4 Benefits of HRMS Software to Global Businesses

There’s a common assumption that larger organizations have their HR sorted out; certainly when it comes to IT systems. The fact that they’ve grown into a world-spanning behemoth is proof enough surely? After all, global domination can’t be achieved without sound people systems. Well, not necessarily.

Global growth – however strategic - is often an organic process; one country, territory or market at a time. Recruitment takes place as and when necessary. Local legislation is tackled on the hoof, often on a just in time compliance basis. Natural (and even sensible) as this type of expansion is, it can lead to fragmented HR systems. It’s not unusual for a global concern to have a different HRMS for each country and that, unfortunately leads to different service standards, multiple suppliers/vendors, and varying levels of efficiency when it comes to issues such as payroll, time and attendance, reporting and even just employee records. Making the shift to a more unified global HRMS offers a number of benefits…

Consistent Services

Operating a single global HRMS with a single records database offers all kinds of economies of scale. Firstly, all of your HR people (either in-house employees, outsourced service providers or a combination of the two) are drawing on a centralized set of records. Not only is everything in the same format, regardless of national boundaries, but this enables you to more easily tap your global data for analytics and reporting thus providing the C-suite with truly insights into the workforce. Secondly, you have uniform treatment of all employees with opportunities to deploy the same approaches to performance management, retention and payroll. Although, of course, you retain the flexibility of using different systems where legislation or culture demands it.

A Global Image

A single, global HRMS with standard self-service functions for all employees irrespective of location creates a global internal brand and organizational identity. Put simply, everybody is working for the same employer and not a ‘local version’ that happens to share a logo with other country-based units. This offers benefits in terms of employee engagement and opportunities for easier cross-border collaborations.

Streamlining Suppliers

Going for just one, up to date HRMS automatically cuts down the number of suppliers and vendors that you have to manage. Upgrades, service level agreements, contract negotiations…, all become so much simpler when you only have to deal with one supplier. Even if you deem it more practical to deal with a number of resellers (one per territory/country?) at least they’re all providing the same system and potential complications are still reduced.

Reduced Costs

Unsurprisingly, the big driver for consolidating HRMS functions for a global business is saving money. More often than not the upfront costs can be reduced by negotiating for multi-country use of a global system as opposed to having multiple licenses and maintenance contracts. But with improved legislative compliance and possible headcount changes, the indirect cost reduction may outweigh the upfront savings.

Of course, if you’re currently in the position of running multiple systems around the world then the selection and implementation of a single system that is truly capable of meeting your current and future needs is far from challenge-free. However, given the potential benefits on offer, it may just be worth the trouble.

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Dave Foxall

About the author…

Dave has worked as HR Manager for the Ministry of Justice for a number of years, he now writes on a broad range of topics including jazz music, and, of course, the HRMS software market.

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Dave Foxall