When it comes to business essentials like payroll and human resources, choosing the right partner for technology and service is paramount. The realization that HR & payroll modernization can no longer be avoided is a driver for investments in resilient, agile, scalable HR operating models for every size business.
So, how should you go about evaluating your systems and interviewing providers? Jenny Holm, PHR, Senior HCM Consultant at Coastal Payroll answers the important questions.
Senior HCM Sales Consultant
What’s the biggest mistake you see companies make when evaluating HCM solutions?
Going into the process unprepared. Having real conversations with the key players in the business about goals and objectives is so important in advance. Otherwise, it is easy to be distracted by flashy sales tactics like deep discounts. When choosing a provider for something as important as payroll, tax, benefits, compliance and all the components of human capital management, ideally you want to find a partner for the life of your business.
Have a plan, a timeline, budget, buy-in internally to make the investment. It will ensure full utilization and ultimate success of the platform. I usually recommend decision-makers think about a two-tiered approach of must haves and nice to haves. Additionally, having a timeline for rollout of priorities in mind is helpful when working through the evaluation and discovery process with a potential partner.
What do you believe is the most essential feature in a high-quality HCM system?
Scalability. An HCM platform for any organization must allow the ability to grow. Every business with employees needs tools to optimize processes and create efficiencies.
Think long-term and big picture. Don’t get caught up in the minutia of every little piece of technology.
How should an HCM platform align with the company's HR and business strategies?
Value alignment is very important when selecting a vendor for any service. Otherwise, there will be disconnects daily. Having similar drivers for culture bridges understanding about the business outcomes and employee experiences that you desire and expect.
It is very important to look at the day-to-day features of a system. Is it easy to use? Does it support daily tasks? Do those daily functions tie into greater organizational goals?
What training or onboarding is necessary for users to fully utilize the platform?
Organizations making a change need to be ready to put time in, but the right provider should lead the way and do most of the heavy lifting through the implementation and training phases of the setup.
What are the key data management capabilities you expect from an HCM platform?
Maintaining good data is the most important. When starting out, look for easy to use dashboard – hiring, diversity metrics, compensation analysis. This type of data will help an organization to move forward by evaluating the past and planning for the future.
Dig in with employees to get as much information as possible from the team. It can be hard until it gets easy. A solid technology platform that is easy for employees to use eliminates paperwork, implements workflows, and establishes clear repeatable processes. Having mobile access and employee self-service is optimal for data integrity and time efficiency.
How should the platform assist in managing sensitive HR tasks like background checks or employee performance evaluations?
The ability to segment roles and permission internally is important so that Joe should only see x, y, z, and Patti can see a, b, c. Automation and reminders are crucial to stay on top of tasks. You will want to customize processes like performance review questions.
How do you measure ROI for an HCM platform?
Time saved. Consider time spent on hold or in a ticket queue for service requests. Automating tasks adds up… reducing the time it takes to fill a job opening, electronic on boarding for reduced paperwork, sourcing candidates from job boards into one central place.
How important is the ability to customize technology integrations?
Make sure that if you change one part of a system that the other parts change. For example, a change in the HIRS flows to benefits administration. Many do not and organizations end up being burdened with duplicate entry.
When setting up integrations with your HRIS Technology, it’s important to have dedicated support from your provider. There will inevitably be bumps along the road, you need to have someone to turn to who knows the why behind your integration.
What should someone expect in terms of provider support for their HCM platform?
They should expect their hand to be held. They should expect to have direct access to dedicated contacts who know their account and reach someone every time they call. When you have a payroll issue, it’s normally a big one that needs to be fixed right away. When you can’t get a hold of someone, that can be scary. They should expect those contacts to be industry experts, knowledgeable in payroll tax and HR norms.
Consistent support over time is important. After implementation, some providers will not offer dedicated support later in the relationship.
What are the main cost considerations (initial and ongoing) when selecting a provider?
Initially think about setup fees and the workload division between you and the provider. Incorporate the time you will spend in your cost analysis. Consider long-term what fees apply. Looking at contract lengths and noted annual increases. Is support free and unlimited?
Are there any red flags or deal-breakers in HCM software selection that you can share?
Big discounts. It is a mechanism to reel you in and you end up paying more long-term.
Contracts .If a provider requires a contract, especially a multi-year one, proceed with caution. Once you sign on the dotted line you are stuck with whatever happens next and face hefty fines if you are unsatisfied and want to leave.
Employee turnover. You don’t want to repeat yourself and your story every time you call in for support. It wastes time and causes frustration and can lead to errors. It is also an indicator of poor culture or corporate uncertainty.
What should be the most important elements on a decision-makers checklist?
1. Service
2. Software usability
3. Ability to scale with company growth.
4. People you like to work with because the relationship will not end with the salesperson.
What else do you want business decision-makers to know about evaluating their HCM?
With the right provider it is not as hard as you think. It shouldn’t feel burdensome. Take a real look at your processes and outcomes versus what was promised. Look for a company coming to you with transparent and honest communication. No HCM transition is going to be perfect. It’s about having a partner who will be there to be accountable, accessible, and proactive in resolving questions or concerns.
Jenny Holm is Senior HCM Consultant at Coastal Payroll. Jenny holds her PHR designation and helps organizations optimize and streamline their payroll and HR Processes. Coastal Payroll is the largest privately held payroll provider in the West and Jenny is focused on expanding their assistance to businesses across Colorado.
