10 HRMS selection statistics that every project manager should know
A project manager needs to undertake many diverse tasks in an HRMS selection project. From stakeholder management to vendor relations a project manager’s job is enormous. An HRMS selection project can be a challenge. Whether you’re a seasoned pro or are new to HR projects here are 10 HRMS selection statistics that every project manager should know.
1. Companies are eager for business process improvement and transformation
Sierra-Cedar found in their annual HR Systems Survey that companies are seeking to be aggressive in transformation activities. They found 28% of companies are looking to take a ‘start over’ approach to designing their HR processes and systems.
2. Buyers are more clued up on cloud software
Cloud computing has both benefits and risks, though how these are perceived by buyers is changing. A project manager may need to make ‘apples to oranges’ comparisons between locally installed systems and hosted solutions, but buyers are more convinced of cloud's data security than in 2012.
On the other hand, the percentage of buyers citing lock in - the ability to change vendors, or lack thereof - as a concern before purchase more than trebled from 7% to 22%
3. There is no ‘one size fits all’ when choosing an HRMS
Many products could be suitable for a company. Outside influences such as cost and prior experience can influence the selection process. Be sure that all participants come to the decision table with an open mind.
4. 80% will spend the same or more on HR technology this year
HR departments are seeing the benefit of HRMS spending according to a survey by KPMG. As you review the budget identified for the solution, compare it against last year’s spend as a sanity check.
5. 90% of startups fail
Some of the star performers in Gartner’s HCM quadrant were once startups so this is not a statement against being an early adopter. It can make strong financial sense to be an early customer of a startup as you gain preferential pricing that can be carried forward in later years. Yet it still helps to be aware of the risks of startups if you have any on your vendor shortlist.
6. 66% of companies operate shared service centers for HR
Shared service centers are often chosen for cost reasons or due to rapid growth. As you choose an HRMS consider how it will be used in the future.
7. Shared service centers are often a key user segment
Some companies have over 100 staff in their shared service center whose primary language might not be English. As you make your list of requirements consider who will be using your HRMS.
8. Over 50% of companies have limited or no change management staff
Change management is a critical part of an HRMS implementation. If your company does not have change management professionals consider how you will bring in that perspective to your selection.
9. Global vs local is specific to each company
Some companies operate a global mandate while others allow for strong localization. As you begin your HRMS selection you need to understand how much HR processes will be standardized to choose the right product.
10. HCM wearables are 5% of the market but increasing
A project manager needs to be aware that an HRMS selection may be about more than just a software application. Workplace wearables aren't exactly ubiquitous at the moment, though interest is growing. Any good requirements gathering excercise should plan for future development too.
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