1. Vendor Landscape Plus: HR Management Systems

2. Introduction Who should read this:
HR Management Systems (HRMS) occupy a mature and stable place in the enterprise application market. Organizations tend to struggle with the vendor selection process because of what generally comes down to too much choice. HRMS vendors are like Olympians: they’re all elite athletes at the top of their game, and the final decision comes down to what the judge is looking for in the performance rather than the actual skill level of the performer.
Who should read this:
Both HR and IT managers
Those evaluating HRMS adoption
Those seeking to reduce labour costs and increase operational efficiencies
At the end, you will:
Understand whether your organization’s requirements necessitate an HRMS.
Prepare a Request for Proposal (RFP) and a demo script ready for vendor evaluations.
Create a shortlist of HRMS vendors and select which is the best fit for your organization.
Gather advice from peers on their greatest success factors.
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3. Implementation and Next Steps
Executive Summary
HR Management is a mature and stable technology. This is a good thing and a confusing thing – you cannot make a wrong selection. With no clear winner…
Look beyond basic payroll and benefits administration. HRMS solutions offer cost savings, operational efficiencies, and better management of human capital.
Weigh your needs carefully. Do not purchase a solution that requires extensive customization in order to fit. Customization is an app killer.
Assess potential benefits in order to purchase the right components to maximize payback.
Define
Strategize
Compare and Select
Implementation and Next Steps
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4. Defining HR Management Systems
This section looks at defining HRMS and the HRMS market by examining:
Level of functionality: basic, advanced, and next-generation features.
Vendor type: niche, pure play, and ERP.
Deployment options: traditional hosted, on-premise, Software-as-a-Service (SaaS).
What the cloud means for HR.
Define
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Compare and Select
Implementation and Next Steps
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5. Implementation and Next Steps
Your choice of HRMS solution will depend on the functionality you require, from the basics to advanced features
Next Generation
Talent Management
Learning Development
(e.g. training tracking)
Role-Based User Interfaces
Predictive Analytics
(e.g. Business Intelligence)
Social Media Recruiting
Advanced
Performance Management
(e.g. performance review)
Expense Management
(e.g. vehicle, travel)
Absence Management
(e.g. sick leave)
Succession Planning
Basic
Payroll Administration
Benefits Administration
Time and Attendance
An HR Management System (HRMS) is an enterprise application that combines many HR functions into a single, highly-integrated solution. Historically a back-end application for managing basic administrative processes, an HRMS includes capabilities ranging from core administration to performance management, learning development, and talent management.
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Implementation and Next Steps

