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Best Practices
Whether it’s a Case Study or a Step-by-Step Process, we like to publish material that focuses on how to get things done the right way.
Defining and Implementing Automated HR Processes
By Keoni Rauenhorst, M.S., SPHR and Jessica Niekrasz, M.B.A.
Pearson
Reid London House - Chicago, IL
Creating efficiencies for internal processes is not a new concept. However, utilization of these Human Resources techniques is beginning to become a practical reality. Over the past decade, HR departments have begun to automate components of their processes to include web-based assessments, applicant tracking tools, performance management techniques, HRIS and payroll systems. The reality of this automation is that the different components are often part of separate systems, resulting in both redundant data entry and difficulties in aggregating data for reporting. Only recently have vendors been able to offer integrated solutions that fully automate and track human resources and talent management.
Whether your goals are to create efficiencies, improve quality or a combination of both, seamless automation requires a great deal of planning and project management. Significant review is needed to ensure that the solution not only supports organizational goals, but also is delivered on time. The HR work process flow should be carefully defined and outlined so that your solution is customized for your organization, its needs and budget.
As you begin to review your HR processes and procedures, how will you manage decisions about which processes to automate and when to implement change? As you consider these questions, the following steps should assist you in making critical choices for change:
Clearly define business goals and key performance indicators (KPIs), to provide the necessary framework for solutions that support organizational goals.
Understanding your business makes the execution of human resources strategies more successful. Finding and implementing the most effective solution to hire, recruit and retain talent is key to supporting your business goals and enhancing HR’s role in the organization. Systems designed with only HR needs in mind don’t necessarily serve the needs of the entire company. Processes and systems should be configured, not only to serve HR, but also to serve HR’s internal clients. Understanding the organizational KPIs establishes the context for important HR functions including workforce planning, organizational development and performance management. The ability to measure HR’s performance begins with ensuring that HR activities are contributing to the success of the organization. Focusing on these areas helps support overall company goals and improves HR’s strategic presence within the organization.
Establish a baseline for current HR performance.
Recognition of HR’s role has greatly increased. In a recent Workforce Management article, cited surveys revealed that 92% of CFOs believe that the quality of human capitol effects customer service. Additionally, 82% believe profitability is affected and 72% believe that human capitol also has an effect on innovation. With this recognition, successful implementation of a solution is important to help validate HR’s increasingly strategic role. This begins with understanding how HR is measured. Measures should include key HR metrics and indicate how they fit into the KPIs of the organization. If there are disconnects, it is essential that HR take a closer look at their current strategies to help identify gaps between organizational objectives and HR practices, measure their current state and look for cost effective solutions for reducing this gap. Your HR performance metrics should answer questions such as:
- How effective are hiring practices in your environment?
- How can you ensure retention of your most valuable employees?
- Is the investment your organization has put into human resources paying off?
- What is the HR department’s current ROI?
Once you have established measurements, review them with organizational stakeholders to ensure these measures are valuable to the organization.
Understand your organization’s current culture and anticipate challenges to implementing new solutions.
By facilitating the communication process with your HR performance metrics, you will be able to understand and anticipate challenges as well as establish a commitment to the success of the program. Coordination between IT, HR, functional managers and leadership is necessary to understand how any new solution will impact the organization. Identifying the impact of process variations, while communicating and training about these changes, is critical to the overall performance of the solution.
From process change and budgetary standpoints, solutions that are modular, dynamic and evolutionary allow for development at a comfortable pace.
The right solutions are only as big or small as your organization’s goals, budget and culture allow. Many companies wish to start slowly by implementing assessments into their hiring process. Others are ready for an automated recruiting system that includes assessments, as well as applicant tracking and integrated background check results. Regardless, the solution provided should be designed to easily integrate with your company’s process and culture. Solutions should also be modular in nature to allow growth as your needs evolve.
Solutions comprised of modular components ensure a good fit with your company’s needs. Applicant tracking, automated prescreening, assessments, integrated tax credits and background checks are just a few options typically offered. Additionally, comprehensive reporting of the HR performance metrics identified during baseline review is necessary to measure the effectiveness of the solution.
Account for concerns about security, business continuity and ownership of information as you develop your solution.
In today’s world, the security of sensitive employee information, disaster recovery and ownership of data are valid concerns. Proactively addressing these issues means careful consideration of contingency plans. When implementing automated solutions, it is important to understand the extent to which your processes are secure in order to plan for the unexpected. Many companies have been faced with these risks and, not surprisingly, these issues are often addressed during project planning when working with internal staff and external vendors. Your IT department and service providers should be able to identify measures currently in place, why these measures exist and who to contact with questions or concerns.
Measure your progress often and communicate your results.
As you implement various solutions into your HR process, be sure to compare progress against your baseline measurements. It’s important to measure the progress in establishing HR metrics, as well as the organizational KPI’s. The more often you communicate your organization’s ability to incorporate the success of the HR department into the overall performance of the organization, the better your organization will be at optimizing talent management.
There are a host of end-to-end solution providers in the marketplace. Whether you choose to implement a fully automated HR process or automate modularly as your budget, time and organizational culture allow, the success of your solution depends on your ability to marry HR performance with that of your organization. Proper implementation and partnership with internal stakeholders and external vendors will provide the framework necessary to achieve successful human resources and talent management.