HR and payroll departments have more options than ever before
HR departments serve many masters, from the senior team to employees, pensioners and contingent workers, everybody wants something. Technology has come along to help meet the many demands placed upon human resources, but in the process has also landed HR professionals with a need to come to grips with the complexities and costs of software and systems. Outsourcing is an option to ease HR’s tech woes.
HR and payroll departments have more options than ever before when looking to improve content and service to their employees. A quick inventory of technology options begins with common human resources management system (HRMS) and payroll software packages. Add on to these platforms, self service applications and broader HR intranet portals, and you quickly see the option to integrate HR communications with other technology like recruiting and performance management software. Other technologies that can be integrated within HR services include telephony solutions that help to centralize HR and payroll support across an enterprise.
The quest to improve service, and be seen as a best in class employer, is motivating an increasing number of organizations to use many of these new tools.
The use of these tools brings additional technology infrastructure requirements that must be considered in a broader enterprise IT strategy. The most basic element of an HR delivery strategy, an HRMS, itself comes with demands for IT infrastructure to remain current on databases, operating systems, software and security protocols. This complexity has lead to the development of various alternatives to maintaining the entire infrastructure in-house, specifically outsourcing varying components to support an HR strategy.
An advantage to outsourcing technology is that it allows organizations to focus on their core business while minimizing the investment in staff or the technology itself.
IT departments are being challenged to serve individual department needs without taking on the exponential responsibility of ongoing maintenance. Outsourcing HR and payroll delivery technology is an alternative, as it allows the IT department to focus on core services, internal support, enterprise deployment, standardization or simply keeping up with advancements in technology.
Outsourcing HR technology comes in many forms.
Transaction-based outsourcing has been popular in the payroll world for many years. Payroll service bureaus focus on transactions and output, eliminating the need for underlying technology. However, the work itself continues to be done within the organization.
Simple IT infrastructure outsourcing is another option. This is gaining in popularity as most organizations are challenged by the constant rate of change found in the IT world. This outsourcing option is ideal for organizations that want to maintain existing HR and/or payroll solutions, but no longer want to be responsible for the technology side of it.
Application service providers (ASPs) have entered the market recently, providing organizations with the ability to outsource entire HRMS platforms, again still requiring all work to be done by the HR department in the organization. ASPs allow HR to “rent” software and access it over the Internet, instead of installing it internally.
This is a great option for organizations that want to reduce the burden on their IT staff, yet still control their own HR and payroll delivery processes. The ASP solution provides organizations with a low upfront investment, because they no longer need to purchase or maintain the technology required to run their HRMS software.
All of the above options are typically limited in their technology offerings to support HR delivery, for example they are focused on core HRMS functions and payroll functions. They do not offer telephony solutions, portal and communication tools or integration services.
A more extensive option can be found in full-service HR/payroll outsourcers. This includes outsourcing not just some technology or departmental functions, but the entire contingent of in-house HR staff supporting functions. All administrative HR staff can become employees of a third-party outsourcer, and outsourcing strategic HR tasks is also an option.
This model typically includes a full breadth of services from data and communication management to integration services. You also find full call centre staffing and telephony services for centralized support. Another benefit of these full outsourcers is that they bring their best practices and change management services, thereby transforming the way an organization delivers HR services.
As a means of becoming a best in class employer there are now a lot of options open to an organization. From service bureaus to full outsourcing models, an organization can find options that allow it to improve content and service to employees, while at the same time focusing on the core initiatives of the organization.
Jeff Koven leads product strategy for Hewitt Associates’ eCyborg HRMS solution. For more information contact [email protected] or visit www.cyborg.com. Look for his next column in the April 19 Guide to a Healthy Workplace.
HR and payroll departments have more options than ever before when looking to improve content and service to their employees. A quick inventory of technology options begins with common human resources management system (HRMS) and payroll software packages. Add on to these platforms, self service applications and broader HR intranet portals, and you quickly see the option to integrate HR communications with other technology like recruiting and performance management software. Other technologies that can be integrated within HR services include telephony solutions that help to centralize HR and payroll support across an enterprise.
The quest to improve service, and be seen as a best in class employer, is motivating an increasing number of organizations to use many of these new tools.
The use of these tools brings additional technology infrastructure requirements that must be considered in a broader enterprise IT strategy. The most basic element of an HR delivery strategy, an HRMS, itself comes with demands for IT infrastructure to remain current on databases, operating systems, software and security protocols. This complexity has lead to the development of various alternatives to maintaining the entire infrastructure in-house, specifically outsourcing varying components to support an HR strategy.
An advantage to outsourcing technology is that it allows organizations to focus on their core business while minimizing the investment in staff or the technology itself.
IT departments are being challenged to serve individual department needs without taking on the exponential responsibility of ongoing maintenance. Outsourcing HR and payroll delivery technology is an alternative, as it allows the IT department to focus on core services, internal support, enterprise deployment, standardization or simply keeping up with advancements in technology.
Outsourcing HR technology comes in many forms.
Transaction-based outsourcing has been popular in the payroll world for many years. Payroll service bureaus focus on transactions and output, eliminating the need for underlying technology. However, the work itself continues to be done within the organization.
Simple IT infrastructure outsourcing is another option. This is gaining in popularity as most organizations are challenged by the constant rate of change found in the IT world. This outsourcing option is ideal for organizations that want to maintain existing HR and/or payroll solutions, but no longer want to be responsible for the technology side of it.
Application service providers (ASPs) have entered the market recently, providing organizations with the ability to outsource entire HRMS platforms, again still requiring all work to be done by the HR department in the organization. ASPs allow HR to “rent” software and access it over the Internet, instead of installing it internally.
This is a great option for organizations that want to reduce the burden on their IT staff, yet still control their own HR and payroll delivery processes. The ASP solution provides organizations with a low upfront investment, because they no longer need to purchase or maintain the technology required to run their HRMS software.
All of the above options are typically limited in their technology offerings to support HR delivery, for example they are focused on core HRMS functions and payroll functions. They do not offer telephony solutions, portal and communication tools or integration services.
A more extensive option can be found in full-service HR/payroll outsourcers. This includes outsourcing not just some technology or departmental functions, but the entire contingent of in-house HR staff supporting functions. All administrative HR staff can become employees of a third-party outsourcer, and outsourcing strategic HR tasks is also an option.
This model typically includes a full breadth of services from data and communication management to integration services. You also find full call centre staffing and telephony services for centralized support. Another benefit of these full outsourcers is that they bring their best practices and change management services, thereby transforming the way an organization delivers HR services.
As a means of becoming a best in class employer there are now a lot of options open to an organization. From service bureaus to full outsourcing models, an organization can find options that allow it to improve content and service to employees, while at the same time focusing on the core initiatives of the organization.
Jeff Koven leads product strategy for Hewitt Associates’ eCyborg HRMS solution. For more information contact [email protected] or visit www.cyborg.com. Look for his next column in the April 19 Guide to a Healthy Workplace.
