By Lim Say Ping
With the prevalence of technology around the world, technology has become one of the main drivers of change in the workplace even disruption business models that have existed before the development of HR software.
And with HR being a critical function in any company, CHRO or HR managers must evolve to adapt and help the organization be more competitive, prosper or survive industry changes depending on the speed of change, flexibility of workforce, HR processes and the robustness and flexibility of their HRMS.
That said, HRMS also known as HRIS, has slowly grown to be a mandatory tool to automate operational HR activities in companies with the implementation of Payroll and HR software being the bare minimum.
With the transition of the HR function moving into a more strategic role, assisting the C-level management team in managing fast changes in the company has become a strategic issue that the CHRO or HR managers must contribute towards as part of the company’s strategy. And to handle this strategic role effectively, CHROs and HR managers will require more than just a smooth-running HR and Payroll software.
Even with the minimum HR and payroll software most companies implement, they can often be fine-tuned to automate the operational activities of each unique company with functions such as multi-currency payroll, performance based periodic bonus (MVC or AVC monthly or annual variable component). As such the HR software handles a wide variety of incoming data that could be core HR information, claims and benefits, attendance management etc. These activities will generate many data points about each employee, the department and they form the foundation for which top management can extract the information from and analyze them to produce useful information for strategic decisions. With the multitude of various incoming data, the availability of reporting and visual tools such as a dashboard will help greatly. Information is ultimately the key competitive tool for the top management to observe and create suitable strategies from and CHRO support the management by contributing greatly in this aspect.
With Singapore’s aging population and low birth rate, the war on younger talent is slowly heating up in the labor market. And to add to the challenge, HR departments now need to also focus on upskilling the older workforce to continue to contribute positively to the company. As such, one should have a structured process and the necessary software tools to assist business management and HR management to be more effective. Though many HR departments do well with a minimum operational system such as payroll and HR software, companies big or small should consider having a working talent management process that focuses how to attract (recruit) develop and retain people. An integrated system with both HRMS and talent management will be critical as it eases the burden on HR personnel and provides a holistic view of an individual employee and the total workforce. With a flexible integrated system, one can also set up succession plan and workforce scheduling, thus, accommodating the various needs of the workforce with the varied skills and competencies. This is possible only with a comprehensive competency framework, appraisal system that is integrated with training or learning management system that is interconnected seamlessly with HR information and payroll system to cater for a flexible and varied workforce.
How a disparate HCM system reduces your HR effectiveness
Some companies have adopted a “best of breed” systems and components strategy for HR software implementation. While it may work operationally, ie they can be interfaced with each other to handle the daily activities and reporting, it may be a challenge to extract strategic information. It may lead to a higher cost of monetary and manpower efforts in the long because of the disparate definition of data. In my opinion, key components such as HRMS and Talent management software should be integrated and share an integrated database, ensuring the database is secured and easy to extract management information from using reporting tools and dashboard.
In summary, people continue to be a critical factor of success, one must manage well in the face of changing business environment and fast changing technology that though, disruptive to business may also aid us in achieving more in the future. An integrated human capital management will not only enhance productivity, but also enhance your ability to contribute to company strategy formulation and execute a modern flexible and competitive HR strategy and process.
Future CHROs must be keenly aware of the potential impact of technology on the industry, and prepare the company and its workforce to be ready when the tide hits the shore.
iQDynamics is now a Microsoft acknowledged Gold Partner in Application Development and has been providing organisations in Singapore and the APAC Region with our proprietary HRiQ HRMS and Talent Management System with over 10 years of experience.