A new HCM
Human Capital Management systems are powerful technology platforms used to manage HR administration, payroll processing and talent management at multinational companies around the world. These technology stacks required thoughtful consideration if human resources departments are to remain competitive in the war for talent that takes place every day in an increasingly competitive global labor market.
It is therefore crucial to have in place the right HCM platform that can deliver long-term business value. Many organizations are currently considering the value of moving their HCM solution into the cloud environment while some are simply looking at alternatives to their current legacy system which may not be best placed to deliver on their future requirements.
A major human resources technology investment is a serious undertaking, and in this article, we will look at some of the important considerations when implementing any new HCM technology.
HCM Data Migration Considerations
One of the core reasons behind implementing a new HCM technology is to be in a position to manage key business unit data in a more effective manner. HR data and global payroll data are core to a HCM platform and careful consideration should always be given when it comes to successfully migrating this data across to a new system.
Converting and migrating data from legacy technology platforms is rarely described as an easy process. Things that are easy to articulate in a team meeting or presentation may turn out to be much harder in practice. Human resources data can be dense, high volume and often particularly sensitive -great care and due diligence is required to ensure a successful data migration.
Engage early with all relevant technology specialist stakeholders who will pay a role in the transfer of sensitive company data across to a new system. The new HCM system must be configured in a way that easily absorbs this new data while also enabling the smooth transfer of relevant data between the HR function and the global payroll department.
Examine the risks
Anytime a new technology is introduced to an organization, and especially if this technology involves a migration of sensitive company data, there will be a need to conduct a thorough risk assessment. This risk assessment process should cover any data security issues but also focus on the length of time that the actual implementation project will take.
What are the potential things that could cause delays to this implementation?
What potential roadblocks to a successful implementation currently exists our could arise at a future date?
Has the implementation journey been fully mapped out and do you have the right skill sets and team members in place to deliver on this road map?
A HCM technology implementation is like any other project- with the right level of planning, a robust risk assessment and a commitment to getting specifically qualified people in place to assist means you have every chance of completing it successfully and on time .
Engage with key stakeholders
Stakeholder engagement is crucial to any project and it is no different for a Human Capital Management implementation. You need the right groups of people around the table right from the start and you need to ensure that all stakeholders are operating from the same playbook and business objectives are being met.
Deadlines and key steps in the process cannot be met unless they are clearly articulated, mapped out and communicated to all relevant stakeholders. A subject matter expert or project manager should be in place to ensure that all stakeholders are listened to and workflows are prioritized.
A systems integration plan will be needed and a strong estimation of just how many resources are required to deliver it will be needed at an early stage. The more focus and consideration put into the planning stages the better- you want to avoid a scenario where the implementation slows to a halt due to availability issues surrounding key stakeholders in the process.
Global v Local
Companies are scaling and internationalizing at a rapid rate -this results in multi country global payroll and an employee base spread across different countries and continents. More people to be employed and paid means more data to be gathered.
This data needs to make its way to a centralized platform so that HR and global payroll managers can arrive at a single source of truth for definitive answers. Data arriving from localized sources around the globe needs to be factored in to any HCM implementation that has a global focus. The implementation should recognize that local data transfers need to be supported with secure technology.
At large multinational organizations today, a centralized human resources team will be operating with a HCM system perhaps located in head office - but this system will always need to receive data from localized HR and global payroll sources. Any implementation of a centralized HCM system needs to account for and put in place structures to support local teams delivering local data.
The Employee HCM Experience
A proper HCM implementation means creating value for employers and employees alike. It is easy to create a list of stakeholders featuring HR & IT specialists and overlook the fact that a wide range of internationally located employees are also going to be end users who interact with this HCM technology. It is important therefore, from an employee engagement perspective, that the employee experience is considered.
The new HCM system must be easy to navigate so that employees can quickly find what they need- first rate, self-service tools and applications should form a part of the implementation to ensure this is the case. Remote access is also an important factor, international employees are spread across the globe these days, operating in different time zones and to different working hours. They will want to access their technology system at times that are convenient for them and ideally, on their preferred digital device. A frustrating user experience must be avoided as it would defeat the purpose of an innovative HCM system and it would also mean that the burden of certain administrative tasks would be returned to the HR team, this would something that HR professionals are keen to avoid as manual data workloads are a known pain point.
Strategy for HCM integration
It’s important to ensure from the beginning that there is a strategy to integrate a HCM with departments which have a direct link to the human resources function. Global payroll is the obvious consideration here - it would be a major oversight to focus on a HCM implementation and not prioritize integrating this new system with existing global payroll software or technology.
Many organizations take the decision to transform the global payroll departments approximately 12 months after implementing a new HCM. This is to ensure global payroll undergoes the same level of digital transformation as the HCM system and you don't end up with a technology gap that prevents these interconnected departments from sharing data in an effective way.
Both functions need to undergo a digital transformation in order to develop into a truly standardized system. Some organizations have had success when choosing to digitally transform global payroll at the same time and sync these two projects together. This approach can result in a number of positive gains for both departments and could serve to future proof payroll and HR technology for many years to come.
Ending up with a modern and innovative HCM system that did not facilitate effective data flows from global payroll or finance departments would be counterproductive in the long run , so any HCM implementation needs to consider the best way to integrate with existing technologies. It may help to work with a technology partner who understands how best to customize HCM and payroll technology.
A Human Capital Management (HCM) technology implementation process is a serious undertaking but there are also many advantages to implementing a secure, powerful and flexible piece of HR technology capable of complementing other business critical units from a technology perspective. Like any other change management project, careful planning and getting the right level of expertise in place from the outset, will ensure a successful implementation, good user adoption rates and long- term success.