Ryan Harris is VP of Client Success and Sr. Management Consultant for Think Consulting, a Solutions Architecture and Execution firm.
getty
Human resources information systems (HRIS) have transformed how organizations manage their human resources and people operations functions, allowing companies to improve their workforce management, automate HR processes and reduce administrative burdens. However, implementing an HRIS is not a simple process and requires careful planning and execution to achieve the full value and efficiencies that these systems offer.
As a management consultancy specific to the people operations space, we're often tasked with helping businesses thrive in the face of economic uncertainty. Our clients come to us seeking ways to do more with less, as they face tough decisions such as reducing headcount and asking staff to work longer hours. One of the most relevant levers that can be pulled is driving efficiencies through a well-planned HRIS selection and implementation.
The process of implementing an HRIS typically involves several stages, including RFP requirements gathering, vendor selection, scoping, building and implementation. Crucial to this process is identifying the most critical HR functionalities for your needs and goals, then executing with precision to ensure a smooth and successful implementation. While the timeline for each stage can vary depending on the complexity of the system and the organization's requirements, based on my experience, the entire process can take anywhere from nine months to 18 months. Here's how to maximize the value of an HRIS.
Stages Of HRIS Implementation
RFP Requirements Gathering
During the RFP requirements-gathering stage, organizations must identify their HR needs and prioritize the features they require in an HRIS solution. This process involves engaging multiple functional stakeholders from HR, IT, finance and other departments to ensure that the system's requirements align with the organization's broader business objectives.
This can be more difficult than it seems. In many cases, stakeholders don't know what they don't know. Without knowledge of the capabilities of a system, it's difficult to build functional requirements that move the needle for the business.
Once the requirements are established, the organization can move to the vendor selection stage.
Vendor Selection
Selecting the right vendor can be critical to the success of an HRIS implementation. There are a variety of factors to consider when evaluating vendors, such as the company's maturation stage, employee headcount and the number of system integrations that are required. In developing a short list of potential partners, start with the current headcount and five-year projected headcount.
For instance, if your company is smaller than 100 employees with low anticipated headcount growth, a cloud-based system might make the most sense. Organizations with a greater headcount and anticipated growth should weigh these options against enterprise-level solutions.
Scoping
Once a vendor is selected, the scoping stage begins. During this stage, the vendor will work with the organization to determine the scope of the project, identify any potential risks and establish a timeline for the implementation.
Don't reinvent the wheel at this stage. Review the functional requirements established during the RFP stage and organize them into categories such as core HR, benefits administration, time and attendance tracking, performance management and payroll. In each category, consider any technical limitations that may impact the implementation, along with information security needs. A team gap analysis can also help you identify if additional third-party vendors could make this process smoother.
As an example, if your company's IT function is understaffed and underresourced, a risk you identify may include your inability to properly build and maintain integrations between systems. Spotting this risk early and filling this gap could be the difference between success and failure in this stage.
Building And Implementation
The building and implementation stages involve customizing the HRIS solution to meet the organization's specific needs and integrating the system with any existing systems, such as payroll, benefits administration, communications platforms and financial systems.
Throughout the entire process, it is essential to engage multiple functional stakeholders and lean on a strong project management office (PMO) to drive consistent progress and ensure that the project stays on track. Stakeholder engagement and close collaboration with project management are vital. These stakeholders can help identify potential roadblocks and ensure that the project stays aligned with the organization's broader objectives. Conducting weekly status meetings with all functional stakeholders is a great way to ensure you're staying on track.
Challenges To Anticipate
By automating HR processes and reducing administrative burdens, organizations can focus on their core business objectives and improve overall productivity.
However, when this complex and time-consuming process is executed improperly, it can lead to missed deadlines, significantly greater implementation costs, a reduction in efficiencies realized, and often a loss of executive sponsorship. Challenges and potential concerns will vary by company, industry and the tools selected, but be aware of the following:
1. Data migration: One of the biggest challenges of implementing a new HRIS is migrating data from the old system to the new one. This can be a time-consuming and resource-intensive process, and errors can occur if the data is not transferred correctly. Be sure to scope this properly with the HRIS vendor you select to ensure they're capable of moving all legacy data to your new system.
2. Integration with other systems: As mentioned previously, another challenge is integrating the new HRIS with other systems that are already in place, such as payroll, benefits or performance management systems. This can be difficult if the systems are not compatible or if the integration is not well planned.
3. Customization: Customization can be a challenge if the new HRIS does not have the specific features or functionality that your company needs. In some cases, customization may be necessary, which can add to the complexity and cost of the implementation. Be sure to work with the vendor of choice to identify out-of-the-box features that match your requirements versus custom builds.
Final Thoughts
Setting up a new HRIS is not a project to be taken lightly and can often make or break a people operations function. Utilize the resources at your disposal, and don't be afraid to ask for help from industry experts.
Forbes Human Resources Council is an invitation-only organization for HR executives across all industries. Do I qualify?
