Once your company has decided to change its HRMS, you need to form a detailed plan to evaluate your needs and access the solutions being offered by technology providers. Recent advancement in HRIS software has led to a lot of process automation that could save productive time and resources if you choose the right upgrade. HR Software, such as greytHR, invest their 100% in improving & enhancing their products for benefit of their customers.
To help you in the same, we have listed a general guide for the selection and implementation of HRMS. At the end of this article, a checklist is provided to assist you in a successful upgrade of your software.
1. Discovery Phase
The first thing you should do when you’re thinking of upgrading your HRMS systems is to evaluate the current system with all its pros and cons. Start by discovering all the processes that your HR system has at present. Define all the processes you use. This will help reveal the gaps in your current system so that they can be corrected. This is usually overlooked and may lead to problems that will remain undiscovered until the implementation process begins.
Make a checklist of all the steps required by the HR department from pre-hire to termination. Also, include on the list the team members responsible for these steps and the time required to complete each step. Analyze the costs associated with each step and the impact on the organization if these steps weren’t completed. Try to quantify these impact analyses in Rupee to make it more objective and easy to visualize.
2. Analyze Requirements
Now develop an ideal model for your HR processes. Focus on the requirements of Open Source HRM Software for your Business and how to maximize the efficiency of the whole department. For this phase, do not worry about what the current systems have to offer as solutions. Use a flow chart to clearly visualize this perfect model.
Next, categorize all the transactions into clearly defined sections and prioritize each transaction based on mission critical functions that save the time of the HR department. Define all steps in the HR processes such as payroll, time collection, and performance management.
Some of these steps might fall into multiple categories. These are the requirements that your system needs and are to be used for vendor evaluation. Along with the system capabilities, we also need to take into account the budget of the system.
Other factors to consider are the number of customers, company size, or service deliverables that are important in a vendor relationship. If these factors have important decision-making implications then you should clearly communicate that to each vendor as it is an important criterion of qualification.
3. Vendor Evaluation
For shortlisting the vendors, you need to create a formal Request for Proposal (RFP). RFP is a list of your requirements in a question-answer format that you will send to your vendors. This will automatically disqualify all vendors that do not cater to your needs. This also sets a standard for the objective comparison of vendors. This step is optional but is very helpful in saving time for you and your vendors.
Always try to invite three of your top selected vendors for a demonstration but if you have two exceptionally good vendors then give them the priority. Make sure that you give each vendor equal amount of time so that there are no biases involved in the selection. Try to communicate as clearly as possible the evaluation process you use to each vendor.
Ask the same questions to each vendor so as to give them an objective evaluation. Follow up each question based on pre-determined parameters. This helps in the comparison of each vendor side by side.
4. ROI analysis (Return On Investment)
It is always important to do a cost/benefit analyses whenever you are trying to select and implement any new system in your organization. So come up with an estimate of the savings that the system will offer in terms of time and resources through automation of processes.
To do this, evaluate the hours saved by efficiency as a function of staff members’ compensations. Account for the value of time saved by looking at where that time can be re-allocated. If your goal is to reduce the head count then it is important to account for every transaction in order to get an accurate analysis.
Having a detailed analysis of each transaction helps when there is a great difference in the cost and functionality that each vendor offers. This may also help in getting an increased budget sanction and make the most economical decision, which has a visible impact in the organization.
5. Project Plan Development/Implementation
Once the vendor is selected and the budget is approved, you need a detailed plan for the implementation of the new system into your current environment. For this, you have to work with the vendor. Form a team that consists of people from each step of the HR process and a person who represents the vendor. Remember that the vendor is the most experienced person with the new system and you should communicate all your implementation requirements to the vendor as clearly as possible.
Demonstrate the impact and consequences of not meeting these requirements. Anything that can negatively impact the organization should be made a priority in the impact demonstration. For example, date-driven deadlines, required interfaces, or parallel payroll processing. Use a detailed document to show the completion of tasks that are required at your end as well as at the vendor’s end. This will improve accountability on both sides and serve as a map to determine where any delays if encountered, may have occurred. Devise a ranking system that you can use to measure the success of implementation with respect to your goals and expectations. This is will help you and the vendor with future improvements to your respective systems.
If you follow these steps then the risk of selecting a poor vendor or the risk of a failed implementation will be greatly minimized. It would help you to reach vendors like greytHR who can be the best implementers after all the above steps. Human Resource is the most valuable asset of any organization. It is very important to spend time in understanding the best technology solution for keeping the employee data accurate, secure, and accessible. Your company will be empowered with critical information that is important for operational decision-making in your business.
Selection and Implementation Checklist
|Phase 1: Discovery||Check||Comments|
|1. All processes identified|
|2. All process clearly defined|
|3. Gaps found|
|4. Cost of each step calculated|
|5. Time required by each step calculated|
|6. Impact of each step evaluated (in Rupees)|
|Phase 2: Analyze Requirements|
|1. Develop ideal model|
|2. Process flow chart created|
|3. Categorize Transactions|
|4. Prioritize Transactions|
|5. Evaluate other factors|
|6. Define requirements|
|Phase 3: Vendor Evaluation|
|1. Create and send RFP|
|2. Select 3 best vendors|
|3. Invite best vendors for demonstration|
|4. Prepare list of questions for vendors|
|5. Compare vendors|
|Phase 4: ROI analysis|
|1. Estimate costs of implementation|
|2. Evaluate time saved with automation|
|3. Compare cost/savings|
|Phase 5: Implementation|
|1. Form team for implementation|
|2. Evaluate implementation requirements|
|3. Communicate details to vendor|
|4. Decide on phases of roll-out|
|5. Execute the roll-out|
|6. Analyze implementation (user feedback)|
|7. Improve system|