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Overview Whether you refer to them as human resources management systems (HRMS) or human capital management (HCM) solutions, HR technology systems help you easily and accurately impact the areas of your business that rely on employee data. By using HR management technology, your business can operate more efficiently, and you can focus on key analytics and indicators that help you strategize your growth.

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Table of ContentsUnderstanding HR management technologyWeighing the cost of NOT using HR management technologyDiscerning the benefits of HR management for key stakeholdersAvoiding the pitfallsChoosing an HR management provider

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Understanding HR management technology

The name is really the only difference between HRMS and HCM systems. Both are automated, consolidated systems that streamline your HR processes and increase productivity and bottom-line savings. For purposes of this guide, we’ll refer to them collectively as HR management systems.

An HR management system helps you collect, analyze and take action on employee data that can benefit your daily operations and, more importantly, play a role in your company’s strategic business and growth planning.Human resources impacts every aspect of your business by way of your employees and the data associated with them. When you use multiple software systems or a manual solution to manage that data, however, gaps exist and widen over time due to inadequate data sharing practices.

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Challenges created by the use of disparate systems include:

• Redundant or multiple entries Any time data is rekeyed into a new system, there is the risk of inaccuracy and potential compliance issues, which can lead to costly errors and even lawsuits.

• Inability to focus on strategic initiatives Manual collection and maintenance of employee data is time consuming and cumbersome. Automating data systems allows you to focus on hiring, developing and retaining talent. HR data can be used to make key business decisions that affect the bottom line and the growth of your company.

Automating routine tasks like employee onboarding, time and attendance calculations, payroll processing and employee access to data helps your company become more efficient.

At its core, an HR management system consists of employee information that is consolidated and accessible for:• Employee scheduling• Time and attendance• Payroll

The benefit of an HR management system is that all of those components exist in one solution with the added capabilities of employee onboarding and benefits enrollment.

When you eliminate multiple and differing HR systems and manual processes in favor of automation, you gain productivity that can be focused on recruiting and retaining talent, for example. You build a positive company culture, and your HR data moves smoothly across the employee lifecycle.

As you become proactive in your HR processes, you’re able to align your HR data more strategically. The ability for HR to inform leadership about key trends like overtime, turnover, time used onboarding new hires and associated costs, can help your business plan positively for the future.

More than ever, organizations are demanding that their HR departments become more strategic to better contribute to the health and overall wealth of the business. Learn how you can improve your HR by downloading this free guide.

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How to Create a More Strategic HR Department

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Weighing the cost of NOT using HR management technology

If your company is using multiple, separate systems, chances are good that you’re experiencing data accuracy problems that will lead to compliance issues, if they haven’t already done so.

When making a business case for investing in HR technology, your company should consider:

• How much is our current system costing us? The best way to make a case for change is an ROI calculation to determine the cost to your company of staying with your current processes versus automating with, and/or switching to, different HR technology.

• What is our return on investment (ROI) with our current process? Technology solutions help organizations anticipate a high and measurable ROI on their investment.

• Is our current solution or system contributing to company growth? Streamlined HR management systems and access to HR support services is invaluable for the growth of organizations.

• Does our current process ensure that compliance complexities are being met? Employers bear the burden of proof that appropriate policies, processes and procedures are in place to defend against disputes. HR management technology and support ensure that these complexities are addressed.

• Am I spending needless time on administrative tasks that could be streamlined by automation? Lost productivity and inaccurate manual processes for data entry and data sharing are eliminated with HR management technology. Automating tasks improves data accuracy and allows reallocation of time to a more strategic focus on your business.

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Discerning the benefits of HR management for key stakeholders

Securing buy-in from your company’s key stakeholders for an HR management system can be challenging. Automation, or the consideration of improved technology, is a big change for any company. The implementation of that system may be considered disruptive because of the system’s reach to every aspect of the company.

Negatives are far outweighed by the opportunities that HR technology offers, however, from consolidating and streamlining systems to increasing productivity and bottom-line savings. The move to automating your HR systems could simply be a matter of overcoming stakeholder objections.

The perspective of the HR directorDisparate systems may be cumbersome to navigate and share data, but the known is preferable to the unknown. Because of separate systems, your team’s business function has become more administrative than strategic. This hinders talent management and slows productivity, while opening the company to compliance liability.

Resistance from executives and concern about implementation disruption are holding your company back.A quality vendor can help you pave the path of least resistance by working with you to uncover your specific HR challenges and the solutions to help your business flourish. Consolidating your systems into a single solution helps your management team be more strategic about talent management, gaining efficiency and ultimately allowing every employee to effectively contribute to the bottom line.

The perspective of the CFO/CEOYou need to grow your business, not drain your resources on one more system.A single HR management system provides you the data you need in one location to help you get a handle on operating expenses and profitability. Taking your organization to the next level requires becoming more strategic, and an HR system gives you the time to focus on growing your business.

