Implementing a human resource management system (HRMS) can be time consuming and difficult, but there are some key considerations up front to make it more likely to succeed. Here are some tips.
Considerations When Implementing a New HRMS
When implementing a new HRMS, there will be many steps both before and after selecting the right system for your organization. When deciding what software might work best, be sure to confirm that the proposed system can be configured in a way that allows you to continue following the company’s existing processes and policies.
When implementation begins, the company must have a way to convert the historical data into the new system. “Remember that you might want to form some kind of team to deal with the various activities associated with ERP, [and] payroll integration—so that you’re involving other people that are going to help you with the implementation.” Amy Letke advised in a recent BLR webinar. “Remember, when you’ve got a lot of people involved who are going to be impacted by your decision, you should get them involved quickly so that you can get their buy-in and be able to have more success when you’re ready to implement.”
HRMS Implementation Checklist
Here is a checklist of data to gather to input or link to the new HRMS:
- Personal information for employees. This includes basic contact information, demographic data, dependents, and emergency contacts. Some companies opt to allow employees to update this data in the HRMS. Security parameters need to be set to determine who can view and who can change what pieces of information.
- Benefits details. This includes all aspects of benefits administration, such as plan details, online open enrollment information, premium calculations, eligibility requirements, benefits statements, cost summaries, HIPAA certificates, COBRA tracking, and carrier information.
- Total compensation data. This includes base pay, other pay, all benefits, and other data your company includes in current total compensation statements. This could also include information on pay grades and ranges if applicable. Some companies opt to include salary benchmarking data as well (which may be visible to only selected individuals).
- Absence accruals. This includes total absences as well as time-off requests, paid time-off banks, and FMLA leave status. Some companies opt to combine their HRMS systems with their time clock systems as well. If so, then electronic timesheets and all related information will need to be gathered.
- Employee development information. This includes training courses and classes taken, qualifications, competencies and certifications. This also could include future development and training opportunities, online training enrollment information, and checklists of required training. Some companies use this for career and succession planning.
- Organizational charts. Some HRMS systems have the ability to research and print organizational charts; if this information is included it needs to be entered up front.
- Recruiting and applicant data. If your organization will utilize the HRMS for applicant management and tracking, then consider what historic data should be entered.
Oftentimes HR team members will find that the original data is not up to date when the new HRMS system is linked to existing systems and databases. This is a good time to get up to date employee data from the employees. The employees will have more faith in the new HRMS if the data is accurate.
For more information on HRMS implementation considerations, order the webinar recording of “HRIS Systems 101: Selecting the Right Information Service for Your Organization.” To register for a future webinar, visit http://store.blr.com/events/webinars.
Amy Letke, SPHR, GPHR, is the founder and CEO of the HR consulting and HR outsourcing company HR Integrity, Inc. She has 20 years of progressive experience in human resources management and senior leadership in various industries.