Choosing a Human Capital Management (HCM) system is intimidating with all the systems on the market. Having been both a software sales executive and an implementation consultant, I have learned what creates a successful HCM selection process and what can create issues in the future.

Here’s what you need to know before committing to an HCM solution:

Determine Your Needs Before Shopping

Before you can even think about software solutions, you must know what your organization requires. Determine if you are migrating from the current system, merging multiple tools, streamlining process workflows or moving from paper and excel to software. Create a list of the requirements you must have, the things you would like to have, and the potential dealbreakers.

The “Why” may determine several things you should be looking for or even thinking about.

Replacing an existing system

If you are replacing an existing system, remember that the new system is, well, a new system. Most customers, especially the end users, anticipate business as usual once the new system goes live. But no two systems are the same, and you cannot anticipate the same features, processes and screens in another system.

Some of the older self-hosted applications allowing access to the database allow clients to customize the application extensively. When changing over to a new cloud application lacking the ability to change tables or create new ones, clients get frustrated with the reduced flexibility from the previous system. The new system therefore may not be having highly customized specializations. Automate paying an extra premium on every third Sunday of a leap year when it is raining might no longer be possible.

Customers typically react in two ways in this situation:

Some try to duplicate the functionalities of the earlier system with combinations of several workarounds and manual steps. Although it serves them initially, the manual intervention and maintenance headache later often cause problems, making their activities more complex and difficult to manage.

Others seize this opportunity to review their processes and policies to standardize, streamline, and consolidate. As a consultant, I have always advised clients so. Although it requires additional effort such as research, meetings, and approvals, it may save time and effort in the future.

Be receptive to changes. Understand that the new system might not be able to do all that the old system can do. Use this change as an opportunity to streamline and improve HR processes.

Though you will lose some aspects, in the general instance, there will be much more that you can gain rather than lose. The new system might be able to automatically complete a task that took you a couple of hours to do. The workflows like changing the rotation of an employee, where you would complete a form and send someone to authorize, can be done using a form and a workflow designer utility.

Integrating several systems

You may need to integrate existing and new systems with your new HCM application. In the sales cycle, the sales rep can tell you that they can integrate anything; however, you should request samples and even a trial of their integration tool. Most enterprise software has interfaces in which integrations are easily achieved by selecting source and destination fields from a drop-down list.

Nevertheless, there are some applications requiring resources with coding capabilities to establish integrations. It is vital to understand the degree of intricacy in system integration and the type of resources you require. Request developer guides and/or documentation for an easy integration process. You can ascertain how advanced the integration of the application is by observing the resources and guides.

Engage critical stakeholders

Be sure to engage end users throughout the process, especially when gathering requirements for the new system. Many times, executives purchase the applications to implement without involving the other levels in the organization, which causes tension within the organization. End users might feel ignored and become resistant to change, complicating the implementation.

Everyday users are employees, managers, and payroll administrators who will be using the system on a day-to-day basis, as compared to high-level executives like VP of HR, COO, or CEO. Opinions of the everyday user matters more than the CEO who might log into the system once a month.

Scalability Matters

Whatever you decide today may not work in 5 years. You need to keep in mind,

Can it grow with expansion (adding employees, locations, or international presence)?

You might have 100 employees while selecting the application but after a few years you might grow to be 1000. Can the system handle 1000 employees as efficiently as it handled 100? Question the vendor who their biggest customers are. Do they have any customer with 1000+ employees. If you can talk to that customer, you can get a good idea of how the system manages many employees.

Your company might be opening up elsewhere in the same country or internationally. Can your system handle that?

Same location = same laws and compliances. Something as simple as Overtime is not that simple when you have work locations in different states in the US. For example, some states have double time pay laws. Some have multiple minimum wage rates. If you have offices in the US and Europe, then there are diverse data protection laws you must comply with. Can the system you buy handle them? Comply with them? I’ve seen business outgrowing their HCM system within two years’ time because they were not forward thinkers. Future-proof your investment with software that is scalable with your growth.

Don’t Just Focus on Features—Evaluate Usability

A system may have numerous features, but unless it is easy to use, it will not be utilized efficiently by your users. Your adoption levels, productivity, and personnel satisfaction depend largely on good interface design.

users are in different stages of their life and work, and not everyone possesses sophisticated computer skills. If a simple task entails traversing several screens and lots of clicks, the application most likely is not user-friendly.

Ask for a live demo rather than a sales pitch. Get your hands dirty and, if possible, involve your staff in the testing process.

Implementation is as Crucial as the Software

One of the biggest mistakes I see is companies focusing solely on the purchase, without considering how the software will be implemented. Implementation is where things can make or break your experience.

Most of the vendors have an implementation team that will handle it. Some of the enterprise vendors will have partners to handle the implementation. Whether you do it internally or outsource to a partner, there are a few things you need to consider

Does the vendor give good implementation support?

Negotiate the implementation support with the partner or vendor. Avoid shortchanging by doing part of it yourself. Go step by step in the implementation process and ensure that everything from organizational readiness through post-go-live support is planned for.

What is the typical timeline, and how will it impact your business?

You should include a buffer period. Despite your desire to complete the project on time, delays can sometimes arise unexpectedly. Including a buffer will allow you to manage delays without affecting business activities.

Will your internal staff need training, and to what extent?

Software in itself will not address current process problems. Have a clear strategy, proper training, and internal adoption. Inadequate training usually results in a hold-up and incomplete Day in the Life (DITL)/User Acceptance Testing (UAT) efforts. Plan adequate time and budget for training.

Vendor Support and Community Are Important

The best software will need support someday. Don’t believe marketing hype and examine:

·       How is customer support responsiveness?

·       Does the product have an engaging user base whereby you can gather best practices?

·       What is the vendor roadmap ahead of future releases?

An HCM system isn’t a buy-out, it’s a long relationship. Choose a vendor that will mature with you and adapt to your needs.

Final Thoughts

Selecting the right HCM software is not just a case of selecting the one with the most bells and whistles, it’s a case of selecting a solution that will suit your organization today and tomorrow. Don’t hurry, ask the questions that are important, and don’t cut corners on the implementation process.

Ready to find out more or need help navigating the selection process for HCM? Let’s connect and discuss!