Article | May 11, 2021
Exit interviews present a great opportunity for businesses to act on employee feedback. These interviews really do give employers the chance to find out the good, the bad, and the ugly about working for them and, more importantly, information upon which to effect positive change.
So much knowledge and insight on business process can be obtained from these interviews, including: learning and development opportunities, working relationships, insight into job role and design, culture, wellbeing, and much more. Addressing the issues raised in exit interviews not only could ultimately reduce your employee turnover but help to improve the culture and working environment for your employees.
Article | May 11, 2021
Ever since managing a remote workforce became the number one HR challenge, HR tech had to configure a new way to keep up with the changing demands. If you are looking to ramp up your organization’s HR tech ecosystem but don’t know where to start, you are not alone.
According to a PwC study, over 74% of organizations plan to increase their HR software budget. However, with the advent of new technologies, you are spoiled for choice when it comes to the tools, features and integrated solutions at your disposable.
But which one goes best with your organization’s specific HR objectives?
Next-generation HR systems like cloud people management, automation and Artificial Intelligence (AI) are helpful to know. But do you need them?
Before answering this, you must understand why you need to have a seamless and robust HR system and how to pick a human resources application software that’s the right fit for you?
Why do you need robust HR software for your business?
Have you ever wanted to optimize a business process, automate repetitive tasks and implement algorithms to make smart decisions? The right HR software can do that and so much more. But, just like any other business process, HR needs a robust application to make it effective and resourceful.
The demand for HR software is set to cross $10 billion by 2022. Additionally, the HR tech landscape is ever-evolving. With new technologies coming to the fore, this is the right time to rethink the tools you use and how you can build a resilient HR system for your organization.
Some of the functions a robust human resource application software can perform are:
Supporting recruitment practices.
Implement automation for day-to-day HR operations
Maintaining a categorized database of candidates and employees
Enabling training, workshops and learning journeys for new and existing employees
Maintain a record of leaves, work time and timesheets
Managing payroll, compensation and benefits
Launching and tracking employee engagement programs
Benefits of HR software solutions
Whether you are a small business with less than 50 employees or a large organization with multiple operations, HR software offer functionalities that translate into tangible benefits. The right solutions can help you optimize about 40% of administrative tasks saving your time and money in the process. Recognizing areas of HR your organization can improve is the key to leveraging the HR software tool you choose.
Improve core HR capabilities
HR tools offer the ability to automate tasks so that your HR team can focus on more important projects. For example, with less paperwork and administrative tasks, HR can devote their time and attention to recruitment needs, enhancing training and boosting employee engagement efforts.
Make a well-informed decision
Data is at the heart of HR management, whether it is maintaining employee information or tracking day-to-day tasks. Yet, HR teams are unable to get the most, even after having access to this valuable data. HR tools empower HR by generating reports, aiding analysis and capturing key insights that can guide decisions related to recruitment, performance, retention and much more.
Create an enriching employee experience
Studies report that engaged employees are healthier, more productive, report fewer absences, and are less likely to look for opportunities elsewhere. You can incorporate employee engagement programs that take your employee loyalty to the next level with the right HR tool.
HRIS vs. HRMS vs. HCMS
Depending on the function, you will find different types of HR software specialized in managing different tasks. However, there are essentially three categories that cover every aspect of HR.
Human Resource Information System (HRIS)
HRIS software is designed to deal with day-to-day HR operations. It revolves around digitizing employee records, managing documents & reports, and providing a centralized tool to access all employee data.
Human Capital Management (HCM)
HCM encompasses all the functions that HRIS software performs and more. In addition to digitizing employee records, HCM software goes a step further. It helps HR teams deal with the planning and organizing areas of HR. It also allows HR teams to evaluate, process and analyze employee performance related to productivity, engagement and value.
Human Resource Management System (HRMS)
HRMS encompasses everything that HCM software offers, with the ability to digitize and automate tasks. In addition, HRMS tools offer extensive management tools and are usually integrated solutions that cater to large organizations.
