When was the last time you were congratulated for getting your basic work done accurately, completely and on-time? Did anyone notice? On the other hand, did anyone notice the last time you made mistakes, didn't finish something, or didn't complete it on time?
When companies replace their HR system there is a lot of focus, energy and work on getting the basic administrative processes correct. We have to make sure that we are storing complete and accurate employee data – organization assignments, work schedules, rates of pay, and on and on – so that subsequent processes such as Benefits and Payroll are correct and we have a reliable database for regulatory & internal reporting. We have to make sure that our Benefits and Payroll calculations are correct and that all the resulting data gets posted correctly to Financials, government/tax agencies, and any internal or third-party providers we are working with. Everyone who originates and maintains employee data needs to be trained well, and of course the processes they use need to work.
All of that is complicated in any company of a larger size – 1,000 or more employees for example. Add to that the requirements for multiple countries, each with their own regulations, and it gets more complex.
Some consultants and HR pundits advise outsourcing to free a company of all this nagging detail. Outsourcing has its place, depending on a company's preferences, but it doesn't make all this nagging detail completely go away. Someone still has to determine how much to pay each employee, pay changes have to be originated and approved, benefit plans are still created and employees are enrolled in them, and we need to know where to tax each employee's payroll. Even if we have these processes outsourced, someone at the company is still responsible for them (which is all about governance – and another blog post in the future).
One of the problems that happens when we replace HR systems is that we – consultants and clients both – tend to cut the cord on these administrative processes before they have really been worked out well and are operating smoothly. There is often a rush at the end of the project to transition resources to other work; and too often the new system goes live with poor processes to begin with. Without quality, reliable manual and system processes a company won't be freed from spending too much time and resources on dealing with the issues that creates: inconsistent data, ineffective end-users, and system issues. Effectiveness goes down and costs go up - and no one wants to be noticed for that.
Getting these basic administrative processes correct is also the basis for the HR department's credibility. If HR can't get the basics done correctly and on-time, how can it be trusted with the higher-value work it desires to be known for? Getting these administrative processes done well is like getting to work on time, day after day: that is what is expected. If you do it, no one really notices; if you are often late or inconsistent, your credibility and reputation suffers.
A central goal for HR and HRIT groups needs to be that they become so good at these administrative processes – whether they are done in-house or outsourced – that no one complains about errors, usability or the resources used to get them done.