Enterprise tech buying teams need these capabilities in their HRMS solutions to enable future of work goals.
Large enterprises today need their HR function to support a wide span of activities, from traditional tasks like administering benefits to improving employee experience, and managing performance and talent strategies for a hybrid workforce. Choosing the right enabling systems is key to the success of HR in delivering on its business priorities.
Human resources management systems (HRMS) can manage the entirety of HR’s needs, though functionality is increasingly being built in the cloud in human capital management systems (HCMS), which are synonymous with HRMS in terms of functionality.
HRMS or HCMS suites typically offer functionality to facilitate HR administration (organization, access to job and employee data), service management (policies and procedures retrieval) and workforce management (absence, time and attendance tracking and scheduling).
These solutions also elevate and advance HR function key performance indicators (KPIs) and outcomes as they relate to attracting, developing, engaging and retaining employees. This is especially important given the increasing expectations among employees and candidates for inclusive, equitable, optimized, always-on and consumer-like experiences in all enterprise interactions.
Prioritize these 11 requirements before evaluating HRMS or HCMS solutions
Ultimately, each enterprise tech buying team must decide what is essential for their own use case. To do that, rank your team’s requirements as high, medium or low depending on how essential they are to aligning HR’s priorities with enterprise outcomes and objectives.
Gartner research finds that these 11 functional requirements or capabilities are typically ranked “high” or “medium” priority for HR teams shopping for HRMS or HCMS solutions.
No. 1: Absence management
Does the solution deliver and manage a comprehensive view of absence, including sick days, paid time off and vacation? Your HCMS or HRMS solution should offer an intuitive submission and approvals system for managing employee absences.
No. 2: Core HR
Does the solution allow users to create an employee database and employee profiles, and maintain rosters of employees with important, relevant information about each worker, including contract information and salary?
No. 3: Performance management
Can HR fully manage the performance review process through the solution, tracking employee progress over time against defined and documented performance goals?
No. 4: Product usability
Does the solution provide easy-to-understand, friendly interfaces with intuitive designs that facilitate user engagement?
No. 5: Self-service processes
Can employees submit and manage administrative tasks such as requesting time off, updating personal information and amending payroll information?
No. 6: Compensation management
Does the solution analyze compensation trends and help the enterprise optimize spend based on internal and external market factors?
No. 7: Employee benefits
Does the solution allow employees to enroll in requested and approved company benefits packages? Does it track usage and costs of those packages?
No. 8: Employee onboarding
Can the suite walk new employees through paperwork and required training, helping them to successfully onboard and start work?
No. 9: Learning management
Does it allow creation of employee learning and development curricula, and track employee progress through relevant e-learning courses?
No. 10: Payroll
Will it calculate wages and salaries, run payroll, distribute funds, and generate payroll tax forms?
No. 11: Succession planning
Can it compare employee skills to the organization’s needs and build a roster of internal candidates to replace people as they leave?
HRMS or cloud-based alternatives (HCMS) solutions enable enterprises to meet employee expectations for consumer-like engagement.
Where many HR business functions once required disparate solutions, these all-in-one suites can be customized to meet unique organizational needs delivered via the cloud.
Future of work initiatives increasingly require the flexibility and adaptability that HCMS and HRMS solutions allow.
Colin Reid, VP of Product Management, leads Gartner teams in scoping, building, shipping and managing global SaaS applications, including BuySmart. Previously, as a Gartner analyst, he helped clients design, build, integrate, operate and optimize all aspects of marketing and content technology and their operations. Mr. Reid also has experience as a CMO, COO and team leader at client marketing organizations, marketing agencies and global technology providers.
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