The COVID-19 pandemic profoundly changed the traditional workplace, forcing employers and employees to adapt to unprecedented challenges that paved the way for more flexible and resilient work models. Remote work’s dominance at the height of the pandemic required human resources (HR) departments to pivot and quickly adopt new technology that enabled them to continue to meet their companies’ needs.
According to WFH Research, as of 2023, 12.7% of full-time employees still work from home, while 28.2% work a hybrid model. Meanwhile, a University of Birmingham study found that 73% of managers believe flexible working arrangements have increased productivity, with 60% of managers believing the same about employees who work from home.
HR leaders have indicated that poor or non-existent technology and infrastructure for remote work are among their most significant barriers to success with this model. With remote and hybrid opportunities now here to stay, there is opportunity to reevaluate current business processes, systems, and technology needs as they relate to supporting remote work in human resources.
An overview of HR systems
An HR system electronically stores employee data, supporting a wide range of human resources tasks. Its core functions typically include payroll management, timekeeping, reporting, and data analytics. Beyond these essential functions, an HR system can serve as an operational hub, helping to enhance employee communication and engagement, foster collaboration among team members, boost overall efficiency, and ensure regulatory compliance.
There are three core types of HR systems for businesses to consider, each with various features and benefits. It is important to understand the similarities and differences between them to determine which best suits a business’s needs.
Insights on pricing and value
Several factors determine pricing and overall costs for HR technology systems. Subscription-based systems, which are often cloud-based (SaaS), charge a monthly fee driven by the number of users or headcount, and the vendor remains responsible for upgrades and maintenance. Meanwhile, license-fee systems involve on-premise servers, networks, or domains, and the business manages upgrades and maintenance independently.
Implementation costs vary based on the system selected, as well as the cost of any additional hardware requirements. Potential expenses range from hundreds to thousands of dollars per user, with an HRIS costing the least and an HCMS costing the most to implement. Installation, setup, and consulting also add to the overall cost.
Be wary of “free” downloadable systems. They often lack comprehensive features and may lead to additional expenses for upgrades or other systems to fill gaps. The company may try to sell support, service, maintenance, or security features to make up the cost.
When considering HR technology, make sure to consider the total cost of ownership beyond the initial price tag, factoring in installation, maintenance, labor, hardware, and training. It is also important to focus on the potential return on investment (ROI) over time, as prolonged use can lead to financial savings. The system a business selects should enhance efficiency, streamline processes, and be easy to use for HR, managers, and staff.
Bambilyn Copeland is Senior Director of Client Services at Employee Retention Solutions, an RDG+Partners company, which provides businesses across Upstate New York with a holistic solution for payroll, employee benefits, and retirement services enhanced by proven technology and boutique-level service for streamlined processes. For more information, visit www.rdg-ers.com.
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