HR Software: digital HR tools for efficient management and a sustainable organisation
What solutions are there for the great challenges of HR?
- Jobs are not filled promptly (e.g. IT, BI, Med.)
- Lack of quality of applicants
- Increasing requirements (data protection, applicants' rights, speed)
- Recruiting effort increases (time and costs)
- Increasing search and selection effort
- High process costs, frustrated employees and applicants (high termination rates)
- shortage of skilled workers, talents expect active approach
- Insufficient description in call for tender
- Long application forms, outdated systems, non-transparent processes
- Lower the hurdle to application, direct approach
- Select unsuitable applicants at an early stage
- Transparent process and self-service for applicants, HR and departments
- High effort for administrative tasks
- Increasing absenteeism, often due to mental illness
- High fluctuation
- Little time for strategic HR tasks
- Load for teams increases
- Rising expenses for recruiting
- Many manual or paper-based processes
- Incorrect assignment of tasks, overstrain
- discontent , overstrain
- automation, self-service for all users
- Include employees, reduce workload
- Increase employee loyalty, improve induction
- Effort for target agreement and feedback too high
- Feedback without statement or too irregular
- Talent management not available or only available to a limited extent
- Executives and employees avoid processes
- Target not reached or reached late
- Talents are not promoted, succession difficult
- Process not demand-oriented and too rigid
- No standardized, regular process
- Concept for talent management missing
- Simple structured feedback & Agreement
- regular, solution-oriented assessment
- Systematically identify and promote talent
Hans Petter Stub for Nordinc HR Tech Days 2019
"The most relevant HR technology" or "Where should I begin? What technologies should I invest in?"
“IN” and “OUT” is a question of timing and circumstances
In the advanced states of digitaization you should be brave testing new technologies based on a strategic plan. In earlier states of digitaization you should focus on well established technology
Artificial Intelligence & Machine Learning have strong impact on recruiting activitites
HR Software: A definition
Human Resource Software (HR), also known as Human Capital Management Software (HCM). HR software supports Human Capital Management (HCM) in continuously increasing the value-yielding process of human capital. Completion, storage, updating, administration or even statistical evaluations of personnel data can be intelligently accelerated/simplified by automation and smart data processing.
That's why companies of all sizes and in all industries need HR software.
- The software takes over routine and administrative tasks and at the same time provides additional benefits by intelligently linking information. This leaves more time for interpersonal and conceptual issues.
REDUCTION TO A CENTRAL SYSTEM
- Data is reliably exchanged in software. This means that data never has to be maintained twice, as all data can be linked: e.g. vacation times and important internal deadlines; results of an employee interview and planning of training measures.
AWAY FROM EXCEL WALLPAPERS AND PAPERWORK
- The possibilities are endless... some examples at this point: view payroll online, simply photograph and upload sick leave with your smartphone, electronic signature, automatically place any kind of appointment in calendars, automatically send documents to authorities, and much more.
INCREASE SERVICE LEVEL AND RELIEF
- The possibility to provide applications, certificates and much more through self-service for employees increases service levels thanks to fast and uncomplicated availability. At the same time HR is freed from these tasks and relieved immensely.
- The saving of paper, toner and tine not only saves money in the long run but also does something good for the environment.
Shift form automation to performance management
What are the needs?
Answering the following questions helps to define the requirements for HR software.
- Which groups of people should use the software and what should be considered in each case?
- Which tasks are particularly time-consuming and/or can be automated? (e.g. repititive, administrative tasks)
- Which processes are to be mapped by the software and how are processes structured today? (e.g. communication channels, approval processes)
- Where are there interfaces to other departments or third parties? How can these be integrated into the processes? (e.g. IT, employer branding, suppliers)
Where is HR software used?
A third to a half of the resources are used by human resources departments for administrative tasks. This means that the potential for increasing efficiency is not sufficiently exploited (Kienbaum & DGFP e.V.). Conversely, this also means that there is not enough time left for strategic HR tasks. HR software can correct this imbalance. Repetitive, administrative tasks (data maintenance, vacation planning, preparatory payroll accounting, etc.) are accelerated or eliminated by automation. This creates potential for activities that are also beneficial to the company's success.
Areas of application for HR software
Engagement & Satisfaction
Training and further education
and many more...
Step by step to the new software
Choose the right software
The requirements analysis should of course describe the future functions. However, it also depends on how these functions work together, in combination. To what extent are data cleverly networked and thus generate even more use and increased efficiency? Are there interfaces to third parties (authorities, offices, etc.) that further shorten processes? Can employees manage data themselves and use functions independently? If so, to what extent is this possible? A criteria check leads to a successful selection of HR software.
What characterizes a software?
Criteria check for the selection of the right HR software
Cloud (Software-as-a-Service) or On-Premise solution
License fee + maintenance fee or monthly or annual rent
Compliance with general and internal data protection requirements
Uniformity of database, architecture and user interface
Expert advice on decision making, implementation and maintenance
Regular satisfaction checks and measures if necessary
Delivery model A: Cloud Solution (Software-as-a-Service)
Cloud Software, also known as Software-as-a-Service (SaaS), can be compared as a subscription. Payment for using the software is made monthly or annually.
- By storing the data on external servers of the provider no own computer center is necessary.
- implementation, maintenance and further developments are also carried out by the provider.
- The use is location-independent - provided there is an Internet connection.
- Cost savings for computer center and IT personnel
- Flexible adjustment of the currently required power according to the current demand
- Disclosure of internal company data
- Diverging data protection guidelines abroad, if applicable. This plays for example with servers in the USA again and again a role.
- dependence on the provider and its capacities
Delivery model B: On-premise solution
- Independence from stable Internet.
- Data sovereignty: no transmission of sensitive data to external providers
- Independence of software vendors with regard to support, reliability and performance
- Increased costs
- Constant additional work for maintenance, repair, updates etc.
Successful implementation of HR software
Especially companies that are still at the beginning of digitizing HR processes or in which digitization is not placed with high priority in the HR strategy can make mistakes.
HR software projects are successful if...
- ...OPPENCE for changes exists and these are actively induced
- ...the implemented tools have a high APPLICATION FRIENdliness
- ...there is a CLARICAL KNOWLEDGE to want to harmonize processes across the board
- ...only BEST PRACTICES are established
- ...old processes can be broken up in favor of efficient STANDARDS