MOLGA Consulting: Implementation of a HRM system is least risky as the result is clear and obvious

Mikhail Panchenko: The qualitative, high-performance and full-function HRM systems are relevant for management when information on personnel is key when forming the broad picture of business. And here we see several main models of making decision on purchase of HRM.

First, there are rather many managers realizing – or on own experience, or on an example, including, the international competitors the importance of quality of personnel management processes in the context of overall effectiveness of business. Such managers have increased requirements to analytics, management tools and, in general, to the organization of work with employees.

Secondly, HRM becomes necessary for business at achievement of a certain level of complexity of structure or number of staff. Personnel divisions already just are farther cannot service qualitatively the company even if increase the staff in proportion to business growth. There is a requirement of transformation of HR into the powerful industrial service machine and release of resources for more absolutely other work there are formations the HR politician and strategy, development of complex circuits of motivation, work with personnel potential, etc. Here HRM is at the same time and a basis for finishing routine processes that is called to automatism at the stable quality level and cost reduction, and at the same time – HRM, with its developed functions, acts as the tool for implementation of more difficult HR functions.

In the third, HRM is necessary to the companies in which accurate and effective work with personnel is a crucial element of the operating business model. Let's say it is retail where both the number of employees considerable, and the routine of the personnel is very high. Correctly built HRM then becomes the instrument of strategic management. I will give only one example. Thanks to a personnel management system based on HCM SAP ERP our client – the largest retail chain stores of Eldorado which integrated today more than 700 shops in the conditions of crisis could take quickly and effectively measures for considerable improvement of such indicator as a ratio of a sales and uncommercial personnel. And it essentially affected results of the company.

Well and, at last, in the fourth, creation of HRM becomes a logical step at this or that stage of implementation of the general program of automation of business. Finally, when building of the integrated management system there is always a question of personnel management. Someone begins with automation of the main production, someone with finance or relationship with customers. Not so there are not enough enterprises which start implementation of ERP from personnel management process automation. I will repeat that anyway information on employees is a crucial element of an end-to-end system of business management.

Evgeny Vasilyev: I would add that a HRM system is necessary to those companies which have the philosophy. We in the country had a period of formation of the capital, redistribution of property therefore there were capitalists who own certain productions. Crisis pushed them to the fact that it is time to increase efficiency including in work with personnel. The new Russian capital began to understand that the main value is people. Respectively, and new technologies of work with personnel allow to build processes which help to hold talented employees to save competitiveness of business. And this competitiveness is important already not only in Russia, but also beyond its limits as many Russian entrepreneurs buy assets and abroad.

Still I still would tell about evolution of HR in general. Evolution consists in transition from administrative functions to talent management. It is about sharpening of a certain threshold of efficiency, on condition of the fact that all other processes are perfectly built. In Russia, by the way, our business goes better than in the West in spite of the fact that there thought of talent management earlier, than at us. But we catch up with them.

TAdviser: So HRM is the technology bringing benefit, first of all, to managers?

Mikhail Panchenko: In general, HRM systems support work of three employee categories. The first are rabotn of personnel departments, departments of personnel development, group of payroll, etc. So professionals for whom HRM becomes the platform for their daily work. Here the normal system of management provides growth of efficiency of their work and quality of implementable processes. Labor costs on a routine decrease and resources for more important work are released. And, I will repeat, at the same time HRM becomes the tool for implementation of more difficult HR functions. Unlike the traditional systems, it allows to implement strategy in selection of employees, here, for example, it is necessary to use actively web technologies, integration with the systems of job search or social networks and td is important. If we speak about efficiency evaluation of employees, then those opportunities which, of course, are also in normal applications for personnel records begin to work, but they are present not there at that volume in which they are put in the powerful western systems.

The following category of users of HRM systems are managers. As a rule, the normal accounting systems just provide the reporting. But it is not enough. On the one hand, HRM significantly reduce load of the manager in those processes where they are formally obliged to take part, but, in fact, it is a routine: confirmation of the approved holidays and other similar tasks. On the other hand, HRM is a tool for active participation of managers in the course of communication and work with personnel, its assessment, selection. Certainly, it does not replace normal human communication, but work of the manager on their base is built on absolutely other principles. Actually, they increase labor productivity of the manager. Intermediate links on behalf of HR departments which can deal at this moment with other issues disappear. And of course, modern HRM provide absolutely other opportunities for receiving personnel analysts: both on quality and depth, and on preparation speed. Considerably the dependence of management on HR service decreases. She can be prepared analytics earlier, but much longer and by the parameters which are rather difficult changed in short terms.