HR software workflow
The number of tools and resources available to manage HR may seem extensive but easy to understand. Here is how the three HR application software components fare with each other:
Applicant Tracking System (ATS)
Employee Self Service
Time and attendance tracker
Leave and Absence management
Learning and Management
Single-click Payroll Management
Time & Labor Management
How to choose the right HR software tools for your organization?
HR software tools not only allow you to manage your workforce but have implicit effects on your bottom line. So how do you go about choosing the right HR software to maximize ROI?
As employers continue to adjust to the new way of work, they need pragmatic and integrated solutions to help them protect their business and people.
- Greg Golub, Founder and CEO of Sequoia
Identifying gaps in your current process will help you ask the right question. But if you do not know where to start, here are the key aspects to consider before you zero in on any HR application software or features:
Scalability and Flexibility
HR software that is growth-ready can and will save you time and resources in the long run. However, your application needs to account for business expansion. Is it flexible enough to account for upgrades in technology, third-party APIs and cloud support? Will you be able to scale with your current software without requiring large-scale customization? Ideally, your HR software needs to offer the scalability and flexibility that a forward-looking, agile and dynamic business needs to grow.
Seamless integration capabilities
While today’s HR software is ahead of its time, it is essential to consider integration with your current HR system. Having a meaningful integration strategy can help you improve processes and comply better with data and security regulations. Does the HR solution provider offer integration support for your core HR systems? Does it need extensive modifications to work with your applications?
Training and implementation
To get the most out of your HRMS tools, you must consider the training and implementation aspects of the application. An effective training program that assigns accountability will quickly orient your team and troubleshoot any issues in implementing HR software. Your training program must help employees understand the scope of the application and make the most of the tools on offer.
Human Resources application software usually comes with inbuilt data security and compliance capabilities. These allow HR teams to secure large amounts of confidential employee information. HR tools also offer high levels of control that allow HR managers to share data securely and maintain the highest standard of all-around privacy.
Before you go
In all, the importance of HR software applications cannot be overstated. Using an optimized HR system has cascading effects in the long run. It can save you cost and time, improve critical areas of workforce management and enhance virtually all aspects of your business, like revenue generation and customer experience.
Frequently Asked Questions
Do I need both an RFI and RFP when seeking HR software providers?
With a request for Information (RFI) form, you will be able to get a complete overview of the HR application software from your potential vendors. It is meant to give you an insight into their functionalities and whether they meet your specific feature requirements, budget criteria, compliance standards, etc. On the other hand, a Request for Proposal (RFP) allows vendors to customize their offer as per enterprise needs and provides a more tailored insight to what is on offer.
Who should take the buying decision?
Ideally, a combination of HR and IT teams should be on your decision-making team alongside finance. Once a tentative budget is finalized, both HR and IT leaders add valuable inputs on the feasibility, functionality and features that best meet your organization’s goals.
How should I do my research for the right vendor?
Researching HR news sites for new and old players in the market, following the latest HR tech trends and keeping an eye out for new vendors through industry conferences and exhibits are just ways to find potential vendors online.
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"text": "With a request for Information (RFI) form, you will be able to get a complete overview of the HR application software from your potential vendors. It is meant to give you an insight into their functionalities and whether they meet your specific feature requirements, budget criteria, compliance standards, etc. On the other hand, a Request for Proposal (RFP) allows vendors to customize their offer as per enterprise needs and provides a more tailored insight to what is on offer."
"name": "Who should take the buying decision?",
"text": "Ideally, a combination of HR and IT teams should be on your decision-making team alongside finance. Once a tentative budget is finalized, both HR and IT leaders add valuable inputs on the feasibility, functionality and features that best meet your organization’s goals."
"name": "How should I do my research for the right vendor?",
"text": "Researching HR news sites for new and old players in the market, following the latest HR tech trends and keeping an eye out for new vendors through industry conferences and exhibits are just ways to find potential vendors online."
