10 Questions to Ask Before Choosing a Deployment Model For Your HR System (Part 1)
For decades, companies have used holistic core HR and payroll systems. These systems have usually been developed and customized over a long time and have been integrated with other company applications like time management, CRM or accounting applications.
As competition grows, new global players are joining the market, and organizations are facing changed workforce requirements (Generation Y, Millennials). This is the moment, where the good old stable and proven HR systems are usually reaching their limits. When companies start to look into new solutions, like HR collaboration tools, Workforce Analytics, mobile applications or a personalized HR experience, it is important to consider as well as how to integrate these new solutions.
Part 1 of this blog explores the first 5 questions you should ask before choosing a (new) deployment model for your HR Systems.
1. Does your company want the control of having your HR systems on-premise?
Is your organization running an on premise HR system, like SAP®? If yes, you’ll then need highly qualified, and as a consequence, highly paid employees, as well as hosting the infrastructure that is necessary to run these applications. With this deployment model you have full control over the systems but on the other hand also the responsibility of data security and being legally up to date for every country in which your system is used.
2. Does your company have strict business continuity requirements?
How are the requirements in terms of accessibility and downtime of your HR applications? For many companies HR applications are not regarded as critical as customer facing applications like online stores or call centers. Does the current infrastructure support your demands and what are realistic Service Level Agreements for your HR applications?
3. How fast should your new HR application be operational?
It is important to go live with a stable and well-tested application, but we have often experienced that there is a tendency of “over engineering”. How much time do you plan for developing new functionalities, and how long will it take for your organization to change and adapt, a few months, or maybe 1 to 2 years? The risk of being too fast is to lose employees on this journey. The risk of being too slow (besides the financial aspect) is to go live and the application is already outdated. Therefore, the right speed for the right application is important.
4. Do you prefer to make IT investments as assets or as operating costs?
With an on-premise solution, you usually have a higher investment at the binning and an amortization over the time of usage. Besides the costs for customization and implementation, the biggest cost drivers in an on-premise setup are hardware, IT personnel, training, and software licenses. In comparison, the implementation costs for a cloud solution are considerably low. They usually include costs for implementation, customizing and training. Additionally, the subscription fee for cloud applications covers, for example, upgrades, licenses, maintenance of databases and security.
5. What kind of software integration and reporting capabilities does your company need?
Are you planning to renew your entire HR landscape or do you want to add new functionalities without changing the current environment? By using state of the art interface technology, like Hana Cloud Integration (HCI) or Dell Boomi, most cloud solutions offer you a seamless data integration. Moreover, this enables you to implement comprehensive workflows. On the other hand, you have to consider what kind of reports you will need in the future. Should the reporting be done on-premise, or in the cloud, and do you have to submit real-time KPIs to the management?
I hope these 5 questions help guide you in this process. Stay tuned for Part 2 of this blog where I’ll discuss what other questions you should ask yourself when choosing a deployment model for your HR System.