At last, the third category is employees. When in the company the complete chain of development of personnel potential begins to work – it is perfect other perspectives and working conditions. Such changes should be supported by modern IT solution which at the same time has technology power, development tools and scalings. And in general, the level of service for employees from the company increases. And it is very important. Believe, there is a difference between normal approval of a holiday by three departments which can drag on for a week and short approval at the request of the employee which takes not enough time and does not require personal "jog" on all chiefs. A system in short terms will be able to correlate desirable dates to the general diagram on the company and to receive approval from the necessary managers. In case of confirmation process of a registration, calculation of a vacation pay, etc. will be automatically started. And if there are difficulties – it will be clear in what a problem and as to solve it. Today employees begin to appreciate such comfort in a complex with salary and a social package.

TAdviser: Any IT solution has an ownership cost, there is a payback period of investments. What issues should the customer resolve for himself competently to select a HRM system?

Evgeny Vasilyev: One of our services is just calculation of efficiency of implementation of a HRM system. Usually we perform this process before the project. We attentively study business processes of the customer and we make to him recommendations that it is necessary to change, and at the same time we offer this or that IT solution. As a result we can calculate economic effect. The client sees what level of efficiency he will receive after adoption of this or that solution. During crisis we implemented HRM in several large companies. These clients understood that the project leads to certain results. And all who set before themselves the purpose to solve specific objectives continued implementation, nobody stopped.

TAdviser: Can you call examples of such tasks?

Evgeny Vasilyev: Here one of examples. There is a company having the distributed IT infrastructure and it is a lot of information systems supporting different business processes. For such company implementation of HRM with unification of functions and centralization of business processes results in very big economic effect. Moreover, implementation of a HRM system will not result in efficiency. The base is important. The efficiency consists of three highlights. This reduction of business to uniform standards, centralization of functions and also implementation of a HRM system of the class ERP which "cements" all these processes. If to speak about return of investments, then I will mention our recent project in Eldorado company. There a HRM system actually paid for itself in 18 months. By the way, the service in calculation of efficiency of implementation for clients is absolutely free.

TAdviser: If to look at the sizes of customer organization whether then a HRM system is necessary to small business, or, after all, not? So it will not work in medium-sized company with due efficiency?

Mikhail Panchenko: A question, probably, not only in an amount of business. I already spoke about typical situations in business which lead to creation of HRM. Also notice, the number of employees plays a role only in one of four of them. In the medium-sized consulting company with rather small staff which actually also generate its business a HRM system will be very useful. And on small industrial enterprise where it is necessary to organize high-quality training and reproduction of the scarce engineering personnel – qualitative HRM is very necessary too. So, direct link between the sizes of the company and efficiency of HRM as it seems to me, does not exist.

TAdviser: In the HRM industry there is a set of interesting technologies, such as, for example, self-service of employees in the course of obtaining references or filing of applications. What of these technologies are more demanded by the Russian enterprises and what – in smaller?

Evgeny Vasilyev: In principle, all technologies are demanded. But here if to speak about self-service, then it, of course, means a certain qualification of employees. So it is, first of all, the banking sector, consulting, service companies. Therefore in the different industries also a different set of HRM services and functions will be used. In those companies where the employee is not just a resource, and the capital, HRM technologies and services will be demanded more.

Mikhail Panchenko: I can tell that not only the bank employee, but also the worker of the plant can use technologies of self-service in a HRM system. There are special self-service terminals suitable for any operating conditions. For example, in some companies such terminals are installed even on production. The management set the object to increase transparency of HR processes for employees. Thanks to it workers can trace the career way now, see the settlement scheme of an award and many other things. All this is demanded now and will be demanded in the future.

TAdviser: Whether the specifics of work with personnel at your clients during financial crisis changed? Whether crisis effects affected the market of HRM solutions?

Evgeny Vasilyev: In terms of work with personnel, changes happened, and very serious. It is clear, that revenue fell, in the different industries in different degree. At the same time there were owners who thought of efficiency of the business. When sales went well, and money flowed the river very few people thought of making business more effective. Now, when the margin decreases, IT processes should help to increase labor productivity. As a result of steel employees who are capable to make the same, but with smaller finance costs are more demanded.

TAdviser: Today even more often heads of the companies think of formation, so-called "gold fund" of employees, a talent pool. Whether HRM systems can help with the solution of this task?

Evgeny Vasilyev: You look. To crisis there was a reduction of the personnel. Orders for reduction, for example, of 30 percent of employees came to branches. Who was dismissed by the head? First of all, that employee who marked to his position. It is that case when with water splashed out the child. Some companies lost a part of the business just because they unreasonably dismissed employees who right there appeared at competitors, taking away with themselves a part of the market.

