Sunday, December 7, 2008

HR Systems – are they at the right level of maturity?

A small 5 person organization may not need a HR/ Payroll system at all. A large manufacturing firm with 90% as blue collared workers may need a HR/ payroll system that is more operationally compliant. A professional consulting with hundreds of highly paid professionals may need a highly mature system with powerful online and self service systems. Of course there will be many shades in between.

Some of the primary triggers that drive maturity are

Number of employees – an obvious one
Importance of compliance – mandatory nature of compliance rules and documents related to pay, benefits, leave, training, internal movements etc.
Value of people – Are you a people centric organization and how much does your business model depend on people
Employee Churn – Are people leaving or moving continuously. HR has major responsibilities in such environments

If you are high on all these areas – get the best HR system – powerful features, best practices, high levels of productivity providing self service capability
If you are low on these get local HR system administered in the back office
If you are somewhere in between run an administration setup and provide self service/ kiosk / capability in high return areas like leave and attendance

KServeHCM products (www.KServe.net) are structured currently as three products based on this philosophy – Standard, Pro and Advanced. All three are web ready and hence ready for the future be it SaaS or even Cloud computing ready.

A last piece of advice – don’t buy a system that does not allow you to graduate to the next level easily when your organization needs it.