Implementing a human resource management system can be challenging. Learn how to make the perfect HRMS implementation checklist.
Your employees are the core of your company’s success and the way you manage your people and related processes should reflect that. That’s where human resource management systems (HRMS) come into play.
Even though it is crucial for your company, setting it up can not only be time-consuming but also challenging. Understanding your company’s demographic, being able to manage all of your employees from one single place, and managing all your documents can get overwhelming.
In large companies, implementing HRMS becomes essential for efficient time management. But before that, making an HRMS implementation checklist is vital.
In this article, we have listed our top tips for HRMS implementation and what data will be necessary to do this.
What Is a Human Resource Management System?
HRMS is a set of software applications that support and automate HR processes throughout the employee lifecycle, from the hiring process to payroll, timecards to taxes, employee development to performance reviews, benefits, compliance, and more.
Since there are numerous organizations in Dubai that employ people from all around the world, managing all aspects of HR is quite tough given the cross-cultural corporate landscape. Thankfully, some companies provide HR Solutions in Dubai to make lives easier.
With such service providers, it becomes more convenient and efficient to handle HR activities and records from a single platform. Moreover, it leads to a better understanding of the employees. This results in happier and more engaged employees who ultimately perform better for your company.
Things You Need to Consider While Implementing an HRMS
Before you take on the decision of implementing a new HRMS or updating your old one, there are certain key factors you should keep in mind.
1. Time and Budget
Going over your budget plan and past your “go-live” date are two of the fastest ways to disappoint top management during an HRMS deployment. Setting clear expectations upfront is the best way to stay on schedule and on budget.
Just the truth will suffice if you start with phrases like “best-case scenario” or “we can save this money if we pinch off from here.” Everyone will be content as a result of it. However, you should set aside a little contingency budget, perhaps 10 percent or so, as a safety net.
Once you’ve decided on a vendor, you’ll need to figure out your budget. The cost of the actual program will account for a significant amount of your budgeting.
However, a number of other variables can develop while the implementation process is running, causing your budget and timeframe to be impacted. Labor, technological challenges, infrastructural changes, and other potential time- and money-influencing factors should all be considered.
You’ll be able to stay on track if you have a documented plan that outlines the project’s scope, objectives, proposed budget, and overall timetable.
2. Implement in Phases
There are a few advantages to a phased HRMS installation. As the system is delivered piece by piece, the prioritizing of criteria aids HR managers, employees, and other stakeholders in better understanding the system. As a result, less information will need to be transmitted and retained at each stage of the implementation.
It is possible to assure that every unit has been designed, tested, and authorized by phasing the implementation. This is preferable to the alternative of going back and forth or proceeding to the next module without permission.
3. Assess Your Risks
Implementing a new human resource management system can be risky. There are several other issues to contend with in addition to schedule, budget, and security. You might ask the following questions to better identify and anticipate potential risks:
- How much assistance is provided by senior management?
- Could one of the company’s forthcoming projects push this to the back burner?
- Which parts of the firm are likely to be more reluctant to change than others?
- Is there anything that needs to be changed or adjusted in the infrastructure to help with the HRMS implementation?
This list depicts some common risks that may develop with the adoption of HR software. Furthermore, there may be other dangers that are unique to your firm. Knowing how to tackle these risks will make your company successful.
4. Make an Implementation Team
As soon as possible, involve staff – the actual end-users – in the implementation process. Both individual contributors and management will provide valuable insight.
Include essential departments like IT, payroll, finance, and recruiting in the process. There will be several changes in communication with employees across the board, so cross-departmental adoption is critical.
Other critical aspects will be maintained with the presence of personnel beyond your HR department and senior management. Your financial staff, for example, will ensure that the project stays within budget. Your IT department can keep track of security measures and deal with any technological issues that arise.
Your feedback team’s technical knowledge is desired but not essential. The feedback team should be carefully selected by the HRMS supervisor and management. You should choose people who are eager and able to assist you. Additionally, you should hire staff that is known for providing helpful, constructive criticism.
5. Make Sure Data Is Secured
You can never be too careful while dealing with sensitive data. The HR departments handle the majority, if not all, of a company’s sensitive data. Employee profiles will most likely include contact information, salary, insurance information, and career history. During the transfer period, this personal information must not be compromised.
Work with IT during the implementation project and improve the use of their expertise to protect employee data. Your IT department is the best place to go if you want to be sure your data is safe. Ensure that the team has a backup and transfer plan in place for employee data stored in your HR system.
HRMS Implementation Checklist
Now that you know what you should consider before adopting a new HRMS, let’s see what data you will need for your implementation.
1. Employees’ Personal Information
Basic contact information, demographic data, dependents, and emergency contacts are all included. Some businesses choose to let employees update this information in the HRMS. To decide who can view and edit what bits of information, security parameters must be set.
2. Details on the Advantages
This contains plan data, eligibility requirements, premium calculations, benefits statements, HIPAA certificates, cost summaries, COBRA tracking, online open enrollment information, and career information, among other components of benefits administration.
3. Data on Total Compensation
This covers base salary, all benefits, bonus pay, and any other information included in your company’s current total compensation report. If necessary, this may also include data on pay scales and ranges.
Some businesses choose to publish salary benchmarking information as well.
Accruals for absences, total absences, paid time-off banks, time-off requests, and FMLA leave status are all included.
Other companies choose to use their time clock systems to integrate their HRMS systems. If that’s the case, digital time cards and all related data will need to be collected.
4. Information on Employee Advancement
This covers qualifications, competencies, and certificates, as well as training courses and lessons taken. This could also include information on future training and education possibilities, virtual training registration information, and needed training checklists. Some businesses utilize it to plan their career paths and succession.
5. Flowcharts of the Organization
Some HRMS systems can store as well as print organizational charts; in case this information is needed, it must be entered ahead of time.
6. Recruiting and Candidate Information
Consider what historical data should be added if your firm will use the HRMS for candidate management and tracking. There are several powerful software packages that recruiters can use. As a recruiter, if you are looking for tools to help make your job easier, they are easily available online.
When the newer HRMS system is integrated into current systems and databases, HR team members frequently discover that the original information is no longer current. This is an excellent moment to obtain up-to-date employee information from your staff. If the data is correct, staff will have more trust in the future HRMS.
With so many options on the market, selecting the correct HRMS system and effectively applying it is a difficult task. You’ll need to spend on infrastructure to implement on-premise HR software. Implementing a non-optimal approach will result in significant losses. Furthermore, this is not something you can change every month.
By taking into consideration the factors related to implementing a new HRMS and following the tips discussed, we believe that you can find the best one for you to make your employee management much easier.