TAdviser: Than here a HRM system can help? It is capable to help to build correctly the system of selection of a talent pool in the company, to formalize this process. The personnel will be correctly selected, it is correct to be estimated. Eventually, indicators of the specific employee can be coordinated to the strategy of the company, having passed from subjective appraisals to objective. Almost in any company the chief has "favourites", and there are also those whom he dislikes. At the same time, a HRM system does work with personnel of the most transparent. Whether negative attitude of certain representatives of business to HRM meets?

Evgeny Vasilyev: Of course, happens. Short-sighted heads who are afraid to lose the place try to minimize possible risks. But correctly built HRM processes in the company reduce such relation to zero. Process of personel assessment can be built in such a way that the head will not be able just to have an impact on it. If, for example, the sales manager makes a lot of profit, then the chief even at all desire will not be able to dismiss him.

TAdviser: In what industries clients are better ready to perception of HRM technologies and in what else it is required "educate"?

Mikhail Panchenko: The situation can be compared to the market of ERP. Retail, an oil and gas sector – all of them are leaders in implementation of HRM. The reasons can be different, but these industries – traditional leaders. One more leader it is possible to call the banking sector. By the way, here a HRM system is that "engine" which in general pulls for itself(himself) ERP. The matter is that implementation of HRM is the least risky. It does not mention production functions, but for many that result for the sake of which a system is implemented is clear. This vision of the purpose also is the key to the successful project. Therefore all banks, as a rule, first of all also implement HRM.

TAdviser: What technologies of personnel management will be available to the Russian clients in the near future?

Mikhail Panchenko: First of all, SaaS direction will develop. I think that the future behind it, despite objective difficulties in development of infrastructure. All modern software makers for business go in this direction.

Also in the market there are more and more so-called packaged solutions based on ERP technologies. Packaged – means with the large volume of prednastrenny processes – in this case, personnel management processes which the company can use at once. So business receives already finished business solution, but not just implementation of a business system, as such. This business solution means change of processes in the company according to the best world and domestic practices. Ten years ago, when complex information systems were on sale, at the same time it was often said that these systems do not require reengineering of processes in the company. Then it was very terrible to redo the existing business processes under requirements of the western system, it was impracticable. Therefore suppliers also said to clients that in the company it is not necessary to change anything. Perhaps, at that time it was correct. But now we understand that the due effect and return of investments can be reached only if to review reasonably, certainly, business processes of the client. Here actually the client together with a system can also receive these ready processes if he uses the packaged solution. The price of such "packets" is rather low due to decrease in amount of works on implementation and consulting and also discounts for user licenses which vendors allow to mid-scale businesses. Including our company developed own packaged solution available to medium-sized companies, MOLGA HCM Fast start – based on the HCM SAP ERP platform.

And in general, it seems to me that the current trend when projects begin with methodological study, from understanding of that what should be a system, actively will work in the nearest future. There are many companies which new business processes draw on paper. They and remain there as are not supported with a certain cementing tool and the information solution as the base. We offer alloy of two directions. On the one hand is a change of business, the offer of new solutions, and with another – fixing with their modern information system. Wash 15 summer experience in the field of SAP implementation shows that this approach provides really significant results for business.

Evgeny Vasilyev: If to speak about specific functionality, then in addition to basic processes "virtual rooms" will be in demand of a system of self-training, remote training. One more direction is talent management, the correct assessment of people, determination of the correct purposes. All this in the market will be in huge demand.

The TAdviser center conducted an annual research of the market of personnel management systems in Russia. Unique statistical data about implementation of HRM systems are provided in this overview in free access, the functionality of modern solutions is described, recommendations about the choice of systems are provided. Chief information officers and suppliers impart experience creations of effective information systems.

• Classification and functionality of personnel management systems
• To whom and when it is necessary to implement a personnel management system?
• Volume, dynamics, and structure of the world market of the automation equipment of HR departments
• Top trends and forecasts of development of the world market of HRM
• Suppliers of HRM systems: leaders in different segments
• Russian market of HRM systems: volume and trends of 2010
• HRM systems: completeness of functionality and experience of implementations in Russia 2010
• Methods, approaches and problems of implementation of HRM systems
• TCO: How many will" the information system "cost"?
• As it is correct to select a HRM system: methodical recommendations
• NORDIS/2: Personnel management. One of subsystems of the corporate information system (CIS) of NORDIS/2 of the Novosibirsk developer "Alekta"
• Molga HCM Fast startpredvaritelno the customized (packaged) personnel management system based on the SAP solution ERP HCM (SAP HR).
• Implementation project of a personnel management system based on HCM SAP ERP for retail chain stores of Eldorado Molga Consulting company

• Elena Babaylova: The high level of qualification of personnel – a basis of our work. "Federal Grid Company of the unified power system" (JSC FGC UES) brought into commercial operation a personnel management system based on HCM SAP ERP. For what this system is necessary the companies and what project deliverables, in an interview of TAdviser Babaylova Elena, the deputy chief of Department of information technologies of JSC FGC UES, the Project manager of SAP implementation of ERP HCM told.

