If you’ve ever purchased enterprise software, you’re familiar with the potential rewards and risks involved in the decision. It’s no different when you’re shopping for the right Human Capital Management (HCM) solution.
On one hand are the benefits of more efficiency, higher productivity, and increased cost savings. Yet in the back of your mind, no matter how confident you may feel in the choice, you wonder (for good reason) if it might end up to be a financial disaster.
Perhaps this is half-glass-empty thinking. Unfortunately, the reality is that purchasing decisions can go wrong – horribly wrong.
But let us now fill that glass to the rim. There’s good news. With a thorough evaluation from all angles, you can make the best HCM decision possible for your organization.
Business goals should be the egg, not the chicken
With dozens of HCM options to select from, your sanity could take a hit when trying to figure out how to begin the evaluation process. Instead, start by looking within your company.
Specifically, first determine the most critical business goals you want to achieve, and then look for solutions with capabilities that align with those goals. Gather your leadership team together to define the company’s high-level objectives. What type of growth do you want to see over the next 6-18 months? How could the HCM foster your plans for payroll and other functions?
Also consider how an HCM can resolve your present-day challenges. Can it cut into your need for administrative support without falling behind on compliance requirements? Can it eliminate some manual processes to create a more efficient, streamlined workflow? Can it help you make data-driven decisions rather than guessing based on subjective, ever-changing opinions?
Clarify and prepare
While it’s important to spell out your goals, it’s equally critical to anticipate the technical roadblocks and internal issues (politics, bureaucracy, etc.) that may slow down progress, both with vendor selection and implementation. Dig into every nook and cranny to discover contingencies that might affect not only the speed of adoption, but also the very success of the initiative.
Speaking of, success is often determined by more than matching company goals with technical features. Employees, the people who will actually spend their days using the HCM, better like your selection. If it doesn’t fit into their workflow, you can end up with an expensive system that only collects dust.
Accordingly, create a small team of individuals who can stress test potential solutions during the evaluation phase. They should represent all of the key functions that will be using the HCM – people from finance, payroll, HR, operations, and IT. The feedback you receive from them is often the bulk of the reliable information you need to make the right decision.
Real experiences from real people can’t be overlooked in the decision, especially if you’re replacing a legacy application with a SaaS application.