Significance Of Doing An HR Health Check / HR Audit For Your Organization
- 1 Significance Of Doing An HR Health Check / HR Audit For Your Organization
- 2 Past Company Performance
- 2.1 Last time around why did your organization decide to implement the HR systems in the first place? Because…
- 2.2 Were you able to judge the success of that project?
- 2.3 Does your current solution meet the long-term strategic vision of your organization?
- 2.4 What was the learning from that implementation
- 2.5 What would you like to achieve from your SuccessFactors implementation:
- 3 Business Case
- 4 Utilizing the HR health check/HR Audit data for a Strategic HR Roadmap
- 5 Essential components for developing an excellent HR Roadmap
It is possible to run the HR Health checks or HR Audits with many methodologies which may include diagnostic questionnaires, interviews, surveys, and workshops together with business and IT stakeholders.
Businesses are generally moving out of long and lengthy ERP HR/On-Premise implementation cycles to best in class and agile SaaS model, filled with great opportunities. However, many times we are short-sighted in our vision to go for a quick implementation without fully comprehending the lessons learned while implementing ERP HR/On-Premise systems in the past.
Understanding the past
We think it is crucial to understand what worked and what did not but also the cause of that. Every organization is different hence don’t be under the belief that simply because it worked for a particular organization, it would do the job for you as well.
There could be a question in your mind, so why should you care about what you did 5-10 years Back if you are moving to the new best in the class SaaS-based system, i.e., SuccessFactors. According to SaaS hype, the system itself should take care of all your problems magically in a 5- 20 weeks.
We wish any business transformation would have been that simple. If you answered “No” to one or more of these questions below, then you would benefit from an “HR Health Check/ HR Audit.”
- Do your users have a great “User Experience” in HR?
- Do you have standard HR processes across your enterprise?
- Have you ever implemented integrated Talent Management systems before?
- Are you spending enough time in understanding whether you are meeting your HR KPIs or not?
- Are your customers ‘very satisfied” with your HR service offerings?
- Are you still spending 60% or more of your HR dollars on administration?
- Does your ESS/MSS cover 90% of your HR process/transactions?
- Can you quickly find, aggregate and analyze your HR data and build actionable analytics on it?
- Are you able to benchmark your HR Processes and performance with the industry?
- Are you finding it difficult to justify the Business Casefor the system implementation?
Past Company Performance
It is essential to Know “how your company performed” the last time a substantial HR application was implemented not due to the technical part of it but due to the subsequent other strategic elements which if not dealt with before may reappear again in your current implementation:
Last time around why did your organization decide to implement the HR systems in the first place? Because…
- Another part of the organization had ERP, and IT insisted on having HR part of that system
- Integration benefits
- Strategic benefits
- Operational benefits
- Align with organization’s strategic goals
Were you able to judge the success of that project?
- Was there a business case build before the implementation?
- Were all these benefits and goals met?
- Was business involved in the decision making process?
- Is the current solution outdated? Moreover, why?
- Does the current solution allow analytical data from HR, PY, Talent and another non-HR specific department(s)?
- Does the current solution still offer an ROI?
Does your current solution meet the long-term strategic vision of your organization?
- Were complete solutions implemented that took into consideration the variations of the business process requirements?
- Has there been many business level changes due to merger and acquisition, other organizational changes since the time you have last implemented HR and other HR solutions for your organization
What was the learning from that implementation
- The solution as designed worked very well
- There was much work around as the business blueprint did not reflect the to-Be processes well enough
- User adaptability was low because of lack of change management, difficulty in using the software, lack of end-user training, etc.
What would you like to achieve from your SuccessFactors implementation:
- Achieve current strategic goals of the organizational
- Remove current pain points and limitations
- Have additional industry best practices
- Ability to use HR analytics, operational, predictive, prescriptive, etc.
- Have organization specific enhancements, customizations, and non-standard solutions.
A well-done HR health check/HR Audit helps the organization to develop a good business case for their next round of HR Transformation enabled by the SuccessFactors solution. A good HR Health Check/HR Audit should give you some of the following benefits:
- Identification of improvement opportunities for HR process, service delivery, system & UX
- Assessment of effectiveness of technology that supports HR services delivery
- Potential solutions to critical issues and pain points
- Comparison to HR “leading practice” metrics and best practices
- Presentation of final report findings and recommendations to senior leadership
- Limited front-end investment and accelerated time frame to create an HR “call to action.”