• Oleg Baydin: The flexibility of iScala HRM allows to follow requirements of the Russian legislation which is not differing in constancy. For several years of JSC Chelyabinsk Zinc Plant completely transferred the main business processes of the enterprise to the iScala platform. Automation of accounting of personnel and payroll for 3000 employees of the company became one of essential stages of this large-scale ERP project. What nuances the plant faced during this stage and also Oleg told CIO of Baydin company about the impression of the module iScala HRM TAdviser.

• Maria Vozhegova: We achieved transparency and controllability of processes of personnel records. Consolidation of group at the interregional level, and then, already in use became Impulse to implementation of a new personnel management system in Rosgosstrakh, the BOSS-PERSONNEL OFFICER system successfully endured one more consolidation of the company, already in federal scale. At the same time in 5 years of operation a HRM system on the BOSS platform uninterruptedly processes data of more than 100 thousand staff of the company. How it was succeeded to achieve brilliant results at such scale of the project, TAdviser was told by the vice president for IT and transactions of Rosgosstrakh company Maria Vozhegova.

• Mikhail Panchenko: Implementation of a HRM system is least risky as the result is clear and obvious. Fixed capital of any company are her employees. Those heads who fully realize it think of implementation and development of personnel potential of the subordinates, talent management sooner or later. At the same time it is important to understand that the strategy of personnel management is inseparably linked with the main business strategy. Such companies come to need of implementation of management systems for human resources (HRM) sooner or later. TAdviser talked about specifics of the market of HRM to two company executives of MOLGA Consulting – the leading system integrator specializing in products of SAP company in the field of HR – CEO (Managing partner) Mikhail Panchenko and the Senior partner Evgeny Vasilyev.

• Dmitry Romanchenko: New requirements of the legislation on personal data – not a problem, but chance to upgrade HR-and other business systems of the organization. Dmitry Romanchenko, the manager of projects of Department of business applications and technologies of Oracle of IBS company tells about perspectives of market development of personnel management systems in FZ-152 light "About personal data".

• Natalya Sidorova: Crisis introduced positive amendments in approaches to the choice of HRM systems. The Epicor company in 15 years of work sold more than 150 large projects in the field of control automation by personnel in the Russian market. The area director of Epicor in Russia and the CIS countries Natalya Sidorova in an interview of TAdviser disproves a stereotype that the western system not fully corresponds to rules of the game in local market of work and also it is told how to estimate efficiency of implementation of a HRM system and to gain from it maximum benefit.

• Dmitry Takser: The market is waited by a new paradigm. To replace HRM there is EHRP or planning of human resources. For the last crisis year the BOSS system. The personnel officer remained not only among the dominating solutions for personnel management in the Russian market, but also considerably promoted among leaders in number of projects and completeness of functionality. How it was succeeded to perform it and also the head of marketing department of BOSS. Personnel systems company told about the innovation approaches in control automation by personnel of TAdviser

• Andrey Shabanov: Krom of a HRM system on model SaaS, our company also provides to clients a full range of outsourcing services.UСMS Group – the company with the western roots and the rich history of presence in the Russian market – on an extent of several years works on development of the advanced software product - HRM- systems Quinyx on model SaaS (Software as a Service). About that, clients are how ready to perception of SaaS technology, market prospects and partner plans of the company it is told in an interview.

• Sergey Shishov: Modern human capital management - a key to success of any company. The EVOLA company has strong industry expertize in the field of the implementing solution SAP ERP HCM in the companies of a power complex, retail and the banking sector. The CEO of EVOLA Sergey Shishov told in an interview of TAdviser about the most successful projects of the company in 2009 and also an output to the market of the new direction of a business intelligence and reform of Service center of operation of HRM solutions.

• Igor Jacobson: In cherishing, caring and growing up the personnel, there is a sure economic benefit. The Kompas company is engaged in control automation by personnel and payroll already nearly two decades. Having begun with small DOS programs, it came to creation of the full-function personnel solution "Kompas: Personnel management". At the moment this system firmly sustains the competition of the western HRM solutions and to success is applied in hundreds of Russian companies, including the largest machine-building holdings of the country. How a system evolved, its main advantages and practical experience of implementation the chief expert of the company Igor Jacobson told TAdviser.