Article | May 11, 2021
The new coronavirus pandemic is a historical event likely to reshape the future of work in both subtle and overt ways. HR leaders have a critical role in creating empathetic, open communication to address employee experience and prevent a drop in morale. For many workers, telework is new territory and that means HR needs to guide the transition and pay special attention to how the move is communicated. "HR needs to own the practice of remote work," said Daniel W. Rasmus, founder and principal analyst at Serious Insights, an industry analyst firm. "They need to facilitate the discussion about how people work, how measurements change, and lead collaboratively with IT to put the right toolset in place."
Article | May 11, 2021
Engaged employees work better, are more productive and encourage others to contribute more. It’s a no-brainer that employees who feel connected to their organizations make for an empowered workforce. This is why employee engagement has an exponential impact on almost every significant aspect of your organization like profitability, revenue generation, sales, customer experience and even recruitment.
According to a Gallup study, highly engaged employees result in 21% higher profitability for their companies.
Employee engagement is a hot topic among HR leaders across the world and there is a ton of information about it and some ambiguity.
But isn’t engagement subjective? And what exactly does it mean to measure employee engagement? And how can you measure it if you can’t define it?
What is employee engagement and can it be measured?
Employee engagement is the degree of emotional and mental connection an employee has towards their work, team and organization. Employee engagement metrics cover more than just satisfaction, well-being and happiness derived from one’s job.
Measuring the right drivers of engagement adapted for your organization’s workplace and culture can reveal more valuable insights.
Levels of Employee Engagement
Employee engagement can be classified into four levels. From highly engaged to disengaged, here’s how every level is defined and what they mean.
Positive towards their job and team
Champion your organization and brand
Motivated to stay long-term
Higher productivity and job satisfaction
Favorable but not fully engaged
Unlikely to take initiative
On the lookout for other opportunities
Room to be more engaged
Neutral towards the organization
Demotivated about their work and team
Likely to underperform
Pose a risk of high turnover
Negative perception towards their work
Lack of commitment
Misaligned with your organization’s mission and values
Negative influence on team members
Why is it crucial to measure employee engagement?
People-centric organizations are fully aware that their people are one of their most important assets. So, how does employee engagement impact companies on the ground? Multiple studies show they have a direct influence on every critical area of your business.
According to a Gallup study, highly engaged employees result in 21% higher profitability for their companies. On the other hand, another study reveals that disengaged employees cost companies in the US $450 - 500 billion every year. Therefore, profitability is one the most significant aspect of your business and employee engagement is correlated to it.
Engaged employees are reported to be 17% more productive than those that are disengaged. This is because they love their jobs, thus, are willing to go above and beyond their scope of duties and getting more things done.
Since engaged employees report higher job satisfaction, they are unlikely to switch jobs. This drastically improves employee retention resulting in reduced costs for the organization.
Employee engagement has a direct impact on customer service. Engaged employees are deeply committed to their jobs and endeavor for customers satisfaction.
Engaged employees are also less likely to take unnecessary leaves. A Gallup study shows a 41% decrease in absenteeism from impeccable employee engagement alone.
Work is a modern-day source of stress for many workers. However, engaged employees are healthier, have fewer chronic diseases, are less likely to be overweight and more likely to eat healthier and exercise. Overall, it’s a win-win for both employers and employees.
Engaged employees are more focused. This results in fewer workplace injuries, drastically reducing costs and resulting in better adherence to safety standards.
Tracking Employee Engagement
The important question is what are the drivers of employee engagement and how do you even begin to quantify engagement?
Most organizations start right with employee engagement surveys and witness significant participation. But what steps are taken next once the surveys are complete? For this, choosing your survey questions matter a lot.
What to do?
Outline your plan of action
Collecting information will give you an insight into how your employees relate to the various drivers of engagement. Next, outline the exact outcomes you want out of this strategy.
