17 Jul How to Formulate an HR Technology Strategy
Oftentimes, many HR teams don’t have a strategy for delivering online total rewards statements because they simply don’t know where to start. If this refers to you, then you’re in the right place. Here, we’re going to discuss how you can develop an HR technology strategy, as well as what you’ll need to execute it.
Step 1: Determine Your Needs
One mistake many organizations make is “putting the cart in front of the horse” and evaluating vendors before they’ve analyzed their own needs. While both steps are critical to executing your total rewards delivery strategy, reversing the order of them can lead to costly and time-consuming consequences. Thus, you must first determine your needs before you can find a solution that will meet them.
When considering your needs, think about where your information is stored, how it’s organized, and how it will be transferred into employees’ total rewards statements. Your data could be coming from multiple third-party sources responsible for managing and organizing payroll, 401(k) data, or even spreadsheets. Ultimately, any tool you choose is going to require you to bring together information from multiple places.
Step 2: Choose Your Components
Don’t overlook elements outside of compensation and benefits alone. Total rewards can (and should) incorporate additional components that engage your employees. For instance, if your teams are engaged around wellness, you can get creative and factor in options for physical fitness and/or nutrition.
Step 3: Plan a Timeline
Most likely, you’ll also need to consider your dependencies around other systems and processes, which will have an impact on the compilation of total rewards data. For example, which processes need to be completed before information becomes available to you? Where does each component fall into your overall timeline? Here’s another consideration: how will you rollout your total rewards technology? Will it be a focal event, or a soft launch?
Step 4: Determine Your Source
The next question to consider is: how do you want to integrate your total rewards app? You’ll need to consider where you’re going to source the information from: within your HCM suite or via a point solution. A point solution is a standalone tool that simply delivers total rewards statements.
Some organizations can use a unified platform because all of the information they need for total reward statements can be sourced from a single system. Thus, it can also be presented out to employees through a single system. Others, however, know that they must use an integrated strategy because their information is stored on different platforms.
As you can see, there are many factors to consider when analyzing your needs, but taking the time to identify them all is well worth the effort. Doing so will allow you to go in prepared when it comes time for evaluating potential software vendors. Instead of analyzing software capabilities and seeing whether they’ll match with your needs, you’ll be taking a more proactive approach by finding out if the software has the capabilities to meet your needs in the first place.
HRsoft is a leading provider of strategic talent management software that improves manager effectiveness and business results. Our full suite of cloud-based HR software solutions includes applicant tracking software, compensation planning software, total rewards software, stay interview software, performance management software, and content management software. For more information on our Total Rewards Software, REWARDview, click the button below!