Global People Management Solutions and the Value Proposition: 5 Absolute Truths
There are several absolute truths that have not changed in the 15-years I have worked with People Management solutions across the world, which often remain elusive and completely ignored as solutions are pitched, purchased and put into operation; mainly because they simply do not align with the ‘value proposition’ of the vendor, a.k.a., the tool/solution/model they want to sell today.
Often, the value proposition pitched relates to either the intellectual property owned by the vendor, what they are historically comfortable with selling or what provides them with the lowest risk contractual engagement; rather than a genuine solution to the clients ever changing business challenges.
So, what are my 5 absolute truths that really should drive your engagement into the future?
- Current pricing models and contractual frameworks do not drive gain-share, cost reduction or the efficiency mind-set from vendors – Without a revolution in the pricing model proposed by your vendor, one that genuinely and easily allows for gain-sharing and cost reduction then the paradigm of vendor beneficial engagements continue. It is time the throw away the rule book and for the vendor to share the upside and shoulder more of the risk
- Global Payroll from one vendor is critical for Cloud HR to live up to its hype – Cloud HR and the amazing analytics tools available today rely on data….. Payroll Data! While the demand of instantly integrated bi-directional integration to every payroll engine in every country of operation has been a dream for years it is now only really available. One global vendor with various processing models must provide one seamless bi-directional data integration layer.
- Payroll without Labor Management (Time & Attendance / Rostering) is half-baked and doomed to remain inefficient – For a payroll solution to be truly a solution it must have the comprehensive capability to roster the workforce, capture start/finish times, and interpret the hours for those who are hourly paid and also provide a solution for those employees who do not need to capture their start and finish times but need to capture leave and possibly overtime data. While no one vendor has actually developed a comprehensive solution, it is possible to find one vendor who can implement both halves of the payroll puzzle.
- HR and Payroll Business process standardization is very hard work but critical – Buying a Cloud HR platform does not magically redevelop your HR and Payroll business processes regardless of what it says on the brochure. Real HR Transformation actually needs an experienced partner, ideally one who actually runs the processes themselves and has developed proven standards.
- The HR Operating model must be reinvented – Be brave. The HR operating model for the next 10-years is vastly different to what has come before. Embrace the outsourcing of the transactional processes; engage in real HR business partners and data analysts to actually live up to the promise.
So be wary of the value proposition as it often aligns to the IP owned by the vendor rather than the real solution you actually require. Develop your own value proposition, invest the time and visit a show like HR Tech Europe and look for the (very few) vendors who can actually deliver the entire solution.
Beyond getting an actual solution to your business challenges, you will also save many millions of dollars by partnering with a ‘New Age’ (in the good sense of the phrase!) HR partner.