What does HR Transformation mean for HRMS Software?

HR transformation, everyone is talking about it these days, but what is it all about and what does it mean to us in the HRMS world? Transformation that results in new software, changes in the business structures or HR staffing may mean we will utilize and support our HRMS through novel strategies.

First, some background, HR transformation actually started back in 1997 when Dave Ulrich published ‘Human Resources Champions’. This started the ball rolling for the creation of Shared Service Centers and Centers of Expertise to consolidate and streamline HR work. We’ve all seen these changes occurring in recent years, but HR transformation is becoming increasingly common in these lean times. A focus on streamlining and standardizing HR processes and improving efficiencies is coming to the forefront of HR strategy.

The Good

Standardization in HR processes complements our HR technology systems. As HRMS professionals, our jobs are suddenly easier because HR is marching to the same drummer. The standardization of HR business processes will result in fewer system customizations which also aligns well with our IT way of thinking. Data is another area of interest, as HR attempts to review and standardize data sets, we should see a clean-up on the systems side and better structures overall.

The Bad

Is it all perfect though? What should we look out for during HR transformation? HR staffing changes or the re-distribution of work such as from an HR Business Partner to a manager via self-service will require an increase in functionality to support such changes. Security will also need to be adjusted as different roles are now performing new tasks. As systems are opened up to a larger audience, they may require a more robust infrastructure, longer implementation times for new processes or increased training.

And the Ugly

One of the key benefits of improved efficiency is that in theory, fewer people are needed, or maybe different skills become relevant. Such job reviews may extend to HRMS professionals as systems become stronger and less in need of human oversight and intervention. As it seems to be happening on the HR side, it could extend into HR technology roles, so best to keep sharp on skills and networking.