It’s not an uncommon practice that once a company implements a Human Capital Management (HCM) solution, they simply budget annually to pay the monthly or yearly fees. I would like to share with you why it’s worthwhile to set aside some additional budget to continue investing in your HCM solution each year. Your HCM solution provider is more than just a vendor, they’re a partner.
Investing in your people management is more than just software licensing and support fees.
I’ll start by sharing a scenario with you that I have seen many times in my career in HCM technology.
A company purchased and installed their people management solution several years ago. Over time they experienced employee turnover in members of their Payroll and HR teams. The new people got some basic training on the solution from their predecessor but essentially inherit the original configuration of the solution.
In that time their HCM solution partner has added new features and functionality to the software but no budget was ever set aside to implement these new features or provide a Business Process Overview.
So the solution continues to be used as it was originally implemented, and the company misses out on some significant savings that could be realized from the new features by streamlining existing processes and automating even more manual tasks.
Technology today is built to adapt and improve processes for end users, but to keep up you need to be prepared to continue to invest in it. I hope this post will help you understand that an ongoing investment in your HCM solution ensures you, and your organization, are getting the most out of it.
To get the conversation started in your organization, here are some of the triggers that we find help our clients identify times where we can help:
In addition to these triggers, I recommend planning for an internal meeting with all of your stakeholders once a year (this includes Payroll, HR, Finance, and Management) to see what tasks they are finding time consuming or what would help them be more effective.
Knowing what areas your company would benefit from then allows you to collaborate with your HCM solution partner to scope out how they can help you and if there is a cost involved.
Once your HCM solution partner understands your needs they can often offer services to help like:
The good news is that often many of these services are not a huge investment … Sometimes it can be as simple as budgeting for creating some workflows or the automation of a calculation or form that would otherwise take up valuable time.
Here are a few ways to determine if your investment will pay for itself:
Let’s take a look at a typical example to demonstrate the ROI calculation:
Once a year, all employees are required to review and sign off on 2 company policy documents:
The total time invested in policy document sign-off is 85 hours at a total cost of $2,610. If you could work with your vendor to automate this process by posting the document in your Employee Self-Service portal and provide electronic signatures for $1,750 (for example) you would realize significant savings and would know that your investment has paid for itself within the first year.
Planning ongoing investments in your HCM solution ensures that you keep up with changes in technology and continue to provide business improvements for your people management team.