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HR Out of the Box

More and more medium-sized companies are also transferring their HR processes or parts of them to the cloud. Surveys show that cloud use has become a matter of course for many. More companies are actively addressing the issue.
Heike Kolar, Inside Management Consulting
October 4, 2015
2015
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This text has been automatically translated from German to English.

Today, decision-makers are relaxed about the benefits of using software for HR processes via the Software as a Service (SaaS) model.

When moving to the SaaS model, there are opportunities for consolidation and simplification of HR processes at predictable costs.

Moving to the cloud model in HR is not in line with every company's strategy and approach. However, in the course of our implementation projects, we are increasingly observing that medium-sized companies in particular are also choosing SuccessFactors Employee Central as the leading HR system to consolidate their multinational operations in one system.

Often the companies come from a heterogeneous system landscape, due to the acquisition of further companies and branches abroad.

Depending on the size of the new locations, they bring their own HR systems and processes with them. If companies also want to establish cross-border HR responsibilities or use foreign assignments for employee training and development in the newly created areas, heterogeneous system landscapes are disruptive, and the search for a cross-border solution begins.

SuccessFactors Employee Central can be the right answer here. HR administrative processes can be set up along a global standard, including the management of seconded employees.

In our experience, for the successful implementation of SuccessFactors Employee Central, the following aspects should be imperative: 1. clarity and control over strategic objectives, 2. a global-template-based approach, 3. detailed functional analysis and implementation planning, 4. design of end-to-end processes.

Strategic goals

Often the dilemma starts with the fact that "somewhere" in the organization it has been decided to use SuccessFactors, or SuccessFactors is already in use, for example as part of the talent processes.

SuccessFactors Employee Central is then to be deployed throughout the entire company. In the process, it is often forgotten to formulate strategic objectives or, once they have been defined, to check them for their feasibility and, during implementation, to monitor whether the implementation can still produce the desired results.

Companies that take up the striking argument that they can implement up-to-date support for their HR processes "out of the box" with SuccessFactors are correct in their assessment on the one hand, but on the other hand this argument is only true for the parts that are then actually used from the SuccessFactors HCM Suite.

But what happens to the local processes, what if functions cannot be applied across the board and have to be supplemented with others? What does contemporary mean in an overall view?

According to our recommendation, companies should clearly define their strategic objectives from the outset, certainly taking into account the marketed buzzwords, but honestly evaluate them for themselves and ideally set their own strategic objectives.

Experience has shown that this honesty gives everyone involved a clear picture of what can be achieved in line with the company's needs. This sets the foundation for a successful implementation project.

Furthermore, we recommend that HR and IT work hand in hand; simplification, for example, has an impact on process design and affects the design of system landscapes. Synergies that should be recognized and exploited.

Global template-based approach

On the one hand, if companies are looking to implement SuccessFactors Employee Central for reasons of cross-country harmonization and simplification, the recommended approach is to start with a pilot, for example one country.

However, a global template should already be used here. This sets the basis, especially technically, for which objects and data are used jointly and which are used country-specifically.

If this is missing at the beginning, one encounters problems with the implementation of further country versions, pick lists, which are to be used only in individual countries, the country key is missing if necessary.

Key concepts and functional elements must be defined from the outset; later on, they can only be implemented with difficulty and it is difficult to sort out which functions are to be used in which part of the organization.

Analysis and implementation planning

Where functions are assumed to be used across the board without a detailed analysis of SuccessFactors functions, this can lead to unpleasant surprises when compared with actual customer requirements.

Conversely, detailed analysis of the functions often opens up new opportunities. In the past, companies were skeptical about the time management functions in SuccessFactors Employee Central, for example, because they seemed too immature or because they were inherently argued not to meet the extensive requirements of German companies.

At this point in time, no comprehensive positive time management is available within the solution. However, for some of the companies we advise, this does not mean that the use of the time management functions is excluded.

An analysis and testing with the customer's own requirements is worthwhile in most cases. Some companies decided to use absence management via SuccessFactors for the majority of employees.

The roadmap regarding positive time management is promising, and anyway, one is required to constantly follow the development of the functions.

Design of continuous processes

The targeted selection of SuccessFactors functions in particular makes it necessary, on the one hand, to evaluate and design complete system landscapes and, on the other hand, to take a holistic view of HR processes.

This should best be done along use cases, which must be prioritized. This helps with implementation planning. The implications for integration, i.e., for cross-system data exchange or navigation, are very often underestimated.

The challenges that may arise from the intersection of functions should be known in advance and answers to feasibility should be developed.

If, for example, position management is to be used via SuccessFactors, questions may arise regarding integration into organizational management. Is this required to supply other processes within the SAP ERP system landscape? Who needs to be involved in the definition?

Similarly, within the HR process world, it makes a striking difference whether position management is part of the implementation project right at the beginning or at a later stage.

Are the positions from SuccessFactors assigned to the employee or are those from central organizational management still used, for example?

In constellations where Successfactors Employee Central and SAP Payroll are integrated, companies without the use of Position Management need to consider whether to use a position field representing positions from SAP in SuccessFactors to successfully perform the hiring action in SAP, or whether to forgo integration with Organizational Management in the SAP system.

Conclusion: The implementation of SuccessFactors Employee Central should be approached with a global scope and strategically. Local requirements and end-to-end process design must also be given sufficient project time.

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Heike Kolar, Inside Management Consulting

Heike Kolar is Business Development Manager at Inside Unternehmensberatung.


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