This also helps you to come up with a future HR Roadmap which depicts a short-term, mid-term and long-term vision of the organization keeping in mind your organizations strategic business objectives.
Utilizing the HR health check/HR Audit data for a Strategic HR Roadmap
Now that we understand “Why an HR Health check/HR Audit” is essential and what are the parameters that we will need to observe during an HR wellness check.So we presume you are good to come up with a business case for the next round of investment for your HR Transformation projects.
Very good, we are on the right track but how can we construct a future “HR Roadmap”?, which will be an integral part of your Business Case.
What are the factors for creating a robust HR Roadmap which will survive the test of time in the fast-changing SaaS world, where four quarterly changes occasionally bring in innovations faster than anyone can comprehend?
Essential components for developing an excellent HR Roadmap
Aligning with Organization strategic objective and value creation:
- HR function needs to have a precise role, strategy, and concrete goals, long-term and short, to contribute as a full business partner to organizations’ sustained success,
- These goals will be put in the context of the Organization’s Vision & Values and Business Strategy and will be aligned and integrated with the objectives and goals of the other company functions such as Finance, Sales, etc.
- The Roadmap must represent a dedication to a long-term investment in individuals, including the development of the HR function. Naturally, the yearly investments will take into account the offered value, and sustained investment is going to be justified by improved business outcomes through the operation of your company and its people.
- Additionally, the Roadmap should help provide the basis for determining the best HR structure, the goals of its team members and those roles which need to be outsourced to optimize the HR service delivery.
Current pain points, and what gives you the maximum bang for your buck
- HR health check/HR Audit would have given you the list of issues. They could be in the areas of UX, HR Core, talent, Analytics, etc.or a blend of these.
- The short-term goal is first to remove the immediate pain points which are hampering the development. You can identify these in various ways either by the number of tickets generated in that function, loss of productivity, employee turnover, lack of user adaptability, etc.
- The mid-term plan could be something more tactical that can be easily attained and goes nicely with the overall longterm objective, e.g., executing Workforce Analytics could be one such plan. You can take a couple of mid-term programs based on the requirement and funding.
- While designing short-term and mid-term plans one should not forget the end goal, i.e., that is the overall HR Roadmap.
Rationale and the role of technology
- It is all right to construct your Roadmap for HR with SuccessFactors in your mind. However, what is also vital to consider is the roadmap of SuccessFactors as a package as well. SuccessFactors announces its short-term and long-term roadmap, and you should consider those as part of your planning.
- Important to note here that if you are Payroll and Time is in SAP HR on-prem and they are running smoothly then that is the last thing that you want to disturb (core Hybrid could be the way to go here). If it is outsourced, then a proper consideration could be to bring it to EC Payroll (same on-prem PY engine but hoasted in the cloud) if it makes sense and adds value to the overall strategy.
- Based on our experience and best practices, Recruitment Execution, Recruitment Marketing, and Onboarding typically go hand in hand.
- Similarly, all talent management modules like PMGM, career and succession management has dependencies and should go together.
- LMS has lesser dependencies on other modules (one significant dependence could be the competency structure) hence can go anytime depending on your organizational objectives.
- Compensation and variable play can be grouped for synergy, but Compensation can go without Variable pay as well.
- We recommend that you consider the implementation of Employee Central as a significant strategic move towards your complete progress to a SuccessFactors based solution. Sometimes it makes more sense to implement EC first and then other modules (pre-packaged integration, out of the box ESS/MSS, standardization of core processes which creates a substantial foundation, etc.) but again it depends on your overall objective.
- While deciding on which modules to go first depends on the above parameters but also a significant factor is when an existing legacy product comes for a renewal of the contract. It sometimes makes sense to use the entire period and then replace the product rather than pulling the plug in between.
Finally, based on your HR health check/HR Audit discussions and feedback received during assessment sessions, you could devise your HR Roadmap for future.
In another future blog post, We will cover an essential and unique service that we offer, i.e., “Implementation Pre-Planning (IPP)” which we recommend that you take it up Once you decided to go with an “HR Roadmap” Strategy
Please reach out to us if you have a question on the blog or would like to know more.