Submitted by: Greg Gast, SPHR, CMC, Senior Advisor, PROXUS HR
Connected world
It’s impossible to escape the barrage of articles, surveys and white papers highlighting the urgent need for small and mid-sized businesses to enhance their Human Resources technology in the form of workforce management, data analytics and electronic connections with applicants and employees. And the problem is real – demands and expectations have far surpassed the IT capabilities of most organizations. Customers, government agencies and employees all expect 24/7 connectivity, Amazon-like efficiency and smartphone responsiveness.
The Demands
Data demands are coming from outside the organization in the form of growing governmental reporting requirements, not the least of which is the Affordable Care Act, but also from the Department of Labor, the Equal Employment Opportunity Commission and the Office of Federal Contract Compliance. The prevailing expectations are that every organization is online and that they have quick, complete and reportable data about their workforce.
Demands from inside the organization emanate from executives and managers who are increasingly data-dependent and are accustomed to having real time information at their fingertips. And this is not just to check their Facebook status; rather it is about having key business indicators such as labor costs, hours worked, scheduling and productivity immediately available. These leaders are managing a complex workforce composed of more part-time and contingent employees and the flexible scheduling demands of a broad band of generations from Boomers to Millennials. In addition to regulators and managers, much of the current workforce is used to accessing most of its information online, from shopping to social media updates to Googling the answer to any conceivable question. They now expect the same level of electronic interaction with their employer including mobile job applications, electronic paychecks and real-time benefits administration.
Finally, under-resourced IT departments are left to manage the mess, compiling and reconciling data collected from a mixture of independent internal and external systems on top of continuously upgrading and maintaining software, hardware and interfaces.
The Gaps
According to the Deloitte 2014 Global Human Capital Trends survey “more than 40 percent of respondents reported their companies were ‘not ready’ to address talent and HR analytics, HR technology, the overwhelmed employee, and performance management—the lowest levels of readiness among all the trends. These low reported levels of readiness and preparedness are a warning signal, considering the high levels of urgency and importance attributed to the trends in the global survey.”
The unfortunate truth is that walking through the door of many organizations is like journeying back to pre-historic computer times (early 2000s). Systems are a patchwork of unconnected applications that can’t communicate with each other much less produce an integrated report. Devices are slow and don’t have the latest applications. Legitimate access to the internet is blocked due to weak IT security systems and outdated social media policies. Employees waste time going to different people or systems to gather their employment data or change their personal information. The cumulative inefficiency adds hundreds of unproductive hours to a firm’s operations. People inside and outside the walls are frustrated by antiquated processes. Outdated technology can even raise questions about the vitality of the organization, “Why don’t they have better technology?” or “Are they unwilling (e.g. don’t want to make the investment) or are they unable (e.g. don’t have the resources) to advance?”
The Opportunities
There is good news and opportunity hidden in these reports. A study sponsored by Kronos and conducted by the SMB Group reported that organizations who invest in technology solutions anticipate a high return on their investment. In fact, those with a significant hi-tech commitment are 86% more likely to expect revenue growth than those with lower investments. For these companies whose critical data is integrated and accessible, operational efficiencies can be improved, resources can be properly deployed and, ultimately, customers can be provided with better service. As the SMB report states, “With an integrated system, managers can make more confident day-to-day operational decisions and long-term plans.” Competitors without this capability will be left behind in the race for talent as well as in the battle for customer attraction and retention.
The Solutions
Recent innovations have finally begun to yield powerful and affordable tools for smaller organizations. Cloud computing aka “software as service (SaaS)” is allowing firms to rent applications (subscription based) which, similar to leasing a car, allows access to the latest model without a large initial capital outlay. As a bonus, the software requires minimal specialized IT resources to operate and is regularly updated without additional expense or system downtime. Fully integrated solutions that operate off a single database with a unified employee record have reached the mid-market in a variety of forms. Common among this new product generation is a core single and central database which populates all the screens, modules and reports rather than a network of disparate applications cobbled together with complex interfaces. Conveniently, many services offer these workforce management modules for purchase one at a time which allows them to be added as companies need them or can afford them. Workforce analytics comes built-in to these new solutions. All the data in the system can be retrieved, sorted and presented in various formats from dashboards to in-depth reports.