12 key performance indicators you should keep an eye onWhen you have accurate, timely and actionable financial information, you’re able to make smarter business decisions. Key performance indicators can provide a clear picture of your company’s current financial situation and allow you to make those decisions with confidence.

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You have to do more with fewer resources than ever before, and you can’t afford a system that ultimately might not work for you.A good HR management system will grow with your business. Having the right HR management tools in place will help you drive profits and retain the employees who contribute to your success. Quality vendors offer you the help of consultants who will explore your specific challenges to help you take a low-risk, first step to the right solution that will help you grow your business more strategically.

Avoiding the pitfalls

Once you’ve made the decision to move to a single HR management system, these key considerations will help you make the most informed decision on which system to purchase.

Does the vendor specialize in complete HR technology? Look for a provider who offers all of the technology components and doesn’t specialize in only one area of HR technology. You’re not looking to add another system, but to consolidate the separate systems you have into a single solution from one provider.

Does the vendor have a proven track record? Look for a provider that is not a start-up company that may or may not be around in the next few years. You want an established company that has experience in helping you choose the right system for your needs and can provide ongoing support when you have issues or questions.

Does the vendor provide you with a total price for the system? Look for a provider who outlines what is included in your total cost. You don’t want to be surprised later when you receive additional fees during your implementation period that weren’t spelled out as part of your cost.

Does the vendor offer on-demand HR support services? Look for a provider who offers you ongoing HR guidance and support. You need support that you can access either online or by speaking with a representative. You want a support system that will give you immediate answers, because not all issues occur during business hours.

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Choosing an HR management provider

As you evaluate HR management system vendors, this checklist will help you think through your needs, guide your conversations and help you determine the solution and vendor that are the right fit for your organization.

Be able to answer these questions for vendors you’re considering:• What made you decide you need a new solution?• What features and functions are most critical to your organization?• How do you currently collect timekeeping data for employees?• What are your compliance concerns?• What factors need to be met to make you feel the solution is the right fit?• What is your timeline expectation to be up and running on a new solution?

Vendor/Solution Comparison Checklist

Requirement Vendor 1 Vendor 2 Insperity

Recruitment-to-retirement modules and functionality (recruiting, time and attendance, HR, payroll and more)

A single common database (quicker sign on and fewer data entry errors)

Automated workflows between recruitment, onboarding, HR, payroll, benefits management and more

Advanced scheduling, and time and attendance tracking

Choice between cloud-based SaaS or licensed solution delivery

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Requirement Vendor 1 Vendor 2 Insperity

Web and mobile access – whenever and wherever needed

Role-based self-service functionality for managers, supervisors and employees

Quick and easy payroll processing

More than 600 standard workforce analytic reports, plus custom reporting

HR support center with on-demand support and live HR professionals when you need one-on-one guidance

eLearning and employee development system with thousands of on-demand training videos

Dedicated HR Management, payroll and technical support

Robust expense management capability

Advanced recruiting and employment screening services

Extensive experience in human capital technology and services

Vendor/Solution Comparison Checklist (Continued)

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The bottom line

Using an HR management technology system boosts business efficiency and provides you with the key analytics and indicators you need to focus on to help you strategize your growth.

You want to select a system that will grow with your company and provide you with a true hire-to-retire solution that will streamline your HR processes, increase productivity and boost your savings.

Talk with several vendors and carefully think through your company’s need to be sure you select the solution that is the right fit for your organization.

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ChecklistsChecking off boxes as you go can feel cathartic, but are you checking from the right list? Our checklists will help you feel confident you’re following best practices.

InfographicsVisual learners can rejoice – we’ve got you covered, too. Our infographics allow you to visualize business trends and statistics in understandable charts and graphics.

Case studiesNeed some evidence that our HR strategies really work? Our case studies showcase them in action.

Keeping up with the latest in business trends and best practices can be challenging. Insperity can help.

From in-depth guides to interactive infographics, we provide a variety of complimentary online resources that are chock-full of useful and timely content for business leaders like you. Explore the latest news and proven advice on a wide array of business and HR topics, including business performance, benefits and compensation, leadership and management, and legal compliance that help keep you in tune with new ideas and best practices.

Visit insperity.com/resources

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To learn more, call 800-465-3800 or visit insperity.com

About Insperity

Insperity, a trusted advisor to America’s best businesses for more than 28 years, provides an array of human resources and business solutions designed to help improve business performance. Insperity® business performance advisors offer the most comprehensive suite of products and services available in the marketplace. Insperity delivers administrative relief, better benefits, reduced liabilities and a systematic way to improve productivity through its premier Workforce Optimization® solution. Additional company offerings include Human Capital Management, Payroll Services, Time and Attendance, Performance Management, Organizational Planning, Recruiting Services, Employment Screening, Financial Services, Expense Management, Retirement Services and Insurance Services. Insperity business performance solutions support more than 100,000 businesses with over 2 million employees. With 2013 revenues of $2.3 billion, Insperity operates in 57 offices throughout the United States. For more information, visit insperity.com.

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