HR Strategy

4 Ways to Evaluate HR Tech Like a CFO

By

Chad Raymond

| Jul 20, 2016

In recent years, the gap between finance and HR has narrowed. Among more than 550 CFOs and CHROs surveyed in one study, 80 percent said their relationship has become more collaborative. One factor that has prompted this closer bond is the need to make changes to operating models. Companies continue to transform key business functions, including their HR technology.

This type of enterprise buy can impact a company culturally, functionally and economically, so it is important the HR leader vets HR tech providers with the CFO’s interests in mind.

To do that, remember these four tips:

Tip 1: Look for the total package in one application.

Partner with a different vendor for each application may result in inefficiency, errors in compliance and a lack of comprehensive workforce analytics, because each piece of software performs independently.

So, if you choose to look for the total package from one vendor, be wary of the differences between a single-source solution and a single-application solution.

Vendors that offer a single-source solution typically provide a product set consisting of multiple programs that have been integrated. They may or may not have developed the programs themselves. But with a single-application solution, not only do you reduce your total cost of ownership, but your data workflow is seamless.

Tip 2: Identify the system that specializes in driving out inefficiency with automation.

Without the right technology, time-consuming manual processes could inhibit your business. In HR, this means operating from numerous spreadsheets and paper-based applications, hiring forms and benefits enrollment. Avoiding errors, losses and employment law violations may be three reasons for better HR software, but the right technology does not just impact your payroll and HR staff. Even your accounting team can benefit from efficient HR software that can produce payroll general ledger reports mapped to your company’s specifications for easy import into accounting software. The best solution will impact everyone positively.

Tip 3: Search for engagement tools that actually drive performance.

Even employers with the best of intentions can find themselves spending resources on free lunches and on-site gyms, only to lose sight of what true engagement means. Ideally, you will want to find HR technology that not only promotes employee engagement, but allows you to leverage that engagement to drive actual business results. In fact, a recent Gallup study indicated that companies that increase their number of talented managers and double the rate of engaged employees achieve, on average, 147 percent higher earnings per share than their competition.

Tip 4: Find a vendor committed to continuous improvement.

Let’s face it: There will always be changes in employment laws, and the economy will continue to impact how companies hire, motivate and retain employees. Make sure the technology vendor you vet will serve you long-term. Here are a few important questions to ask:

  • When was your last software update?
  • How many software updates were released in the past year?
  • How quick were you able to implement sudden compliance-driven updates?
  • Do all customers operate in the same software version?

Asking these questions will help weed out any bad seeds and ensure you select a vendor with sustainability. This is important because, a vendor committed to continuous improvement will save you money from potential compliance violations and outdated technology.

Choosing HR software to improve efficiencies and help drive organizational performance is a critical decision – one that requires a united front between both the CFO and the CHRO. Identifying the right system that can provide the best functionality to meet all parties’ needs not only will add value to the company, but also will strengthen the bond between HR and the CFO.

About the Author

Chad Raymond

With over two decades of experience in employee engagement, benefits administration and government compliance, Chad has unparalleled knowledge in the fields of leadership and human resources. During his time at Paycom, Chad worked in several different capacities with Paycom including leading the product development team and HCM initiatives as well as the former director of Paycom’s service department. As the former vice president of HR, his vision and execution helped empower executives and their teams to reach their full potential.

See more posts by Chad Raymond