The three most important features of your next HRMS purchase
There are many HRMS on the market today and the choices and options can be overwhelming. How can you be sure that your HRMS will be suitable and able to grow with your business? Here are three essential features to consider as you make your next HRMS purchase.
1. Ability to handle requirements via configuration instead of customization
When you compile your list of requirements and perform your fit gap activities, pay close attention to how your requirements will be met. Configuration will always be a more cost effective option than customization.
A key example is the handling of contingent workers or temps. The US government estimates that temporary workers account for over 40% of the workforce. Many companies using earlier versions of HRMS are not able to track contractors. Current generation HRMS deliver more functionality on this front, but can you work with their delivered processes? How much can be modified via configuration versus customization code changes? Review configuration options closely as you narrow down your shortlist, as this feature can greatly impact your costs.
2. Responsiveness to change
An effective HRMS cannot remain as a point-in-time software application. Legislation changes regularly and you cannot afford to be non-compliant or to spend time on manual efforts to keep up.
When you look at the ability of an HRMS to change, consider how many companies struggled with meeting the requirements of the Affordable Care Act and generating the forms 1094-C and 1095-C. New requirements to gather and maintain data along with government reporting can be overwhelming without the right HRMS foundation.
It’s been suggested that changes will be coming to the Affordable Care Act under the new administration. These types of legislation changes need a strong HRMS that is responsive to change to save you time and effort and to guarantee compliance.
3. Increased accessibility and transparent access
Employee and manager self-service are now widespread, with estimates of 90% adoption rates by Sierra-Cedar’s recent survey. Direct access alone will not be enough in the coming years. Early adopters are taking HRMS usage to new frontiers by focusing on the service delivery experience. HRMS are being expanded to include employee and manager HR portals and helpdesk solutions. Shared service operations are being embedded into HR processes from talent acquisition through to benefits and payroll. The expectation from employees and managers is that the HRMS should be an easily accessible platform across any number of devices. Your next HRMS needs to have the capability to grow in this direction even if you are not ready to support the functionality today.
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