General description of the Russian market of HRM systems

Now both foreign, and domestic automation systems of personnel management are presented at the Russian market. At the same time on the level of technical capabilities between these solutions there are no cardinal distinctions – the systems of domestic development quite well cope with data processing on 15 – 20 thousand employees and support of geographically distributed organization structures.

One of players has no unambiguous advantage practically now. The western systems, as a rule, have more complete functionality. A basis of work of the western HRM systems is the HR policy and profiles of competences of personnel, they are focused on cost optimization on personnel within the accepted HR policy, development and employee retention, planning of their career, planning of encouragement and promotions, efficiency analysis of personnel, etc. At the same time accounting and settlement functions in these systems require considerable completions for providing a full compliance to the current Russian legislation and the Russian specifics of accounting and management.

On the other hand, the Russian end-to-end systems are, as a rule, constructed "from the return" - basic functions are regulated accounting and classical management accounting, in all solutions difficult mechanisms of payroll taking into account different schemes of charges and deduction, by support of requirements of the tax law, etc. are implemented. One more advantage of the domestic systems – in capability quickly and qualitatively to release updates at change of the legislation. As for HR functions, they appeared in domestic solutions in the last several years and are expansion of functionality of systems, but not their core. But it has no significant effect on quality of sale of blocks of career planning, training, providing compensations, etc. One more advantage of the systems of the Russian production – much lower implementation cost and ownerships of a system.

According to analysts, today domestic manufacturers and the largest western vendors almost as equals operate on the Russian market of HRM systems. Between the Russian and western producers of systems for HRM there is quite fierce competition, especially in an upper price niche, among products for large business, and appearance of new players is extremely improbable. However, in connection with significant increase in number of projects on automation of the sector of SMB, appearance of new players in a segment of the drawing and configured "semi-drawing" products is possible.

The software for personnel management is often delivered as a part of complex products on enterprise management. Also these functions often are implemented in accounting programs. Besides, there are separate products for automation of activity of HR department which are sometimes developed under the customer.

For decision-making for benefit of this or that product, of course, it is necessary to consider most fully tasks which are set for himself by the customer. The actual choice of a HRM system should rely on complex requirements analysis of the enterprise in the field of the operating business processes in the field of HR, production and also total cost of ownership a system taking into account support and expansion.

In respect of the choice between the domestic and foreign HRM systems it is possible to note the following. If for the enterprise complete functionality regarding human resource management is critical, and the number of staff and a difficult organization structure dictate strict requirements on performance, readiness and scalability of a system, there is a sense to address solutions of foreign producers. However it must be kept in mind that if in sale only of the financial module of the western ERP system there is nothing unusual, then implementation of only one HRM functionality is rather rare and fraught with additional implementation at least of a financial subsystem. If the company needs the powerful system of personnel records capable to cope with difficult payroll calculations, taxes, deduction and charges and containing a certain subset of control functions by personnel, it will be possible, reasonable to select the domestic solution (anyway, HR blocks of these systems constantly develop).

Sergeyev Andrey Nikolaevich,  business architect, Molga company:

If to consider the choice between the domestic and foreign HRM systems in terms of scale of the enterprise (holding) and further development of an enterprise management system in general, then indisputable advantage will be behind the foreign HRM systems.

Complex vision of the organization and implementation of global requirements, lack of high costs for integration and need of acquisition of additional products of third-party producers and also possibility of deployment of additional business functionality according to business needs of the company here only some of "pluses" which are provided by a foreign HRM system.

Not everything is unambiguous also with assessment of performance of the domestic and foreign HRM systems "in field conditions". Very often practice shows that with payroll on large volumes (from 10000 employees), with other things being equal ("iron", complexity of calculations and so on), a foreign HRM system copes quicker. The difference on time can reach day. Though, on the other hand, a domestic HRM system is suitable for payroll at the small enterprise more (up to 1000 employees) due to the lack of the "global requirements" imposed to calculation start process.