For example, ask targeted questions that reveal perceptions of your organization, the pride your employees take in their work, intention to continue long-term. You can measure these and other parameters you consider important on a scale of 1 to 10 to determine the level of engagement.
Determine what matters most to YOUR employees
Every organization across industries varies in its workplace dynamics and what its employees consider important. You can determine what employees consider most essential by considering the following universal drivers of employee engagement:
My job empowers me to use my best skills.
My seniors demonstrate honesty and integrity.
I am confident this organization will do well.
My job is challenging and mentally stimulating.
The senior leaders here value their employees.
My opinions are heard and considered at work.
I get recognized for my efforts and contributions to the organization.
I see opportunities for career growth here.
I trust my leaders to lead this organization to grow and succeed.
I have all the necessary resources to do my job well.
Calibrate your employee engagement strategy
Resonance is key. The importance of conducting surveys and having your finger on the pulse of the workplace cannot be understated. However, it is also essential to pace your measuring to enable smart decision-making.
Research shows, tracking employee engagement annually is the best route to take. Since employee behaviors change through a period, you want to balance employee surveys to capture responses from everyone.
Pulse surveys can help you track engagement in real-time about specific changes and topics. While life cycle surveys will track employee perceptions during appraisals, transfers or promotions. Whatever you choose, ensure it is calibrated to your organization’s specific end goals.
What not to do?
Now that you know what steps to take next, it is imperative to explore some of the mistakes that you should avoid. Here is a list of things you should not do to avoid miscalculating employee engagement.
Don’t rely on pulse surveys
Short and specific surveys are crucial in your toolkit, but they are likely to paint only part of the picture. Hence, pulse surveys should not form the crux of your strategy. Instead, it can help you identify trends and patterns over time and shape a more concrete strategy that aligns with your organizational goals.
Don’t survey a sample population
Surveying a sample population can be deceptive when it comes to measuring employee engagement. Eliminate surveys that don’t cover all your employees and their voices. The results are skewed and the efforts do not help you get to the heart of your organization’s true ethos.
Don’t stop at collecting answers to surveys
Once you have the insights you need, don’t let them go stale. What this means is you need to take action right away while the results are fresh. This ensures our action steps are steady and aligned to the yielding the outcomes you want.
What does action look like?
Once you have the data you need, it is time to put it into action. An actionable strategy will help you implement your specific engagement drivers, propose steps to execute your employee engagement strategy, and create accountability for the outcomes you seek. Finally, employing an experience management solution can help you keep track of engagement and the actions you need to take.
Frequently Asked Questions
Who should collect engagement data?
Since engagement data is critical, you must ensure complete confidentiality. However, it is also important to share it with the right stakeholders. Your HR team should drive the efforts to collect the data you need.
Who is responsible for taking action on the results of the employee engagement survey?
The leadership team, HR and managers all play a role in determining the next steps post the collection of information stage. Your HR teams curate the tool and engagement partners while your leadership visualize the objectives and share progress. They can also support managers in identifying areas of focus where engagement efforts are most needed.
Do third-party providers offer employee engagement services?
Yes, quite a few third-party services are available if you are considering developing an employee engagement strategy. However, take note that you will want to do the heavy lifting of gathering data and identifying your goals to maximize getting the most out of these professional services.
"name": "Who should collect engagement data?",
"text": "Since engagement data is critical, you must ensure complete confidentiality. However, it is also important to share it with the right stakeholders. Your HR team should drive the efforts to collect the data you need."
"name": "Who is responsible for taking action on the results of the employee engagement survey?",
"text": "The leadership team, HR, and managers all play a role in determining the next steps post the collection of information stage. Your HR teams curate the tool and engagement partners while your leadership visualize the objectives and share progress. They can also support managers in identifying areas of focus where engagement efforts are most needed."
"name": "Do third-party providers offer employee engagement services?",
"text": "Yes, quite a few third-party services are available if you are considering developing an employee engagement strategy. However, take note that you will want to do the heavy lifting of gathering data and identifying your goals to maximize getting the most out of these professional services."