Three ongoing HRMS costs you haven't added to your budget

An HRMS software budget can be a moving target at times, but it’s an area where you need to maintain control and oversight. Unexpected costs can quickly blow your budget and ability to deliver planned HRMS functionality to users. How can you be sure that you have included everything? Here are three ongoing HRMS costs that are often forgotten that can cause budget overruns.  

1. Ongoing technical developments

Technology never stands still. Databases and infrastructure evolve to meet increasing needs for space and connectivity. Browsers and devices must deliver new features to enhance their security. The add-on programs that you use to view reports like Excel or Adobe will release new functionality. All of these layers can potentially add to your on-going costs.

If your HRMS requires a new browser that is not your company’s standard you may have additional IT costs to deploy and support it. If the software that you use to view your reports requires an upgrade it may involve added licensing costs. The technology platform and requirements on day one of your HRMS implementation will not be the same in two to three years. It is imperative that you build in some budget dollars to support any new technical requirements.

This HRMS pricing guide will help you forecast an accurate and reliable HRMS budget

2. System upgrades which require additional training

Many HRMS on the market today are Software as a Service (SaaS) solutions that are in the cloud. A benefit to these applications is that they are upgraded regularly with new functionality that meets the latest government regulations. A disadvantage to frequent upgrades is that users need to learn new ways of performing tasks and functions.

Many companies now use multi-purpose help desks as the first level of support for any application questions. Any upgrade will require you to review and potentially modify your call scripts. If an upgrade involves many changes to the user interface you may need to conduct special training for the help desk.

3. Surprise audits

Some companies have strong internal audit teams or robust processes that enable them to pass external audits. Others focus on regular self-auditing to be sure of compliance. A hidden cost that often appears on an HRMS budget is the follow-up on a failed audit. It may require external consultant time to design and implement different processes related to hiring or pay. If a company has a data breach the repercussions can extend across all functions of a company’s operations. I have seen companies that have come under the scrutiny of the Department of Justice due to a problem. The costs to raise standards to an acceptable level quickly added up.