Top 15 Best Practices in Core HR Implementation
Core HR system provides a single source of truth, handles HR transactions flawlessly, and delivers true business impact. Core HR functionality include Employee Data, Absence Tracking, Benefits Administration and Compensation Management. HR department mainly deals with core information about employees such as personal information, benefits enrolment, and income tax withholding. This information is normally stored in a database. Any software that helps in storing all employee information in a database, extracting data and report from that information, as well as the use of that information in creating employee profile, can be considered as core HR software.
Core HR is normally used to refer to the basic function of HR department and the basic data captured by employees. Core functions of HR department mostly involve recruitment, scheduling, benefits administration, payroll, employee training, compliance, and safety. Investing in a core HR system helps an organization enjoy some benefits such as; cost management, compliance with HR regulations, and also allows HR personnel engage in strategic activities. HR managers are able to save time especially during hiring processes. It is against this backdrop organizations are opting to incorporate core HR software to help in the management of information and HR processes.
Core HR software is considered as a back-end software. This is because it is used in the administrative side of employee record keeping and HR management, as opposed to the strategic side that deals with training and recruitment. Choice of Core HR software for companies varies depending on the scale of operation, whether the company has a global base and its market share.
Top 15 Best Practices in Core HR Implementation
1. Complex processes should be standard and flexible
An organization should have standard policies and procedures in all the business units. However, some companies operate globally thus there is need to evaluate the processes that work best in a particular country or region.
By applying the same policies and procedures to all employees in the same region ensures there is fairness and also acts as a mitigation factor in case of a dispute. There should be a clear communication of policies and procedures to all employees if this is to be effective
2. Adopt cloud-based technology
Organizations are increasingly adopting cloud technology to share and store their data. The world is slowly turning in to a global village. As a result, most organizations are operating from different regions in the world. To effectively manage the operation of these companies, it is important to adopt cloud technology whereby data and important information can be accessed with ease from any corner of the world.
Cloud adoption helps an organization reap maximum benefits from their HR system as some of the processes are standardized and unnecessary costs minimized.
3. Putting in place ERP software
ERP software comes in handy when it comes to storing and securing data. Employee’s information should remain private and confidential. To safeguard this, organizations should aim at having a safe mechanism for storing these data. Access to this information should be limited to authorized personnel only. This safeguards the privacy of the employees as well as ensuring compliance with HR functions.
4. Grievance procedure
Disputes are bound to arise in an organization. Employees should be clearly guided on the hierarchy they should follow in escalating their problems. At what point should they move to the next level and how long should they wait before the matter at hand is resolved. Lack of clear guideline makes HR inefficient leading to employees’ dissatisfaction which can negatively affect their productivity.
5. Automate self-service delivery
Organizations should aim at automating HR services such as leave management, payroll services, and updating personal records. This will not only ease the workload on HR personnel but also helps the organization cut on cost by eliminating paperwork and unnecessary staff.
HR should ensure the service model is well optimized if the organization is to benefit from effective and efficient services. The service model should be managed centrally preferably from the HR department. This helps in elimination of unnecessary processes that may hinder effective delivery of services.
6. Set realistic goals and measurable targets
Performance should be based on set targets that are realistic and measurable. Increasingly, organizations are moving away from the traditional practice of dictating expectations to the employees. Target setting exercise should incorporate all members of staff irrespective of their seniority level. This creates a sense of responsibility and ownership among all staffs.
7. Constant monitoring and evaluation of HR function
Organizations should have periodic reviews on the core functions of HR department. This enables the department to gather feedback on how to improve the service delivery. There should be a formal process on how to go about the activity otherwise it might end up creating confusion in the organization. HR functions are real-time meaning it is a day to day activity. New trends keep emerging thus it is important to shorten the review period to either quarterly or half yearly.
8. Invest in Reporting/ Analytics
Data plays a crucial role in making key decisions, strategy formulation, and implementation. Investing in appropriate software helps to automate most of the key functions such as payroll management, performance appraisal, planning, and budgeting. HR department is thus able to engage in performing strategic roles more effectively.
9. Integrating HR software with the payroll system
Integrating HR software with payroll system helps in eliminating manual data entry which is tedious and prone to human errors. It also promotes consistency in the organization as the same data is used all over the company. How does it work? An integrated system automates data sharing whereby accounts department is able to access the data from HR when preparing the payroll. Organizations with such a system have a very effective and efficient HR department.
10. Employee empowerment
As part of employee empowerment, many organizations are encouraging staff who have worked for a certain period of time to own company shares through ESOP program. Allowing employees to own shares of the company creates a sense of responsibility. Employees are more dedicated to the company when they are working as owners of the business. This also tends to reduce employee turnover since they are already part of the business.
11. Training and development
Learning should be a continuous process in an organization if the employees are to perform their jobs effectively. Training of employees shouldn’t necessarily take place under a structured session such as workshops and seminars. There should be a platform where people from different units can share their knowledge and experience.
Some organizations have introduced platforms where peers are able to share information and experience amongst themselves. In the past employees used to learn mostly from their direct managers and peers, however, this is changing as organization adopts a flat leadership model.
12. Leverage diversity as a business tool
For highly effective organizations, diversity is considered as a critical business tool. Diversity helps drive innovation in the organizations. Enterprises should encourage behaviors from People of all walks of life so that they can feel as part of the team. This way, staffs are able to share experiences and different cultures that can positively impact on the business growth.
Inclusive behaviors provide many benefits to the organization such as increased productivity, more opportunities for creativity, improved business relationships and strong bond among employees.
13. Incorporate change management as a critical success factor
Change management is critical when deploying any new initiative in the organization. Fear of the unknown is one of the major factors that cause resistance to change. A simple communication plan or push of information is not enough. There should be an interactive dialogue, involving all stakeholders from the onset of the process till the end.
Organizations that use change management are able to stay on budget with their projects, operate within schedule, and achieve their objectives programs.
14. Have a customized software that suits your needs
The software comes with standard features which are not ideal for all business. Not at any given time will you ever find a system that perfectly suits your needs. Have a package that will allow modifications of the features to suit your tastes and preferences.
Look for software that can be customized so that it can be able to accommodate your business even when there are changes to your business model.
15. Have a system that supports end-to-end talent management
Most of the existing HR systems capture employees data which is limited to personal information such as name, home address, employee ID number, and national ID. Integration of this information with talent management applications is very important. This helps to reduce inconsistent data which mostly affects workforce planning, talent acquisition, merit-based compensation and workforce development.
Core HR data for every employee should include knowledge, skills, expertise, performance scorecard, career and development plans. Such system is able to provide HR with variable information that supports decision making.
The above practices are meant to help organizations improve its overall efficiency and increase its ability to compete with the rapidly changing global market. HR leaders also stand to benefit in that they are able to manage their function more strategically thus boosting their productivity. As a result, they are viewed as valued business leaders who support business growth and expansion.
Here are the trending and the top rated Core HR Software for you to consider in your selection process:
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