6. Payroll Administration Benefits Administration
Table stakes for HR solutions include payroll and benefits administration as well as time tracking
Payroll Administration
Ensures that hours worked, commissions, vacation, leaves of absence, overtime, deductions, bonuses, taxes, and contributions are properly documented and distributed in a timely manner.
Benefits Administration
Monitors programs and plans, including but not limited to pension, retirement, investment, insurance, and healthcare, and ensures that payments and deductions are made correctly and at the appropriate time.
Time and Attendance
Documents employee labour hours (including lunches and breaks, overtime, and holiday pay), and tracks attendance data for payroll purposes.
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7. Advanced HR functionality automates and optimizes more complicated and time-consuming tasks
Performance Management
Evaluates and documents performance so that each employee effectively meets business goals. Expectations are clearly outlined, progress is closely monitored, rewards systems are established for compensation, counseling is provided, feedback is given regularly, and areas for improvement are clearly communicated.
Expense Management
Reports and tracks that employee expense claims are processed, paid, and documented correctly and in compliance with the organization’s policies regarding spending. Components of expense management include refunds, advances, and purchase control (i.e. preventing purchases that are not permitted).
Absence Management
Measures and monitors employee absence to ensure maximum workforce productivity as well as employee support. Elements of absence management include short and long-term disability and sick leaves, scheduled and unscheduled time off, punctuality records, necessary leaves, vacations, sabbaticals, and parental leaves.
Succession Planning
Identifies and develops personnel who demonstrate potential for increased responsibilities and key leadership roles within the organization, when those roles become available (typically when senior management needs to be replaced).
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8. Next generation functionality leverages and enriches lower-level features and builds to further BI initiatives
Talent Management
Retaining and developing new and current employees. Talent management that focuses on training and bettering the talents and skills of current employees generally experience improved employee retention.
Learning Development
Focuses on improving employee performance through training (with specific emphasis on programs that relate directly to the employee’s respective job role and responsibilities), education (preparation for future roles), and development (including personal and professional).
Role-Based User Interfaces
Generates a user-specific interface based on the login identification and role of each employee. The customized interface allows users to access only the data allowable for that role; role-based user interfaces encourage increased security of sensitive information and stricter privacy regulations.
Social Media Recruiting
Makes use of social media platforms to identify and attract critical talent pools.
Predictive Analytics
Examines statistically relevant data for significant relationships and patterns – a process which lead to critical predictions about future trends, opportunities, and risks.
For more information on using social media to access qualified job seekers, refer to the McLean & Company solution set, Leverage & Optimize Social Media for Recruiting.
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9. The benefits equation is simple: fewer HR staff + improved manager efficiency = cost saving without reduction in ability
Going from…
To…
Means…
Over-staffed HR departments focused on administrivia.
Right-sized HR with more strategic capability.
HR will spend less time on routine issues and more time on strategic initiatives.
Optimize the value of human capital.
A single, integrated dashboard for automated processes.
The organization will see increased operational efficiencies with reduced turnaround times.
Distributed, manually-intensive HR processes.
Difficulty maintaining consistent data.
Data is managed from a central location, improving operational visibility.
Organized data assists with more informed decision making & improved analysis.
Compliance is simplified and improved.
HRMS is a stepping stone towards a high-performance organization.
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Implementation and Next Steps

10. Implementation Complexity Ease of Data Integration
Niche solutions offer point functionality for a low entry price but don’t scale or extend easily
Niche Solutions
Focus on one aspect or particular pain point of HR management such as payroll, recruitment, or time and labour management.
Scalability
N/A – buy a new application or add on as needed.
Implementation Complexity
Initial risk of adoption is limited because the solution is only part of a larger solution.
Ease of Data Integration
Even if tools are provided, applications tend to be harder to integrate, especially if integrating multiple niche products.
Price
Generally cheaper for individual function. It may look cheap initially, but might not be after additional integration costs and buying additional applications.
Niche vendors are not covered in this vendor landscape, as they focus on addressing particular functionality rather than being a comprehensive solution; however, a sample use case may look like this:
Company N is a small, established online retail business that has a static number of employees. They are able to manually process their payroll with relative ease but would like HR to have a more strategic role in other areas, such as performance management or compensation management.
Points to consider:
Limited number of users
Limited functional requirements (1-2 pieces)
Example vendors: emPerform, SumTotal Systems, HRN Compease
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11. Implementation Complexity Ease of Data Integration
Pure play vendors offer more complete HR solutions but must be integrated with other systems
Pure Play Solutions
Specialize in one line of business, which in this case is full-service, modularized HR systems.
Scalability
Limited – already providing an HR module (covering many HR functions).
Implementation Complexity
Higher risk of adoption as failure in the solution (HRMS) can damage enterprise operations.
Ease of Data Integration
Typically easy to integrate HR function, but can experience difficulty with system integration.
Price
Expect somewhere between niche and suite vendor pricing. Varies according to number of functions, level of integration required, etc.
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Define
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Implementation and Next Steps

12. McLean & Company Helps HR Professionals To:
Empower management to apply HR best practices
Develop effective talent acquisition & retention strategies
Build a high performance culture
Maintain a progressive set of HR policies & procedures
Demonstrate the business impact of HR
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