HRMS Budget Overrunning? 3 Questions to Ask Before you Invest in Non-Essential Features

The selection and implementation of an HRMS can be an exciting time. There are many wonderful HRMS applications on the market to meet a variety of needs. However sometimes there is danger, even with a healthy budget, to overspend on the smorgasbord of HRMS features available. Be aware of the lure of non-essential features and ask yourself these questions as you define your HRMS scope, as well as throughout the project:

1) Will this feature support our strategic goals and vision?

If your HR organization has prioritized staff development then training data, competencies and succession planning data is worth the effort to include in your HRMS. If this is not your area of focus however, then such data becomes non-essential and more of a nice to have. Be vigilant in ensuring that the ‘nice to haves’ do not take over your HRMS budget. If your project team is spread too thinly and not focused, there is a good chance that it will overrun your budget.

2) Will this functionality be impactful in a positive way?

A key way to measure impact is to estimate counts and time savings. If you’re scoping out manager self-service, how often will a manager perform a transaction? If the online job requisition process is cumbersome or confusing and a manager only does it once per year, it should probably be considered under the ‘non-essential’ heading.

Recommended Reading: HRMS Software Guide - Find HRMS Software to Meet Your Budget

In another example, I’ve seen a business case fulfilled where data was previously stored in various systems and excel spreadsheets which involved one workweek per month for an HRIS Analyst to collect and collate into usable metrics for decision making. Once in the HRMS these reports were automatically generated and available on a more frequent basis, a clear example of an essential feature.

3) Is this a win across the organization?

Often high level HR staff are sponsoring or providing significant feedback as to features ahead of the implementation, which is helpful in gaining a consensus and making the right decisions. Occasionally however, we all know of certain executives who will sneak their own pet project into the HRMS project later. Be on guard for such attempts. While you may want to adjust your aims or your statement of work as the program progresses, be mindful that any changes need to be beneficial to the overall project deliverables and not just a red herring that siphons away valuable HRMS team hours from the core project.