25 Questions to Unlock the HCM Mystery
Finding Your Tech Solution for More Efficient People Processes
There is a lot, and I mean A LOT, of excitement when new businesses start growing. They are hitting their stride, finding new clients or customers, bringing in revenue, hiring more people to meet demand. Success is amazing!
At the same time, do you ever feel stretched thin, jumping from task to task, some of which are what you want to do and some are simply what you have to do? Many business leaders and even early team members, aren’t intending to be HR professionals and can get bogged down in all the administrative work of actually employing people.
What if I told you that a technology could help take many human resources priorities off your plate and simplify processes with expertise and automation? Then you can go back to focusing on what you do best - growing your business!
This is where Human Capital Management systems come in. As soon as you google “Human Capital Management,” you’ll find there are a lot of options. So, how do you decide?
First of all, think through what you are hoping to gain to make sure it is worth the time and effort of going through an RFP process to identify a top provider. You’ll want to think about what issues you or your team currently face; talk to employees, managers, administrators - anyone who may use the system or benefit from the system (e.g. Accounting, IT, Payroll, HR, Operations) and listen for what features they’d like to see or for common complaints. Take inventory of manual tasks and possibly how those tasks flow through to other systems or departments with an eye toward automation. You would be surprised at how much time you can save by automating processes and integrating systems throughout your organization.
Here are a few questions/topic areas to get you started:
Could your organization find greater efficiencies by making any of the following less manual? Are you worried about maintaining compliance with any legal regulations on the following?
Payroll processing
Taxes and deductions
Consistent onboarding process
Training or learning system access (e.g. anti-harassment and discrimination training, managerial and soft skill training courses, mandatory or optional safety material)
Benefits enrollment and management online, ability to post flyers, guides or videos about benefit offerings, direct file transfers to providers
Time and attendance related scheduling and tracking
Performance appraisals to ensure all are done on time and using a consistent process across the team
Compensation changes submitted electronically for approval rather than tracking down pieces of paper
Processing separations to ensure all required implications are handled timely (e.g. ending physical or technological access, letting benefits providers know, tracking what property needs returned, etc.)
Workflow automation such as to ensure required approvals are obtained or when notifications of a change need to reach certain people or areas rather than relying on humans to remember all the steps every time
Analytics/Reports that can give you greater insight into your workforce (e.g. turnover, benefits utilization, performance rates by manager, overtime expenses, scheduling efficiency, etc.)
Would it be helpful for employees to do any of the following?
Access pay stubs & W-2s directly
Update their own personal info (e.g. address, emergency contact)
Benefits enrollment online
View their scheduled shifts
Alright, if you’ve made it this far, you’ve likely found there’s a chance an HCM could benefit your organization. Now let’s dive deeper into finding ways to differentiate the options to find the best fit to be your strategic partner.
While not all inclusive, here are some sample questions to get you started:
About the Vendor & Their Process
What is the vendor’s target audience in terms of business size? Special industry considerations?
Do you feel the vendor is getting to know your specific business and needs or simply selling a canned product?
How do they approach reaching success with you and for you? Is there a thoughtful process for implementation, what does the change order process look like, is training offered on the new system, end-user support, long-term partnership?
What resources are available for questions or if issues arise?
Is the vendor open to suggestions from clients for future improvements or developments as they build out updates for the platform? (Ask for examples.) Is there a community forum where clients can share suggestions that can receive votes of support for example, to show whether it may be of interest to multiple clients of the vendor and therefore receive higher priority on their development roadmap?
How do they secure the information housed in their systems?
Do they have an app for iOS and Android? (Especially for end users such as employees and managers so they can see their own information, pay stubs, team information, etc.)
Can they provide client references?
Getting into Specifics
What systems do you need now versus would be “nice-to-haves”? (For example, you can often group “core” systems like Payroll, Benefits, and Time separate from other offerings around talent management for Performance, Learning and Recruitment.)
Can it handle other categories of workers that aren’t “employees” such as managing 1099 individuals like contractors, consultants or freelancers (if applicable to your business model)?
Is the system able to handle compliance in multiple states, such as with payroll, taxes and training (keeping in mind your organization’s potential future growth)?
What do you need to know about benefits enrollment, APIs, and related integrations?
If they have a Learning Management System (LMS), what courses are in their “core” training library and are there other course packages that can be added?
Can we (the organization) create our own training videos and upload them into the training portal? (Even if you prefer “live” training, in our increasingly teleworking world, virtual training is often going to have some role in employee learning.)
What features are included in onboarding?
How do they ensure compliance with Form I-9 if done within onboarding? Does it interface with E-verify?
Is there the ability to customize the software such as field names, workflows and other details within the system to align with your current terminology and processes?
What analytics/reports are included standard and what costs extra?
Does their system integrate with any of your current processes or systems?
Will the service enhance the experience of leaders and team members? What is the UX like?
Depending on which modules are most important to your business, what additional questions on that specific area do you need to ask to ensure you understand its capabilities and its limitations?
And of course… Money & Contracts
How is their costing structured and what are their rates? (For example, cost per employee per month or per year.) What negotiating room is there?
What modules do they consider “core” versus add-ons and what’s the additional cost per add-on?
What are the contract terms? Is there a minimum first contract duration? What are the options to cut and run if needed?
How often are they developing upgrades to their system? Is there a cost to receive these upgrades? Are their other “maintenance costs” or “service fees” you should be aware of?
If you want help developing or working through an RFP as your organization seeks an HCM vendor, Key Elements Consulting can help! Contact us today for a free consultation.
