As it is correct to select a HRM system: methodical recommendations

And as far as in general the automated system is necessary?

It would seem, the similar question is inappropriate at a stage of the choice of a HRM system: time already began to select something, a system to us means it is necessary. Actually it can be and not so. The matter is that the management of the enterprises can begin to think of control automation by labor resources (and not only) in the most different cases. For example, the speech can go about planned automation of all business processes of the enterprise in the course of step-by-step implementation of the ERP system. The factor of "a fashion on automation" or information on success of implementation at competitors or partners can affect. In these cases the relevance of implementation of a HRM system and its economic feasibility need to be subjected to serious check (if, of course, the company the question of minimization not of target expenses worries).

At the same time, even if really there are problems with loss of qualified employees and difficulty (or even impossibility) their replacements with specialists of similar level, is not obligatory at all that for solution it is necessary to resort to automation or change of already used automated system. In questions of work with personnel on the first place always was and there will always be an issue of human relationship. And if, for example, creative approach and initiative of talented employees do not influence the pay level of their work and/or career development in any way, it is necessary to remove the problem causes at the level of work with the corresponding managers and development of policy of motivation of personnel. Simple transfer of the system of relationship existing in collective in "the electronic environment" will hardly lead to cardinal changes and solution. Of course, it is possible to enter data on initiatives and the ideas of employees into a HRM system, but people – too complex material for primitive assessment on the basis of "piece" accounting and without reorganization of the management attitude towards employees the automated system will not be effective.

The speech, in this case, goes not so much that it is not necessary to implement a HRM system. Anyway, the automated accounting of personnel reduces number of routine transactions in which employees of HR department, number of errors and inaccuracies in calculations and document creation are forced to be engaged. But, nevertheless, it is necessary to understand the reasons for which implementation of an automated system will be performed. If there are problems at the level of motivation and deduction of personnel, most likely, it is necessary to resolve policy issues of human resource management of the company prior to preparatory work for implementation, it is possible also using external HR consultants.

Whether automation will solve the existing problems?

Throughout the subject which is brought up above it is necessary to understand as far as process automation of human resource management will improve efficiency of personnel, will reduce the problems existing to it and will affect efficiency of the company in general.

The objective answer to this question can give to the company at least two advantages: cost reduction on implementation of useless functionality in specific conditions and disposal of false expectations.

In the first case it will be possible to make general idea about functional filling of a HRM system which really is required to the company (certainly, taking into account perspectives of development and deepening of management of "human capital"), but it is not advertized by developers and distributors. This representation will play the central role in all further selection process of a specific product which will be implemented then.

The second case is not less important. As business process automation specialists more than once emphasized, in the itself implemented system will not solve problems of the company. It is only the powerful tool which needs to be used to destination. Only its existence is not enough for "quantum leap" and to increase in efficiency of the company in any way. Thus, determination of those areas with which a HRM system in itself will be able to help nothing will help to organize really complete solution of a problem considering including, organizational, economic, legal, psychological and other its aspects.

What project objectives?

As work without the purpose defined in advance – aimless work, it is very important to define accurately at the very first stages the purposes facing future project. Initially they can be formulated in a general view and specify strategic directions of the project, but by preparation for the choice of the specific software solution these purposes should be concretized, subdivided into tasks and are given to the type available to numerical evaluation.

In other words, the final wording of project objectives should include the approved set of criteria of efficiency and the approved their specific values (for example, "cost reduction on personnel for 20%" or "finishing average employment duration of the specialist in the companies till 5 years").

From the purposes outlined thus on the next stage it is necessary to select those which are achievable due to control automation by labor resources and to be guided by them at further assessment of alternative options of implementation.

The same purposes which achievement as a result of automation is impossible or it is difficult, should be considered when planning attendants (or preceding) an implementation project of actions.

What possible project budget?

The monetary question is one of the most difficult by preparation for an implementation project. On the one hand, the management requires to provide at first the estimate of the project (at least approximate) to estimate a possibility of selection of appropriate means. From other party, on knowing budget restrictions very not easy to limit a circle potentially suitable for implementation at the enterprise of information systems.

Thus, process of determination of the expected project budget quite often comes down to "trade" between financial and IT service that usually results in need of repeated processing of the estimate of the project and "throwings" between different options of the choice (in our case) HRM systems.

The ideal solution of the specified problem is existence of the accurate and worked economic policy in which the companies put on development expenses including on information technologies (with refining of key positions) are registered. In this case upper restriction of the project budget is known in advance and a task of CIO is determination of those minimum costs for automation which will allow to achieve the objects set for the project.

