| Company’s Needs Now – and in the | | | | number of preformatted reports (with user-defined |
| Future | | | | sorting and presentation features) that will meet most |
| The Need for Automation | | | | of your standard detail and summary reporting |
| Automating workforce management using integrated | | | | requirements. In addition, make sure that the program |
| HR and payroll software is imperative for companies | | | | has a built-in custom report writer or is compatible with |
| that want to control costs by increasing efficiency, | | | | software such as Crystal Reports® so you can |
| reducing the risk associated with errors, and securing | | | | design the additional reports needed to satisfy your |
| their place in a competitive talent market. | | | | company’s unique reporting needs. |
| A Roadmap to HRMS Selection Success | | | | Step #5: Identify Forward-Looking Technology |
| Choosing a HRMS solution that meets your | | | | If you want this conversion to new HRMS solutions to |
| company’s needs now – and in the | | | | truly be your last, align with a solution provider that has |
| future – doesn’t need to be daunting. | | | | documented plans to continually enhance its products |
| With a bit of pre-planning and a methodical approach | | | | to meet the ever-changing requirements of |
| to due diligence, you can quickly narrow your choices | | | | today’s business environment. In short, find out |
| to create a technology shortlist that is deserving of | | | | what capabilities are currently in development or |
| further evaluation. | | | | planned for the near future. |
| Although there are many variables that go into making | | | | |
| a final decision, this discussion outlines seven key steps | | | | Step #6: Evaluate the Vendors as Technology |
| to evaluating HRMS solutions to integrate your critical | | | | Partners |
| HR and payroll processes. By using these seven steps | | | | Although it may be tempting to choose a HRMS |
| as your initial evaluation roadmap, you will increase | | | | based on number of installations or market share, |
| your chances of successfully achieving your HR and | | | | these factors don’t guarantee success. A large |
| payroll automation goals and selecting the system that | | | | company with tens of thousands of clients (or more), |
| provides the best overall value. | | | | for example, may have problems meeting even your |
| Step #1: Set Realistic Goals for Your Search | | | | most basic customer service requirements. |
| Before researching HRMS solutions, it’s | | | | That’s why you should thoroughly evaluate |
| important to set basic goals and guidelines for your | | | | vendors to determine what kind of technology |
| new technology initiative. You should establish a way | | | | partners they will make over time. |
| to define the initiative as successful. In other words, | | | | Step #7: Determine the Best Overall Value |
| what do you hope to achieve with an automated | | | | To truly define value as it relates to your organization, |
| workforce management solution? If you don’t | | | | you need to identify the key, time-intensive functions |
| establish your desired end results, it will be difficult to | | | | within your company’s current HR and payroll |
| assess whether your goals are realized. | | | | operations that would benefit most by automation. |
| Step #2: Map Your HR and Payroll Processes | | | | These functions might include: |
| Process mapping is a great time to create your | | | | - Manually creating reports or enrolling employees in |
| “wish list” of functionality that will make | | | | benefits programs |
| your job easier and more productive. | | | | - Frequently reconciling payroll processing errors or |
| When mapping each process, define what the | | | | manually managing payroll taxes |
| process does, who it involves and the steps required | | | | - Duplicating data entry to keep your time-keeping or |
| to complete the task. Highlight areas of duplicate effort | | | | 401k systems up-to-date |
| and note how the process contributes to the overall | | | | Once your key functions are identified, calculate a |
| department workflow. | | | | dollar value associated with each one. For example, if |
| Step #3: Define High Level Functionality Needs | | | | Key Function #1 takes three hours a day to complete |
| Identifying the core functionality needed to automate | | | | manually, at a conservative, fully-burdened rate of $27 |
| the processes mapped in Step #2 is next. | | | | an hour, that task is costing over $400 per week. |
| Define your needs at a high level. Some examples | | | | If, by automating that task, you can save two hours a |
| include: | | | | day or more, then you have measurable return on |
| - Benefits management and administration | | | | investment (ROI). |
| - Employee self-service functions | | | | Next Steps |
| - Compliance reporting | | | | If you’re diligent about following the steps |
| - Attendance tracking | | | | outlined above, by the time you complete Step #7 you |
| - Comprehensive payroll management, including | | | | should have a better understanding of the integrated |
| complex tax calculations, deductions and benefits | | | | HRMS solutions that are on the market and the two or |
| - User-based data security with protection of sensitive | | | | three products that are best suited to meet your |
| information | | | | needs. |
| - Audit trails for all entries and transactions | | | | The demo phase is when the rubber meets the road, |
| - The ability to move closer to a near-paperless | | | | so to speak, and you get to experience how each |
| workflow | | | | shortlist solution would drive your HR and payroll |
| - Data import and export capabilities | | | | processes. By fully engaging in the demo process, a |
| - Comprehensive reporting | | | | clear winner should emerge. |