Whether the project will have a real support?

The fact that the project shall have a sponsor – the person interested in successful implementation from the top management of the company – practically all specialists in implementation of information systems say. Without such person the project, at worst, will just turn into position war at all levels of management of an automation object, and in the best – in the work performed "in a vacuum" without guarantee that its result will correspond completely expected by the customer.

Considering all aforesaid, it would be reasonable to be defined in this question beforehand and, in case of absence of "volunteers", to solve: refuse an initiative, decide on implementation without sponsor of the project or carry out explanatory work and convince one of representatives of company management to undertake the accessorial liability on support of the project.

What automated business processes and whether their optimization is required?

The first part of a question is most critical, certainly. And it extends also to those business processes which at the moment do not exist yet and will appear only after implementation of HRM systems. For example, the enterprise can use a HRM system as means of transition to management of "human capital" which does not practice yet.

Without description of business processes process of implementation will turn from unidirectional into iterative with returns on several positions back, alteration of already performed works and even review of approaches to automation "on the run". As practice showed, differences of implementation of information systems from construction, for example, of houses, do not affect deplorableness of results of making changes in the project during its accomplishment in any way.

Thus, prior to the beginning of project works, to be exact even prior to selection of an information system, it is necessary to execute the description of the existing business processes and also their optimization (as necessary) and the description of new business processes which should appear with implementation of a HRM system.

What systems to include in the initial list?

In the matter it is possible, including, to use criteria which were formulated for justification of the list of the systems which entered the overview of TAdviser:

• A system should support work with documents in Russian.

• A system should correspond to the relevant Russian labor and tax law.

• A system should meet requirements of the enterprise for HRM functionality.

• A system should support an organization structure of the enterprise and number of its personnel.

• The developer company should be known in the market and have in it strong positions which guarantee support of the system offered in the market within, at least, five years.

• There has to be a base of successfully completed projects of system implementation, sufficient on number, in customer companies.

• The solution implementation projects starting in the last two years should be known.

Experts also advise to avoid use of the solutions proposed by the "companies absorbers" financed from venture funds. For such companies dividends of investors, and at all not needs of clients are in the first place. Besides, if financial performance of acquired company does not resist the relevant financial group, it will be immediately resold that will also not have a positive impact on development of a product and user support.

The list of criteria can be expanded, proceeding from specific requirements of the company.

What will the information system give to the enterprise?

The effect of use of a HRM system completely depends on specific conditions at the enterprise. It is calculated individually for separate company. In the western practice method of calculation of "return on the investment" (Return On Investments – ROI) designed to reflect economic effect of implementation of an information system in a numerical type are accepted. The main problem is that this effect can have indirect character and just affect the general growth of economic indicators of the company. By estimates of a number of Chief information officers it is really possible to estimate only 60% of the effect brought by a system and that not in all cases.

However, the specific enterprise interests effect which will be brought by a system in its case. For its assessment it is necessary to select key factors of influence of the implemented system on efficiency of the company (and to approve them with the management). They can be incomplete from the methodological point of view, but the main thing that they answered the purpose of the company. Then, the selected and approved factors "are estimated". It can be done with involvement of experts, experience of partners or own statistics.

For ensuring correctness of all these procedures it is necessary to adhere to one of the commonly accepted method of calculation of ROI or to charge to make it to the invited experts.

Implementation is reasonable?

Unfortunately, only after accomplishment of all procedures described above it will be possible to tell more or less surely: it is necessary to implement a system or not. Also the choice of an optimal HRM system will be at the same time executed. At the first stage it is necessary to estimate the available commercial offers from positions of the budget selected under automation. Systems, "not entered in the budget" should be excluded from further review. Also it is necessary to discard those systems which as a result of direct acquaintance with them were inconvenient in use, insufficiently reliable, productive, etc.

If excluded there were all systems, we will receive definite answer to the question posed – implementation is inexpedient. In such situation two exits are possible: failure from implementation or review of the budget. This question is in competence of the top management of the company to which it has to be addressed (with necessary explanations and offers).

If all systems, except one are excluded, we will receive the optimal choice of a HRM system for the conditions set by us.

Otherwise it is necessary to pass to comparison of ROI of systems which remained after primary selection. Optimal it is necessary to recognize a system with maximum of possible return on investment.

Certainly, the described procedure is simplified, but, according to us, it can serve as help in a real situation when it is necessary to select a specific HRM system.

Sereda S.A.//TAdviser